UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-23147
First Trust Exchange-Traded Fund VIII
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant’s telephone number, including area code: (630) 765-8000
Date of fiscal year end: August 31
Date of reporting period: August 31, 2021
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Report to Stockholders.
The registrant's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust CEF Income Opportunity ETF (FCEF) First Trust Municipal CEF Income Opportunity ETF (MCEF) ---------------------------- Annual Report For the Year Ended August 31, 2021 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 Shareholder Letter........................................................... 1 Fund Performance Overview First Trust CEF Income Opportunity ETF (FCEF)............................. 2 First Trust Municipal CEF Income Opportunity ETF (MCEF)................... 4 Notes to Fund Performance Overview........................................... 6 Portfolio Commentary......................................................... 7 Understanding Your Fund Expenses............................................. 9 Portfolio of Investments First Trust CEF Income Opportunity ETF (FCEF)............................. 10 First Trust Municipal CEF Income Opportunity ETF (MCEF)................... 12 Statements of Assets and Liabilities......................................... 14 Statements of Operations..................................................... 15 Statements of Changes in Net Assets.......................................... 16 Financial Highlights......................................................... 17 Notes to Financial Statements................................................ 18 Report of Independent Registered Public Accounting Firm...................... 24 Additional Information....................................................... 25 Board of Trustees and Officers............................................... 31 Privacy Policy............................................................... 33 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. ("First Trust" or the "Advisor") and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as "anticipate," "estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or other words that convey uncertainty of future events or outcomes. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of any series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (each such series is referred to as a "Fund" and collectively, as the "Funds") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof. PERFORMANCE AND RISK DISCLOSURE There is no assurance that any Fund described in this report will achieve its investment objective(s). Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund's shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in a Fund. See "Risk Considerations" in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds. Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost. The Advisor may also periodically provide additional information on Fund performance on each Fund's webpage at www.ftportfolios.com. HOW TO READ THIS REPORT This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund's performance and investment approach. By reading the portfolio commentary from the portfolio management team of the Funds, you may obtain an understanding of how the market environment affected each Fund's performance. The statistical information that follows may help you understand each Fund's performance compared to that of relevant market benchmarks. It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings. <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2021 Dear Shareholders: First Trust is pleased to provide you with the annual report for the First Trust CEF Income Opportunity ETF ("FCEF") and the First Trust Municipal CEF Income Opportunity ETF ("MCEF" and together with FCEF, the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, which contains detailed information about the Funds for the twelve months ended August 31, 2021. The coronavirus ("COVID-19") pandemic has proven to be as stubborn as advertised. We were warned by the scientific community early on that we would have to coexist with this virus from here on out, and that appears to be the case some 19 months after its onset. While the three main vaccines have proven to be effective at keeping those people who have gotten all the required shots out of the hospital, the U.S., unfortunately, had only achieved a 54% fully vaccinated rate as of September 9, 2021, according to the Centers for Disease Control and Prevention. If you add in the people ages 18 and older who have received just one of the two-dose vaccines, it jumps to 75.3%. The U.S. and global economies continue to underperform due to the pandemic. The U.S. alone had a record high 10.9 million job openings at the end of July 2021, according to the latest Job Openings and Labor Turnover Survey from the Department of Labor. It appears that many people do not seem to want to work right now. An estimated 7.5 million unemployment recipients in the U.S. were scheduled to lose their benefits on September 6, 2021. Perhaps that will be enough to incentivize people to go back to work. The Federal Reserve (the "Fed") continues to play a major role in the U.S. economy. It has kept short-term interest rates artificially low for the better part of the past 13 years. The Federal Funds target rate (upper bound), while held at 0.25% for roughly nine of those 13 years, reached as high as 2.50% in the same 13-year period, but only for a few months and that was just prior to the COVID-19 pandemic, according to data from the Fed. For comparative purposes, the target rate averaged 2.56% for the 30-year period ended September 21, 2021. It currently stands at 0.25%. In addition to keeping rates low, the Fed has been buying assets, specifically Treasuries and mortgage-backed securities. It has been buying a combined $120 billion of these securities every month. This has helped keep bond yields artificially low as well. As of February 26, 2020, the value of the assets on the Fed's balance sheet totaled $4.16 trillion, according to its own data. As of September 15, 2021, the assets were valued at $8.45 trillion. Keep in mind, the balance sheet stood at $1 trillion on September 17, 2008. That was during the 2007-2008 Financial Crisis. Due to the reopening of the U.S. economy and a bigger-than-expected rise in inflation this year, the Fed has signaled that it could begin to taper its bond buying program by the end of 2021. With respect to the Federal Funds rate, the Fed continues to say it intends to leave short-term rates where they are until 2023. In other words, the Fed is poised to maintain its accommodative stance towards monetary policy. They are not looking to get tight - just less loose. We will monitor this scenario closely in the months ahead to see if the Fed's actions impact the direction of interest rates and bond yields. Overall, I am pleased to report that the securities markets have performed well in this tumultuous climate. It appears, in our opinion, that the extremely low interest rates offered on savings vehicles has motivated many investors to assume more risk to potentially generate higher returns. The S&P 500(R) Index (the "Index") posted a total return of 31.17% for the 12-month period ended August 31, 2021, according to Bloomberg. For comparative purposes, from 1926 through 2020 (95 years), the Index returned an average of 10.28% per year on a total return basis, according to Morningstar/Ibbotson Associates. Should interest rates and bond yields eventually trend higher, investors should be prepared for a bit of turbulence as stocks and bonds may be subjected to some potential short-term profit taking, in my opinion. Having said that, I encourage investors to stay the course. I remain optimistic due in large part to the trillions of dollars in government stimulus money already circulating in the economy as well as the potential for trillions of additional dollars from President Joe Biden's infrastructure and "human infrastructure" bills still weaving their way through Congress. It's hard to bet against growth in the current climate. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months. Sincerely, /s/ James A. Bowen James A. Bowen Chairman of the Board of Trustees Chief Executive Officer of First Trust Advisors L.P. Page 1 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- FIRST TRUST CEF INCOME OPPORTUNITY ETF (FCEF) The First Trust CEF Income Opportunity ETF (the "Fund") seeks to provide current income with a secondary emphasis on total return. Under normal market conditions, the Fund seeks to achieve its investment objectives by investing at least 80% of its net assets (including investment borrowings) in a portfolio of closed-end investment companies that are listed and traded in the United States on registered exchanges. The Fund is classified as "diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on The Nasdaq Stock Market LLC under the ticker symbol "FCEF." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (9/27/16) Inception (9/27/16) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 34.19% 10.90% 66.39% Market Price 33.83% 10.83% 65.93% INDEX PERFORMANCE Russell 3000(R) Index 33.04% 18.32% 129.05% Blended Benchmark (1) 30.00% 9.92% 59.36% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 6.) ----------------------------- (1) A blended benchmark (the "Blended Benchmark") comprised 60% of the First Trust Equity Closed-End Fund Total Return Index, a cap-weighted index (based on NAV) designed to provide a broad representation of the equity based closed-end fund universe, and 40% of the First Trust Taxable Fixed Income Closed-End Fund Total Return Index, a cap-weighted index (based on NAV) designed to provide a broad representation of the taxable fixed income closed-end fund universe, has been selected as a secondary benchmark to provide a more direct correlation to the Fund's underlying portfolio. The indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. The Blended Index returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 60-40 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. Page 2 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST CEF INCOME OPPORTUNITY ETF (FCEF) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Eaton Vance Tax-Advantaged Global Dividend Income Fund 4.8% BlackRock Science & Technology Trust 4.7 Cohen & Steers REIT and Preferred and Income Fund, Inc. 4.1 Eaton Vance Tax-Advantaged Dividend Income Fund 3.9 Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund 3.8 Tekla Healthcare Investors 3.7 Tekla Healthcare Opportunities Fund 3.5 Ares Dynamic Credit Allocation Fund, Inc. 3.4 Gabelli Dividend & Income Trust (The) 3.3 BlackRock Science & Technology Trust II 3.3 -------- Total 38.5% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM WORLD REGIONS INVESTMENTS ---------------------------------------------------------- North America 78.8% Europe 11.8 Asia 9.4 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM MARKET CAPITALIZATION INVESTMENTS ---------------------------------------------------------- Mega 28.7% Large 35.3 Mid 25.8 Small 6.6 Micro 3.6 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM CREDIT QUALITY (2) INVESTMENTS ---------------------------------------------------------- AAA 5.9% AA 0.5 A 1.3 BBB 19.0 BB 27.6 B 26.6 CCC-D 8.9 NR 10.2 -------- Total 100.0% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 27, 2016 - AUGUST 31, 2021 First Trust CEF Income Russell 3000(R) Blended Opportunity ETF Index Benchmark <S> <C> <C> <C> 9/28/16 $10,000 $10,000 $10,000 2/28/17 10,698 11,058 10,693 8/31/17 11,348 11,637 11,267 2/28/18 11,572 12,853 11,410 8/31/18 12,267 13,993 12,041 2/28/19 12,044 13,502 11,833 8/31/19 12,658 14,177 12,452 2/29/20 12,451 14,434 12,117 8/31/20 12,401 17,216 12,258 2/28/21 14,636 19,532 14,085 8/31/21 16,638 22,903 15,935 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. (2) The ratings are by Standard & Poor's except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change. Page 3 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MUNICIPAL CEF INCOME OPPORTUNITY ETF (MCEF) The First Trust Municipal CEF Income Opportunity ETF (the "Fund") seeks to provide current income. Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of closed-end investment companies that are listed and traded in the United States on registered exchanges which invest primarily in municipal debt securities, some or all of which pay interest that is exempt from regular federal income taxes. The Fund may also invest in exchange-traded funds. The Fund is classified as "diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on The Nasdaq Stock Market LLC under the ticker symbol "MCEF." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (9/27/16) Inception (9/27/16) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 16.37% 5.10% 27.75% Market Price 16.44% 5.09% 27.67% INDEX PERFORMANCE Bloomberg Municipal Bond Index 3.40% 3.44% 18.11% First Trust Municipal Closed-End Fund Total Return Index (1) 17.36% 5.85% 32.31% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 6.) ----------------------------- (1) The First Trust Municipal Closed-End Fund Total Return Index, a cap-weighted index (based on NAV) designed to provide a broad representation of the taxable fixed income closed-end fund universe, has been selected as a secondary benchmark to provide a more direct correlation to the Fund's underlying portfolio. The index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. Page 4 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MUNICIPAL CEF INCOME OPPORTUNITY ETF (MCEF) (CONTINUED) ---------------------------------------------------------- % OF TOTAL TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Nuveen AMT-Free Municipal Credit Income Fund 5.1% Nuveen AMT-Free Quality Municipal Income Fund 5.1 Nuveen Quality Municipal Income Fund 4.6 BlackRock MuniYield Quality Fund, Inc. 4.1 BlackRock MuniYield Quality Fund III, Inc. 4.0 Invesco Quality Municipal Income Trust 4.0 BlackRock Muni Intermediate Duration Fund, Inc. 3.9 BlackRock MuniHoldings Fund, Inc. 3.8 Nuveen Municipal Credit Opportunities Fund 3.6 Nuveen Municipal Credit Income Fund 3.5 -------- Total 41.7% ======== ---------------------------------------------------------- % OF TOTAL TOP STATE EXPOSURE INVESTMENTS ---------------------------------------------------------- Illinois 11.6% California 9.0 New York 8.7 Texas 7.8 Florida 6.7 -------- Total 43.8% ======== ---------------------------------------------------------- % OF TOTAL CREDIT QUALITY (2) INVESTMENTS ---------------------------------------------------------- AAA 6.8% AA 26.4 A 24.5 BBB 18.0 BB 6.7 B 1.9 CCC-D 1.2 NR 14.5 -------- Total 100.0% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 27, 2016 - AUGUST 31, 2021 First Trust Municipal CEF Bloomberg Barclays First Trust Municipal Income Opportunity ETF Municipal Bond Index Closed-End Fund Index <S> <C> <C> <C> 9/28/16 $10,000 $10,000 $10,000 2/28/17 9,433 9,758 9,359 8/31/17 9,919 10,128 9,978 2/28/18 9,415 10,003 9,399 8/31/18 9,613 10,178 9,693 2/28/19 9,889 10,416 10,017 8/31/19 10,858 11,066 11,182 2/29/20 11,086 11,402 11,415 8/31/20 10,977 11,424 11,273 2/28/21 11,636 11,522 11,971 8/31/21 12,775 11,813 13,231 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- (2) The ratings are by Standard & Poor's except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change. Page 5 <PAGE> -------------------------------------------------------------------------------- NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- Total returns for the period since inception are calculated from the inception date of each Fund. "Average Annual Total Returns" represent the average annual change in value of an investment over the periods indicated. "Cumulative Total Returns" represent the total change in value of an investment over the periods indicated. Each Fund's per share net asset value ("NAV") is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return ("Market Price") is determined by using the midpoint of the national best bid and offer price ("NBBO") as of the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund's NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund's NAV was calculated. Since shares of each Fund did not trade in the secondary market until after its inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund's past performance is no guarantee of future performance. Page 6 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) INVESTMENT ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to the First Trust CEF Income Opportunity ETF ("FCEF") and the First Trust Municipal CEF Income Opportunity ETF ("MCEF" and together with FCEF, the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, and is responsible for the selection and ongoing monitoring of the securities in the Funds' portfolios and certain other services necessary for the management of the portfolios. PORTFOLIO MANAGEMENT Ken Fincher, Senior Vice President of First Trust, and Jordan Ramsland, Vice President of First Trust, are the Funds' portfolio managers and have responsibility for the day-to-day management of each Fund's investment portfolio. Mr. Fincher has nearly 30 years of experience in financial markets. His current responsibilities include management of two First Trust exchange-traded funds and separately managed accounts that invest primarily in closed-end funds. He has also helped develop new product structures in the closed-end fund space. Mr. Fincher has been named Outstanding Individual Contributor to the Closed-End Fund Sector in 2007, 2006, 2005 and 2004 by financial analysts and his peers in the closed-end fund community and served on the Closed-End Fund committee of the Investment Company Institute. Mr. Fincher received a B.A. in financial administration from Michigan State University and an M.B.A. from Loyola University Graduate School of Business. Mr. Ramsland joined First Trust in 2013, and his current responsibilities include research and management of strategies that invest primarily in closed-end funds. He is responsible for updating and maintaining First Trust's proprietary closed-end fund models as part of the investment process for the First Trust closed-end funds, exchange-traded funds and separately managed accounts. Mr. Ramsland graduated from Palm Beach Atlantic University in 2011 with a B.S. in Finance. COMMENTARY FCEF MARKET RECAP Equity and taxable fixed income closed-end funds ("CEFs") enjoyed strong returns during the Fund's fiscal year ended August 31, 2021. This was dually led by underlying net asset value ("NAV") appreciation and share prices rising faster than NAVs. As the economy began to heal after the coronavirus ("COVID-19") induced sell-off, many investors looked to CEFs as a source for income and capital appreciation. Discounts to NAV narrowed over the fiscal year ended August 31, 2021. Discounts in the equity space on average narrowed to -5.23% (versus -11.62% on August 31, 2020). In Taxable Fixed Income CEFs, these have traded up to an average 1.18% premium to NAV (versus a -5.71% discount on August 31, 2020) during the fiscal year. The average discount of the underlying funds in which the Fund invests narrowed during the fiscal year from -9.24% to -3.94%. PERFORMANCE ANALYSIS On a NAV basis through the fiscal year ended August 31, 2021, the Fund provided a total return of 34.19%. The Fund's Blended Benchmark (the "Blended Benchmark") consists of 60% of the First Trust Equity Closed-End Fund Total Return Index and 40% of the First Trust Taxable Fixed Income Closed-End Fund Total Return Index and provided a total return of 30.00% over the same period. The Fund's NAV total return outperformed the Blended Benchmark's total return by 4.19% for the fiscal year ended August 31, 2021. The Fund's share price return of 33.83% outperformed the Blended Benchmark's total return by 3.83% for the same period. The primary factor resulting in outperformance relative to the Blended Benchmark was security selection within the equity and Taxable Fixed Income CEFs market. Additionally, overweighting equity CEFs, and underweighting Taxable Fixed Income funds relative to the Blended Benchmark was also additive to relative performance, as equity-based funds outperformed during the Fund's fiscal year ended August 31, 2021. MARKET AND FUND OUTLOOK As most equity funds posted strong returns during the Fund's fiscal year ended August 31, 2021, we have seen a number of funds raise distributions now that embedded gains increased amidst the economic recovery. The cost of short-term financing (leverage) looks to be low for the near-term, with many investors closely watching the Federal Reserve's (the "Fed") actions regarding its bond tapering plan as a potential precursor to the Fed's action on the short end of the curve. As short-term interest rates remain near zero, investors in CEFs continue to benefit from the spread earned by borrowing short and investing long. When the Fed ultimately hints at raising short-term rates, we would expect Taxable Fixed Income investors to migrate toward shorter duration securities. Page 7 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) As we mentioned last year, COVID-19-induced weakness in share prices emboldened some activist shareholders to step up the pressure on fund sponsors to attempt to narrow discounts. We have seen in the past, and expect to continue to see, corporate actions as funds look to fend off these shareholders by enacting mergers, tender offers, and secondary market buybacks. In some instances, this can be a positive for funds, but more often, the fund is left with a smaller asset base, higher fixed costs per share and wider bid/ask spreads which can make trading in and out more inefficient. The CEF initial public offering calendar has been very strong with a new deal coming to market each month in 2021. The cumulative assets raised year-to-date have surpassed all full calendar years since 2013. We believe the new CEF structure, in which the fund sponsor pays the sales charges, creates a wider investment audience. New issues have typically been coming to market with a twelve-to-fifteen-year term with the potential to become perpetual in nature. We continue to focus on buying funds based on fundamentals, while seeking to identify opportunities that can provide investors with the potential for an attractive total return, whether it be on the equity or fixed income side of the ledger. As in any market, there will be winners and losers, so it is important to stay active in that portion of your portfolio that invests in CEFs. MCEF MARKET RECAP Through the fiscal year ended August 31, 2021, municipal CEFs have returned 17.36%, as measured by the Fund's CEF benchmark, the First Trust Municipal Closed-End Fund Total Return Index. Performance during the fiscal year steadily pushed higher as global economies began to reopen. Discounts continued to tighten throughout the fiscal year, and the average fund now trades at a slight premium to NAV amidst strong investor demand. The average discount in the national municipal space narrowed from a discount of -5.17% to a 1.40% premium over the past year, according to Morningstar. Some drivers that we believe will help the municipal space moving forward are the continued low cost of borrowing (leverage), the potential for personal and corporate tax increases, infrastructure spending, and the view by retail investors that municipals continue to offer a safe haven. Additionally, there has been a continued effort by CEF sponsors to merge smaller municipal funds to form funds with a larger asset base to create greater economies of scale and increase liquidity, which we see as a positive for shareholders. PERFORMANCE ANALYSIS On a NAV basis through the fiscal year ended August 31, 2021, the Fund provided a total return of 16.37%, and returned 16.44% on a share price basis. The Fund's secondary benchmark, the First Trust Municipal Closed-End Total Return Fund Index provided a total return of 17.36% over the same period. The Fund's NAV and share price total return trailed the secondary benchmark's total return by 0.99% and 0.92%, respectively, during the same period. The underperformance was primarily due to exposure to shorter duration term CEFs and exchange-traded funds which generally trailed longer duration municipal CEFs. In comparison to the Bloomberg Municipal Bond Index, which returned 3.40% during the fiscal year, municipal CEFs greatly outperformed. Throughout the fiscal year ended August 31, 2021, the Fund continued to roll out of its defensive positioning as several shorter duration funds matured, with most proceeds being deployed in longer duration leveraged municipal CEFs. Increased earnings in the Fund allowed for two increases in the monthly distribution rate during the Fund's fiscal year ended August 31, 2021. Overall, this amounted to a 13.6% increase in the monthly distribution paid during the fiscal year. MARKET AND FUND OUTLOOK CEFs investing in municipal bonds benefited from the underlying bonds being seen as a "safe haven" as financial markets pushed through their COVID-19-induced recovery. Additionally, unprecedented fiscal and monetary stimulus provided a backstop to municipalities and allowed defaults to stay low thus far during the economic rebound. Widespread vaccine availability in the United States also aided in the "return to normalcy" as the economy continued to heal, though the Delta variant has put a damper on the speed of the recovery. Moving forward, the municipal space will be faced with challenges as existing higher coupon bonds are called away and replaced with lower yielding bonds in the low current interest rate environment. We anticipate that a majority of the returns over the next twelve months will come from the income paid out by the funds. Overall, we remain cautiously optimistic as the world continues to heal from its physical and economic wounds. We believe that active management in the CEF space matters. Page 8 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2021 (UNAUDITED) As a shareholder of First Trust CEF Income Opportunity ETF or First Trust Municipal CEF Income Opportunity ETF (each a "Fund" and collectively, the "Funds"), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended August 31, 2021. ACTUAL EXPENSES The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this six-month period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------- ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD (a) PERIOD (a) (b) ------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> FIRST TRUST CEF INCOME OPPORTUNITY ETF (FCEF) Actual $1,000.00 $1,137.10 0.85% $4.58 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FIRST TRUST MUNICIPAL CEF INCOME OPPORTUNITY ETF (MCEF) Actual $1,000.00 $1,097.90 0.75% $3.97 Hypothetical (5% return before expenses) $1,000.00 $1,021.42 0.75% $3.82 </TABLE> (a) Annualized expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which each Fund invests. (b) Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 1, 2021 through August 31, 2021), multiplied by 184/365 (to reflect the six-month period). Page 9 <PAGE> FIRST TRUST CEF INCOME OPPORTUNITY ETF (FCEF) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CLOSED-END FUNDS -- 99.0% CAPITAL MARKETS -- 99.0% 23,699 Adams Natural Resources Fund, Inc. $ 352,167 41,175 Advent Convertible and Income Fund 784,796 9,391 Angel Oak Dynamic Financial Strategies Income Term Trust 194,675 21,352 Apollo Tactical Income Fund, Inc. 339,070 79,601 Ares Dynamic Credit Allocation Fund, Inc. 1,296,700 23,653 Barings Global Short Duration High Yield Fund 405,176 23,537 BlackRock Corporate High Yield Fund, Inc. 296,566 24,382 BlackRock Health Sciences Trust II 700,739 26,549 BlackRock Multi-Sector Income Trust 495,139 32,517 BlackRock Science & Technology Trust 1,784,208 30,781 BlackRock Science & Technology Trust II 1,264,483 49,743 Blackstone Strategic Credit Fund 689,438 15,940 Central Securities Corp. 683,985 25,878 Cohen & Steers Infrastructure Fund, Inc. 753,050 57,522 Cohen & Steers REIT and Preferred and Income Fund, Inc. 1,580,129 62,501 DoubleLine Income Solutions Fund 1,118,768 11,227 Eaton Vance Enhanced Equity Income Fund 217,579 44,127 Eaton Vance Short Duration Diversified Income Fund 601,892 52,464 Eaton Vance Tax-Advantaged Dividend Income Fund 1,497,323 81,842 Eaton Vance Tax-Advantaged Global Dividend Income Fund 1,820,985 45,067 Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund 1,448,453 47,017 Gabelli Dividend & Income Trust (The) 1,270,399 18,421 General American Investors Co., Inc. 829,129 2,495 John Hancock Financial Opportunities Fund 109,705 44,946 John Hancock Tax-Advantaged Dividend Income Fund 1,100,728 13,343 Lazard Global Total Return and Income Fund, Inc. 290,877 36,481 Macquarie Global Infrastructure Total Return Fund, Inc. 864,600 4,374 Morgan Stanley China A Share Fund, Inc. 90,104 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CAPITAL MARKETS (CONTINUED) 159,547 Nuveen Credit Strategies Income Fund $ 1,037,056 86,076 Nuveen Preferred & Income Opportunities Fund 863,342 29,353 Nuveen Real Asset Income and Growth Fund 473,170 41,057 Nuveen Tax-Advantaged Dividend Growth Fund 680,725 77,055 PGIM Global High Yield Fund, Inc. 1,210,534 48,715 PIMCO Dynamic Credit and Mortgage Income Fund 1,094,139 17,314 PIMCO Dynamic Income Opportunities Fund 375,021 33,858 Principal Real Estate Income Fund 528,523 17,155 Royce Micro-Cap Trust, Inc. 205,174 41,247 Royce Value Trust, Inc. 781,218 21,558 Source Capital, Inc. 1,004,271 53,276 Tekla Healthcare Investors 1,425,133 54,777 Tekla Healthcare Opportunities Fund 1,355,183 20,309 Tekla Life Sciences Investors 443,752 23,070 Templeton Emerging Markets Fund 412,722 29,415 Tri-Continental Corp. 1,027,466 24,503 Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund 685,349 26,163 Virtus AllianzGI Convertible & Income 2024 Target Term Fund 270,264 11,958 Virtus AllianzGI Equity & Convertible Income Fund 368,187 49,381 Western Asset Emerging Markets Debt Fund, Inc. 686,890 54,490 Western Asset High Income Opportunity Fund, Inc. 286,073 14,332 Western Asset Inflation-Linked Opportunities & Income Fund 190,902 ------------- TOTAL CLOSED-END FUNDS -- 99.0% 38,285,957 (Cost $33,653,987) ------------- MONEY MARKET FUNDS -- 0.9% 339,896 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class 0.01% (a) 339,896 (Cost $339,896) ------------- TOTAL INVESTMENTS -- 99.9% 38,625,853 (Cost $33,993,883) (b) NET OTHER ASSETS AND LIABILITIES -- 0.1% 49,516 ------------- NET ASSETS -- 100.0% $ 38,675,369 ============= Page 10 See Notes to Financial Statements <PAGE> FIRST TRUST CEF INCOME OPPORTUNITY ETF (FCEF) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $34,003,914. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $5,219,818 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $597,879. The net unrealized appreciation was $4,621,939. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Closed-End Funds* $ 38,285,957 $ -- $ -- Money Market Funds 339,896 -- -- --------------------------------------------- Total Investments $ 38,625,853 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 11 <PAGE> FIRST TRUST MUNICIPAL CEF INCOME OPPORTUNITY ETF (MCEF) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CLOSED-END FUNDS -- 96.4% CAPITAL MARKETS -- 96.4% 33,713 BlackRock Long-Term Municipal Advantage Trust $ 487,827 45,573 BlackRock Muni Intermediate Duration Fund, Inc. 716,408 20,382 BlackRock Municipal 2030 Target Term Trust 536,047 29,599 BlackRock Municipal Income Trust 462,336 34,865 BlackRock Municipal Income Trust II 561,327 40,220 BlackRock MuniHoldings Fund, Inc. 690,980 26,890 BlackRock MuniHoldings Investment Quality Fund 400,123 22,588 BlackRock MuniHoldings Quality Fund II, Inc. 327,074 44,015 BlackRock MuniYield Quality Fund, Inc. 739,012 35,735 BlackRock MuniYield Quality Fund II, Inc. 522,803 48,910 BlackRock MuniYield Quality Fund III, Inc. 733,650 12,733 DTF Tax-Free Income, Inc. 190,231 18,650 Eaton Vance Municipal Bond Fund 257,743 10,424 Eaton Vance Municipal Income 2028 Term Trust 241,889 29,175 Eaton Vance Municipal Income Trust 417,494 42,613 Invesco Municipal Trust 600,417 16,355 Invesco Pennsylvania Value Municipal Income Trust 221,610 53,365 Invesco Quality Municipal Income Trust 727,365 42,025 Invesco Trust for Investment Grade Municipals 599,277 13,597 Invesco Value Municipal Income Trust 231,829 11,358 MainStay MacKay DefinedTerm Municipal Opportunities Fund 257,259 13,466 Neuberger Berman Municipal Fund, Inc. 226,633 51,310 Nuveen AMT-Free Municipal Credit Income Fund 933,329 58,023 Nuveen AMT-Free Quality Municipal Income Fund 921,405 32,622 Nuveen Dynamic Municipal Opportunities Fund 539,894 20,575 Nuveen Enhanced Municipal Value Fund 349,775 11,984 Nuveen Intermediate Duration Municipal Term Fund 177,363 12,479 Nuveen Intermediate Duration Quality Municipal Term Fund 186,686 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CAPITAL MARKETS (CONTINUED) 36,107 Nuveen Municipal Credit Income Fund $ 627,901 41,839 Nuveen Municipal Credit Opportunities Fund 655,617 37,607 Nuveen Municipal High Income Opportunity Fund 577,267 50,560 Nuveen Municipal Value Fund, Inc. 595,091 51,472 Nuveen Quality Municipal Income Fund 837,449 40,238 Western Asset Intermediate Muni Fund, Inc. 391,113 15,880 Western Asset Municipal High Income Fund, Inc. 129,581 36,687 Western Asset Municipal Partners Fund, Inc. 600,933 ------------- TOTAL CLOSED-END FUNDS -- 96.4% 17,672,738 (Cost $16,772,537) ------------- EXCHANGE-TRADED FUNDS -- 2.7% CAPITAL MARKETS -- 2.7% 7,732 VanEck Vectors High-Yield Muni ETF 491,059 (Cost $494,644) ------------- TOTAL INVESTMENTS -- 99.1% 18,163,797 (Cost $17,267,181) (a) NET OTHER ASSETS AND LIABILITIES -- 0.9% 164,050 ------------- NET ASSETS -- 100.0% $ 18,327,847 ============= (a) Aggregate cost for federal income tax purposes is $17,269,380. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $928,424 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $34,007. The net unrealized appreciation was $894,417. Page 12 See Notes to Financial Statements <PAGE> FIRST TRUST MUNICIPAL CEF INCOME OPPORTUNITY ETF (MCEF) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Closed-End Funds* $ 17,672,738 $ -- $ -- Exchange-Traded Funds* 491,059 -- -- --------------------------------------------- Total Investments $ 18,163,797 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 13 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2021 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST MUNICIPAL CEF CEF INCOME INCOME OPPORTUNITY ETF OPPORTUNITY ETF (FCEF) (MCEF) --------------- --------------- <S> <C> <C> ASSETS: Investments, at value.................................................. $ 38,625,853 $ 18,163,797 Cash................................................................... -- 167,546 Dividends receivables.................................................. 76,642 48,934 --------------- --------------- Total Assets........................................................ 38,702,495 18,380,277 --------------- --------------- LIABILITIES: Payables: Investment securities purchased..................................... -- 41,273 Investment advisory fees............................................ 27,126 11,157 --------------- --------------- Total Liabilities................................................... 27,126 52,430 --------------- --------------- NET ASSETS............................................................. $ 38,675,369 $ 18,327,847 =============== =============== NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 34,038,380 $ 17,360,448 Par value.............................................................. 15,050 8,500 Accumulated distributable earnings (loss).............................. 4,621,939 958,899 --------------- --------------- NET ASSETS............................................................. $ 38,675,369 $ 18,327,847 =============== =============== NET ASSET VALUE, per share............................................. $ 25.70 $ 21.56 =============== =============== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 1,505,000 850,002 =============== =============== Investments, at cost................................................... $ 33,993,883 $ 17,267,181 =============== =============== </TABLE> Page 14 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2021 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST MUNICIPAL CEF CEF INCOME INCOME OPPORTUNITY ETF OPPORTUNITY ETF (FCEF) (MCEF) --------------- --------------- <S> <C> <C> INVESTMENT INCOME: Dividends.............................................................. $ 1,241,614 $ 471,862 --------------- --------------- Total investment income............................................. 1,241,614 471,862 --------------- --------------- EXPENSES: Investment advisory fees............................................... 289,694 81,895 --------------- --------------- Total expenses...................................................... 289,694 81,895 --------------- --------------- NET INVESTMENT INCOME (LOSS)........................................... 951,920 389,967 --------------- --------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... 743,787 107,619 In-kind redemptions................................................. 1,101,644 464 Distribution of capital gains from investment companies............. 147,586 7,204 --------------- --------------- Net realized gain (loss)............................................... 1,993,017 115,287 Net change in unrealized appreciation (depreciation) on investments.... 7,167,845 1,141,529 --------------- --------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ 9,160,862 1,256,816 --------------- --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ 10,112,782 $ 1,646,783 =============== =============== </TABLE> See Notes to Financial Statements Page 15 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FIRST TRUST FIRST TRUST CEF INCOME MUNICIPAL CEF INCOME OPPORTUNITY ETF OPPORTUNITY ETF (FCEF) (MCEF) -------------------------------- -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 8/31/2021 8/31/2020 8/31/2021 8/31/2020 --------------- --------------- --------------- --------------- <S> <C> <C> <C> <C> OPERATIONS: Net investment income (loss)............................. $ 951,920 $ 1,441,253 $ 389,967 $ 321,427 Net realized gain (loss)................................. 1,993,017 1,374,432 115,287 11,822 Net change in unrealized appreciation (depreciation)..... 7,167,845 (2,466,746) 1,141,529 (559,211) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations....................................... 10,112,782 348,939 1,646,783 (225,962) --------------- --------------- --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations.................................... (1,686,588) (2,002,675) (395,501) (289,376) --------------- --------------- --------------- --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold................................ 6,988,057 14,808,321 8,430,208 3,994,750 Cost of shares redeemed.................................. (10,040,378) (16,937,688) -- (5,618,446) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from shareholder transactions......................... (3,052,321) (2,129,367) 8,430,208 (1,623,696) --------------- --------------- --------------- --------------- Total increase (decrease) in net assets.................. 5,373,873 (3,783,103) 9,681,490 (2,139,034) NET ASSETS: Beginning of period...................................... 33,301,496 37,084,599 8,646,357 10,785,391 --------------- --------------- --------------- --------------- End of period............................................ $ 38,675,369 $ 33,301,496 $ 18,327,847 $ 8,646,357 =============== =============== =============== =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period.................. 1,655,000 1,705,000 450,002 550,002 Shares sold.............................................. 300,000 750,000 400,000 200,000 Shares redeemed.......................................... (450,000) (800,000) -- (300,000) --------------- --------------- --------------- --------------- Shares outstanding, end of period........................ 1,505,000 1,655,000 850,002 450,002 =============== =============== =============== =============== </TABLE> Page 16 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST CEF INCOME OPPORTUNITY ETF (FCEF) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ---------------------------------------------- ENDED 2021 2020 2019 2018 8/31/2017 (a) ---------- ---------- ---------- ---------- -------------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period.................. $ 20.12 $ 21.75 $ 22.26 $ 21.66 $ 20.05 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).......................... 0.65 0.82 0.82 0.78 1.02 Net realized and unrealized gain (loss)............... 6.07 (1.29) (0.18) 0.93 1.61 -------- -------- -------- -------- -------- Total from investment operations...................... 6.72 (0.47) 0.64 1.71 2.63 -------- -------- -------- -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................. (0.84) (1.10) (0.96) (1.01) (0.79) Net realized gain..................................... (0.30) (0.06) (0.19) (0.10) (0.12) Return of capital..................................... -- -- -- -- (0.11) -------- -------- -------- -------- -------- Total distributions................................... (1.14) (1.16) (1.15) (1.11) (1.02) -------- -------- -------- -------- -------- Net asset value, end of period........................ $ 25.70 $ 20.12 $ 21.75 $ 22.26 $ 21.66 ======== ======== ======== ======== ======== TOTAL RETURN (b)...................................... 34.19% (2.04)% 3.18% 8.09% 13.49% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's).................. $ 38,675 $ 33,301 $ 37,085 $ 45,754 $ 31,517 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (c)..... 0.85% 0.85% 0.85% 0.85% 0.85% (d) Ratio of net investment income (loss) to average net assets............................................. 2.79% 4.01% 3.92% 3.14% 5.99% (d) Portfolio turnover rate (e)........................... 8% 6% 13% 15% 23% </TABLE> FIRST TRUST MUNICIPAL CEF INCOME OPPORTUNITY ETF (MCEF) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ---------------------------------------------- ENDED 2021 2020 2019 2018 8/31/2017 (a) ---------- ---------- ---------- ---------- -------------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period.................. $ 19.21 $ 19.61 $ 17.94 $ 19.20 $ 20.05 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).......................... 0.70 0.68 0.62 0.64 0.61 Net realized and unrealized gain (loss)............... 2.39 (0.48) 1.65 (1.24) (0.80) -------- -------- -------- -------- -------- Total from investment operations...................... 3.09 0.20 2.27 (0.60) (0.19) -------- -------- -------- -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................. (0.74) (0.60) (0.60) (0.64) (0.61) Net realized gain..................................... (0.00)(f) -- -- -- -- Return of capital..................................... -- -- -- (0.02) (0.05) -------- -------- -------- -------- -------- Total distributions................................... (0.74) (0.60) (0.60) (0.66) (0.66) -------- -------- -------- -------- -------- Net asset value, end of period........................ $ 21.56 $ 19.21 $ 19.61 $ 17.94 $ 19.20 ======== ======== ======== ======== ======== TOTAL RETURN (b)...................................... 16.37% 1.10% 12.96% (3.09)% (0.81)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's).................. $ 18,328 $ 8,646 $ 10,785 $ 13,454 $ 13,441 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (c)..... 0.75% 0.75% 0.75% 0.75% 0.75% (d) Ratio of net investment income (loss) to average net assets............................................. 3.57% 3.49% 3.49% 3.54% 3.59% (d) Portfolio turnover rate (e)........................... 17% 7% 20% 11% 18% </TABLE> (a) Inception date is September 27, 2016, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. (d) Annualized. (e) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. (f) Amount is less than $0.01. See Notes to Financial Statements Page 17 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 1. ORGANIZATION First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management investment company organized as a Massachusetts business trust on February 22, 2016, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of forty-nine funds that are offering shares. This report covers the two funds (each a "Fund" and collectively, the "Funds") listed below. The shares of each Fund are listed and traded on The Nasdaq Stock Market LLC ("Nasdaq"). First Trust CEF Income Opportunity ETF - (ticker "FCEF") First Trust Municipal CEF Income Opportunity ETF - (ticker "MCEF") Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value ("NAV"), only in large blocks of shares known as "Creation Units." Each Fund is an actively managed exchange-traded fund and principally invests in a portfolio of closed-end investment companies that are listed and traded in the United States on registered exchanges ("Closed-End Funds"). FCEF's primary investment objective is to provide current income with a secondary emphasis on total return. MCEF's investment objective is to provide current income. Each Fund seeks to achieve its investment objective(s) by investing, under normal market conditions, at least 80% of its net assets (including investment borrowings) in Closed-End Funds. MCEF invests in Closed-End Funds ("Municipal Closed-End Funds") which invest primarily in municipal debt securities, some or all of which pay interest that is exempt from regular federal income taxes ("Municipal Securities"). The Funds may also invest in exchange-traded funds. Closed-End Funds issue shares of common stock that are traded on a securities exchange. Because the shares of Closed-End Funds cannot be redeemed upon demand to the issuer like the shares of an open-end investment company, investors seek to buy and sell shares of Closed-End Funds in the secondary market. 2. SIGNIFICANT ACCOUNTING POLICIES The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. PORTFOLIO VALUATION Each Fund's NAV is determined daily as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund's NAV is calculated by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding. Each Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds' investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"), in accordance with valuation procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the 1940 Act. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund's investments are valued as follows: Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the principal market for such securities. Shares of open-end funds are valued at fair value which is based on NAV per share. Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Trust's Board of Trustees or its delegate, the Advisor's Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security Page 18 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following: 1) the type of security; 2) the size of the holding; 3) the initial cost of the security; 4) transactions in comparable securities; 5) price quotes from dealers and/or third-party pricing services; 6) relationships among various securities; 7) information obtained by contacting the issuer, analysts, or the appropriate stock exchange; 8) an analysis of the issuer's financial statements; and 9) the existence of merger proposals or tender offers that might affect the value of the security. The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows: o Level 1 - Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. o Level 2 - Level 2 inputs are observable inputs, either directly or indirectly, and include the following: o Quoted prices for similar investments in active markets. o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. o Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the investments. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund's investments as of August 31, 2021, is included with each Fund's Portfolio of Investments. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income of each Fund, if any, are declared and paid monthly, or as the Board of Trustees may determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually. Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future. Page 19 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The tax character of distributions paid by each Fund during the fiscal year ended August 31, 2021 was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions Distributions paid from paid from paid from paid from Ordinary Capital Tax-Exempt Return of Income Gains Income Capital ------------- ------------- ------------- ------------- <S> <C> <C> <C> <C> First Trust CEF Income Opportunity ETF $ 1,243,133 $ 443,455 $ -- $ -- First Trust Municipal CEF Income Opportunity ETF 9,130 -- 386,371 -- </TABLE> The tax character of distributions paid by each Fund during the fiscal year ended August 31, 2020 was as follows: follows: <TABLE> <CAPTION> Distributions Distributions Distributions Distributions paid from paid from paid from paid from Ordinary Capital Tax-Exempt Return of Income Gains Income Capital ------------- ------------- ------------- ------------- <S> <C> <C> <C> <C> First Trust CEF Income Opportunity ETF $ 1,906,929 $ 95,746 $ -- $ -- First Trust Municipal CEF Income Opportunity ETF 2,603 -- 286,773 -- </TABLE> As of August 31, 2021, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Ordinary Other Appreciation Income Gain (Loss) (Depreciation) ------------- ------------- ------------- <S> <C> <C> <C> First Trust CEF Income Opportunity ETF $ -- $ -- $ 4,621,939 First Trust Municipal CEF Income Opportunity ETF 35,215 29,267 894,417 </TABLE> D. INCOME TAXES Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund's taxable income exceeds the distributions from such taxable income for the calendar year. In addition, the First Trust Municipal CEF Income Opportunity ETF intends to invest in such Municipal Closed-End Funds to allow it to qualify to pass through "exempt dividends" as defined in the Internal Revenue Code. The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. Taxable years ended 2018, 2019, 2020 and 2021 remain open to federal and state audit. As of August 31, 2021, management has evaluated the application of these standards to the Funds, and has determined that no provision for income tax is required in the Funds' financial statements for uncertain tax positions. Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At August 31, 2021, the Funds had no capital loss carryforwards for federal income tax purposes. During the taxable year ended August 31, 2021, the following Fund utilized non-expiring capital loss carryforwards in the following amount: Capital Loss Carryforward Utilized ------------- First Trust Municipal CEF Income Opportunity ETF $ 83,418 Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended August 31, 2021, the Funds had no net late year ordinary or capital losses. Page 20 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal year ended August 31, 2021, the adjustments for each Fund were as follows: <TABLE> <CAPTION> Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- -------------- <S> <C> <C> <C> First Trust CEF Income Opportunity ETF $ 291,213 $ (1,136,352) $ 845,139 First Trust Municipal CEF Income Opportunity ETF 1,257 (2,542) 1,285 </TABLE> E. EXPENSES Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3). 3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and ongoing monitoring of the securities in each Fund's portfolio, managing the Funds' business affairs and providing certain administrative services necessary for the management of the Funds. Pursuant to the Investment Management Agreement between the Trust and the Advisor, First Trust manages the investment of the Funds' assets and is responsible for the expenses of each Fund including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees (if any), but excluding fee payments under the Investment Management Agreement, interest, taxes, pro rata share of fees and expenses attributable to investments in other investment companies ("acquired fund fees and expenses"), brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, which are paid by each respective Fund. FCEF and MCEF have each agreed to pay First Trust an annual unitary management fee equal to 0.85% and 0.75% of its average daily net assets, respectively. In addition, each Fund incurs acquired fund fees and expenses. The total of the unitary management fee and acquired fund fees and expenses represents each Fund's total annual operating expenses. The Trust has multiple service agreements with The Bank of New York Mellon ("BNYM"). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund's assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund's securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company. Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or is an index fund. Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. Page 21 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 4. PURCHASES AND SALES OF SECURITIES For the fiscal year ended August 31, 2021, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows: <TABLE> <CAPTION> Purchases Sales ------------ ------------ <S> <C> <C> First Trust CEF Income Opportunity ETF $ 3,471,703 $ 2,692,272 First Trust Municipal CEF Income Opportunity ETF 2,023,365 1,872,529 </TABLE> For the fiscal year ended August 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows: <TABLE> <CAPTION> Purchases Sales ------------ ------------ <S> <C> <C> First Trust CEF Income Opportunity ETF $ 6,921,867 $ 9,831,404 First Trust Municipal CEF Income Opportunity ETF 8,300,595 -- </TABLE> 5. CREATIONS, REDEMPTIONS AND TRANSACTION FEES Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as "Authorized Participants" have contractual arrangements with a Fund or one of the Fund's service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as "Creation Units." Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation ("NSCC") the "basket" of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund's shares. An Authorized Participant that wishes to effectuate a creation of a Fund's shares deposits with the Fund the "basket" of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund's shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund's shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund's shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund's shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund's shares at or close to the NAV per share of the Fund. Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket. Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed. 6. DISTRIBUTION PLAN The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services. No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before December 31, 2022. Page 22 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 7. INDEMNIFICATION The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 8. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were the following subsequent events: On September 20, 2021, FT Cboe Vest International Equity Buffer ETF - September and FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, each an additional series of the Trust, began trading under the symbols "YSEP" and "QSPT," respectively, on Cboe BZX Exchange, Inc. On September 21, 2021, First Trust SkyBridge Crypto Industry and Digital Economy ETF, an additional series of the Trust, began trading under the symbol "CRPT" on NYSE Arca, Inc. On October 14, 2021, First Trust Multi-Manager Small Cap Opportunities ETF, an additional series of the Trust, began trading under the symbol "MMSC" on NYSE Arca, Inc. On October 21, 2021, First Trust Municipal CEF Income Opportunity ETF announced that the Board of Trustees of the Trust approved certain changes to the Fund's principal investment strategies, which will be submitted to shareholders of the Fund for approval. The proposed changes will convert the Fund from its current fund-of-funds investment strategy to one that seeks to provide the same investment objective of current income by investing directly in municipal debt securities. The Fund would still have the ability to invest up to 10% of its net assets in closed end investment companies that invest primarily in municipal debt securities. A special shareholder meeting of the Fund to vote on the changes described above is expected to be held in the fourth quarter of 2021. Upon approval of such strategy changes, the Fund will be renamed "First Trust Flexible Municipal High Income ETF" and the Fund's ticker symbol will be changed to "MFLX." In connection with the implementation of the proposed strategy changes, the following persons will serve as additional members of the Fund's portfolio management team and will manage the Fund's non-closed-end fund investments: o Tom Futrell, CFA, Senior Vice President, Senior Portfolio Manager of First Trust; and o Johnathan N. Wilhelm, Senior Vice President, Senior Portfolio Manager of First Trust. Page 23 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED FUND VIII: OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS We have audited the accompanying statements of assets and liabilities of First Trust CEF Income Opportunity ETF and First Trust Municipal CEF Income Opportunity ETF (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the years ended August 31, 2021, 2020, 2019, and 2018, and the period from September 27, 2016 (commencement of operations) through August 31, 2017, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of August 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the years ended August 31, 2021, 2020, 2019, and 2018, and for the period from September 27, 2016 (commencement of operations) through August 31, 2017, in conformity with accounting principles generally accepted in the United States of America. BASIS FOR OPINION These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 22, 2021 We have served as the auditor of one or more First Trust investment companies since 2001. Page 24 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov. PORTFOLIO HOLDINGS Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC's website at www.sec.gov. Each Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above. FEDERAL TAX INFORMATION For the taxable year ended August 31, 2021, the following percentages of income dividend paid by the Funds qualify for the dividends received deduction available to corporations: <TABLE> <CAPTION> Dividends Received Deduction ---------------------------- <S> <C> First Trust CEF Income Opportunity ETF * First Trust Municipal CEF Income Opportunity ETF * </TABLE> * The actual percentage of income dividends that qualify for the dividend received deduction will be available to corporate shareholders shortly after the calendar year end. For the taxable year ended August 31, 2021, the following percentages of income dividend paid by the Funds are hereby designated as qualified dividend income: <TABLE> <CAPTION> Qualified Dividend Income ---------------------------- <S> <C> First Trust CEF Income Opportunity ETF ** First Trust Municipal CEF Income Opportunity ETF ** </TABLE> ** The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after the calendar year end. For the taxable year ended August 31, 2021, the following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement. The First Trust Municipal CEF Income Opportunity ETF designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended August 31, 2021: <TABLE> <CAPTION> Federal and State Income Tax Percentages ------------------------------------- --------------- <S> <C> Tax-Exempt Interest Dividends 98.34% Alternative Minimum Tax (AMT) 14.18% </TABLE> For the fiscal year ended August 31, 2021, the amount of long-term capital gain distributions designated by First Trust CEF Income Opportunity ETF was $443,455, which is taxable at the applicable capital gain tax rates for federal income tax purposes. Page 25 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) RISK CONSIDERATIONS RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND. CONCENTRATION RISK. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund's investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund's corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified. CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments. CYBER SECURITY RISK. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund's third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches. DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor's investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund's share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless. DERIVATIVES RISK. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund. EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the value of the fund's shares will fluctuate with changes in the value of the 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 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 capital rises and borrowing costs increase. 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. ETF RISK. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange 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). In times of market stress, decisions by market makers to reduce or step away Page 26 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) from their role of providing a market for an ETF's shares, or decisions by an ETF's authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF's shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads. FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund's fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities. INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund's net asset value could be negatively impacted and the fund's market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund's shares. INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund's costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders. INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund's investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests. LIBOR RISK. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund. MANAGEMENT RISK. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund's investment portfolio, the fund's portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective. MARKET RISK. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. 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; Page 27 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries. OPERATIONAL RISK. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund's ability to meet its investment objective. Although the funds and the funds' investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE ADVISORY AGREEMENT BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the "Agreement") with First Trust Advisors L.P. (the "Advisor") on behalf of the following two series of the Trust (each a "Fund" and collectively, the "Funds"): First Trust CEF Income Opportunity ETF (FCEF) First Trust Municipal CEF Income Opportunity ETF (MCEF) The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2022 at a meeting held on June 6-7, 2021. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 26, 2021 and June 6-7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund's performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the "Performance Universe"), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"); and information on the Advisor's compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6-7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from Page 28 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) each Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund's unitary fee. In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. The Board noted that each Fund is an actively-managed ETF and noted that the Advisor's CEF Management Team is responsible for the day-to-day management of the Funds' investments. The Board considered the background and experience of the members of the CEF Management Team, including the Board's prior meetings with members of the Team. The Board considered the Advisor's statement that it applies the same oversight model internally with its CEF Management Team as it uses for overseeing external sub-advisors, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions. The Board considered the unitary fee rate payable by each Fund under the Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund's expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, acquired fund fees and expenses, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board noted that, because each Fund invests in underlying funds, the Fund incurs acquired fund fees and expenses, which are not payable out of the unitary fee, and that such acquired fund fees and expenses will change over time as assets are reallocated among the underlying funds. The Board considered that, to the extent any of the underlying funds are other funds in the First Trust Fund Complex, the Advisor has agreed to offset the unitary fee paid by each Fund related to the Fund's assets invested in the affiliated underlying funds. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for FCEF was above the median total (net) expense ratio (excluding acquired fund fees and expenses) of the peer funds in its Expense Group and that the unitary fee rate for MCEF was below the median total (net) expense ratio (excluding acquired fund fees and expenses) of the peer funds in its Expense Group. The Board also noted that each Fund's total (net) expense ratio (including acquired fund fees and expenses) was above the median total (net) expense ratio (including acquired fund fees and expenses) of the peer funds in the respective Expense Group. With respect to the Expense Groups, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including that the Expense Group for each Fund contained both actively-managed ETFs and open-end mutual funds, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rates overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex. The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund's performance. The Board received and reviewed information comparing each Fund's performance for periods ended December 31, 2020 to the performance of the funds in its Performance Universe and, for FCEF, to that of a blended benchmark index and, for MCEF, to that of a benchmark index. Based on the information provided, the Board noted that FCEF underperformed its Performance Universe median for the one-year period ended December 31, 2020, but outperformed its Performance Universe median for the three-year period ended December 31, 2020 and outperformed its blended benchmark index for the one- and three-year periods ended December 31, 2020. The Board also noted that MCEF outperformed its Performance Universe median and benchmark index for the one- and three-year periods ended December 31, 2020. Page 29 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) On the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreement. The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds and noted the Advisor's statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Funds. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2020 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for each Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of each Fund. No single factor was determinative in the Board's analysis. LIQUIDITY RISK MANAGEMENT PROGRAM In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program (the "Program") reasonably designed to assess and manage the funds' liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust Liquidity Committee (the "Liquidity Committee"). Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund's portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment minimum for certain funds, monitors the funds' holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund's net assets and establishes policies and procedures regarding redemptions in kind. At the April 26, 2021 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 20, 2020 through the Liquidity Committee's annual meeting held on March 16, 2021 and assessed the Program's adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums. As stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund's investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4. Page 30 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The Trust's statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891. <TABLE> <CAPTION> NUMBER OF OTHER PORTFOLIOS IN TRUSTEESHIPS OR TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> Richard E. Erickson, Trustee o Indefinite Term Physician, Officer, Wheaton Orthopedics; 210 None (1951) Limited Partner, Gundersen Real Estate o Since Inception Limited Partnership (June 1992 to December 2016) Thomas R. Kadlec, Trustee o Indefinite Term President, ADM Investors Services, Inc. 210 Director of ADM (1957) (Futures Commission Merchant) Investor Services, o Since Inception Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises (Financial 210 Director of Trust (1956) and Management Consulting) Company of o Since Inception Illinois Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (August 2018 to Present), 210 None (1954) Managing Director and Chief Operating o Since Inception Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First Trust 210 None Chairman of the Board Advisors L.P. and First Trust (1955) o Since Inception Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) </TABLE> ----------------------------- (1) Mr. Bowen is deemed an "interested person" of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust. Page 31 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS AND YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS(2) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer (1966) Executive Officer (January 2016 to Present), Controller (January 2011 o Since Inception to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to Present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President (July 2016 to Present), Vice (1972) Officer and Chief President (April 2012 to July 2016), First Trust Accounting Officer o Since Inception Advisors L.P. and First Trust Portfolios L.P. W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P. and (1960) Legal Officer First Trust Portfolios L.P.; Secretary and General o Since Inception Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and (1970) First Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. (1966) and Assistant Secretary and First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1966) and First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1970) and First Trust Portfolios L.P. o Since Inception </TABLE> ----------------------------- (2) The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. Page 32 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PRIVACY POLICY First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information. SOURCES OF INFORMATION We collect nonpublic personal information about you from the following sources: o Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; o Information about your transactions with us, our affiliates or others; o Information we receive from your inquiries by mail, e-mail or telephone; and o Information we collect on our website through the use of "cookies". For example, we may identify the pages on our website that your browser requests or visits. INFORMATION COLLECTED The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information. DISCLOSURE OF INFORMATION We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons: o In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. o We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust. USE OF WEBSITE ANALYTICS We currently use third party analytics tools, Google Analytics and AddThis to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis. CONFIDENTIALITY AND SECURITY With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information. POLICY UPDATES AND INQUIRIES As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors). March 2021 Page 33 <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. <PAGE> FIRST TRUST First Trust Exchange-Traded Fund VIII INVESTMENT ADVISOR First Trust Advisors L.P. 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 111 S. Wacker Drive Chicago, IL 60606 LEGAL COUNSEL Chapman and Cutler LLP 111 W. Monroe Street Chicago, IL 60603 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust TCW Opportunistic Fixed Income ETF (FIXD) First Trust TCW Unconstrained Plus Bond ETF (UCON) First Trust TCW Securitized Plus ETF (DEED) First Trust TCW Emerging Markets Debt ETF (EFIX) First Trust TCW ESG Premier Equity ETF (EPRE) ---------------------------- Annual Report For the Period Ended August 31, 2021 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 Shareholder Letter.......................................................... 2 Fund Performance Overview First Trust TCW Opportunistic Fixed Income ETF (FIXD).................... 3 First Trust TCW Unconstrained Plus Bond ETF (UCON)....................... 5 First Trust TCW Securitized Plus ETF (DEED).............................. 7 First Trust TCW Emerging Markets Debt ETF (EFIX)......................... 9 First Trust TCW ESG Premier Equity ETF (EPRE)............................ 11 Notes to Fund Performance Overview.......................................... 13 Portfolio Commentary........................................................ 14 Understanding Your Fund Expenses............................................ 21 Portfolio of Investments First Trust TCW Opportunistic Fixed Income ETF (FIXD).................... 23 First Trust TCW Unconstrained Plus Bond ETF (UCON)....................... 52 First Trust TCW Securitized Plus ETF (DEED).............................. 76 First Trust TCW Emerging Markets Debt ETF (EFIX)......................... 89 First Trust TCW ESG Premier Equity ETF (EPRE)............................ 94 Statements of Assets and Liabilities........................................ 96 Statements of Operations.................................................... 98 Statements of Changes in Net Assets......................................... 100 Financial Highlights........................................................ 102 Notes to Financial Statements............................................... 105 Report of Independent Registered Public Accounting Firm..................... 119 Additional Information...................................................... 121 Board of Trustees and Officers.............................................. 131 Privacy Policy.............................................................. 133 <PAGE> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. ("First Trust" or the "Advisor") and/or TCW Investment Management Company LLC ("TCW" or the "Sub-Advisor") and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as "anticipate," "estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or other words that convey uncertainty of future events or outcomes. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (each such series is referred to as a "Fund" and collectively, as the "Funds") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof. PERFORMANCE AND RISK DISCLOSURE There is no assurance that any Fund described in this report will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund's shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in a Fund. See "Risk Considerations" in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds. Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost. The Advisor may also periodically provide additional information on Fund performance on each Fund's webpage at www.ftportfolios.com. HOW TO READ THIS REPORT This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund's performance and investment approach. By reading the portfolio commentary from the portfolio management team of the Funds, you may obtain an understanding of how the market environment affected each Fund's performance. The statistical information that follows may help you understand each Fund's performance compared to that of a relevant market benchmark. It is important to keep in mind that the opinions expressed by personnel of the Advisor and/or Sub-Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in the prospectus, the statement of additional information, and other Fund regulatory filings. Page 1 <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2021 Dear Shareholders: First Trust is pleased to provide you with the annual report for certain series of the First Trust Exchange-Traded Fund VIII (the "Funds"), which contains detailed information about the Funds for the twelve months ended August 31, 2021. Please note that the First Trust TCW Emerging Markets Debt ETF ("EFIX") was incepted on February 17, 2021 and the First Trust TCW ESG Premier Equity ETF ("EPRE") was incepted on May 25, 2021, and so information in this letter and the annual report prior to the inception date of each Fund will not apply to these Funds. The coronavirus ("COVID-19") pandemic has proven to be as stubborn as advertised. We were warned by the scientific community early on that we would have to coexist with this virus from here on out, and that appears to be the case some 19 months after its onset. While the three main vaccines have proven to be effective at keeping those people who have gotten all the required shots out of the hospital, the U.S., unfortunately, had only achieved a 54% fully vaccinated rate as of September 9, 2021, according to the Centers for Disease Control and Prevention. If you add in the people ages 18 and older who have received just one of the two-dose vaccines, it jumps to 75.3%. The U.S. and global economies continue to underperform due to the pandemic. The U.S. alone had a record high 10.9 million job openings at the end of July 2021, according to the latest Job Openings and Labor Turnover Survey from the Department of Labor. It appears that many people do not seem to want to work right now. An estimated 7.5 million unemployment recipients in the U.S. were scheduled to lose their benefits on September 6, 2021. Perhaps that will be enough to incentivize people to go back to work. The Federal Reserve (the "Fed") continues to play a major role in the U.S. economy. It has kept short-term interest rates artificially low for the better part of the past 13 years. The Federal Funds target rate (upper bound), while held at 0.25% for roughly nine of those 13 years, reached as high as 2.50% in the same 13-year period, but only for a few months and that was just prior to the COVID-19 pandemic, according to data from the Fed. For comparative purposes, the target rate averaged 2.56% for the 30-year period ended September 21, 2021. It currently stands at 0.25%. In addition to keeping rates low, the Fed has been buying assets, specifically Treasuries and mortgage-backed securities. It has been buying a combined $120 billion of these securities every month. This has helped keep bond yields artificially low as well. As of February 26, 2020, the value of the assets on the Fed's balance sheet totaled $4.16 trillion, according to its own data. As of September 15, 2021, the assets were valued at $8.45 trillion. Keep in mind, the balance sheet stood at $1 trillion on September 17, 2008. That was during the 2007-2008 Financial Crisis. Due to the reopening of the U.S. economy and a bigger-than-expected rise in inflation this year, the Fed has signaled that it could begin to taper its bond buying program by the end of 2021. With respect to the Federal Funds rate, the Fed continues to say it intends to leave short-term rates where they are until 2023. In other words, the Fed is poised to maintain its accommodative stance towards monetary policy. They are not looking to get tight - just less loose. We will monitor this scenario closely in the months ahead to see if the Fed's actions impact the direction of interest rates and bond yields. Overall, I am pleased to report that the securities markets have performed well in this tumultuous climate. It appears, in our opinion, that the extremely low interest rates offered on savings vehicles has motivated many investors to assume more risk to potentially generate higher returns. The S&P 500(R) Index (the "Index") posted a total return of 31.17% for the 12-month period ended August 31, 2021, according to Bloomberg. For comparative purposes, from 1926 through 2020 (95 years), the Index returned an average of 10.28% per year on a total return basis, according to Morningstar/Ibbotson Associates. Should interest rates and bond yields eventually trend higher, investors should be prepared for a bit of turbulence as stocks and bonds may be subjected to some potential short-term profit taking, in my opinion. Having said that, I encourage investors to stay the course. I remain optimistic due in large part to the trillions of dollars in government stimulus money already circulating in the economy as well as the potential for trillions of additional dollars from President Joe Biden's infrastructure and "human infrastructure" bills still weaving their way through Congress. It's hard to bet against growth in the current climate. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months. Sincerely, /s/ James A. Bowen James A. Bowen Chairman of the Board of Trustees Chief Executive Officer of First Trust Advisors L.P. Page 2 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) The investment objective of the First Trust TCW Opportunistic Fixed Income ETF (the "Fund") is to seek to maximize long-term total return. Under normal market conditions, the Fund pursues its objective by investing at least 80% of its net assets (including investment borrowings) in fixed income securities. The Fund's investments principally include securities issued or guaranteed by the U.S. government or its agencies, instrumentalities or U.S. government-sponsored entities; Treasury Inflation Protected Securities (TIPS); agency and non-agency residential mortgage-backed securities (RMBS); agency and non-agency commercial mortgage-backed securities (CMBS); agency and non-agency asset-backed securities (ABS); U.S. corporate bonds; fixed income securities issued by non-U.S. corporations and governments, including issuers with significant ties to emerging market countries; bank loans, including first lien senior secured floating rate bank loans; municipal bonds; collateralized loan obligations (CLOs); Rule 144A securities, and other debt securities bearing fixed, floating or variable interest rates of any maturity. The Fund may utilize listed and over-the-counter derivatives instruments. Shares of the Fund are listed on The Nasdaq Stock Market LLC under the ticker symbol "FIXD." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (2/14/17) Inception (2/14/17) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 0.77% 4.62% 22.76% Market Value 0.82% 4.64% 22.86% INDEX PERFORMANCE Bloomberg U.S. Aggregate Bond Index -0.08% 4.08% 19.94% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 14, 2017 - AUGUST 31, 2021 First Trust TCW Bloomberg Opportunistic Fixed U.S. Aggregate Income ETF Bond Index <S> <C> <C> 2/14/17 $10,000 $10,000 2/28/17 10,068 10,066 8/31/17 10,323 10,342 2/28/18 10,130 10,117 8/31/18 10,265 10,233 2/28/19 10,470 10,437 8/31/19 11,325 11,274 2/29/20 11,699 11,657 8/31/20 12,182 12,004 2/28/21 12,048 11,818 8/31/21 12,276 11,994 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 3 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) (CONTINUED) ---------------------------------------------------------- % OF TOTAL FUND ALLOCATION NET ASSETS ---------------------------------------------------------- U.S. Government Bonds and Notes 36.9% U.S. Government Agency Mortgage-Backed Securities 30.1 Corporate Bonds and Notes 17.9 Asset-Backed Securities 7.6 Mortgage-Backed Securities 7.6 Foreign corporate Bonds and Notes 5.2 Senior Floating-Rate Loan Interests 1.8 Foreign Sovereign Bonds and Notes 1.6 Municipal Bond 0.9 U.S. Treasury Bills 10.8 Money Market Funds 2.6 Put Swaptions Purchased 0.0* Put Options Purchased 0.0* Put Options Written 0.0* Net Other Assets and Liabilities** (23.0) ------- Total 100.0% ======= * Amount is less than 0.1%. ** Includes variation margin on futures contracts and unrealized appreciation/ depreciation on interest rate swap agreements. ---------------------------------------------------------- % OF FIXED-INCOME CREDIT QUALITY(1) INVESTMENTS ---------------------------------------------------------- Government/Agency 64.6% AAA 3.5 AA+ 0.3 AA 0.8 AA- 1.0 A+ 0.6 A 1.6 A- 2.6 BBB+ 4.3 BBB 5.9 BBB- 3.6 BB+ 2.0 BB 1.0 BB- 0.8 B+ 0.2 B 0.9 B- 0.3 CCC+ 0.1 CCC 1.2 CCC- 0.6 CC 2.4 C 0.5 D 1.0 NR 0.2 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- U.S. Treasury Note, 0.13%, 08/31/23 7.1% Federal National Mortgage Association, Pool TBA, 2.00%, 10/15/51 7.0 Federal National Mortgage Association, Pool TBA, 2.50%, 10/15/51 6.9 U.S. Treasury Note, 0.13%, 07/31/23 5.7 U.S. Treasury Bond, 2.00%, 08/15/51 4.2 U.S. Treasury Bill, 0.00%, 12/09/21 3.7 U.S. Treasury Note, 0.75%, 08/31/26 3.2 U.S. Treasury Note, 0.63%, 07/31/26 2.9 U.S. Treasury Note, 0.88%, 06/30/26 2.8 U.S. Treasury Bond, 2.38%, 05/15/51 1.5 ------- Total 45.0% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating Group, a division of McGraw Hill Companies, Inc., Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the lowest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government/Agency". Credit ratings are subject to change. Page 4 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) The investment objective of the First Trust TCW Unconstrained Plus Bond ETF (the "Fund") is to seek to maximize long-term total return. Under normal market conditions, the Fund pursues its objective by investing at least 80% of its net assets (including investment borrowings) in a portfolio of fixed income securities. The Fund's investment sub-advisor, TCW Investment Management Company LLC, manages the Fund's portfolio in an "unconstrained" manner, meaning that its investment universe is not limited to the securities of any particular index and it has discretion to invest in fixed income securities of any type or credit quality. The Fund's investments principally include securities issued or guaranteed by the U.S. government or its agencies, instrumentalities or U.S. government-sponsored entities; Treasury Inflation Protected Securities (TIPS); agency and non-agency residential mortgage-backed securities (RMBS); agency and non-agency commercial mortgage-backed securities (CMBS); agency and non-agency asset-backed securities (ABS); U.S. corporate bonds; fixed income securities issued by non-U.S. corporations and governments, including issuers with significant ties to emerging market countries; bank loans, including first lien senior secured floating rate bank loans; municipal bonds; collateralized loan obligations (CLOs); Rule 144A securities, and other debt securities bearing fixed, floating or variable interest rates of any maturity. The Fund may also invest in preferred stock and common stock and the Fund may utilize listed and over-the-counter derivatives. Under normal market conditions, the Fund's average portfolio duration will vary from between 0 to 10 years. Shares of the Fund are listed on The NYSE Arca, Inc. under the ticker symbol "UCON." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (6/4/18) Inception (6/4/18) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 4.04% 5.01% 17.16% Market Value 3.99% 5.05% 17.33% INDEX PERFORMANCE ICE BofA US Dollar 3-Month Deposit Offered Rate Average Index 0.21% 1.51% 4.96% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 4, 2018 - AUGUST 31, 2021 First Trust TCW ICE BofA US Dollar Opportunistic Fixed 3-Month Deposit Offered Income ETF Rate Average Index <S> <C> <C> 6/4/18 $10,000 $10,000 8/31/18 10,106 10,057 2/28/19 10,323 10,185 8/31/19 10,728 10,318 2/29/20 10,960 10,425 8/31/20 11,261 10,475 2/28/21 11,596 10,488 8/31/21 11,716 10,496 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 5 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) (CONTINUED) ---------------------------------------------------------- % OF TOTAL FUND ALLOCATION NET ASSETS ---------------------------------------------------------- Asset-Backed Securities 18.4% Mortgage-Backed Securities 18.3 Corporate Bonds and Notes 18.2 U.S. Government Agency Mortgage-Backed Securities 14.6 Foreign Corporate Bonds and Notes 6.4 Foreign Sovereign Bonds 3.9 U.S. Government Bonds and Notes 0.4 Municipal Bonds 0.3 U.S. Treasury Bills 22.1 Money Market Funds 7.1 Net Other Assets and Liabilities* (9.7) ------- Total 100.0% ======= * Includes variation margin on futures contracts and unrealized appreciation/ depreciation on interest rate swap agreements. ---------------------------------------------------------- % OF FIXED-INCOME CREDIT QUALITY(1) INVESTMENTS ---------------------------------------------------------- Government/Agency 36.2% AAA 6.6 AA+ 0.4 AA 1.3 AA- 1.4 A+ 0.8 A 2.1 A- 3.8 BBB+ 3.9 BBB 6.4 BBB- 4.6 BB+ 2.8 BB 2.3 BB- 3.1 B+ 1.3 B 2.8 B- 1.5 CCC+ 0.6 CCC 4.5 CCC- 2.8 CC 6.9 C 1.8 D 2.1 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Federal National Mortgage Association, Pool TBA, 2.00%, 10/15/51 5.3% U.S. Treasury Bill, 0.00%, 01/06/22 4.8 U.S. Treasury Bill, 0.00%, 12/09/21 4.5 Federal National Mortgage Association, Pool TBA, 2.50%, 10/15/51 4.3 U.S. Treasury Bill, 0.00%, 02/03/22 3.4 U.S. Treasury Bill, 0.00%, 01/20/22 2.6 U.S. Treasury Bill, 0.00%, 10/05/21 2.3 U.S. Cash Management Bill, 0.00%, 12/14/21 2.2 U.S. Treasury Bill, 0.00%, 10/07/21 1.7 IndyMac INDX Mortgage Loan Trust, Series 2006-AR2, Class 1A1B, 1 Mo. LIBOR + 0.42%, 0.50%, 04/25/46 0.5 ------- Total 31.6% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating Group, a division of McGraw Hill Companies, Inc., Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the lowest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government/Agency". Credit ratings are subject to change. Page 6 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) The First Trust TCW Securitized Plus ETF seeks to maximize long-term total return. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in securitized debt securities, including asset-backed securities, residential and commercial mortgage-backed securities and collateralized loan obligations ("CLOs"). The Fund's investment sub-advisor, TCW Investment Management Company LLC ("TCW" or the "Sub-Advisor") seeks to outperform the Bloomberg U.S. Mortgage-Backed Securities Index over time through the utilization of independent, bottom-up research to identify securities that are relatively undervalued. Under normal conditions, the Fund's average portfolio duration varies within two years (plus or minus) of the portfolio duration of the securities comprising the Bloomberg U.S. Mortgage-Backed Securities Index. As a separate measure, there is no limit on the weighted average maturity of the Fund's portfolio. While maturity refers to the expected life of a security, duration is a measure of the expected price volatility of a debt security as a result of changes in market rates of interest. Shares of the Fund are listed on The NYSE Arca, Inc. under the ticker symbol "DEED." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (4/29/20) Inception (4/29/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 2.93% 5.06% 6.84% Market Value 3.05% 5.06% 6.84% INDEX PERFORMANCE Bloomberg U.S. Mortgage-Backed Securities Index -0.18% 0.14% 0.18% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 29, 2020 - AUGUST 31, 2021 Bloomberg First Trust TCW U.S. Mortgage-Backed Securitized Plus ETF Securities Index <S> <C> <C> 4/29/20 $10,000 $10,000 4/29/20 10,000 10,000 8/31/20 10,380 10,036 2/28/21 10,492 9,990 8/31/21 10,684 10,018 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 7 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) (CONTINUED) ---------------------------------------------------------- % OF TOTAL FUND ALLOCATION NET ASSETS ---------------------------------------------------------- U.S. Government Agency Mortgage-Backed Securities 52.1% U.S. Treasury Bills 31.3 Mortgage-Backed Securities 26.5 U.S. Government Bonds and Notes 20.0 Asset-Backed Securities 18.9 Money Market Funds 1.5 Net Other Assets and Liabilities* (50.3) ------- Total 100.0% ======= * Includes variation margin on futures contracts and unrealized appreciation on forward foreign currency contracts. ---------------------------------------------------------- % OF FIXED-INCOME CREDIT QUALITY(1) INVESTMENTS ---------------------------------------------------------- Government/Agency 69.5% AAA 6.2 AA+ 0.8 AA 1.1 AA- 0.3 A+ 0.2 A 1.5 A- 1.2 BBB 0.5 BBB- 0.9 BB 0.9 BB- 0.6 B+ 0.8 B 0.7 B- 1.3 CCC+ 0.2 CCC 4.0 CCC- 1.2 CC 5.0 C 1.7 D 1.4 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Federal National Mortgage Association, Pool TBA, 2.00%, 10/15/51 12.2% Federal National Mortgage Association, Pool TBA, 2.50%, 10/15/51 12.2 U.S. Treasury Bill, 0.00%, 10/05/21 6.2 U.S. Cash Management Bill, 0.00%, 12/21/21 6.0 U.S. Treasury Note, 0.13%, 08/31/23 4.8 Government National Mortgage Association, Pool TBA, 2.50%, 10/15/51 3.3 U.S. Treasury Bill, 0.00%, 01/06/22 3.2 Federal National Mortgage Association, Pool TBA, 2.00%, 10/15/36 2.6 U.S. Treasury Bill, 0.00%, 01/20/22 2.4 U.S. Treasury Note, 0.13%, 07/31/23 2.2 ------- Total 55.1% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating Group, a division of McGraw Hill Companies, Inc., Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the lowest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government/Agency." Credit ratings are subject to change. Page 8 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) The First Trust TCW Emerging Markets Debt ETF (the "Fund") seeks to provide high total return from current income and capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in debt securities issued or guaranteed by companies, financial institutions and government entities located in emerging market countries. An "emerging market country" is a country that, at the time the Fund invests in the related security or instrument, is classified as an emerging or developing economy by any supranational organization such as the World Bank or the United Nations, or related entities, or is considered an emerging market country for purposes of constructing a major emerging market securities index. The Fund's investments include, but are not limited to, debt securities issued by sovereign entities, quasi-sovereign entities and corporations. "Quasi-Sovereign" refers to an entity that is either 100% owned by a sovereign entity or whose debt is 100% guaranteed by a sovereign entity. The Fund may invest up to 25% of its net assets in securities issued by corporations in emerging market countries that are not Quasi-Sovereign entities. The Fund will invest at least 90% of its assets in dollar-denominated securities. The Fund may invest up to 10% of its assets in securities denominated in Euros and/or Japanese yen. Shares of the Fund are listed on The NYSE Arca, Inc. under the ticker symbol "EFIX." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE ------------------------------------------------------------------------------------------------------------------------------------ CUMULATIVE TOTAL RETURNS Inception (2/17/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 1.93% Market Value 1.58% INDEX PERFORMANCE JP Morgan Emerging Market Bond Index Global Diversified 2.65% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 17, 2021 - AUGUST 31, 2021 First Trust TCW JP Morgan Emerging Emerging Markets Market Bond Index Debt ETF Global Diversified <S> <C> <C> 2/17/21 $10,000 $10,000 2/28/21 9,825 9,822 8/31/21 10,193 10,265 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 9 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) (CONTINUED) ---------------------------------------------------------- % OF TOTAL ASSET CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Foreign Sovereign Bonds and Notes 61.8% Foreign Corporate Bonds and Notes 34.7 Money Market Funds 3.5 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME CREDIT QUALITY(1) INVESTMENTS ---------------------------------------------------------- AA 3.5% AA- 4.4 A 2.2 A- 5.2 BBB 5.6 BBB- 10.3 BB+ 6.6 BB 3.7 BB- 19.4 B+ 7.4 B 10.9 B- 11.9 CCC+ 2.1 CCC 3.2 CCC- 2.0 CC 1.6 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Qatar Petroleum (USD), 2.25%, 07/12/31 3.2% Egypt Government International Bond (USD), 7.05%, 01/15/32 2.9 Paraguay Government International Bond (USD), 5.60%, 03/13/48 2.6 Dominican Republic International Bond (USD), 4.88%, 09/23/32 2.5 Bahrain Government International Bond (USD), 5.25%, 01/25/33 2.3 KazMunayGas National Co. JSC (USD), 3.50%, 04/14/33 2.2 Panama Government International Bond (USD), 2.25%, 09/29/32 2.1 Ukraine Government International Bond (USD), 7.75%, 09/01/27 2.1 Colombia Government International Bond (USD), 4.13%, 02/22/42 2.1 Petroleos Mexicanos (USD), 5.35%, 02/12/28 2.0 ------- Total 24.0% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating Group, a division of McGraw Hill Companies, Inc., Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the lowest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government/Agency." Credit ratings are subject to change. Page 10 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) The First Trust TCW ESG Premier Equity ETF's (the "Fund") investment objective is to seek to provide investors with long-term capital appreciation. Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. companies that meet TCW Investment Management Company LLC's environmental, social and governance (ESG) criteria. Although the Fund emphasizes investments in equity securities of large capitalization companies, it may invest in the equity securities of companies of any size. Shares of the Fund are listed on The NYSE Arca, Inc. under the ticker "EPRE." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE ------------------------------------------------------------------------------------------------------------------------------------ CUMULATIVE TOTAL RETURNS Inception (5/25/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 7.56% Market Value 7.66% INDEX PERFORMANCE Russell 1000(R) Index 8.23% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MAY 25, 2021 - AUGUST 31, 2021 First Trust TCW ESG Premier Equity ETF Russell 1000(R) Index <S> <C> <C> 5/25/21 $10,000 $10,000 8/31/21 10,756 10,823 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 11 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Industrials 49.8% Information Technology 28.3 Financials 9.2 Health Care 5.1 Consumer Staples 4.6 Consumer Discretionary 3.0 ------- Total 100.0% ======= ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Clarivate PLC 10.4% Vertiv Holdings Co. 8.4 HEICO Corp. 5.9 Microsoft Corp. 5.8 Dye & Durham Ltd. 5.7 Mettler-Toledo International, Inc. 5.1 IHS Markit Ltd. 5.0 Copart, Inc. 4.9 MSCI, Inc. 4.7 Fiserv, Inc. 4.7 ------- Total 60.6% ======= Page 12 <PAGE> -------------------------------------------------------------------------------- NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- Total returns for the periods since inception are calculated from the inception date of each Fund. "Average Annual Total Returns" represent the average annual change in value of an investment over the periods indicated. "Cumulative Total Returns" represent the total change in value of an investment over the periods indicated. The total returns would have been lower if certain fees had not been waived by the Advisor. Each Fund's per share net asset value ("NAV") is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return ("Market Price") is determined by using the midpoint of the national best bid and offer price ("NBBO") as of the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund's NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund's NAV was calculated. Since shares of each Fund did not trade in the secondary market until after the Fund's inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund's past performance is no guarantee of future performance. Page 13 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust") is the investment advisor to the First Trust TCW Opportunistic Fixed Income ETF ("FIXD"), the First Trust TCW Unconstrained Plus Bond ETF ("UCON"), the First Trust TCW Securitized Plus ETF ("DEED"), the First Trust TCW Emerging Markets Debt ETF ("EFIX"), and the First Trust TCW ESG Premier Equity ETF ("EPRE") (each a "Fund"). First Trust is responsible for the ongoing monitoring of each Fund's investment portfolio, managing each Fund's business affairs and providing certain administrative services necessary for the management of each Fund. SUB-ADVISOR TCW Investment Management Company LLC ("TCW" or the "Sub-Advisor") serves as investment sub-advisor. In this capacity, TCW is responsible for the selection and ongoing monitoring of the securities in each Fund's investment portfolio. TCW, with principal offices at 865 South Figueroa Street, Los Angeles, California 90017, was founded in 1987, and is a wholly-owned subsidiary of The TCW Group, Inc. ("TCW Group"). TCW, together with TCW Group and its other subsidiaries, which provide investment management and investment advisory services, had approximately $270.8 billion under management or committed to management, including $233.1 billion of U.S. fixed income investments, as of August 31, 2021. PORTFOLIO MANAGEMENT TEAM FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) Tad Rivelle, Chief Investment Officer of the Fixed Income Group of TCW Stephen M. Kane, CFA, Generalist Portfolio Manager in the Fixed Income Group of TCW Laird Landmann, Co-Director and Generalist Portfolio Manager in the Fixed Income Group of TCW Bryan T. Whalen, CFA, Generalist Portfolio Manager in the Fixed Income Group of TCW FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) Bryan T. Whalen, CFA, Generalist Portfolio Manager in the Fixed Income Group of TCW Mitchell Flack, Managing Director of Securitized Products at TCW Elizabeth J. Crawford, Senior Vice President of Securitized Products at TCW Harrison Choi, Managing Director of Securitized Products at TCW FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) Penelope D. Foley, Group Managing Director at TCW David I. Robbins, Group Managing Director at TCW Alex Stanojevic, Group Managing Director at TCW FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) Joseph R. Shaposhnik, Managing Director of TCW COMMENTARY FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) MARKET RECAP Financial markets gained momentum in the latter part of 2020 on optimism surrounding the introduction of effective vaccines for the coronavirus ("COVID-19") and continued their pursuit of record highs (particularly in the equity space). This led to increased concerns regarding inflation, and thus a significant re-pricing higher of interest rates in the opening months of 2021. Pricing pressures did ultimately manifest in the second quarter of 2021, with consecutive upside surprises for the consumer price index ("CPI") which brought year-over-year advance to 5.4% as of July 2021, the highest level since 2008. While the reflation trade subsequently stalled as markets appeared to buy into the Federal Reserve's (the "Fed") narrative that these higher inflation prints would prove transitory, the 10-Year U.S. Treasury yield still was over 60 basis points ("bps") higher year-over-year, closing August 2021 at 1.31%. Macroeconomic data prints were generally positive during the 12-month period ended August 31, 2021, including a surge in manufacturing indices, relatively strong earnings results, and an uptick in consumer confidence from pandemic Page 14 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) depths. However, there was some pull back in the summer of 2021 as risk-off concerns have more recently reared their head over the spread of the Delta variant, bringing into question the sustainability of the global economic recovery with softer data prints. Still, the valuation backdrop could be arguably characterized as 'complacent' given that yield spreads for fixed income sectors are trading through historical tights despite heightened potential for a policy misstep going forward. Central bank support remains critical, and the Fed maintains an accommodative policy stance having left rates and the pace of bond buying unchanged at their June 2021 meeting, followed by cautious remarks from Fed Chairman Jerome Powell at the Fed's Jackson Hole annual policy retreat in August. Despite leaving the door open for a possible September taper announcement, Powell indicated there is still room for improvement in employment metrics and reiterated the transitory nature of recent inflation prints. Nevertheless, the most recent median policy rate, or "dot plot", forecasted two rate hikes by the end of 2023, a faster than anticipated pace of tightening due to upgraded estimates for growth and inflation. If monetary support is withdrawn more quickly than markets expect (or at an earlier date than expected), there is little cushion in current spread levels to take this into account, suggesting caution is warranted. While equity markets continued to notch record highs and gained a staggering 30% through August 2021, the Bloomberg U.S. Aggregate Bond Index delivered a slight negative total return profile (-0.08%), largely driven by a -2.1% return for Treasuries. Agency mortgage-backed securities ("MBS") were also weighed down by rate volatility as well as concerns over the prospect of Fed tapering, despite still benefitting from the central bank's sponsorship. The sector fell -0.2% during the period and was one of the only to post negative excess returns. In contrast, corporate credit was the beneficiary of solid demand amid a global dearth of yield and advanced 2.5%, outpacing Treasuries by 533 bps. Even more impressively, high yield garnered a 10.1% return as investors sought out higher yielding products, and the option-adjusted spread ("OAS") of the sector compressed to historical tights (+288 bps at the end of August 2021). Lower quality credits outperformed, with an 18.7% return during the period. Securitized products generally trailed corporates, though legacy non-agency MBS delivered steady positive returns, recovering from early 2020 losses amid a strong housing market, improved sentiment, and ongoing improvement in the macro environment. Commercial MBS gained 1.6%, driven by non-agency backed collateral, which delivered nearly 390 bps of positive excess returns. Finally, asset-backed securities ("ABS") rose 0.9% and performed ahead of duration-matched Treasuries by roughly 84 bps. PERFORMANCE ANALYSIS The Fund returned 0.77% based on net asset value ("NAV") and 0.82% based on market price for the 12-month period ended August 31, 2021, while the Bloomberg U.S. Aggregate Index (the "Index") fell by -0.08%. Outperformance was driven by the issue selection, particularly within investment grade corporates, notwithstanding a drag from an underweight to the sector as spreads compressed amid the improved economy. More specifically credit holdings in the portfolio maintained a higher average yield than those in the benchmark, which benefitted relative returns, along with the emphasis on wirelines, airlines, and finance companies, all top performing sectors over the period, and an underweight to lagging utilities. Among securitized products, the overweight to agency MBS held back returns as the sector trailed Treasuries on a duration-adjusted basis, though the portfolio's preference for lower coupon To Be Announced ("TBAs") benefitted relative performance on an issue selection basis as TBAs continued to provide higher running yields than pools. Additionally, legacy non-agency MBS holdings contributed as the sector benefitted from the ongoing strength in housing with the added bonus of being mostly floating rate amid the rise in yields. Meanwhile, ABS were sustained in part by the progress in the labor markets, with positive contributions led by floating rate government guaranteed student loans. Finally, the duration profile of the portfolio has been adjusted in a disciplined manner given the evolving value proposition but was shorter than the Index for most of the period, which rewarded returns as Treasury yields rose. Derivative positioning in the Fund is largely focused on futures positions used to manage duration, with a small allocation to interest rate swaps and options, of which the impact on performance was minimal. MARKET AND FUND OUTLOOK COVID-19 and the associated disruptions delivered an unprecedented shock to the U.S. economy and the recovery has proceeded in fits and starts. With no historical corollary to reference, economic forecasting is particularly difficult. Perhaps most uniquely, U.S. households experienced a massive gain in wealth in 2020 (roughly $13.5 trillion), in stark contrast with the last recession, during which households lost $8 trillion. The impact of government stimulus efforts has clearly been substantial, while the impact on consumer finances and overall demand as that stimulus fades in the coming months is uncertain. All of this implies that asset prices at all-time highs supported by relentlessly optimistic economic outlooks, in our opinion, do not fully account for the myriad risks confronting the economy today. In our view, those downside risks include the potential for slowing growth in the U.S. or China later this year, as well as policymakers' significant challenge of engineering a smooth exit from policy support or shifting to a more hawkish policy stance in the face of rising price pressures. Facing this uncertainty, current market spreads seem to reflect a Goldilocks scenario of strong growth, contained inflation, and Page 15 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) rising earnings, yet debt has grown to record levels. In the unlikely event the Goldilocks scenario plays out, the scope for further spread tightening is limited, reducing the potential upside, while any of the numerous risks could lead to substantially wider spreads and poor performance. Given prevailing conditions, the Fund is more defensively positioned, with what we view as ample levels of liquidity to respond to potential volatility. Within credit, the team has taken a prudent approach, de-risking exposure by moving up the quality spectrum (given tight A/BBB relationships), reducing tight commodity-exposed names/sectors, swapping into shorter-dated maturities (where curves are flat), and enhancing liquidity. The focus remains on sectors that offer more stability in times of volatility (such as consumer non-cyclicals and communications) and on idiosyncratic opportunities where wider spreads offer more compelling value. Within securitized, the Fund continues to prefer current coupon agency MBS TBAs which remain attractive given the relatively high carry of TBAs versus specified pools; the sector continues to benefit from the significant tailwind of Fed sponsorship as well as money center banks. In our view, legacy non-agency MBS remains attractive from a collateral perspective, with the added benefit of having largely floating rate coupons, and the strategy will seek to add new exposure at favorable valuations. In commercial mortgage-backed securities ("CMBS"), though current holdings continue to focus on top-of the-capital structure exposures in single asset, single borrower ("SASB") AAA-rated issues, opportunities are beginning to present in AA- and A-rated collateral with good loan-to-value ("LTV") ratios, i.e., protection, and good spread compensation. A similar strategy applies to collateralized loan obligations ("CLOs"), with possible additions on well-collateralized AA-rated issues offering good yields. Lastly, though currently a small position, emerging market debt issues are add candidates on cheaper entry points. FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) MARKET RECAP Financial markets gained momentum in the latter part of 2020 on optimism surrounding the introduction of effective vaccines for the coronavirus ("COVID-19") and continued their pursuit of record highs (particularly in the equity space). This led to increased concerns regarding inflation, and thus a significant re-pricing higher of interest rates in the opening months of 2021. Pricing pressures did ultimately manifest in the second quarter of 2021, with consecutive upside surprises for the CPI which brought year-over-year advance to 5.4% as of July 2021, the highest level since 2008. While the reflation trade subsequently stalled as markets appeared to buy into the Fed's narrative that these higher inflation prints would prove transitory, the 10-Year U.S. Treasury yield still was over 60 basis points ("bps") higher year-over-year, closing August 2021 at 1.31%. Macroeconomic data prints were generally positive during the 12-month period ended August 31, 2021, including a surge in manufacturing indices, relatively strong earnings results, and an uptick in consumer confidence from pandemic depths. However, there was some pull back in the summer of 2021 as risk-off concerns have more recently reared their head over the spread of the Delta variant, bringing into question the sustainability of the global economic recovery with softer data prints. Still, the valuation backdrop could be arguably characterized as 'complacent' given that yield spreads for fixed income sectors are trading through historical tights despite heightened potential for a policy misstep going forward. Central bank support remains critical, and the Fed maintains an accommodative policy stance having left rates and the pace of bond buying unchanged at their June 2021 meeting, followed by cautious remarks from Fed Chairman Jerome Powell at the Fed's Jackson Hole annual policy retreat in August. Despite leaving the door open for a possible September taper announcement, Powell indicated there is still room for improvement in employment metrics and reiterated the transitory nature of recent inflation prints. Nevertheless, the most recent median policy rate, or "dot plot", forecasted two rate hikes by the end of 2023, a faster than anticipated pace of tightening due to upgraded estimates for growth and inflation. If monetary support is withdrawn more quickly than markets expect (or at an earlier date than expected), there is little cushion in current spread levels to take this into account, suggesting caution is warranted. While equity markets continued to notch record highs and gained a staggering 30% through August 2021, the Bloomberg U.S. Aggregate Bond Index delivered a slight negative total return profile (-0.08%), largely driven by a -2.1% return for Treasuries. Agency MBS were also weighed down by rate volatility as well as concerns over the prospect of Fed tapering, despite still benefitting from the central bank's sponsorship. The sector fell -0.2% during the period and was one of the only to post negative excess returns. In contrast, corporate credit was the beneficiary of solid demand amid a global dearth of yield and advanced 2.5%, outpacing Treasuries by 533 bps. Even more impressively, high yield garnered a 10.1% return as investors sought out higher yielding products, and the OAS of the sector compressed to historical tights (+288 bps at the end of August 2021). Lower quality credits outperformed, with an 18.7% return during the period. Securitized products generally trailed corporates, though legacy non-agency MBS delivered steady positive returns, recovering from early 2020 losses amid a strong housing market, improved sentiment, and ongoing improvement in the macro environment. Commercial MBS gained 1.6%, driven by non-agency backed collateral, which delivered nearly 390 bps of positive excess returns. Finally, ABS rose 0.9% and performed ahead of duration-matched Treasuries by roughly 84 bps. Page 16 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) PERFORMANCE ANALYSIS The Fund returned 4.04% based on NAV and 3.99% based on market price, for the 12-month period ended August 31, 2021, while the ICE BofA US Dollar 3-Month Deposit Offered Rate Average Index returned 0.21%. While the positive duration position of the portfolio resulted in a drag on performance as Treasury yields rose, favorable issue selection among corporate credit and non-agency MBS more than offset the drag, driving outperformance. Agency MBS, CMBS, and ABS also contributed, though somewhat more modestly. Among corporates, the allocation to high yield credit boosted returns as the sector outpaced Treasuries by over 1,000 bps, while investment grade credit also performed well with yield premiums declining. The largest contributions came from finance companies, midstream energy, and airline holdings, all top performing areas of the corporate market, and alongside this outperformance, the overall allocation to corporate credit was selectively trimmed over the period. The small position in emerging market debt was also additive as the sector reversed course in the second half of the period as growth estimates picked up amid improved economic metrics in the U.S. and China, notwithstanding a slower pace of COVID-19 vaccinations and delayed reopenings. Derivative positioning in the Fund is largely focused on futures positions used to manage duration, with a small allocation to interest rate swaps and options, of which the impact on performance was minimal. MARKET AND FUND OUTLOOK COVID-19 and the associated disruptions delivered an unprecedented shock to the U.S. economy and the recovery has proceeded in fits and starts. With no historical corollary to reference, economic forecasting is particularly difficult. Perhaps most uniquely, U.S. households experienced a massive gain in wealth in 2020 (roughly $13.5 trillion), in stark contrast with the last recession, during which households lost $8 trillion. The impact of government stimulus efforts has clearly been substantial, while the impact on consumer finances and overall demand as that stimulus fades in the coming months is uncertain. All of this implies that asset prices at all-time highs supported by relentlessly optimistic economic outlooks, in our opinion, do not fully account for the myriad risks confronting the economy today. In our view, those downside risks include the potential for slowing growth in the U.S. or China later this year, as well as policymakers' significant challenge of engineering a smooth exit from policy support or shifting to a more hawkish policy stance in the face of rising price pressures. Facing this uncertainty, current market spreads seem to reflect a Goldilocks scenario of strong growth, contained inflation, and rising earnings, yet debt has grown to record levels. In the unlikely event the Goldilocks scenario plays out, the scope for further spread tightening is limited, reducing the potential upside, while any of the numerous risks could lead to substantially wider spreads and poor performance. Given prevailing conditions, the Fund is more defensively positioned, with what we view as ample levels of liquidity to respond to potential volatility. Within credit, the team has taken a prudent approach, de-risking exposure by moving up the quality spectrum (given tight A/BBB relationships), reducing tight commodity-exposed names/sectors, swapping into shorter-dated maturities (where curves are flat), and enhancing liquidity. The focus remains on sectors that offer more stability in times of volatility (such as consumer non-cyclicals and communications) and on idiosyncratic opportunities where wider spreads offer more compelling value. Within securitized, the Fund continues to prefer current coupon agency MBS TBAs which remain attractive given the relatively high carry of TBAs versus specified pools; the sector continues to benefit from the significant tailwind of Fed sponsorship as well as money center banks. In our view, legacy non-agency MBS remains attractive from a collateral perspective, with the added benefit of having largely floating rate coupons, and the strategy will seek to add new exposure at favorable valuations. In CMBS, though current holdings continue to focus on top-of the-capital structure exposures in single asset, SASB AAA-rated issues, opportunities are beginning to present in AA- and A-rated collateral with good LTV ratios, i.e., protection, and good spread compensation. A similar strategy applies to CLOs, with possible additions on well-collateralized AA-rated issues offering good yields. Lastly, though currently a small position, emerging market debt issues are add candidates on cheaper entry points. FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) MARKET RECAP Financial markets gained momentum in the latter part of 2020 on optimism surrounding the introduction of effective vaccines for COVID-19 and continued their pursuit of record highs (particularly in the equity space). This led to increased concerns regarding inflation, and thus a significant re-pricing higher of interest rates in the opening months of 2021. Pricing pressures did ultimately manifest in the second quarter of 2021, with consecutive upside surprises for the CPI which brought year-over-year advance to 5.4% as of July 2021, the highest level since 2008. While the reflation trade subsequently stalled as markets appeared to buy into the Fed's narrative that these higher inflation prints would prove transitory, the 10-Year U.S. Treasury yield still was over 60 bps higher year-over-year, closing August 2021 at 1.31%. Macroeconomic data prints were generally positive during the 12-month period ended August 31, 2021, including a surge in manufacturing indices, relatively strong earnings results, and an uptick in consumer confidence from pandemic depths. However, there was some pull back in the summer of 2021 as risk-off Page 17 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) concerns have more recently reared their head over the spread of the Delta variant, bringing into question the sustainability of the global economic recovery with softer data prints. Still, the valuation backdrop could be arguably characterized as 'complacent' given that yield spreads for fixed income sectors are trading through historical tights despite heightened potential for a policy misstep going forward. Central bank support remains critical, and the Fed maintains an accommodative policy stance having left rates and the pace of bond buying unchanged at their June 2021 meeting, followed by cautious remarks from Fed Chairman Jerome Powell at the Fed's Jackson Hole annual policy retreat in August. Despite leaving the door open for a possible September taper announcement, Powell indicated there is still room for improvement in employment metrics and reiterated the transitory nature of recent inflation prints. Nevertheless, the most recent median policy rate, or "dot plot", forecasted two rate hikes by the end of 2023, a faster than anticipated pace of tightening due to upgraded estimates for growth and inflation. If monetary support is withdrawn more quickly than markets expect (or at an earlier date than expected), there is little cushion in current spread levels to take this into account, suggesting caution is warranted. While equity markets continued to notch record highs and gained a staggering 30% through August 2021, the Bloomberg U.S. Aggregate Bond Index delivered a slight negative total return profile (-0.08%), largely driven by a -2.1% return for Treasuries. Agency MBS were also weighed down by rate volatility as well as concerns over the prospect of Fed tapering, despite still benefitting from the central bank's sponsorship. The sector fell -0.2% during the period and was one of the only to post negative excess returns. In contrast, corporate credit was the beneficiary of solid demand amid a global dearth of yield and advanced 2.5%, outpacing Treasuries by 533 bps. Even more impressively, high yield garnered a 10.1% return as investors sought out higher yielding products, and the OAS of the sector compressed to historical tights (+288 bps at the end of August 2021). Lower quality credits outperformed, with an 18.7% return during the period. Securitized products generally trailed corporates, though legacy non-agency MBS delivered steady positive returns, recovering from early 2020 losses amid a strong housing market, improved sentiment, and ongoing improvement in the macro environment. Commercial MBS gained 1.6%, driven by non-agency backed collateral, which delivered nearly 390 bps of positive excess returns. Finally, ABS rose 0.9% and performed ahead of duration-matched Treasuries by roughly 84 bps. PERFORMANCE ANALYSIS The Fund returned 2.93% based on NAV and 3.05% based on market price for the 12-month period ended August 31, 2021, while the Bloomberg U.S. Mortgage-Backed Securities Index (the "Index") fell by -0.18%. The underweight to agency MBS benefitted returns as the sector lagged Treasuries by nearly 50 bps, though the emphasis on lower coupons was a drag as higher coupons led. Nevertheless, the portfolio's emphasis on TBAs provided a tailwind to performance given the yield advantage of TBA positions. Non-agency MBS was also additive, as the largely floating rate holdings performed well amid rising rates, with the biggest contributions coming from issues backed by subprime and option adjustable-rate mortgage collateral. CMBS and ABS holdings were also significant to outperformance as reopenings and an improved outlook helped both sectors, along with strong sponsorship. Finally, the duration profile of the portfolio has been adjusted in a disciplined manner given the evolving value proposition but was shorter than the Index for most of the period, which rewarded returns as Treasury yields rose. Derivative positioning in the Fund is largely focused on futures positions used to manage duration, with a small allocation to currency forwards which had little impact on performance. MARKET AND FUND OUTLOOK COVID-19 and the associated disruptions delivered an unprecedented shock to the U.S. economy and the recovery has proceeded in fits and starts. With no historical corollary to reference, economic forecasting is particularly difficult. Perhaps most uniquely, U.S. households experienced a massive gain in wealth in 2020 (roughly $13.5 trillion), in stark contrast with the last recession, during which households lost $8 trillion. The impact of government stimulus efforts has clearly been substantial, while the impact on consumer finances and overall demand as that stimulus fades in the coming months is uncertain. All of this implies that asset prices at all-time highs supported by relentlessly optimistic economic outlooks, in our opinion, do not fully account for the myriad risks confronting the economy today. In our view, those downside risks include the potential for slowing growth in the U.S. or China later this year, as well as policymakers' significant challenge of engineering a smooth exit from policy support or shifting to a more hawkish policy stance in the face of rising price pressures. Facing this uncertainty, current market spreads seem to reflect a Goldilocks scenario of strong growth, contained inflation, and rising earnings, yet debt has grown to record levels. In the unlikely event the Goldilocks scenario plays out, the scope for further spread tightening is limited, reducing the potential upside, while any of the numerous risks could lead to substantially wider spreads and poor performance. Page 18 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) Given prevailing conditions, the Fund is more defensively positioned, with what we view as ample levels of liquidity to respond to potential volatility. Within credit, the team has taken a prudent approach, de-risking exposure by moving up the quality spectrum (given tight A/BBB relationships), reducing tight commodity-exposed names/sectors, swapping into shorter-dated maturities (where curves are flat), and enhancing liquidity. The focus remains on sectors that offer more stability in times of volatility (such as consumer non-cyclicals and communications) and on idiosyncratic opportunities where wider spreads offer more compelling value. Within securitized, the Fund continues to prefer current coupon agency MBS TBAs which remain attractive given the relatively high carry of TBAs versus specified pools; the sector continues to benefit from the significant tailwind of Fed sponsorship as well as money center banks. In our view, legacy non-agency MBS remains attractive from a collateral perspective, with the added benefit of having largely floating rate coupons, and the strategy will seek to add new exposure at favorable valuations. In CMBS, though current holdings continue to focus on top-of the-capital structure exposures in single asset, SASB AAA-rated issues, opportunities are beginning to present in AA- and A-rated collateral with good LTV ratios, i.e., protection, and good spread compensation. A similar strategy applies to CLOs, with possible additions on well-collateralized AA-rated issues offering good yields. Lastly, though currently a small position, emerging market debt issues are add candidates on cheaper entry points. FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) MARKET RECAP Emerging Markets ("EMs") sovereign spreads are 12 bps wider, and EMs corporate spreads are 9 bps wider for the third quarter through September 21, 2021. The market environment has been mixed, due to a combination of growth concerns related to the Delta variant earlier in the quarter, followed by some relief following the Jackson Hole meetings and comfort around tapering. More recently, regulatory concerns related to the Chinese property sector and general risk-off sentiment have weighed on the market (largely Asia high yield, which is approximately 70 bps wider for the quarter through September 21, 2021). PERFORMANCE ANALYSIS From the Fund's inception date of February 17, 2021 through August 31, 2021, the Fund returned 1.93% based on NAV and 1.58% based on market price, while the JP Morgan Emerging Market Bond Index Global Diversified returned 2.65%. The underperformance of 72 bps has been driven by Chinese property exposure, along with underweight positioning to Sri Lanka and Ecuador. We have reduced exposure to Chinese property given regulatory headwinds. For Sri Lanka, the underweight has been predicated upon concerns about debt sustainability. We believe we have been early with this call, as the sovereign has been able to muddle through. That said, we remain concerned about fundamentals and are remaining underweight. For Ecuador, we had been underweight heading into that country's Presidential elections in February 2021, as our research assessment, along with polls, suggested that the less market-friendly candidate was likely to win, which, in our view, would pressure the sovereign's relationship with the International Monetary Fund ("IMF") and hurt long-term economic growth. Unexpectedly, the market-friendly candidate, Guillermo Lasso, won and we missed the immediate rally after the news. We have since shifted to a moderate overweight in Ecuador on the basis of a more constructive economic backdrop and relationship with the IMF. MARKET AND FUND OUTLOOK We believe EMs will benefit from the improving global economic backdrop and continued policy accommodation from Developed Market central banks. Furthermore, we believe that the downside risks from the Delta variant are manageable, and that it has delayed, but not derailed, the overall improving global growth momentum, particularly as vaccine dissemination improves internationally (in both EMs and Europe). We believe returns for the balance of the year for dollar-denominated debt will largely be driven by carry, with some potential for spread tightening following the Fed's Jackson Hole meeting in August 2021, offset partially by rates grinding higher. Yields of approximately 5% for EM Fixed Income appears attractive to us in the context of global fixed income. We are positioned for an improvement in global growth, expressed via an overweight to high yield (which is less rate sensitive) relative to investment grade. Additionally, the Fund is moderately overweight Latin America, with select overweights concentrated in Mexico, Brazil, and other higher yielding sovereigns. The Fund is underweight Asia, largely due to valuations, and underweight in Europe, which reflects an overweight to Ukraine and an underweight to Russia due to tighter trading spreads in Central and Eastern Europe sovereigns. The Fund is overweight the Middle East/Africa region as it will benefit, in our view, from an improvement in global growth and a supportive commodity backdrop. Page 19 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) MARKET RECAP Financial markets remained relatively steady during the 12-month period ended August 31, 2021, as investors were optimistic about the reopening of the economy. Despite the ongoing pandemic, concerns regarding inflation, and rising interest rates, equities continued to trend upwards, hitting all-time highs during the period. Although there is lasting uncertainty regarding COVID-19 and new variants arising, the increasing number of vaccinated individuals seems to be curbing new cases and easing restrictions, at least in the United States. The Fed has maintained that the rising CPI is not an indication of lasting inflation, rather a transitory adjustment. Short-term material shortages have led to sharp valuation/price increases for most commodities, although for the most part these have retreated to normal, pre-pandemic levels. Globally, different countries have faced a variety of issues stemming from the pandemic however many have continued to shrug off concerns similar to the U.S. markets. The Chinese government took steps to crack down on some if its larger internet and educational companies, incorporating strict rules that companies must follow and harsh punishments for infractions. Although not directly targeted, companies like Alibaba Group and Tencent Holdings Ltd. were negatively impacted by the decision. PERFORMANCE ANALYSIS On a NAV basis, the Fund was up 7.56% during the period from the Fund's inception date of May 25, 2021 through August 31, 2021. On a market price basis, the Fund returned 7.66% from the Fund's inception date of May 25, 2021, through August 31, 2021. The Fund's NAV return underperformed the Russell 1000(R) Index, which increased by 8.23%. Top performers in the period included MSCI Inc. (Financials), Vertiv Holdings Co. (Industrials), and Microsoft Corp. (Information Technology). These companies implement responsible environmental, social and governance ("ESG") strategies and exemplify our belief that businesses that are conscious of their ESG impact are more likely to perform better in the long run. MSCI Inc. is one holding we believe is worth noting as its services, namely ESG ratings and research, help investment managers identify how well companies are managing their impact across various environmental, social, and governance factors. The company presents these ratings similar to bond ratings, (AAA-CCC) while also providing related analysis of the performance of each business. We continue to prefer MSCI shares, as the company is a leader in providing critical data and support services to investment professionals and institutions worldwide. The weakest performers in the period included Clarivate PLC (Industrials), Cricut, Inc. (Consumer Discretionary), and HEICO Corp. (Industrials). MARKET AND FUND OUTLOOK We believe that the reopening of the U.S. and Global economies is providing a boost to economic output and corporate earnings. We expect this will create a favorable environment for equities, but we will continue to closely monitor the risks to this outlook, including the expensive valuation the market is currently assigning to the stock market and rising inflation expectations within the US. We expect continued push and pull between the distribution of the COVID-19 vaccine aiding reopening, while the delta variant drives renewed shutdowns in certain regions. We will also monitor interest rates and the Fed's stance on inflation and the pressures it may put on the markets. Fed Chairman Jerome Powell has reiterated that the inflation is transitory, and, if this holds true, we expect the equities markets to continue rising. We also note that equity prices are being supported by a still very constructive outlook for corporate earnings growth. Earnings results for the second quarter of 2021 were nothing short of stellar, and the market consensus expects 9% earnings per share growth for next year, driven by 7% revenue growth, according to Factset. We recognize the possibility these estimates are disrupted by the on-going COVID-19 pandemic, substantial tax increases proposed by Congress, and finally, we are mindful that equity market valuations are demanding, with the S&P 500(R) Index trading at 21.1 times forward earnings, which is approximately 30% above its ten-year average of 16.3. We continue to believe (supported by data) that companies that manage their environmental and social resources in a superior manner and have sensible corporate governance practices are likely to manage the rest of their business in a superior manner. Going forward, we will continue to seek out high quality businesses which offer predictable growth, consistent free cash flow, and capital light business models while also performing better than peers from an ESG standpoint. Page 20 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2021 (UNAUDITED) As a shareholder of First Trust TCW Opportunistic Fixed Income ETF, First Trust TCW Unconstrained Plus Bond ETF, First Trust TCW Securitized Plus ETF, First Trust TCW Emerging Markets Debt ETF or First Trust TCW ESG Premier Equity ETF (each a "Fund" and collectively, the "Funds"), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period (or since inception) and held through the six-month (or shorter) period ended August 31, 2021. ACTUAL EXPENSES The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this six-month (or shorter) period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD (a) PERIOD (b) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) Actual $1,000.00 $1,018.90 0.55% $2.80 Hypothetical (5% return before expenses) $1,000.00 $1,022.43 0.55% $2.80 FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) Actual $1,000.00 $1,010.40 0.75% $3.80 Hypothetical (5% return before expenses) $1,000.00 $1,021.42 0.75% $3.82 FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) Actual $1,000.00 $1,018.30 0.65% $3.31 Hypothetical (5% return before expenses) $1,000.00 $1,021.93 0.65% $3.31 FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) Actual $1,000.00 $1,037.50 0.85% $4.37 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> Page 21 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES (CONTINUED) AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE MAY 25, 2021 (c) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO MAY 25, 2021 (c) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (d) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) Actual $1,000.00 $1,075.60 0.85% $2.39 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> (a) These expense ratios reflect an expense waiver. See Note 3 in the Notes to Financial Statements. (b) Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 1, 2021 through August 31, 2021), multiplied by 184/365 (to reflect the six-month period). (c) Inception date. (d) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (May 25, 2021 through August 31,2021), multiplied by 99/365. Hypothetical expenses are assumed for the most recent six-month period. Page 22 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT BONDS AND NOTES -- 36.9% <S> <C> <C> <C> <C> $ 56,704,000 U.S. Treasury Bond.................................................. 2.25% 05/15/41 $ 60,646,700 85,125,000 U.S. Treasury Bond.................................................. 2.38% 05/15/51 93,896,866 265,460,000 U.S. Treasury Bond.................................................. 2.00% 08/15/51 269,815,203 11,726,242 U.S. Treasury Inflation Indexed Bond................................ 0.13% 02/15/51 13,322,265 93,210,000 U.S. Treasury Note.................................................. 0.13% 06/30/23 93,140,821 362,675,000 U.S. Treasury Note.................................................. 0.13% 07/31/23 362,264,158 452,325,000 U.S. Treasury Note.................................................. 0.13% 08/31/23 451,600,574 174,865,000 U.S. Treasury Note.................................................. 0.88% 06/30/26 175,862,276 186,425,000 U.S. Treasury Note.................................................. 0.63% 07/31/26 185,172,457 207,010,000 U.S. Treasury Note.................................................. 0.75% 08/31/26 206,807,842 40,665,000 U.S. Treasury Note.................................................. 1.25% 08/15/31 40,471,206 -------------- TOTAL U.S. GOVERNMENT BONDS AND NOTES.......................................................... 1,953,000,368 (Cost $1,939,062,233) -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 30.1% COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.2% Federal Home Loan Mortgage Corporation 263,309 Series 2017-4656, Class EZ....................................... 4.00% 02/15/47 303,868 Federal National Mortgage Association 2,742,804 Series 2012-20, Class ZT......................................... 3.50% 03/25/42 2,905,043 3,023,599 Series 2012-84, Class VZ......................................... 3.50% 08/25/42 3,245,506 473,490 Series 2018-38, Class PA......................................... 3.50% 06/25/47 492,096 1,070,654 Series 2018-43, Class CT......................................... 3.00% 06/25/48 1,114,958 453,596 Series 2018-86, Class JA......................................... 4.00% 05/25/47 472,514 169,501 Series 2018-94, Class KD......................................... 3.50% 12/25/48 178,045 212,837 Series 2019-1, Class KP.......................................... 3.25% 02/25/49 223,032 208,697 Series 2019-20, Class BA......................................... 3.50% 02/25/48 214,795 98,281 Series 2019-52, Class PA......................................... 3.00% 09/25/49 102,159 Government National Mortgage Association 287,522 Series 2018-115, Class DE........................................ 3.50% 08/20/48 307,964 308,426 Series 2018-124, Class NW........................................ 3.50% 09/20/48 331,500 825,066 Series 2019-12, Class QA......................................... 3.50% 09/20/48 866,933 85,526 Series 2019-71, Class PT......................................... 3.00% 06/20/49 88,418 836,402 Series 2019-119, Class JE........................................ 3.00% 09/20/49 865,837 -------------- 11,712,668 -------------- PASS-THROUGH SECURITIES -- 29.9% Federal Home Loan Mortgage Corporation 92,899 Pool C91981...................................................... 3.00% 02/01/38 97,350 71,595 Pool G07961...................................................... 3.50% 03/01/45 77,411 69,623 Pool G08692...................................................... 3.00% 02/01/46 73,597 2,060,193 Pool G08715...................................................... 3.00% 08/01/46 2,176,763 40,986 Pool G08721...................................................... 3.00% 09/01/46 43,299 472,920 Pool G08726...................................................... 3.00% 10/01/46 502,170 1,135,915 Pool G08732...................................................... 3.00% 11/01/46 1,206,536 155,676 Pool G08738...................................................... 3.50% 12/01/46 166,192 290,019 Pool G08741...................................................... 3.00% 01/01/47 307,912 200,150 Pool G08747...................................................... 3.00% 02/01/47 212,696 152,209 Pool G08748...................................................... 3.50% 02/01/47 162,516 642,785 Pool G08750...................................................... 3.00% 03/01/47 678,202 166,643 Pool G08766...................................................... 3.50% 06/01/47 177,242 </TABLE> See Notes to Financial Statements Page 23 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> PASS-THROUGH SECURITIES (CONTINUED) Federal Home Loan Mortgage Corporation (Continued) $ 453,718 Pool G08788...................................................... 3.50% 11/01/47 $ 482,127 1,496,552 Pool G08792...................................................... 3.50% 12/01/47 1,593,214 210,499 Pool G08800...................................................... 3.50% 02/01/48 223,299 313,364 Pool G08816...................................................... 3.50% 06/01/48 332,051 101,276 Pool G08833...................................................... 5.00% 07/01/48 111,366 20,579 Pool G08838...................................................... 5.00% 09/01/48 22,638 341,233 Pool G08843...................................................... 4.50% 10/01/48 370,131 79,086 Pool G08844...................................................... 5.00% 10/01/48 86,922 226,486 Pool G08849...................................................... 5.00% 11/01/48 249,007 594,581 Pool G16085...................................................... 2.50% 02/01/32 626,854 364,312 Pool G16350...................................................... 2.50% 10/01/32 383,458 470,795 Pool G16396...................................................... 3.50% 02/01/33 504,931 1,379,456 Pool G16524...................................................... 3.50% 05/01/33 1,490,613 150,499 Pool G18670...................................................... 3.00% 12/01/32 159,628 43,722 Pool G18691...................................................... 3.00% 06/01/33 46,201 129,926 Pool G18713...................................................... 3.50% 11/01/33 138,609 1,719,917 Pool G60038...................................................... 3.50% 01/01/44 1,867,620 468,925 Pool G60080...................................................... 3.50% 06/01/45 510,890 983,909 Pool G60344...................................................... 4.00% 12/01/45 1,091,451 304,460 Pool G60440...................................................... 3.50% 03/01/46 331,699 972,897 Pool G60582...................................................... 3.50% 05/01/46 1,054,251 874,361 Pool G60658...................................................... 3.50% 07/01/46 963,104 448,034 Pool G61556...................................................... 3.50% 08/01/48 484,876 2,785,665 Pool G61748...................................................... 3.50% 11/01/48 3,033,055 917,669 Pool G67700...................................................... 3.50% 08/01/46 999,736 2,086,442 Pool G67703...................................................... 3.50% 04/01/47 2,276,521 7,754,922 Pool G67706...................................................... 3.50% 12/01/47 8,423,151 1,829,286 Pool G67707...................................................... 3.50% 01/01/48 2,017,847 10,365,400 Pool G67708...................................................... 3.50% 03/01/48 11,197,734 1,942,178 Pool G67709...................................................... 3.50% 03/01/48 2,115,240 1,560,290 Pool G67710...................................................... 3.50% 03/01/48 1,680,744 2,348,014 Pool G67714...................................................... 4.00% 07/01/48 2,577,051 3,163,284 Pool G67717...................................................... 4.00% 11/01/48 3,486,443 5,170,024 Pool G67718...................................................... 4.00% 01/01/49 5,639,482 164,192 Pool Q44452...................................................... 3.00% 11/01/46 173,114 318,790 Pool Q50135...................................................... 3.50% 08/01/47 339,393 10,969,662 Pool QA7837...................................................... 3.50% 03/01/50 11,943,135 18,486,478 Pool RA3078...................................................... 3.00% 07/01/50 19,692,078 1,622,768 Pool RE6029...................................................... 3.00% 02/01/50 1,660,103 17,905,149 Pool SD0231...................................................... 3.00% 01/01/50 19,039,666 5,434,831 Pool SD7511...................................................... 3.50% 01/01/50 5,879,460 15,845,384 Pool SD7513...................................................... 3.50% 04/01/50 17,178,166 8,913,602 Pool SD7518...................................................... 3.00% 06/01/50 9,491,322 367,089 Pool U90772...................................................... 3.50% 01/01/43 398,557 449,175 Pool U99114...................................................... 3.50% 02/01/44 487,680 894,706 Pool ZA4692...................................................... 3.50% 06/01/46 961,242 468,271 Pool ZM0063...................................................... 4.00% 08/01/45 517,671 20,673,356 Pool ZM1779...................................................... 3.00% 09/01/46 21,900,775 4,454,608 Pool ZS4667...................................................... 3.00% 06/01/46 4,709,478 </TABLE> Page 24 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> PASS-THROUGH SECURITIES (CONTINUED) Federal Home Loan Mortgage Corporation (Continued) $ 7,299,692 Pool ZS4688...................................................... 3.00% 11/01/46 $ 7,751,435 12,799,416 Pool ZS4735...................................................... 3.50% 09/01/47 13,535,000 461,028 Pool ZS8602...................................................... 3.00% 03/01/31 488,987 800,690 Pool ZS9844...................................................... 3.50% 07/01/46 863,199 2,413,611 Pool ZT0277...................................................... 3.50% 10/01/46 2,601,300 1,023,096 Pool ZT0531...................................................... 3.50% 04/01/47 1,115,995 1,007,275 Pool ZT0536...................................................... 3.50% 03/01/48 1,087,858 3,152,550 Pool ZT0537...................................................... 3.50% 03/01/48 3,432,526 581,497 Pool ZT0542...................................................... 4.00% 07/01/48 638,071 138,983 Pool ZT1403...................................................... 3.50% 11/01/33 148,640 1,708,617 Pool ZT1703...................................................... 4.00% 01/01/49 1,863,395 Federal National Mortgage Association 3,710,596 Pool AL8825...................................................... 3.50% 06/01/46 4,016,166 110,176 Pool AM5673...................................................... 3.65% 04/01/23 114,200 116,219 Pool AN2786...................................................... 2.76% 09/01/36 128,280 1,682,656 Pool AS0225...................................................... 4.00% 08/01/43 1,849,918 1,863,198 Pool AS3134...................................................... 3.50% 08/01/44 2,014,262 451,680 Pool AS6620...................................................... 3.50% 02/01/46 485,568 142,658 Pool AS9334...................................................... 3.00% 03/01/32 151,077 132,730 Pool AS9749...................................................... 4.00% 06/01/47 143,393 118,985 Pool BD7081...................................................... 4.00% 03/01/47 128,779 9,213,855 Pool BE3774...................................................... 4.00% 07/01/47 9,967,882 1,138,190 Pool BJ2692...................................................... 3.50% 04/01/48 1,208,710 2,120,000 Pool BL6060...................................................... 2.46% 04/01/40 2,270,465 1,325,618 Pool BM1903...................................................... 3.50% 08/01/47 1,445,962 377,064 Pool BM2000...................................................... 3.50% 05/01/47 402,109 1,025,188 Pool BM3260...................................................... 3.50% 01/01/48 1,099,821 606,135 Pool BM4299...................................................... 3.00% 03/01/30 638,640 574,884 Pool BM4304...................................................... 3.00% 02/01/30 605,466 1,082,878 Pool BM4472...................................................... 3.50% 07/01/48 1,178,406 2,418,319 Pool BM5585...................................................... 3.00% 11/01/48 2,558,017 18,117,557 Pool BN7755...................................................... 3.00% 09/01/49 19,223,992 1,330,080 Pool CA0854...................................................... 3.50% 12/01/47 1,437,645 620,947 Pool CA0907...................................................... 3.50% 12/01/47 672,895 535,338 Pool CA0996...................................................... 3.50% 01/01/48 578,631 3,903,377 Pool CA1182...................................................... 3.50% 02/01/48 4,217,334 763,135 Pool CA1187...................................................... 3.50% 02/01/48 813,088 561,892 Pool CA1710...................................................... 4.50% 05/01/48 609,216 362,639 Pool CA1711...................................................... 4.50% 05/01/48 393,074 238,890 Pool CA2208...................................................... 4.50% 08/01/48 259,144 649,444 Pool CA2327...................................................... 4.00% 09/01/48 719,302 4,325,243 Pool CA3633...................................................... 3.50% 06/01/49 4,703,479 16,580,967 Pool CA4534...................................................... 3.00% 11/01/49 17,583,248 5,643,381 Pool FM2870...................................................... 3.00% 03/01/50 5,995,633 9,363,346 Pool FM5397...................................................... 3.00% 12/01/50 10,015,057 339,019 Pool MA1146...................................................... 4.00% 08/01/42 372,574 575,861 Pool MA1373...................................................... 3.50% 03/01/43 625,054 597,133 Pool MA2077...................................................... 3.50% 11/01/34 643,418 153,504 Pool MA2145...................................................... 4.00% 01/01/45 167,282 </TABLE> See Notes to Financial Statements Page 25 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> PASS-THROUGH SECURITIES (CONTINUED) Federal National Mortgage Association (Continued) $ 666,699 Pool MA2670...................................................... 3.00% 07/01/46 $ 702,935 629,251 Pool MA2806...................................................... 3.00% 11/01/46 662,375 18,846 Pool MA2896...................................................... 3.50% 02/01/47 20,096 623,365 Pool MA3057...................................................... 3.50% 07/01/47 663,118 297,519 Pool MA3088...................................................... 4.00% 08/01/47 320,813 649,864 Pool MA3210...................................................... 3.50% 12/01/47 692,049 7,250,960 Pool MA3238...................................................... 3.50% 01/01/48 7,712,552 678,288 Pool MA3239...................................................... 4.00% 01/01/48 733,586 311,017 Pool MA3276...................................................... 3.50% 02/01/48 331,217 897,794 Pool MA3332...................................................... 3.50% 04/01/48 953,294 241,904 Pool MA3336...................................................... 3.50% 04/01/38 257,128 172,524 Pool MA3410...................................................... 3.50% 07/01/33 184,570 269,242 Pool MA3537...................................................... 4.50% 12/01/48 291,541 1,056,715 Pool MA3846...................................................... 3.00% 11/01/49 1,086,774 12,049,008 Pool MA4093...................................................... 2.00% 08/01/40 12,289,588 8,315,748 Pool MA4128...................................................... 2.00% 09/01/40 8,528,212 8,919,966 Pool MA4152...................................................... 2.00% 10/01/40 9,147,912 4,838,381 Pool MA4176...................................................... 2.00% 11/01/40 4,945,765 15,782,386 Pool MA4364...................................................... 2.00% 06/01/41 16,186,279 60,175,000 Pool TBA (a)..................................................... 1.50% 10/15/36 61,089,299 82,825,000 Pool TBA (a)..................................................... 2.00% 10/15/36 85,597,588 443,960,000 Pool TBA (a)..................................................... 2.00% 10/15/51 449,381,014 424,450,000 Pool TBA (a)..................................................... 2.50% 10/15/51 440,111,394 Government National Mortgage Association 249,201 Pool MA1157...................................................... 3.50% 07/20/43 268,985 804,108 Pool MA2825...................................................... 3.00% 05/20/45 852,458 279,331 Pool MA3521...................................................... 3.50% 03/20/46 296,884 11,649,628 Pool MA3662...................................................... 3.00% 05/20/46 12,357,905 1,085,931 Pool MA3663...................................................... 3.50% 05/20/46 1,156,851 717,137 Pool MA3735...................................................... 3.00% 06/20/46 757,217 15,069,900 Pool MA3937...................................................... 3.50% 09/20/46 16,074,904 208,079 Pool MA4069...................................................... 3.50% 11/20/46 221,856 115,825 Pool MA4195...................................................... 3.00% 01/20/47 122,170 142,739 Pool MA4196...................................................... 3.50% 01/20/47 152,377 677,289 Pool MA4261...................................................... 3.00% 02/20/47 715,889 181,620 Pool MA4262...................................................... 3.50% 02/20/47 193,644 4,876,942 Pool MA4322...................................................... 4.00% 03/20/47 5,220,989 4,930,727 Pool MA4382...................................................... 3.50% 04/20/47 5,210,051 62,725 Pool MA4453...................................................... 4.50% 05/20/47 68,083 63,283 Pool MA4586...................................................... 3.50% 07/20/47 67,208 435,353 Pool MA4588...................................................... 4.50% 07/20/47 470,261 1,065,317 Pool MA4651...................................................... 3.00% 08/20/47 1,122,535 1,615,426 Pool MA4652...................................................... 3.50% 08/20/47 1,717,044 570,432 Pool MA4719...................................................... 3.50% 09/20/47 606,044 73,677 Pool MA4722...................................................... 5.00% 09/20/47 80,341 53,554 Pool MA4777...................................................... 3.00% 10/20/47 56,466 1,414,167 Pool MA4778...................................................... 3.50% 10/20/47 1,509,218 1,294,933 Pool MA4836...................................................... 3.00% 11/20/47 1,364,729 1,402,011 Pool MA4837...................................................... 3.50% 11/20/47 1,487,455 </TABLE> Page 26 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> PASS-THROUGH SECURITIES (CONTINUED) Government National Mortgage Association (Continued) $ 485,345 Pool MA4838...................................................... 4.00% 11/20/47 $ 521,252 80,319 Pool MA4901...................................................... 4.00% 12/20/47 85,610 342,889 Pool MA4961...................................................... 3.00% 01/20/48 361,205 498,076 Pool MA4962...................................................... 3.50% 01/20/48 529,348 738,986 Pool MA4963...................................................... 4.00% 01/20/48 787,884 382,824 Pool MA5078...................................................... 4.00% 03/20/48 406,610 973,283 Pool MA5136...................................................... 3.50% 04/20/48 1,035,598 821,007 Pool MA5399...................................................... 4.50% 08/20/48 878,989 307,197 Pool MA5466...................................................... 4.00% 09/20/48 326,690 87,231 Pool MA5467...................................................... 4.50% 09/20/48 93,389 254,789 Pool MA5597...................................................... 5.00% 11/20/48 274,650 438,941 Pool MA5976...................................................... 3.50% 06/20/49 452,969 89,151 Pool MA6030...................................................... 3.50% 07/20/49 92,314 406,353 Pool MA6080...................................................... 3.00% 08/20/49 418,802 44,050,000 Pool TBA (a)..................................................... 2.00% 10/15/51 44,898,307 64,950,000 Pool TBA (a)..................................................... 2.50% 10/15/51 67,246,084 -------------- 1,582,239,627 -------------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES........................................ 1,593,952,295 (Cost $1,586,753,099) -------------- CORPORATE BONDS AND NOTES -- 17.9% AEROSPACE/DEFENSE -- 0.2% 143,000 BAE Systems Holdings, Inc. (b)...................................... 3.85% 12/15/25 157,502 8,500,000 Boeing (The) Co..................................................... 1.43% 02/04/24 8,520,317 1,610,000 Boeing (The) Co..................................................... 4.88% 05/01/25 1,800,689 -------------- 10,478,508 -------------- AGRICULTURE -- 0.5% 11,920,000 BAT Capital Corp.................................................... 3.56% 08/15/27 12,909,755 2,650,000 BAT Capital Corp.................................................... 2.73% 03/25/31 2,644,291 2,280,000 BAT Capital Corp.................................................... 4.39% 08/15/37 2,480,866 545,000 BAT Capital Corp.................................................... 4.54% 08/15/47 584,004 4,250,000 Reynolds American, Inc.............................................. 5.70% 08/15/35 5,199,447 3,735,000 Reynolds American, Inc.............................................. 5.85% 08/15/45 4,622,980 -------------- 28,441,343 -------------- AIRLINES -- 0.4% 976,428 American Airlines Pass-Through Trust, Series 2014-1, Class A........ 3.70% 10/01/26 993,277 114,475 American Airlines Pass-Through Trust, Series 2015-2, Class AA....... 3.60% 09/22/27 119,233 3,809,360 American Airlines Pass-Through Trust, Series 2016-1, Class AA....... 3.58% 01/15/28 3,933,363 538,327 Continental Airlines Pass-Through Trust, Series 2007-1, Class A..... 5.98% 04/19/22 546,858 4,701,030 Delta Air Lines Pass-Through Trust, Series 2020-1, Class AA......... 2.00% 06/10/28 4,718,691 8,705,534 JetBlue Pass-Through Trust, Series 2020-1, Class A.................. 4.00% 11/15/32 9,573,989 428,165 US Airways Pass-Through Trust, Series 2012-1, Class A............... 5.90% 10/01/24 450,290 -------------- 20,335,701 -------------- AUTO MANUFACTURERS -- 0.6% 1,440,000 Daimler Finance North America LLC (b)............................... 2.20% 10/30/21 1,444,718 1,965,000 Daimler Finance North America LLC, 3 Mo. LIBOR + 0.90% (b) (c).................................................... 1.02% 02/15/22 1,973,058 285,000 Ford Motor Credit Co. LLC, 3 Mo. LIBOR + 0.88% (c).................. 1.00% 10/12/21 285,010 </TABLE> See Notes to Financial Statements Page 27 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> AUTO MANUFACTURERS (CONTINUED) $ 1,585,000 Ford Motor Credit Co. LLC........................................... 3.81% 10/12/21 $ 1,587,726 2,916,000 Ford Motor Credit Co. LLC........................................... 5.60% 01/07/22 2,957,845 8,467,000 Ford Motor Credit Co. LLC........................................... 3.22% 01/09/22 8,530,503 390,000 Ford Motor Credit Co. LLC, 3 Mo. LIBOR + 1.27% (c).................. 1.42% 03/28/22 390,163 705,000 Ford Motor Credit Co. LLC........................................... 3.34% 03/28/22 713,199 150,000 Ford Motor Credit Co. LLC, 3 Mo. LIBOR + 1.08% (c).................. 1.20% 08/03/22 149,589 4,000,000 Ford Motor Credit Co. LLC........................................... 2.98% 08/03/22 4,063,800 655,000 Ford Motor Credit Co. LLC........................................... 4.25% 09/20/22 674,650 2,360,000 General Motors Financial Co., Inc................................... 4.38% 09/25/21 2,366,075 2,140,000 General Motors Financial Co., Inc................................... 4.20% 11/06/21 2,155,034 760,000 General Motors Financial Co., Inc................................... 3.45% 04/10/22 770,228 2,095,000 General Motors Financial Co., Inc................................... 3.15% 06/30/22 2,137,544 -------------- 30,199,142 -------------- BANKS -- 3.6% 14,290,000 Bank of America Corp. (d)........................................... 1.73% 07/22/27 14,485,635 19,465,000 Bank of America Corp., Series N (d)................................. 1.66% 03/11/27 19,688,776 1,500,000 Bank of America Corp., Medium-Term Note (d)......................... 1.32% 06/19/26 1,505,551 2,345,000 Bank of America Corp., Medium-Term Note (d)......................... 3.97% 03/05/29 2,648,989 10,270,000 Bank of America Corp., Medium-Term Note (d)......................... 2.09% 06/14/29 10,426,312 210,000 Bank of America Corp., Medium-Term Note (d)......................... 4.27% 07/23/29 241,706 2,839,000 Bank of America Corp., Medium-Term Note (d)......................... 3.97% 02/07/30 3,228,307 840,000 Bank of America Corp., Medium-Term Note (d)......................... 2.50% 02/13/31 863,291 2,180,000 Citigroup, Inc. (d)................................................. 3.35% 04/24/25 2,324,287 7,680,000 Citigroup, Inc. (d)................................................. 1.46% 06/09/27 7,706,734 2,375,000 Citigroup, Inc. (d)................................................. 3.52% 10/27/28 2,612,761 1,670,000 Citigroup, Inc. (d)................................................. 4.41% 03/31/31 1,959,860 2,720,000 Fifth Third Bancorp................................................. 2.55% 05/05/27 2,887,507 13,860,000 Goldman Sachs Group (The), Inc. (d)................................. 1.43% 03/09/27 13,920,555 750,000 Goldman Sachs Group (The), Inc. (d)................................. 2.91% 07/24/23 766,632 1,950,000 Goldman Sachs Group (The), Inc. (d)................................. 3.27% 09/29/25 2,088,319 734,000 Goldman Sachs Group (The), Inc...................................... 3.50% 11/16/26 799,583 955,000 Goldman Sachs Group (The), Inc. (d)................................. 1.09% 12/09/26 948,134 9,105,000 Goldman Sachs Group (The), Inc. (d)................................. 1.54% 09/10/27 9,153,719 13,465,000 JPMorgan Chase & Co. (d)............................................ 0.97% 06/23/25 13,508,655 500,000 JPMorgan Chase & Co................................................. 3.90% 07/15/25 551,628 5,610,000 JPMorgan Chase & Co. (d)............................................ 0.77% 08/09/25 5,598,151 1,895,000 JPMorgan Chase & Co. (d)............................................ 2.01% 03/13/26 1,955,041 4,875,000 JPMorgan Chase & Co. (d)............................................ 2.08% 04/22/26 5,036,571 7,940,000 JPMorgan Chase & Co. (d)............................................ 1.58% 04/22/27 8,019,099 495,000 Morgan Stanley (d).................................................. 0.99% 12/10/26 489,259 7,635,000 Morgan Stanley (d).................................................. 1.59% 05/04/27 7,711,465 2,145,000 Morgan Stanley, Global Medium-Term Note, SOFR + 0.70% (c)........... 0.75% 01/20/23 2,150,240 15,355,000 Morgan Stanley, Global Medium-Term Note (d)......................... 1.51% 07/20/27 15,425,446 400,000 PNC Bank N.A........................................................ 3.80% 07/25/23 424,358 5,385,000 Wells Fargo & Co. (d)............................................... 2.19% 04/30/26 5,595,530 3,270,000 Wells Fargo & Co. (d)............................................... 3.07% 04/30/41 3,433,254 2,300,000 Wells Fargo & Co., Medium-Term Note................................. 3.75% 01/24/24 2,466,600 6,305,000 Wells Fargo & Co., Medium-Term Note (d)............................. 2.16% 02/11/26 6,547,153 1,600,000 Wells Fargo & Co., Medium-Term Note (d)............................. 3.58% 05/22/28 1,776,670 5,364,000 Wells Fargo & Co., Medium-Term Note (d)............................. 2.39% 06/02/28 5,597,867 </TABLE> Page 28 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> BANKS (CONTINUED) $ 5,790,000 Wells Fargo & Co., Medium-Term Note (d)............................. 2.88% 10/30/30 $ 6,162,205 -------------- 190,705,850 -------------- BEVERAGES -- 0.1% 2,700,000 Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc....... 4.90% 02/01/46 3,447,605 635,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.75% 01/23/29 755,744 1,200,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.60% 04/15/48 1,480,552 200,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.44% 10/06/48 241,721 -------------- 5,925,622 -------------- BIOTECHNOLOGY -- 0.4% 1,412,000 Amgen, Inc.......................................................... 4.40% 05/01/45 1,730,367 11,260,000 Gilead Sciences, Inc., 3 Mo. LIBOR + 0.52% (c)...................... 0.67% 09/29/23 11,263,978 175,000 Gilead Sciences, Inc................................................ 3.65% 03/01/26 193,062 2,600,000 HCRX Investments Holdco L.P. (b).................................... 4.50% 08/01/29 2,637,277 5,510,000 Regeneron Pharmaceuticals, Inc...................................... 1.75% 09/15/30 5,306,468 -------------- 21,131,152 -------------- CHEMICALS -- 0.2% 4,758,000 International Flavors & Fragrances, Inc. (b)........................ 2.30% 11/01/30 4,824,992 3,114,000 International Flavors & Fragrances, Inc............................. 5.00% 09/26/48 4,150,479 -------------- 8,975,471 -------------- COMMERCIAL SERVICES -- 0.1% 2,500,000 RELX Capital, Inc................................................... 3.00% 05/22/30 2,687,236 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.4% 1,485,000 Air Lease Corp...................................................... 3.50% 01/15/22 1,501,984 1,890,000 Air Lease Corp...................................................... 3.25% 03/01/25 2,009,392 940,000 Air Lease Corp., Medium-Term Note................................... 0.70% 02/15/24 936,034 360,000 Air Lease Corp., Medium-Term Note................................... 2.30% 02/01/25 372,169 6,755,000 Discover Financial Services......................................... 3.95% 11/06/24 7,355,441 6,562,000 GE Capital Funding LLC.............................................. 4.40% 05/15/30 7,695,754 450,000 Raymond James Financial, Inc........................................ 4.95% 07/15/46 590,770 -------------- 20,461,544 -------------- ELECTRIC -- 1.2% 2,000,000 Aep Transmission Co. LLC............................................ 3.75% 12/01/47 2,311,893 4,128,000 Alliant Energy Finance LLC (b)...................................... 3.75% 06/15/23 4,353,248 2,655,000 Alliant Energy Finance LLC (b)...................................... 1.40% 03/15/26 2,641,814 200,000 Ameren Illinois Co.................................................. 3.70% 12/01/47 234,243 3,000,000 Appalachian Power Co., Series Z..................................... 3.70% 05/01/50 3,352,947 750,000 Cleco Power LLC..................................................... 6.00% 12/01/40 1,048,030 500,000 Consolidated Edison Co. of New York, Inc............................ 4.50% 05/15/58 622,348 1,695,000 Dominion Energy, Inc., Series A..................................... 3.30% 03/15/25 1,829,947 155,000 Duke Energy Carolinas LLC........................................... 3.70% 12/01/47 177,611 7,030,000 Duke Energy Corp.................................................... 2.55% 06/15/31 7,237,846 750,000 Entergy Texas, Inc.................................................. 3.45% 12/01/27 818,290 11,418,000 FirstEnergy Transmission LLC (b).................................... 2.87% 09/15/28 12,089,400 1,250,000 Interstate Power and Light Co....................................... 3.25% 12/01/24 1,340,948 4,855,000 Interstate Power and Light Co....................................... 2.30% 06/01/30 4,944,564 3,000,000 ITC Holdings Corp. (b).............................................. 2.95% 05/14/30 3,193,265 1,750,000 Jersey Central Power & Light Co. (b)................................ 4.30% 01/15/26 1,949,216 830,000 Metropolitan Edison Co. (b)......................................... 4.00% 04/15/25 883,255 2,253,000 Metropolitan Edison Co. (b)......................................... 4.30% 01/15/29 2,544,563 </TABLE> See Notes to Financial Statements Page 29 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> ELECTRIC (CONTINUED) $ 10,000,000 Niagara Mohawk Power Corp. (b)...................................... 3.03% 06/27/50 $ 9,894,556 825,000 Public Service Co. of New Mexico.................................... 3.85% 08/01/25 899,111 300,000 Southwestern Electric Power Co...................................... 3.55% 02/15/22 301,977 700,000 Trans-Allegheny Interstate Line Co. (b)............................. 3.85% 06/01/25 760,363 1,505,000 Xcel Energy, Inc.................................................... 4.80% 09/15/41 1,893,548 -------------- 65,322,983 -------------- FOOD -- 0.2% 1,000,000 Kraft Heinz Foods Co................................................ 5.00% 07/15/35 1,241,822 2,635,000 Kraft Heinz Foods Co................................................ 5.20% 07/15/45 3,384,823 2,755,000 Kraft Heinz Foods Co................................................ 4.88% 10/01/49 3,428,186 97,000 Kroger (The) Co..................................................... 5.40% 01/15/49 134,890 1,250,000 Post Holdings, Inc. (b)............................................. 5.50% 12/15/29 1,340,625 2,877,000 Post Holdings, Inc. (b)............................................. 4.63% 04/15/30 2,941,207 -------------- 12,471,553 -------------- FOREST PRODUCTS & PAPER -- 0.0% 2,200,000 Georgia-Pacific LLC (b)............................................. 2.30% 04/30/30 2,272,838 -------------- GAS -- 0.0% 500,000 Piedmont Natural Gas Co., Inc....................................... 3.35% 06/01/50 528,269 400,000 Southern Co. Gas Capital Corp....................................... 5.88% 03/15/41 566,078 200,000 Spire, Inc.......................................................... 3.54% 02/27/24 206,663 -------------- 1,301,010 -------------- HEALTHCARE-PRODUCTS -- 0.2% 525,000 Alcon Finance Corp. (b)............................................. 2.75% 09/23/26 556,956 1,500,000 Alcon Finance Corp. (b)............................................. 2.60% 05/27/30 1,550,462 3,015,000 DENTSPLY SIRONA, Inc................................................ 3.25% 06/01/30 3,270,142 6,000,000 PerkinElmer, Inc.................................................... 2.55% 03/15/31 6,179,872 -------------- 11,557,432 -------------- HEALTHCARE-SERVICES -- 1.4% 120,000 Anthem, Inc......................................................... 3.65% 12/01/27 134,434 2,300,000 Anthem, Inc......................................................... 2.88% 09/15/29 2,456,837 4,800,000 Bon Secours Mercy Health, Inc., Series 20-2......................... 2.10% 06/01/31 4,838,989 11,208,000 Centene Corp........................................................ 2.45% 07/15/28 11,388,085 4,135,000 CommonSpirit Health................................................. 2.76% 10/01/24 4,346,414 1,985,000 CommonSpirit Health................................................. 3.35% 10/01/29 2,157,934 1,475,000 CommonSpirit Health................................................. 2.78% 10/01/30 1,544,638 4,999,000 Fresenius Medical Care US Finance II, Inc. (b)...................... 5.88% 01/31/22 5,109,312 7,704,000 HCA, Inc............................................................ 5.00% 03/15/24 8,476,286 950,000 HCA, Inc............................................................ 5.25% 04/15/25 1,084,937 1,400,000 HCA, Inc............................................................ 7.69% 06/15/25 1,704,129 3,250,000 HCA, Inc............................................................ 4.50% 02/15/27 3,686,062 2,625,000 HCA, Inc............................................................ 7.05% 12/01/27 3,305,230 8,233,000 HCA, Inc............................................................ 4.13% 06/15/29 9,324,071 500,000 Humana, Inc......................................................... 3.15% 12/01/22 513,923 360,000 Humana, Inc......................................................... 2.90% 12/15/22 370,767 5,410,000 Humana, Inc......................................................... 2.15% 02/03/32 5,403,063 2,000,000 Molina Healthcare, Inc. (b)......................................... 4.38% 06/15/28 2,100,000 200,000 New York and Presbyterian (The) Hospital............................ 3.56% 08/01/36 227,737 4,075,000 UnitedHealth Group, Inc............................................. 3.05% 05/15/41 4,323,751 160,000 UnitedHealth Group, Inc............................................. 4.45% 12/15/48 208,280 </TABLE> Page 30 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> HEALTHCARE-SERVICES (CONTINUED) $ 725,000 UnitedHealth Group, Inc............................................. 3.88% 08/15/59 $ 877,966 2,630,000 Universal Health Services, Inc. (b)................................. 1.65% 09/01/26 2,633,196 -------------- 76,216,041 -------------- INSURANCE -- 1.0% 10,180,000 Athene Global Funding, SOFR + 0.70% (b) (c)......................... 0.75% 05/24/24 10,242,027 5,585,000 Athene Global Funding (b)........................................... 1.99% 08/19/28 5,555,768 1,650,000 Farmers Exchange Capital (b)........................................ 7.05% 07/15/28 2,068,115 700,000 Farmers Exchange Capital III (b) (d)................................ 5.45% 10/15/54 885,009 600,000 Farmers Insurance Exchange (b)...................................... 8.63% 05/01/24 715,180 3,495,000 Farmers Insurance Exchange (b) (d).................................. 4.75% 11/01/57 4,023,888 7,000,000 National General Holdings Corp. (b)................................. 6.75% 05/15/24 8,108,870 1,525,000 Nationwide Mutual Insurance Co., 3 Mo. LIBOR + 2.29% (b) (c)........ 2.41% 12/15/24 1,526,923 6,760,000 New York Life Insurance Co. (b)..................................... 3.75% 05/15/50 7,812,019 1,790,000 Teachers Insurance & Annuity Association of America (b)............. 4.90% 09/15/44 2,360,045 3,910,000 Teachers Insurance & Annuity Association of America (b)............. 4.27% 05/15/47 4,823,280 3,770,000 Teachers Insurance & Annuity Association of America (b)............. 3.30% 05/15/50 4,057,779 240,000 Teachers Insurance & Annuity Association of America (b) (d)......... 4.38% 09/15/54 251,763 -------------- 52,430,666 -------------- INTERNET -- 0.1% 4,825,000 Amazon.com, Inc..................................................... 2.88% 05/12/41 5,061,774 -------------- MEDIA -- 0.7% 2,475,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 4.91% 07/23/25 2,803,987 1,410,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 2.30% 02/01/32 1,375,250 1,471,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.38% 04/01/38 1,821,741 6,920,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.38% 05/01/47 8,525,266 100,000 Comcast Corp........................................................ 3.97% 11/01/47 117,707 7,180,000 Cox Communications, Inc. (b)........................................ 2.60% 06/15/31 7,359,304 5,275,000 Diamond Sports Group LLC / Diamond Sports Finance Co. (b)........... 5.38% 08/15/26 3,504,974 2,450,000 Time Warner Cable LLC............................................... 5.50% 09/01/41 3,063,428 4,000,000 ViacomCBS, Inc...................................................... 4.20% 05/19/32 4,624,648 1,380,000 Walt Disney (The) Co................................................ 3.60% 01/13/51 1,594,028 -------------- 34,790,333 -------------- MISCELLANEOUS MANUFACTURING -- 0.1% 1,000,000 General Electric Co., Global Medium-Term Note....................... 6.88% 01/10/39 1,514,454 1,000,000 General Electric Co., Medium-Term Note, 3 Mo. LIBOR + 0.38% (c)........................................................ 0.50% 05/05/26 988,703 2,775,000 General Electric Co., Medium-Term Note.............................. 6.75% 03/15/32 3,854,663 -------------- 6,357,820 -------------- OIL & GAS -- 0.1% 635,000 Exxon Mobil Corp.................................................... 4.23% 03/19/40 768,684 3,180,000 Exxon Mobil Corp.................................................... 4.33% 03/19/50 3,978,960 400,000 Hess Corp........................................................... 5.60% 02/15/41 499,736 -------------- 5,247,380 -------------- </TABLE> See Notes to Financial Statements Page 31 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> PACKAGING & CONTAINERS -- 0.2% $ 1,995,000 Amcor Flexibles North America, Inc.................................. 2.63% 06/19/30 $ 2,075,276 4,157,000 Berry Global, Inc. (b).............................................. 1.57% 01/15/26 4,198,861 2,125,000 Berry Global, Inc. (b).............................................. 4.88% 07/15/26 2,243,575 3,670,000 WRKCo, Inc.......................................................... 3.00% 06/15/33 3,910,562 -------------- 12,428,274 -------------- PHARMACEUTICALS -- 1.3% 1,390,000 AbbVie, Inc......................................................... 3.80% 03/15/25 1,516,501 4,997,000 AbbVie, Inc......................................................... 4.50% 05/14/35 6,079,735 690,000 AbbVie, Inc......................................................... 4.05% 11/21/39 810,938 4,150,000 AbbVie, Inc......................................................... 4.40% 11/06/42 5,052,918 1,870,000 AbbVie, Inc......................................................... 4.45% 05/14/46 2,295,689 1,895,000 Bayer US Finance II LLC (b)......................................... 3.88% 12/15/23 2,021,821 1,045,000 Bayer US Finance II LLC (b)......................................... 3.38% 07/15/24 1,109,103 11,880,000 Bayer US Finance II LLC (b)......................................... 4.25% 12/15/25 13,234,061 3,160,000 Bayer US Finance II LLC (b)......................................... 4.38% 12/15/28 3,632,548 815,000 Bayer US Finance II LLC (b)......................................... 4.63% 06/25/38 978,720 425,000 Bayer US Finance II LLC (b)......................................... 4.40% 07/15/44 497,803 2,540,000 Bayer US Finance II LLC (b)......................................... 4.88% 06/25/48 3,219,431 1,534,000 Becton Dickinson and Co............................................. 3.36% 06/06/24 1,638,524 1,000,000 Becton Dickinson and Co............................................. 6.70% 08/01/28 1,278,096 2,000,000 Cigna Corp.......................................................... 3.40% 03/01/27 2,204,941 75,000 Cigna Corp.......................................................... 3.05% 10/15/27 81,033 4,204,000 Cigna Corp.......................................................... 2.40% 03/15/30 4,336,694 1,030,000 Cigna Corp.......................................................... 3.88% 10/15/47 1,170,306 2,279,000 Cigna Corp.......................................................... 3.40% 03/15/51 2,437,359 150,000 CVS Health Corp..................................................... 3.88% 07/20/25 165,221 4,225,000 CVS Health Corp..................................................... 1.75% 08/21/30 4,118,449 1,850,000 CVS Health Corp..................................................... 5.13% 07/20/45 2,443,092 4,775,000 CVS Health Corp..................................................... 5.05% 03/25/48 6,323,537 -------------- 66,646,520 -------------- PIPELINES -- 0.7% 145,000 Energy Transfer L.P................................................. 5.20% 02/01/22 146,097 375,000 Energy Transfer L.P................................................. 4.20% 04/15/27 417,356 198,000 Energy Transfer L.P................................................. 5.50% 06/01/27 233,927 2,030,000 Energy Transfer L.P................................................. 4.95% 06/15/28 2,353,583 315,000 Energy Transfer L.P................................................. 3.75% 05/15/30 342,408 3,200,000 Energy Transfer L.P................................................. 4.90% 03/15/35 3,686,466 1,463,000 Energy Transfer L.P................................................. 6.50% 02/01/42 1,915,948 1,135,000 Energy Transfer L.P................................................. 5.30% 04/01/44 1,324,127 260,000 Energy Transfer L.P................................................. 5.15% 03/15/45 302,017 2,600,000 Energy Transfer L.P................................................. 6.13% 12/15/45 3,350,018 3,606,000 Energy Transfer L.P................................................. 5.40% 10/01/47 4,369,434 1,225,000 Energy Transfer L.P................................................. 5.00% 05/15/50 1,437,630 1,270,000 Kinder Morgan Energy Partners L.P................................... 5.80% 03/15/35 1,637,368 650,000 Kinder Morgan, Inc.................................................. 5.30% 12/01/34 805,900 3,640,000 NGPL PipeCo LLC (b)................................................. 4.88% 08/15/27 4,168,500 150,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 2.85% 01/31/23 153,692 425,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 3.55% 12/15/29 450,802 1,350,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 3.80% 09/15/30 1,456,295 716,000 Rockies Express Pipeline LLC (b).................................... 4.95% 07/15/29 745,825 </TABLE> Page 32 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> PIPELINES (CONTINUED) $ 1,500,000 Rockies Express Pipeline LLC (b).................................... 4.80% 05/15/30 $ 1,553,190 1,360,000 Rockies Express Pipeline LLC (b).................................... 6.88% 04/15/40 1,504,656 329,909 Ruby Pipeline LLC (e)............................................... 8.00% 04/01/22 310,723 1,775,000 TransMontaigne Partners L.P. / TLP Finance Corp..................... 6.13% 02/15/26 1,825,206 -------------- 34,491,168 -------------- REAL ESTATE INVESTMENT TRUSTS -- 1.4% 250,000 Alexandria Real Estate Equities, Inc................................ 4.30% 01/15/26 280,808 1,107,000 Alexandria Real Estate Equities, Inc................................ 3.80% 04/15/26 1,234,405 612,000 Alexandria Real Estate Equities, Inc................................ 4.50% 07/30/29 723,882 4,320,000 American Campus Communities Operating Partnership L.P............... 3.75% 04/15/23 4,508,122 800,000 American Campus Communities Operating Partnership L.P............... 4.13% 07/01/24 870,941 4,545,000 American Campus Communities Operating Partnership L.P............... 3.30% 07/15/26 4,902,342 332,000 American Campus Communities Operating Partnership L.P............... 3.63% 11/15/27 364,218 215,000 American Tower Corp................................................. 3.00% 06/15/23 224,483 785,000 Boston Properties L.P............................................... 3.20% 01/15/25 838,777 1,593,000 Boston Properties L.P............................................... 3.25% 01/30/31 1,717,964 625,000 CC Holdings GS V LLC / Crown Castle GS III Corp..................... 3.85% 04/15/23 658,336 750,000 CubeSmart L.P....................................................... 4.38% 02/15/29 862,702 3,425,000 CyrusOne L.P. / CyrusOne Finance Corp............................... 2.90% 11/15/24 3,594,298 1,945,000 CyrusOne L.P. / CyrusOne Finance Corp............................... 2.15% 11/01/30 1,851,912 1,150,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 11/01/23 1,247,718 4,785,000 GLP Capital L.P. / GLP Financing II, Inc............................ 3.35% 09/01/24 5,061,831 2,135,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.25% 06/01/25 2,396,228 5,705,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 04/15/26 6,548,028 1,210,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.30% 01/15/29 1,422,446 3,525,000 GLP Capital L.P. / GLP Financing II, Inc............................ 4.00% 01/15/30 3,811,362 914,000 Healthcare Realty Trust, Inc........................................ 3.63% 01/15/28 1,010,154 2,000,000 Healthcare Realty Trust, Inc........................................ 2.05% 03/15/31 1,970,878 2,000,000 Healthcare Trust of America Holdings L.P............................ 3.10% 02/15/30 2,140,103 3,490,000 Healthcare Trust of America Holdings L.P............................ 2.00% 03/15/31 3,393,513 3,680,000 Hudson Pacific Properties L.P....................................... 3.95% 11/01/27 4,068,059 1,000,000 Hudson Pacific Properties L.P....................................... 4.65% 04/01/29 1,166,979 1,000,000 Kilroy Realty L.P................................................... 3.45% 12/15/24 1,069,337 860,000 Kilroy Realty L.P................................................... 2.50% 11/15/32 865,901 1,300,000 Kimco Realty Corp................................................... 3.40% 11/01/22 1,339,141 1,605,000 Lexington Realty Trust.............................................. 2.70% 09/15/30 1,650,812 1,837,000 Lexington Realty Trust.............................................. 2.38% 10/01/31 1,823,579 200,000 Life Storage L.P.................................................... 3.88% 12/15/27 225,695 1,135,000 Life Storage L.P.................................................... 2.20% 10/15/30 1,138,725 350,000 Piedmont Operating Partnership L.P.................................. 3.40% 06/01/23 363,370 670,000 Piedmont Operating Partnership L.P.................................. 3.15% 08/15/30 692,495 300,000 SL Green Operating Partnership L.P.................................. 3.25% 10/15/22 308,291 550,000 SL Green Realty Corp................................................ 4.50% 12/01/22 571,439 1,000,000 Ventas Realty L.P................................................... 2.65% 01/15/25 1,049,062 220,000 Ventas Realty L.P................................................... 2.50% 09/01/31 221,448 2,150,000 Ventas Realty L.P................................................... 4.88% 04/15/49 2,723,525 75,000 Welltower, Inc...................................................... 4.50% 01/15/24 81,028 1,125,000 Welltower, Inc...................................................... 4.00% 06/01/25 1,237,334 -------------- 72,231,671 -------------- </TABLE> See Notes to Financial Statements Page 33 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> RETAIL -- 0.2% $ 7,335,000 7-Eleven, Inc. (b).................................................. 0.80% 02/10/24 $ 7,337,866 5,035,000 Magic Mergeco, Inc. (b)............................................. 5.25% 05/01/28 5,173,463 500,000 Walgreens Boots Alliance, Inc....................................... 3.30% 11/18/21 500,683 -------------- 13,012,012 -------------- SEMICONDUCTORS -- 0.1% 6,300,000 Intel Corp.......................................................... 3.05% 08/12/51 6,471,801 -------------- SOFTWARE -- 0.3% 140,000 Change Healthcare Holdings LLC / Change Healthcare Finance, Inc. (b)......................................................... 5.75% 03/01/25 141,575 1,400,000 Fiserv, Inc......................................................... 2.25% 06/01/27 1,456,377 510,000 Fiserv, Inc......................................................... 2.65% 06/01/30 530,290 2,625,000 Oracle Corp......................................................... 2.88% 03/25/31 2,768,135 9,540,000 Oracle Corp......................................................... 3.95% 03/25/51 10,592,549 -------------- 15,488,926 -------------- TELECOMMUNICATIONS -- 2.2% 4,945,000 AT&T, Inc. (b)...................................................... 2.55% 12/01/33 4,975,909 3,175,000 AT&T, Inc........................................................... 4.50% 05/15/35 3,770,854 3,500,000 AT&T, Inc........................................................... 5.25% 03/01/37 4,430,776 3,140,000 AT&T, Inc........................................................... 4.30% 12/15/42 3,630,676 8,270,000 AT&T, Inc........................................................... 4.75% 05/15/46 10,091,003 3,880,000 AT&T, Inc........................................................... 4.50% 03/09/48 4,598,403 14,047,000 AT&T, Inc. (b)...................................................... 3.80% 12/01/57 14,953,368 1,985,000 Level 3 Financing, Inc. (b)......................................... 3.40% 03/01/27 2,094,870 4,500,000 SES GLOBAL Americas Holdings G.P. (b)............................... 5.30% 03/25/44 5,279,145 6,670,313 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (b)......................................... 4.74% 03/20/25 7,135,233 18,250,000 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (b)......................................... 5.15% 03/20/28 21,040,425 4,987,000 T-Mobile USA, Inc................................................... 2.25% 02/15/26 5,099,207 5,090,000 T-Mobile USA, Inc. (b).............................................. 2.25% 02/15/26 5,204,525 8,595,000 T-Mobile USA, Inc................................................... 3.75% 04/15/27 9,525,366 2,300,000 T-Mobile USA, Inc................................................... 3.88% 04/15/30 2,576,805 4,600,000 T-Mobile USA, Inc................................................... 2.55% 02/15/31 4,697,612 2,845,000 T-Mobile USA, Inc................................................... 4.38% 04/15/40 3,333,927 750,000 T-Mobile USA, Inc................................................... 4.50% 04/15/50 903,881 2,515,000 Verizon Communications, Inc......................................... 2.10% 03/22/28 2,580,780 2,585,000 Verizon Communications, Inc......................................... 2.55% 03/21/31 2,673,420 -------------- 118,596,185 -------------- TOTAL CORPORATE BONDS AND NOTES................................................................ 951,737,956 (Cost $921,459,658) -------------- ASSET-BACKED SECURITIES -- 7.6% ACE Securities Corp. Home Equity Loan Trust 16,892,011 Series 2007-HE1, Class A1, 1 Mo. LIBOR + 0.30% (c)............... 0.38% 01/25/37 11,299,750 14,388,160 Series 2007-WM2, Class A1, 1 Mo. LIBOR + 0.21% (c)............... 0.29% 02/25/37 8,353,169 AGL CLO 12 Ltd. 13,000,000 Series 2021-12A, Class A1, 3 Mo. LIBOR + 1.16% (b) (c)........... 1.29% 07/20/34 13,015,873 Ajax Mortgage Loan Trust 3,724,608 Series 2019-F, Class A1, steps up to 3.86% on 11/25/26 (b) (f)... 2.86% 07/25/59 3,767,507 </TABLE> Page 34 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Ammc CLO 19 Ltd. $ 3,176,040 Series 2016-19A, Class AR, 3 Mo. LIBOR + 1.14% (b) (c)........... 1.27% 10/16/28 $ 3,177,621 Argent Securities, Inc. 210,612 Series 2005-W2, Class M1, 1 Mo. LIBOR + 0.74% (c)................ 0.82% 10/25/35 210,901 Asset Backed Funding Certificates Trust 9,806,458 Series 2006-HE1, Class A2B, 1 Mo. LIBOR + 0.11% (c).............. 0.19% 01/25/37 6,854,867 61,842 Series 2006-OPT1, Class A2, 1 Mo. LIBOR + 0.28% (c).............. 0.36% 09/25/36 61,503 Barings CLO Ltd. 343,243 Series 2013-IA, Class AR, 3 Mo. LIBOR + 0.80% (b) (c)............ 0.93% 01/20/28 343,638 590,306 Series 2016-2A, Class AR, 3 Mo. LIBOR + 1.08% (b) (c)............ 1.21% 07/20/28 590,515 12,500,000 Series 2019-2A, Class A2R, 3 Mo. LIBOR + 1.70% (b) (c)........... 1.83% 04/15/36 12,497,359 Brazos Higher Education Authority, Inc. 270,000 Series 2011-1, Class A3, 3 Mo. LIBOR + 1.05% (c)................. 1.18% 11/25/33 274,793 300,000 Series 2011-2, Class A3, 3 Mo. LIBOR + 1.00% (c)................. 1.13% 10/27/36 303,752 Carrington Mortgage Loan Trust 1,129,610 Series 2006-OPT1, Class M1, 1 Mo. LIBOR + 0.53% (c).............. 0.61% 02/25/36 1,126,852 Citigroup Mortgage Loan Trust 1,054,229 Series 2006-HE2, Class M1, 1 Mo. LIBOR + 0.29% (c)............... 0.37% 08/25/36 1,049,989 Dryden Senior Loan Fund 885,483 Series 2013-26A, Class AR, 3 Mo. LIBOR + 0.90% (b) (c)........... 1.03% 04/15/29 885,675 572,000 Series 2013-28A, Class A1LR, 3 Mo. LIBOR + 1.20% (b) (c)......... 1.32% 08/15/30 572,872 ECMC Group Student Loan Trust 1,621,417 Series 2017-2A, Class A, 1 Mo. LIBOR + 1.05% (b) (c)............. 1.13% 05/25/67 1,656,329 EFS Volunteer No 3 LLC 123,674 Series 2012-1, Class A3, 1 Mo. LIBOR + 1.00% (b) (c)............. 1.08% 04/25/33 124,464 First Franklin Mortgage Loan Trust 19,206,508 Series 2006-FF13, Class A2C, 1 Mo. LIBOR + 0.32% (c)............. 0.40% 10/25/36 15,606,935 14,083,479 Series 2007-FF2, Class A1, 1 Mo. LIBOR + 0.14% (c)............... 0.22% 03/25/37 9,603,843 GE-WMC Mortgage Securities LLC 708,543 Series 2005-1, Class M1, 1 Mo. LIBOR + 0.66% (c)................. 0.74% 10/25/35 704,920 GoldenTree Loan Management US CLO Ltd. 5,000,000 Series 2020-8A, Class A, 3 Mo. LIBOR + 1.55% (b) (c)............. 1.68% 07/20/31 5,004,340 5,000,000 Series 2020-8A, Class AR (b) (c) (g)............................. 0.00% 10/20/34 5,003,015 GSAA Home Equity Trust 1,207,948 Series 2005-6, Class M1, 1 Mo. LIBOR + 0.65% (c)................. 0.73% 06/25/35 1,216,996 GSAMP Trust 14,925,305 Series 2006-NC2, Class A2C, 1 Mo. LIBOR + 0.30% (c).............. 0.38% 06/25/36 10,668,280 10,633,380 Series 2007-FM2, Class A1, 1 Mo. LIBOR + 0.14% (c)............... 0.22% 01/25/37 7,793,652 JP Morgan Mortgage Acquisition Trust 86,152 Series 2006-ACC1, Class M1, 1 Mo. LIBOR + 0.41% (c).............. 0.49% 05/25/36 86,372 2,424,499 Series 2006-WF1, Class A6........................................ 6.50% 07/25/36 1,032,819 19,790,990 Series 2006-WMC2, Class A4, 1 Mo. LIBOR + 0.30% (c).............. 0.38% 07/25/36 11,652,282 20,939,630 Series 2006-WMC2, Class A5, 1 Mo. LIBOR + 0.50% (c).............. 0.58% 07/25/36 12,600,608 405,000 Series 2007-CH2, Class MV1, 1 Mo. LIBOR + 0.28% (c).............. 0.36% 01/25/37 403,525 Legacy Mortgage Asset Trust 2,607,408 Series 2019-GS1, Class A1 (b) (f)................................ 4.00% 01/25/59 2,614,532 1,808,095 Series 2019-GS4, Class A1 (b) (f)................................ 3.44% 05/25/59 1,811,671 Lehman XS Trust 3,609,784 Series 2006-9, Class A1C, 1 Mo. LIBOR + 0.52% (c)................ 0.60% 05/25/46 3,465,788 Long Beach Mortgage Loan Trust 654,825 Series 2006-1, Class 1A, 1 Mo. LIBOR + 0.44% (c)................. 0.52% 02/25/36 652,094 </TABLE> See Notes to Financial Statements Page 35 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Magnetite VII Ltd. $ 4,634,184 Series 2012-7A, Class A1R2, 3 Mo. LIBOR + 0.80% (b) (c).......... 0.93% 01/15/28 $ 4,638,472 Magnetite XXVII Ltd. 2,500,000 Series 2020-27A, Class A1, 3 Mo. LIBOR + 1.55% (b) (c)........... 1.68% 07/20/33 2,503,115 Mastr Asset Backed Securities Trust 7,665,497 Series 2006-WMC3, Class A2, 1 Mo. LIBOR + 0.05% (c).............. 0.13% 08/25/36 3,466,987 Merrill Lynch First Franklin Mortgage Loan Trust 327,435 Series 2007-3, Class A2B, 1 Mo. LIBOR + 0.13% (c)................ 0.21% 06/25/37 308,062 Mid-State Trust 149,881 Series 2003-11, Class A1......................................... 4.86% 07/15/38 158,165 Morgan Stanley ABS Capital I, Inc. Trust 11,526,950 Series 2006-HE4, Class A3, 1 Mo. LIBOR + 0.30% (c)............... 0.38% 06/25/36 7,642,554 6,063,922 Series 2006-HE8, Class A2B, 1 Mo. LIBOR + 0.10% (c).............. 0.18% 10/25/36 3,617,881 662,340 Series 2006-NC1, Class M1, 1 Mo. LIBOR + 0.57% (c)............... 0.65% 12/25/35 663,336 6,740,948 Series 2007-HE1, Class A2D, 1 Mo. LIBOR + 0.23% (c).............. 0.31% 11/25/36 4,979,023 28,816,198 Series 2007-HE2, Class A2D, 1 Mo. LIBOR + 0.21% (c).............. 0.29% 01/25/37 17,856,911 7,894,017 Series 2007-NC3, Class A2D, 1 Mo. LIBOR + 0.26% (c).............. 0.34% 05/25/37 7,046,810 Navient Student Loan Trust 250,369 Series 2014-1, Class A3, 1 Mo. LIBOR + 0.51% (c)................. 0.59% 06/25/31 244,994 215,460 Series 2014-3, Class A, 1 Mo. LIBOR + 0.62% (c).................. 0.70% 03/25/83 216,424 180,734 Series 2015-1, Class A2, 1 Mo. LIBOR + 0.60% (c)................. 0.68% 04/25/40 182,127 1,750,000 Series 2016-2A, Class A3, 1 Mo. LIBOR + 1.50% (b) (c)............ 1.58% 06/25/65 1,818,660 3,819,787 Series 2016-5A, Class A, 1 Mo. LIBOR + 1.25% (b) (c)............. 1.33% 06/25/65 3,918,655 300,000 Series 2017-3A, Class A3, 1 Mo. LIBOR + 1.05% (b) (c)............ 1.13% 07/26/66 305,614 3,292,219 Series 2017-5A, Class A, 1 Mo. LIBOR + 0.80% (b) (c)............. 0.88% 07/26/66 3,303,276 New Century Home Equity Loan Trust 1,959,032 Series 2005-4, Class M3, 1 Mo. LIBOR + 0.83% (c)................. 0.91% 09/25/35 1,963,835 OCP CLO Ltd. 6,200,000 Series 2020-19A, Class A1, 3 Mo. LIBOR + 1.75% (b) (c)........... 1.88% 07/20/31 6,210,926 6,200,000 Series 2020-19A, Class AR (b) (c) (g)............................ 0.00% 10/20/34 6,203,739 8,620,000 Series 2021-21A, Class B, 3 Mo. LIBOR + 1.70% (b) (c)............ 1.83% 07/20/34 8,632,283 Octagon Investment Partners 46 Ltd. 14,000,000 Series 2020-2A, Class AR, 3 Mo. LIBOR + 1.16% (b) (c)............ 1.27% 07/15/36 14,012,222 Palmer Square Loan Funding Ltd. 99,258 Series 2019-1A, Class A1, 3 Mo. LIBOR + 1.05% (b) (c)............ 1.18% 04/20/27 99,382 1,069,609 Series 2019-4A, Class A1, 3 Mo. LIBOR + 0.90% (b) (c)............ 1.03% 10/24/27 1,070,144 Residential Asset Securities Corp. 167,314 Series 2006-EMX3, Class A3, 1 Mo. LIBOR + 0.56% (c).............. 0.64% 04/25/36 165,951 1,139,542 Series 2006-KS3, Class M1, 1 Mo. LIBOR + 0.50% (c)............... 0.58% 04/25/36 1,140,682 Rockford Tower CLO Ltd. 10,000,000 Series 2017-3A, Class A, 3 Mo. LIBOR + 1.19% (b) (c)............. 1.32% 10/20/30 10,005,000 Saxon Asset Securities Trust 634,407 Series 2007-2, Class A2C, 1 Mo. LIBOR + 0.24% (c)................ 0.32% 05/25/47 551,528 Securitized Asset-Backed Receivables LLC Trust 71,865 Series 2006-OP1, Class M2, 1 Mo. LIBOR + 0.59% (c)............... 0.67% 10/25/35 71,857 25,551,435 Series 2006-WM4, Class A1, 1 Mo. LIBOR + 0.19% (b) (c)........... 0.46% 11/25/36 15,856,102 SFO Commercial Mortgage Trust 10,000,000 Series 2021-555, Class A, 1 Mo. LIBOR + 1.15% (b) (c)............ 1.25% 05/15/38 10,043,588 Skyline Aircraft Finance LLC 13,618,272 Series 2020-1, Class A (h) (i)................................... 3.23% 05/10/37 13,787,139 </TABLE> Page 36 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> SLC Student Loan Trust $ 5,054,000 Series 2006-1, Class A6, 3 Mo. LIBOR + 0.16% (c)................. 0.28% 03/15/55 $ 4,982,113 126,871 Series 2006-2, Class A6, 3 Mo. LIBOR + 0.16% (c)................. 0.28% 09/15/39 125,000 1,656,387 Series 2008-1, Class A4A, 3 Mo. LIBOR + 1.60% (c)................ 1.72% 12/15/32 1,675,471 SLM Student Loan Trust 59,468 Series 2003-10A, Class A3, 3 Mo. LIBOR + 0.47% (b) (c)........... 0.59% 12/15/27 59,484 535,228 Series 2005-9, Class A7A, 3 Mo. LIBOR + 0.60% (c)................ 0.73% 01/25/41 539,459 80,000 Series 2007-7, Class B, 3 Mo. LIBOR + 0.75% (c).................. 0.88% 10/27/70 73,043 830,559 Series 2008-1, Class A4, 3 Mo. LIBOR + 0.65% (c)................. 0.78% 01/25/22 815,007 4,860,170 Series 2008-2, Class A3, 3 Mo. LIBOR + 0.75% (c)................. 0.88% 04/25/23 4,810,285 130,000 Series 2008-2, Class B, 3 Mo. LIBOR + 1.20% (c).................. 1.33% 01/25/83 117,176 700,000 Series 2008-3, Class B, 3 Mo. LIBOR + 1.20% (c).................. 1.33% 04/26/83 657,358 4,920,359 Series 2008-6, Class A4, 3 Mo. LIBOR + 1.10% (c)................. 1.23% 07/25/23 4,938,491 320,000 Series 2008-7, Class B, 3 Mo. LIBOR + 1.85% (c).................. 1.98% 07/26/83 321,361 2,312,178 Series 2008-8, Class A4, 3 Mo. LIBOR + 1.50% (c)................. 1.63% 04/25/23 2,327,349 4,150,000 Series 2011-2, Class A2, 1 Mo. LIBOR + 1.20% (c)................. 1.28% 10/25/34 4,249,539 704,380 Series 2012-2, Class A, 1 Mo. LIBOR + 0.70% (c).................. 0.78% 01/25/29 693,586 687,135 Series 2012-3, Class A, 1 Mo. LIBOR + 0.65% (c).................. 0.73% 12/27/38 691,131 255,834 Series 2012-6, Class A3, 1 Mo. LIBOR + 0.75% (c)................. 0.83% 05/26/26 253,627 3,701,277 Series 2012-7, Class A3, 1 Mo. LIBOR + 0.65% (c)................. 0.73% 05/26/26 3,632,404 555,000 Series 2012-7, Class B, 1 Mo. LIBOR + 1.80% (c).................. 1.88% 09/25/43 556,458 131,067 Series 2013-2, Class A, 1 Mo. LIBOR + 0.45% (c).................. 0.53% 06/25/43 130,521 Soundview Home Loan Trust 7,374,822 Series 2007-OPT4, Class 1A1, 1 Mo. LIBOR + 1.00% (c)............. 1.08% 09/25/37 5,970,181 Structured Asset Investment Loan Trust 816,687 Series 2004-6, Class A3, 1 Mo. LIBOR + 0.80% (c)................. 0.88% 07/25/34 811,312 152,277 Series 2005-2, Class M2, 1 Mo. LIBOR + 0.74% (c)................. 0.82% 03/25/35 152,096 Structured Asset Securities Corp. Mortgage Loan Trust 1,350,000 Series 2005-NC2, Class M5, 1 Mo. LIBOR + 0.93% (c)............... 1.01% 05/25/35 1,353,542 TAL Advantage VII LLC 10,845,000 Series 2020-1A, Class A (b)...................................... 2.05% 09/20/45 10,993,180 TIF Funding II LLC 8,972,500 Series 2020-1A, Class A (b)...................................... 2.09% 08/20/45 9,077,475 Treman Park CLO Ltd. 573,281 Series 2015-1A, Class ARR, 3 Mo. LIBOR + 1.07% (b) (c)........... 1.20% 10/20/28 574,126 Voya CLO Ltd. 13,000,000 Series 2020-1A, Class AR, 3 Mo. LIBOR + 1.15% (b) (c)............ 1.26% 07/16/34 12,995,224 Wachovia Student Loan Trust 886,939 Series 2006-1, Class A6, 3 Mo. LIBOR + 0.17% (b) (c)............. 0.30% 04/25/40 872,232 WaMu Asset-Backed Certificates WaMu Trust 1,160,659 Series 2007-HE2, Class 2A1, 1 Mo. LIBOR + 0.11% (c).............. 0.19% 04/25/37 567,426 4,027,685 Series 2007-HE2, Class 2A2, 1 Mo. LIBOR + 0.19% (c).............. 0.27% 04/25/37 1,996,816 8,630,753 Series 2007-HE2, Class 2A3, 1 Mo. LIBOR + 0.25% (c).............. 0.33% 04/25/37 4,322,868 Wellman Park CLO 11,650,000 Series 2021-1A, Class B, 3 Mo. LIBOR + 1.60% (b) (c)............. 1.73% 07/15/34 11,662,256 -------------- TOTAL ASSET-BACKED SECURITIES.................................................................. 401,772,142 (Cost $398,909,726) -------------- </TABLE> See Notes to Financial Statements Page 37 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES -- 7.6% <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS -- 5.3% Alternative Loan Trust $ 6,080,811 Series 2005-16, Class A4, 1 Mo. LIBOR + 0.48% (c)................ 0.56% 06/25/35 $ 5,699,758 832,947 Series 2005-56, Class 1A1, 1 Mo. LIBOR + 1.46% (c)............... 1.54% 11/25/35 826,823 7,509,595 Series 2005-67CB, Class A1....................................... 5.50% 01/25/36 7,068,458 2,961,664 Series 2007-13, Class A1......................................... 6.00% 06/25/47 2,215,886 American Home Mortgage Assets Trust 13,382,862 Series 2007-1, Class A1, 12 Mo. Treasury Average + 0.70% (c)..... 0.80% 02/25/47 7,621,559 American Home Mortgage Investment Trust 1,925,167 Series 2005-4, Class 1A1, 1 Mo. LIBOR + 0.58% (c)................ 0.66% 11/25/45 1,883,357 Banc of America Funding Trust 695,157 Series 2014-R6, Class 2A13 (b) (j)............................... 0.35% 07/26/36 684,281 Bear Stearns Mortgage Funding Trust 121,342 Series 2006-AR1, Class 1A1, 1 Mo. LIBOR + 0.21% (c).............. 0.29% 07/25/36 117,438 2,969,895 Series 2006-AR3, Class 1A1, 1 Mo. LIBOR + 0.18% (c).............. 0.26% 10/25/36 2,845,302 4,013,938 Series 2006-AR5, Class 2A1, 1 Mo. LIBOR + 0.19% (c).............. 0.27% 01/25/37 3,760,468 207,714 Series 2007-AR5, Class 1A1G, 1 Mo. LIBOR + 0.16% (c)............. 0.24% 06/25/47 198,316 CIM Trust 8,776,315 Series 2018-R6, Class A1, 1 Mo. LIBOR + 1.08% (b) (c)............ 1.17% 09/25/58 8,721,592 3,817,405 Series 2019-R1, Class A (b)...................................... 3.25% 10/25/58 3,561,170 4,610,083 Series 2019-R4, Class A1 (b)..................................... 3.00% 10/25/59 4,704,532 7,698,252 Series 2020-R3, Class A1A (b).................................... 4.00% 01/26/60 7,459,300 9,862,290 Series 2020-R4, Class A1A (b) (k)................................ 3.30% 06/25/60 9,874,852 21,112,000 Series 2020-R7, Class A1B (b) (k)................................ 2.25% 12/27/61 18,720,141 22,617,960 Series 2021-R3, Class A1A (b).................................... 1.95% 06/25/57 22,745,213 9,388,724 Series 2021-NR3, Class A1, steps up to 5.57% on 04/26/24 (b) (f)............................................... 2.57% 06/25/57 9,409,699 CitiMortgage Alternative Loan Trust 2,530,619 Series 2006-A4, Class 1A8........................................ 6.00% 09/25/36 2,495,204 Credit Suisse Mortgage Trust 10,290,165 Series 2007-2, Class 1A4......................................... 5.75% 03/25/37 8,317,854 28,977,326 Series 2007-3, Class 1A1A........................................ 5.84% 04/25/37 10,877,152 30,492 Series 2010-7R, Class 1A12 (b)................................... 4.00% 01/26/37 30,541 109,816 Series 2010-8R, Class 4A5 (b) (j)................................ 2.89% 12/26/35 110,602 42,981 Series 2010-8R, Class 10A5 (b) (j)............................... 2.99% 04/26/47 42,966 11,107,553 Series 2019-RPL8, Class A1 (b) (c)............................... 3.32% 10/25/58 11,187,939 GMACM Mortgage Loan Trust 1,525,024 Series 2006-AR1, Class 1A1 (j)................................... 3.05% 04/19/36 1,341,093 1,659,399 Series 2006-J1, Class A4......................................... 5.75% 04/25/36 1,672,960 GreenPoint Mortgage Funding Trust 128,042 Series 2006-AR1, Class A1A, 1 Mo. LIBOR + 0.58% (c).............. 0.66% 02/25/36 127,674 GSR Mortgage Loan Trust 24,140,731 Series 2006-OA1, Class 2A2, 1 Mo. LIBOR + 0.52% (c).............. 0.60% 08/25/46 13,839,210 HarborView Mortgage Loan Trust 441,576 Series 2005-10, Class 2A1A, 1 Mo. LIBOR + 0.62% (c).............. 0.71% 11/19/35 397,258 1,371,886 Series 2007-7, Class 1A1, 1 Mo. LIBOR + 1.00% (c)................ 1.08% 10/25/37 1,333,831 HomeBanc Mortgage Trust 878,029 Series 2004-2, Class A1, 1 Mo. LIBOR + 0.74% (c)................. 0.82% 12/25/34 927,313 Impac CMB Trust 225,696 Series 2005-2, Class 1A1, 1 Mo. LIBOR + 0.52% (c)................ 0.60% 04/25/35 226,099 755,981 Series 2005-4, Class 1A1A, 1 Mo. LIBOR + 0.54% (c)............... 0.62% 05/25/35 754,720 </TABLE> Page 38 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> IndyMac INDX Mortgage Loan Trust $ 1,563,962 Series 2005-AR14, Class 2A1A, 1 Mo. LIBOR + 0.60% (c)............ 0.68% 07/25/35 $ 1,458,783 21,056,737 Series 2005-AR29, Class A1 (j)................................... 3.05% 01/25/36 20,341,814 4,040,697 Series 2006-AR6, Class 2A1A, 1 Mo. LIBOR + 0.40% (c)............. 0.48% 06/25/46 3,715,674 5,035,069 Series 2007-FLX4, Class 2A2, 1 Mo. LIBOR + 0.25% (c)............. 0.33% 07/25/37 4,903,987 JP Morgan Mortgage Trust 1,788,410 Series 2006-A4, Class 1A1 (j).................................... 2.86% 06/25/36 1,558,385 Lehman XS Trust 287,160 Series 2006-16N, Class A4A, 1 Mo. LIBOR + 0.19% (c).............. 0.27% 11/25/46 276,023 5,553,383 Series 2007-16N, Class 1A1, 1 Mo. LIBOR + 0.47% (c).............. 0.55% 09/25/47 5,561,543 3,087,105 Series 2007-16N, Class 2A1, 1 Mo. LIBOR + 0.40% (c).............. 0.48% 09/25/47 2,988,008 Merrill Lynch Alternative Note Asset Trust 4,375,010 Series 2007-OAR3, Class A1, 1 Mo. LIBOR + 0.19% (c).............. 0.27% 07/25/47 4,168,774 Morgan Stanley Mortgage Loan Trust 800,707 Series 2004-6AR, Class 1M1, 1 Mo. LIBOR + 0.98% (c).............. 1.06% 07/25/34 813,163 42,895 Series 2005-2AR, Class A, 1 Mo. LIBOR + 0.26% (c)................ 0.34% 04/25/35 42,754 MortgageIT Trust 70,723 Series 2005-5, Class A1, 1 Mo. LIBOR + 0.52% (c)................. 0.60% 12/25/35 71,239 Nomura Resecuritization Trust 1,865,978 Series 2015-5R, Class 1A1 (b).................................... 4.00% 08/26/37 1,908,216 Opteum Mortgage Acceptance Corp. 1,127,792 Series 2005-5, Class 1A1D, 1 Mo. LIBOR + 0.76% (c)............... 0.84% 12/25/35 1,137,224 381,662 Series 2006-1, Class 1APT, 1 Mo. LIBOR + 0.42% (c)............... 0.50% 04/25/36 367,618 RALI Trust 8,286,331 Series 2007-QS7, Class 1A1....................................... 6.00% 05/25/37 8,166,997 3,873,904 Series 2007-QS9, Class A33....................................... 6.50% 07/25/37 3,825,159 RFMSI Trust 8,163,401 Series 2007-S6, Class 1A4........................................ 6.00% 06/25/37 8,042,998 Stanwich Mortgage Loan Co. LLC 3,329,697 Series 2019-RPL1, Class A, steps up to 4.72% on 12/15/22 (b) (f)............................................... 3.72% 02/15/49 3,363,547 Structured Adjustable Rate Mortgage Loan Trust 26,881 Series 2004-12, Class 3A1 (j).................................... 2.45% 09/25/34 27,483 26,879,041 Series 2006-2, Class 4A1 (j)..................................... 3.15% 03/25/36 20,917,896 Structured Asset Mortgage Investments II Trust 2,725,300 Series 2006-AR1, Class 3A1, 1 Mo. LIBOR + 0.46% (c).............. 0.54% 02/25/36 2,626,296 7,747,766 Series 2006-AR7, Class A1A, 1 Mo. LIBOR + 0.42% (c).............. 0.50% 08/25/36 7,841,412 4,041,283 Series 2007-AR6, Class A1, 12 Mo. Treasury Average + 1.50% (c)...................................................... 1.60% 08/25/47 3,971,561 WaMu Mortgage Pass-Through Certificates Trust 93,292 Series 2005-AR1, Class A2A1, 1 Mo. LIBOR + 0.68% (c)............. 0.76% 01/25/45 93,482 175,599 Series 2005-AR15, Class A1A1, 1 Mo. LIBOR + 0.52% (c)............ 0.60% 11/25/45 173,466 244,506 Series 2006-AR3, Class A1A, 12 Mo. Treasury Average + 1.00% (c)...................................................... 1.10% 02/25/46 246,975 364,353 Series 2006-AR4, Class 1A1A, 12 Mo. Treasury Average + 0.94% (c)...................................................... 1.05% 05/25/46 361,698 -------------- 280,772,736 -------------- </TABLE> See Notes to Financial Statements Page 39 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES -- 2.3% BX Commercial Mortgage Trust $ 9,741,001 Series 2019-XL, Class A, 1 Mo. LIBOR + 0.92% (b) (c)............. 1.02% 10/15/36 $ 9,766,402 Citigroup Commercial Mortgage Trust 14,620,261 Series 2020-WSS, Class A, 1 Mo. LIBOR + 1.95% (b) (c)............ 2.05% 02/15/39 15,162,894 COMM Mortgage Trust 8,249,616 Series 2012-CR4, Class A3........................................ 2.85% 10/15/45 8,422,751 206,646 Series 2012-CR5, Class A3........................................ 2.54% 12/10/45 209,882 315,000 Series 2012-CR5, Class A4........................................ 2.77% 12/10/45 322,702 13,200,000 Series 2013-SFS, Class A2 (b) (j)................................ 3.09% 04/12/35 13,511,744 DBJPM Mortgage Trust 2,050,000 Series 2016-SFC, Class A (b)..................................... 2.83% 08/10/36 2,118,641 DROP Mortgage Trust 12,284,000 Series 2021-FILE, Class B, 1 Mo. LIBOR + 1.70% (b) (c)........... 1.80% 04/15/26 12,345,784 Eleven Madison Mortgage Trust 305,000 Series 2015-11MD, Class A (b) (j)................................ 3.67% 09/10/35 331,754 GS Mortgage Securities Corp. Trust 25,000,000 Series 2012-ALOH, Class A (b).................................... 3.55% 04/10/34 25,190,725 9,581,658 Series 2019-70P, Class A, 1 Mo. LIBOR + 1.00% (b) (c)............ 1.10% 10/15/36 9,592,479 JP Morgan Chase Commercial Mortgage Securities Trust 5,575,809 Series 2012-HSBC, Class A (b).................................... 3.09% 07/05/32 5,670,914 Manhattan West 3,855,000 Series 2020-1MW, Class A (b)..................................... 2.13% 09/10/39 3,980,445 MKT Mortgage Trust 1,730,000 Series 2020-525M, Class A (b).................................... 2.69% 02/12/40 1,832,774 Natixis Commercial Mortgage Securities Trust 1,490,000 Series 2020-2PAC, Class A (b).................................... 2.97% 12/15/38 1,562,845 SFAVE Commercial Mortgage Securities Trust 9,265,000 Series 2015-5AVE, Class A2A (b) (j).............................. 3.66% 01/05/43 10,383,966 50,000 Series 2015-5AVE, Class A2B (b) (j).............................. 4.14% 01/05/43 55,560 UBS-Barclays Commercial Mortgage Trust 242,490 Series 2013-C6, Class A3......................................... 2.97% 04/10/46 248,890 -------------- 120,711,152 -------------- TOTAL MORTGAGE-BACKED SECURITIES............................................................... 401,483,888 (Cost $401,878,115) -------------- PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES -- 5.2% AGRICULTURE -- 0.2% 2,325,000 Imperial Brands Finance PLC (USD) (b)............................... 3.13% 07/26/24 2,452,341 5,085,000 Imperial Brands Finance PLC (USD) (b)............................... 4.25% 07/21/25 5,586,589 -------------- 8,038,930 -------------- AIRLINES -- 0.0% 634,800 Air Canada Pass-Through Trust, Series 2017-1, Class AA (USD) (b)........................................................ 3.30% 01/15/30 647,397 -------------- </TABLE> Page 40 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> BANKS -- 2.3% 460,000 Credit Suisse Group AG (USD)........................................ 4.55% 04/17/26 $ 521,179 4,095,000 Credit Suisse Group AG (USD) (b) (d)................................ 2.19% 06/05/26 4,203,328 13,020,000 Credit Suisse Group AG (USD) (b) (d)................................ 1.31% 02/02/27 12,822,475 3,365,000 Credit Suisse Group AG (USD) (b).................................... 4.28% 01/09/28 3,765,420 4,760,000 Credit Suisse Group AG (USD) (b) (d)................................ 3.09% 05/14/32 4,968,808 400,000 Global Bank Corp. (USD) (d) (l)..................................... 5.25% 04/16/29 428,082 4,310,000 HSBC Holdings PLC (USD) (d)......................................... 0.98% 05/24/25 4,313,386 20,000 HSBC Holdings PLC (USD) (d)......................................... 2.63% 11/07/25 20,944 6,920,000 HSBC Holdings PLC (USD) (d)......................................... 4.29% 09/12/26 7,691,473 6,665,000 HSBC Holdings PLC (USD) (d)......................................... 1.59% 05/24/27 6,690,252 7,100,000 HSBC Holdings PLC (USD) (d)......................................... 2.01% 09/22/28 7,171,504 7,800,000 HSBC Holdings PLC (USD) (d)......................................... 2.21% 08/17/29 7,867,441 1,870,000 Lloyds Banking Group PLC (USD)...................................... 3.90% 03/12/24 2,019,370 4,280,000 Lloyds Banking Group PLC (USD) (d).................................. 3.87% 07/09/25 4,636,745 5,000,000 Lloyds Banking Group PLC (USD) (d).................................. 1.63% 05/11/27 5,021,312 7,600,000 Macquarie Group Ltd. (USD) (b) (d).................................. 1.34% 01/12/27 7,580,011 8,170,000 NatWest Group PLC (USD) (d)......................................... 4.27% 03/22/25 8,858,543 9,565,000 Santander UK Group Holdings PLC (USD) (d)........................... 4.80% 11/15/24 10,398,891 10,045,000 Santander UK Group Holdings PLC (USD) (d)........................... 1.09% 03/15/25 10,076,984 1,585,000 Santander UK Group Holdings PLC (USD) (d)........................... 1.53% 08/21/26 1,593,409 2,855,000 Santander UK Group Holdings PLC (USD) (d)........................... 1.67% 06/14/27 2,866,314 1,190,000 Santander UK Group Holdings PLC (USD) (d)........................... 3.82% 11/03/28 1,315,627 7,900,000 UBS AG (USD), SOFR + 0.45% (b) (c).................................. 0.50% 08/09/24 7,945,709 -------------- 122,777,207 -------------- BEVERAGES -- 0.2% 6,760,000 Bacardi Ltd. (USD) (b).............................................. 4.45% 05/15/25 7,509,745 245,000 Bacardi Ltd. (USD) (b).............................................. 4.70% 05/15/28 286,156 385,000 Bacardi Ltd. (USD) (b).............................................. 5.30% 05/15/48 513,555 1,800,000 Diageo Capital PLC (USD)............................................ 2.13% 04/29/32 1,821,500 -------------- 10,130,956 -------------- COMMERCIAL SERVICES -- 0.3% 2,800,000 DP World Crescent Ltd. (USD) (b).................................... 4.85% 09/26/28 3,218,152 1,689,000 IHS Markit Ltd. (USD) (b)........................................... 5.00% 11/01/22 1,756,475 2,500,000 IHS Markit Ltd. (USD)............................................... 3.63% 05/01/24 2,667,000 3,510,000 IHS Markit Ltd. (USD) (b)........................................... 4.75% 02/15/25 3,901,716 5,865,000 IHS Markit Ltd. (USD) (b)........................................... 4.00% 03/01/26 6,488,743 250,000 IHS Markit Ltd. (USD)............................................... 4.75% 08/01/28 296,179 -------------- 18,328,265 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.6% 1,500,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 3.95% 02/01/22 1,517,079 1,100,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 3.50% 05/26/22 1,121,140 3,111,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 4.88% 01/16/24 3,378,163 2,930,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 2.88% 08/14/24 3,056,897 1,000,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 3.50% 01/15/25 1,059,049 </TABLE> See Notes to Financial Statements Page 41 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> DIVERSIFIED FINANCIAL SERVICES (CONTINUED) 1,185,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 4.45% 10/01/25 $ 1,301,560 135,000 Avolon Holdings Funding Ltd. (USD) (b).............................. 5.25% 05/15/24 148,123 1,755,000 Avolon Holdings Funding Ltd. (USD) (b).............................. 2.88% 02/15/25 1,810,597 5,121,518 Avolon Holdings Funding Ltd. (USD) (b).............................. 2.53% 11/18/27 5,088,283 840,000 Fondo Mivivienda S.A. (USD) (l)..................................... 3.50% 01/31/23 866,284 7,750,000 GE Capital International Funding Co. Unlimited Co. (USD)............ 4.42% 11/15/35 9,412,201 850,000 Park Aerospace Holdings Ltd. (USD) (b).............................. 4.50% 03/15/23 892,281 467,000 Park Aerospace Holdings Ltd. (USD) (b).............................. 5.50% 02/15/24 512,679 -------------- 30,164,336 -------------- ELECTRIC -- 0.0% 1,200,000 Empresas Publicas de Medellin ESP (USD) (l)......................... 4.38% 02/15/31 1,188,024 600,000 Minejesa Capital B.V. (USD) (b)..................................... 5.63% 08/10/37 651,537 250,000 Mong Duong Finance Holdings B.V. (USD) (l).......................... 5.13% 05/07/29 251,563 -------------- 2,091,124 -------------- FOOD -- 0.0% 150,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (b)........................................................ 5.50% 01/15/30 169,470 -------------- INTERNET -- 0.1% 2,775,000 Tencent Holdings Ltd. (USD) (b)..................................... 3.98% 04/11/29 3,080,267 4,540,000 Tencent Holdings Ltd. (USD) (b)..................................... 3.84% 04/22/51 4,920,177 -------------- 8,000,444 -------------- MEDIA -- 0.1% 345,000 Virgin Media Secured Finance PLC (USD) (b).......................... 5.50% 05/15/29 370,013 6,737,000 Virgin Media Secured Finance PLC (USD) (b).......................... 4.50% 08/15/30 6,841,760 -------------- 7,211,773 -------------- MINING -- 0.2% 267,000 Corp. Nacional del Cobre de Chile (USD) (l)......................... 4.50% 09/16/25 299,108 3,947,000 Corp. Nacional del Cobre de Chile (USD) (l)......................... 3.15% 01/14/30 4,172,591 2,860,000 Indonesia Asahan Aluminium Persero PT (USD) (b)..................... 6.53% 11/15/28 3,515,898 600,000 Indonesia Asahan Aluminium Persero PT (USD) (b)..................... 5.45% 05/15/30 702,180 -------------- 8,689,777 -------------- OIL & GAS -- 0.4% 1,600,000 KazMunayGas National Co. JSC (USD) (b).............................. 3.50% 04/14/33 1,677,600 1,133,000 KazMunayGas National Co. JSC (USD) (l).............................. 5.38% 04/24/30 1,359,588 1,567,000 KazMunayGas National Co. JSC (USD) (l).............................. 3.50% 04/14/33 1,642,999 235,000 KazMunayGas National Co. JSC (USD) (l).............................. 5.75% 04/19/47 292,500 2,504,000 Pertamina Persero PT (USD) (b)...................................... 3.10% 08/27/30 2,620,385 215,000 Petroleos Mexicanos (USD)........................................... 6.63% 06/15/35 208,546 2,430,000 Petroleos Mexicanos (USD)........................................... 6.75% 09/21/47 2,149,335 3,095,000 Petroleos Mexicanos (USD)........................................... 7.69% 01/23/50 2,977,421 1,705,000 Petroleos Mexicanos (USD)........................................... 6.95% 01/28/60 1,506,896 2,913,000 Petronas Capital Ltd. (USD) (b)..................................... 3.50% 04/21/30 3,214,442 1,650,000 Petronas Capital Ltd. (USD) (b)..................................... 2.48% 01/28/32 1,682,219 1,150,000 Saudi Arabian Oil Co. (USD) (b)..................................... 2.25% 11/24/30 1,144,296 650,000 Saudi Arabian Oil Co. (USD) (l)..................................... 1.63% 11/24/25 657,345 158,790 Transocean Pontus Ltd. (USD) (b).................................... 6.13% 08/01/25 158,040 517,000 Transocean Poseidon Ltd. (USD) (b).................................. 6.88% 02/01/27 500,844 -------------- 21,792,456 -------------- </TABLE> Page 42 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> OIL & GAS SERVICES -- 0.1% 1,781,447 Transocean Phoenix 2 Ltd. (USD) (b)................................. 7.75% 10/15/24 $ 1,810,396 2,763,750 Transocean Proteus Ltd. (USD) (b)................................... 6.25% 12/01/24 2,725,748 -------------- 4,536,144 -------------- PHARMACEUTICALS -- 0.0% 625,000 Bayer US Finance II LLC (USD) (b)................................... 2.85% 04/15/25 649,853 2,481,000 Endo Dac / Endo Finance LLC / Endo Finco, Inc. (USD) (b)............ 6.00% 06/30/28 1,554,036 -------------- 2,203,889 -------------- PIPELINES -- 0.1% 1,800,000 Galaxy Pipeline Assets Bidco Ltd. (USD) (b)......................... 2.16% 03/31/34 1,795,788 800,000 Southern Gas Corridor CJSC (USD) (l)................................ 6.88% 03/24/26 949,916 -------------- 2,745,704 -------------- RETAIL -- 0.1% 100,000 Alimentation Couche-Tard, Inc. (USD) (b)............................ 3.55% 07/26/27 110,704 4,230,000 Alimentation Couche-Tard, Inc. (USD) (b)............................ 3.80% 01/25/50 4,637,210 -------------- 4,747,914 -------------- SAVINGS & LOANS -- 0.3% 4,895,000 Nationwide Building Society (USD) (b) (d)........................... 3.62% 04/26/23 4,996,892 6,645,000 Nationwide Building Society (USD) (b) (d)........................... 3.77% 03/08/24 6,949,878 1,300,000 Nationwide Building Society (USD) (b) (d)........................... 4.36% 08/01/24 1,387,442 -------------- 13,334,212 -------------- TELECOMMUNICATIONS -- 0.2% 400,000 C&W Senior Financing DAC (USD) (b).................................. 6.88% 09/15/27 425,740 2,000,000 Intelsat Jackson Holdings S.A. (USD) (m)............................ 5.50% 08/01/23 1,057,500 3,860,000 Intelsat Jackson Holdings S.A. (USD) (b) (m)........................ 8.50% 10/15/24 2,089,225 390,000 Intelsat Jackson Holdings S.A. (USD) (b) (m)........................ 9.75% 07/15/25 211,088 500,000 SES S.A. (USD) (b).................................................. 3.60% 04/04/23 521,336 2,777,000 Vodafone Group PLC (USD)............................................ 4.88% 06/19/49 3,574,868 1,375,000 Vodafone Group PLC (USD)............................................ 4.25% 09/17/50 1,620,504 -------------- 9,500,261 -------------- TRANSPORTATION -- 0.0% 726,000 Empresa de Transporte de Pasajeros Metro S.A. (USD) (b)............. 3.65% 05/07/30 795,236 -------------- TOTAL FOREIGN CORPORATE BONDS AND NOTES........................................................ 275,905,495 (Cost $273,776,271) -------------- PRINCIPAL STATED VALUE DESCRIPTION RATE (n) MATURITY (o) VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- SENIOR FLOATING-RATE LOAN INTERESTS -- 1.8% CABLE AND SATELLITE -- 0.1% $ 1,000,000 DIRECTV Financing, LLC, Term Loan, 1 Mo. LIBOR + 5.00%, 0.75% Floor...................................................... 5.75% 08/02/27 999,430 2,338,010 EagleView Technology Corp. Term Loan B, 3 Mo. LIBOR + 3.50%, 0.00% Floor...................................................... 3.64% 08/14/25 2,302,940 725,000 Virgin Media Bristol LLC, Term Loan N, 1 Mo. LIBOR + 2.50%, 0.00% Floor...................................................... 2.60% 01/31/28 716,844 -------------- 4,019,214 -------------- </TABLE> See Notes to Financial Statements Page 43 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED VALUE DESCRIPTION RATE (n) MATURITY (o) VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED) <S> <C> <C> <C> <C> CONSUMER PRODUCTS -- 0.1% $ 7,118,151 Zep, Inc., Term Loan B, 3 Mo. LIBOR + 4.00%, 1.00% Floor............ 5.00% 08/11/24 $ 6,869,016 -------------- DIVERSIFIED MANUFACTURING -- 0.0% 1,290,101 Mirion Technologies, Inc., Term Loan B, 3 Mo. LIBOR + 4.00%, 0.00% Floor...................................................... 4.23% - 4.27% 03/06/26 1,288,089 -------------- ENTERTAINMENT -- 0.0% 641 Caesars Resort Collection, LLC, Term Loan B, 3 Mo. LIBOR + 2.75%, 0.00% Floor............................................... 2.85% 12/22/24 635 -------------- ENVIRONMENTAL -- 0.0% 241,698 GFL Environmental, Inc., Term Loan B, 1 Mo. LIBOR + 3.00%, 0.50% Floor...................................................... 3.50% 05/31/25 241,785 -------------- FINANCE COMPANIES -- 0.1% 5,000,000 Avolon TLB Borrower 1 (U.S.) LLC, Term Loan B, 1 Mo. LIBOR + 2.25%, 0.50% Floor............................................... 2.75% 12/01/27 4,996,100 -------------- FOOD AND BEVERAGE -- 0.0% 175,056 Hostess Brands, LLC, Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor............................................................ 3.00% 08/03/25 173,962 1,629 Hostess Brands, LLC, Term Loan B, 2 Mo. LIBOR + 2.25%, 0.75% Floor............................................................ 3.00% 08/03/25 1,619 463,541 Hostess Brands, LLC, Term Loan B, 3 Mo. LIBOR + 2.25%, 0.75% Floor............................................................ 3.00% 08/03/25 460,643 -------------- 636,224 -------------- GAMING -- 0.0% 250,000 VICI Properties 1 LLC, Term Loan B, 1 Mo. LIBOR + 1.75%, 0.00% Floor...................................................... 1.84% 12/22/24 248,465 -------------- HEALTHCARE -- 0.2% 2,144,625 ADMI Corp., Term Loan B, 1 Mo. LIBOR + 3.13%, 0.50% Floor............................................................ 3.63% 12/23/27 2,112,906 893,216 CPI Holdco, LLC, Term Loan B, 1 Mo. LIBOR + 4.00%, 0.00% Floor............................................................ 3.83% 11/04/26 891,305 1,388,120 Gentiva Health Services, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor...................................................... 2.88% 07/02/25 1,384,650 3,828,068 Grifols Worldwide Operations Ltd., Term Loan B, 1 Mo. LIBOR + 2.00%, 0.00% Floor............................................... 2.09% 11/15/27 3,774,475 2,073,409 ICON Luxemburg S.A.R.L., Term Loan B, 1 Mo. LIBOR + 2.50%, 0.50% Floor...................................................... 3.00% 07/01/28 2,071,252 1,465,563 Pathway Vet Alliance LLC, Term Loan A, 1 Mo. LIBOR + 3.75%, 0.00% Floor...................................................... 3.84% 03/31/27 1,455,714 516,591 PRA Health Sciences, Term Loan, 1 Mo. LIBOR + 2.50%, 0.50% Floor............................................................ 3.00% 07/01/28 516,054 -------------- 12,206,356 -------------- INSURANCE -- 0.1% 4,975,000 AmWINS Group, Inc., Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor............................................................ 3.00% 02/19/28 4,924,553 -------------- LEISURE -- 0.1% 3,231,658 Cineworld Group PLC (Crown), Priority Term Loan B-1, Fixed Rate at 15.25% (p).................................................... 15.25% 05/23/24 3,970,706 -------------- </TABLE> Page 44 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED VALUE DESCRIPTION RATE (n) MATURITY (o) VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED) <S> <C> <C> <C> <C> MEDIA ENTERTAINMENT -- 0.0% $ 947,589 Diamond Sports Group, LLC, Term Loan, 1 Mo. LIBOR + 3.25%, 0.00% Floor...................................................... 3.35% 08/24/26 $ 589,476 -------------- MEDICAL EQUIPMENT & DEVICES -- 0.1% 4,228,750 Avantor Funding, Inc., Term Loan B, 1 Mo. LIBOR + 2.25%, 0.50% Floor............................................................ 2.75% 11/06/27 4,223,464 -------------- PACKAGING -- 0.2% 1,273,386 Berry Global, Inc., Term Loan Z, 1 Mo. LIBOR + 1.75%, 0.00% Floor............................................................ 1.85% 07/01/26 1,261,186 3,144,786 Charter NEX U.S., Inc., Term Loan, 1 Mo. LIBOR + 3.75%, 0.75% Floor............................................................ 4.50% 12/01/27 3,144,283 1,542,250 Plaze, Inc., Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor.......... 4.50% 08/03/26 1,530,683 2,224,187 Proampac PG Borrower LLC, Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor...................................................... 4.50% 11/03/25 2,222,808 -------------- 8,158,960 -------------- PHARMACEUTICALS -- 0.3% 5,054,811 Elanco Animal Health, Inc., Term Loan B, 1 Mo. LIBOR + 1.75%, 0.00% Floor...................................................... 1.85% 08/01/27 4,963,623 4,339,125 Horizon Therapeutics USA, Inc., Term Loan B, 1 Mo. LIBOR + 2.00%, 0.50% Floor............................................... 2.50% 03/15/28 4,317,429 2,375,000 Jazz Financing LUX SARL, Term Loan B, 1 Mo. LIBOR + 3.50%, 0.50% Floor...................................................... 4.00% 05/05/28 2,375,000 4,000,000 Organon & Co., Term Loan, 1 Mo. LIBOR + 3.00%, 0.50% Floor............................................................ 3.50% 06/02/28 4,011,680 -------------- 15,667,732 -------------- RESTAURANTS -- 0.1% 3,696,419 Northeast Foods LLC, Term Loan B, 3 Mo. LIBOR + 3.75%, 0.00% Floor............................................................ 3.85% 07/20/25 3,664,076 -------------- SERVICES -- 0.0% 1,690,763 Spin Holdco Inc., Term Loan, 1 Mo. LIBOR + 4.00%, 0.75% Floor............................................................ 4.75% 03/04/28 1,691,608 -------------- TECHNOLOGY -- 0.2% 3,989,848 Commscope, Inc., Term Loan B2, 3 Mo. LIBOR + 3.25%, 0.00% Floor............................................................ 3.34% 04/04/26 3,940,972 4,001,473 Waystar Technologies, Inc., Term Loan B, 1 Mo. LIBOR + 4.00%, 0.00% Floor...................................................... 4.10% 10/23/26 3,988,988 -------------- 7,929,960 -------------- TELECOMMUNICATIONS -- 0.0% 2,000,000 Intelsat Jackson Holdings S.A., Term Loan B, 1 Mo. LIBOR + 4.75%, 1.00% Floor...................................................... 8.00% 11/27/23 2,028,760 1,250,000 Intelsat Jackson Holdings S.A., Term Loan B......................... 6.63% 01/02/24 1,269,725 -------------- 3,298,485 -------------- WIRELINES -- 0.2% 7,360,000 Level 3 Financing, Inc., Term Loan B, 1 Mo. LIBOR + 1.75%, 0.00% Floor...................................................... 1.84% 03/01/27 7,249,600 2,236,149 Lumen Technologies, Inc., Term Loan B, 1 Mo. LIBOR + 2.25%, 0.00% Floor...................................................... 2.34% 03/15/27 2,207,258 -------------- 9,456,858 -------------- TOTAL SENIOR FLOATING-RATE LOAN INTERESTS...................................................... 94,081,762 (Cost $94,247,833) -------------- </TABLE> See Notes to Financial Statements Page 45 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS AND NOTES -- 1.6% <S> <C> <C> <C> <C> BRAZIL -- 0.1% 1,200,000 Brazilian Government International Bond (USD)....................... 2.88% 06/06/25 $ 1,240,692 3,830,000 Brazilian Government International Bond (USD)....................... 3.88% 06/12/30 3,846,661 -------------- 5,087,353 -------------- CHILE -- 0.1% 3,100,000 Chile Government International Bond (USD)........................... 2.45% 01/31/31 3,185,219 300,000 Chile Government International Bond (USD)........................... 2.55% 01/27/32 308,931 -------------- 3,494,150 -------------- COLOMBIA -- 0.1% 6,785,000 Colombia Government International Bond (USD)........................ 3.00% 01/30/30 6,666,704 -------------- DOMINICAN REPUBLIC -- 0.1% 3,485,000 Dominican Republic International Bond (USD) (b)..................... 4.50% 01/30/30 3,633,147 1,680,000 Dominican Republic International Bond (USD) (l)..................... 4.88% 09/23/32 1,768,217 -------------- 5,401,364 -------------- EGYPT -- 0.1% 800,000 Egypt Government International Bond (USD) (l)....................... 5.25% 10/06/25 844,080 1,200,000 Egypt Government International Bond (USD) (b)....................... 7.60% 03/01/29 1,320,180 -------------- 2,164,260 -------------- INDONESIA -- 0.1% 957,000 Indonesia Government International Bond (USD)....................... 2.85% 02/14/30 1,007,467 2,600,000 Perusahaan Penerbit SBSN Indonesia III (USD) (b).................... 2.80% 06/23/30 2,705,534 -------------- 3,713,001 -------------- MEXICO -- 0.2% 4,500,000 Mexico Government International Bond (USD).......................... 3.75% 01/11/28 4,979,452 4,772,000 Mexico Government International Bond (USD).......................... 2.66% 05/24/31 4,736,544 1,400,000 Mexico Government International Bond (USD).......................... 4.75% 04/27/32 1,625,498 310,000 Mexico Government International Bond (USD).......................... 3.77% 05/24/61 296,213 -------------- 11,637,707 -------------- PANAMA -- 0.1% 5,583,000 Panama Government International Bond (USD).......................... 3.16% 01/23/30 5,923,228 500,000 Panama Government International Bond (USD).......................... 2.25% 09/29/32 488,465 -------------- 6,411,693 -------------- PARAGUAY -- 0.1% 3,300,000 Paraguay Government International Bond (USD) (b).................... 4.95% 04/28/31 3,832,158 647,000 Paraguay Government International Bond (USD) (b).................... 2.74% 01/29/33 644,574 -------------- 4,476,732 -------------- PERU -- 0.1% 4,775,000 Peruvian Government International Bond (USD)........................ 2.84% 06/20/30 4,946,423 -------------- PHILIPPINES -- 0.0% 1,570,000 Philippine Government International Bond (USD)...................... 2.46% 05/05/30 1,659,264 240,000 Philippine Government International Bond (USD)...................... 1.65% 06/10/31 236,693 -------------- 1,895,957 -------------- QATAR -- 0.1% 3,724,000 Qatar Government International Bond (USD) (l)....................... 4.50% 04/23/28 4,403,630 1,900,000 Qatar Government International Bond (USD) (l)....................... 3.75% 04/16/30 2,168,751 250,000 Qatar Government International Bond (USD) (l)....................... 4.63% 06/02/46 317,500 -------------- 6,889,881 -------------- </TABLE> Page 46 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> ROMANIA -- 0.1% 3,000,000 Romanian Government International Bond (USD) (l).................... 3.00% 02/14/31 $ 3,137,370 -------------- SAUDI ARABIA -- 0.1% 800,000 Saudi Government International Bond (USD) (l)....................... 3.25% 10/26/26 870,404 3,340,000 Saudi Government International Bond (USD) (l)....................... 3.63% 03/04/28 3,709,063 860,000 Saudi Government International Bond (USD) (b)....................... 2.75% 02/03/32 895,032 -------------- 5,474,499 -------------- SOUTH AFRICA -- 0.1% 6,024,000 Republic of South Africa Government International Bond (USD)........ 4.85% 09/30/29 6,384,994 -------------- TURKEY -- 0.0% 1,200,000 Turkey Government International Bond (USD).......................... 3.25% 03/23/23 1,207,370 -------------- UNITED ARAB EMIRATES -- 0.0% 2,037,000 Abu Dhabi Government International Bond (USD) (l)................... 2.50% 09/30/29 2,158,540 -------------- URUGUAY -- 0.1% 3,260,000 Uruguay Government International Bond (USD)......................... 4.38% 01/23/31 3,833,010 -------------- TOTAL FOREIGN SOVEREIGN BONDS AND NOTES........................................................ 84,981,008 (Cost $85,065,742) -------------- PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MUNICIPAL BONDS -- 0.9% CALIFORNIA -- 0.3% $ 4,040,000 City of San Francisco CA Public Utilities Commission Water Rev.. 2.83% 11/01/41 4,159,324 2,585,000 Los Angeles CA Unif School District................................. 5.75% 07/01/34 3,488,793 4,715,000 Regents of the Univ of CA Medical Center Pooled Rev................. 3.26% 05/15/60 5,052,411 -------------- 12,700,528 -------------- FLORIDA -- 0.0% 2,000,000 Cnty of Miami-Dade FL Aviation Rev.................................. 2.53% 10/01/30 2,078,672 -------------- MASSACHUSETTS -- 0.0% 1,845,000 Massachusetts Sch Bldg Auth......................................... 2.97% 10/15/32 1,999,099 -------------- NEW JERSEY -- 0.1% 2,000,000 NJ St Turnpike Auth Rev............................................. 1.86% 01/01/31 2,006,730 500,000 NJ St Turnpike Auth Rev............................................. 3.73% 01/01/36 591,774 -------------- 2,598,504 -------------- NEW YORK -- 0.5% 3,170,000 City of New York NY................................................. 3.62% 04/01/31 3,535,463 3,620,000 City of New York NY................................................. 1.92% 08/01/31 3,638,902 1,225,000 Metro Transprtn Auth................................................ 5.18% 11/15/49 1,694,894 400,000 New York City NY Transitional Fin Auth Rev Qualified Sch Constr, Ser BD G-3....................................................... 5.27% 05/01/27 483,017 970,000 New York City NY Transitional Fin Auth Rev, Ser A-3................. 3.96% 08/01/32 1,098,808 6,940,000 New York City NY Transitional Fin Auth Rev, Ser B-3................. 1.85% 08/01/32 6,905,182 5,140,000 New York State Urban Development Corp............................... 2.97% 03/15/34 5,513,501 2,690,000 NY St Dorm Auth..................................................... 5.00% 03/15/24 2,982,690 1,405,000 NY St Dorm Auth..................................................... 2.96% 02/15/32 1,531,937 -------------- 27,384,394 -------------- TOTAL MUNICIPAL BONDS.......................................................................... 46,761,197 (Cost $45,412,544) -------------- </TABLE> See Notes to Financial Statements Page 47 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. TREASURY BILLS -- 10.8% <S> <C> <C> <C> <C> $ 36,725,000 U.S. Cash Management Bill........................................... (q) 12/14/21 $ 36,720,968 43,090,000 U.S. Cash Management Bill........................................... (q) 12/21/21 43,084,951 80,785,000 U.S. Treasury Bill.................................................. (q) 10/05/21 80,782,116 27,770,000 U.S. Treasury Bill.................................................. (q) 10/07/21 27,768,959 238,750,000 U.S. Treasury Bill.................................................. (q) 12/09/21 238,722,095 56,430,000 U.S. Treasury Bill.................................................. (q) 01/06/22 56,422,037 13,970,000 U.S. Treasury Bill.................................................. (q) 01/13/22 13,967,920 60,415,000 U.S. Treasury Bill.................................................. (q) 01/20/22 60,405,535 15,695,000 U.S. Treasury Bill.................................................. (q) 02/10/22 15,691,998 -------------- TOTAL U.S. TREASURY BILLS....................................................................... 573,566,579 (Cost $573,568,022) -------------- SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 2.6% <S> <C> <C> 138,848,485 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 0.01% (r)..... 138,848,485 (Cost $138,848,485) -------------- TOTAL INVESTMENTS -- 123.0%.................................................................... 6,516,091,175 (Cost $6,458,981,728) (s) -------------- NOTIONAL EXERCISE EXPIRATION DESCRIPTION COUNTERPARTY AMOUNT RATE DATE VALUE ---------------------------------------------------- -------------- -------------- ----------- ------------ -------------- PUT SWAPTIONS PURCHASED -- 0.0% <S> <C> <C> <C> <C> <C> 30 Year Interest Rate Swap, Pays 2.75% Semi- Annual, Receives 3 Mo. LIBOR Quarterly Barclays PLC $ 19,380,000 2.75% 01/23/54 527,389 (Cost $571,710) -------------- NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- ---------------------------------------------------- -------------- ----------- ------------ -------------- PURCHASED OPTIONS -- 0.0% PUT OPTIONS PURCHASED -- 0.0% 3,170 Eurodollar 2-Year Mid-Curve Options Futures Put...................................... $ 791,113,125 $99.13 12/10/21 1,525,562 (Cost $1,391,414) -------------- WRITTEN OPTIONS -- (0.0)% PUT OPTIONS WRITTEN -- (0.0)% (6,340) Eurodollar 2-Year Mid-Curve Options Futures Put...................................... (1,582,226,250) 98.75 12/10/21 (871,750) (Premiums received $894,422) -------------- NET OTHER ASSETS AND LIABILITIES -- (23.0)%.................................................. (1,219,604,904) -------------- NET ASSETS -- 100.0%......................................................................... $5,297,667,472 ============== </TABLE> Page 48 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 Futures Contracts at August 31, 2021 (See Note 2D - Futures Contracts in the Notes to Financial Statements): <TABLE> <CAPTION> UNREALIZED APPRECIATION NUMBER OF (DEPRECIATION)/ FUTURES CONTRACTS POSITION CONTRACTS EXPIRATION DATE NOTIONAL VALUE VALUE ----------------------------------- ---------------- --------------- --------------- -------------- --------------- <S> <C> <C> <C> <C> <C> U.S. Treasury Ultra Bond Futures Long 33 Dec-2021 $ 6,510,281 $ 15,378 U.S. 2-Year Treasury Notes Short 4 Dec-2021 (881,312) (586) U.S. 10-Year Ultra Treasury Notes Short 57 Dec-2021 (8,436,891) (8,156) ------------- ----------- $ (2,807,922) $ 6,636 ============= =========== </TABLE> Interest Rate Swap Agreements at August 31, 2021 (see Note 2F - Swap Agreements in the Notes to Financial Statements): <TABLE> <CAPTION> UNREALIZED APPRECIATION FLOATING EXPIRATION NOTIONAL (DEPRECIATION)/ COUNTERPARTY RATE DATE VALUE FIXED RATE VALUE ----------------------------------- ---------------- --------------- --------------- -------------- --------------- <S> <C> <C> <C> <C> <C> Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 $ 117,450,000 1.026%(1) $ (173,804) Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 86,880,000 1.034%(1) (114,837) Citibank, Global Markets, Inc 3 month LIBOR(1) 07/24/2025 58,725,000 1.073%(1) (32,379) Citibank, Global Markets, Inc 3 month LIBOR(2) 07/24/2053 9,810,000 1.773%(2) 35,356 Citibank, Global Markets, Inc 3 month LIBOR(2) 07/24/2053 7,260,000 1.785%(2) 4,352 Citibank, Global Markets, Inc 3 month LIBOR(2) 07/24/2053 4,905,000 1.807%(2) (23,589) --------------- ----------- $ 285,030,000 $ (304,901) =============== =========== </TABLE> (1) The Fund pays the floating rate and receives the fixed rate. The floating rate is not effective until 07/24/2023 and no interest is being accrued until that date. (2) The Fund pays the fixed rate and receives the floating rate. The floating rate is not effective until 07/24/2023 and no interest is being accrued until that date. ----------------------------- (a) All or a portion of this security is part of a mortgage dollar roll agreement (see Note 2K - Mortgage Dollar Rolls in the Notes to Financial Statements). (b) This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act"), and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Trust's Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P., the Fund's Advisor (the "Advisor"). Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At August 31, 2021, securities noted as such amounted to $800,582,232 or 15.1% of net assets. (c) Floating or variable rate security. (d) Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at August 31, 2021. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. (e) This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A under the 1933 act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers (see Note 2C - Restricted Securities in the Notes to Financial Statements). (f) Step-up security. A security where the coupon increases or steps up at a predetermined date. (g) When-issued security. The interest rate shown reflects the rate in effect at August 31, 2021. Interest will begin accruing on the security's first settlement date. (h) This security is fair valued by the Advisor's Pricing Committee in accordance with procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the Investment Company Act of 1940, as amended. At August 31, 2021, securities noted as such are valued at $13,787,139 or 0.3% of net assets. (i) This security's value was determined using significant unobservable inputs (See Note 2A - Portfolio Valuation in the Notes to Financial Statements). (j) Collateral Strip Rate security. Coupon is based on the weighted net interest rate of the investment's underlying collateral. The interest rate resets periodically. See Notes to Financial Statements Page 49 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 (k) Weighted Average Coupon security. Coupon is based on the blended interest rate of the underlying holdings, which may have different coupons. The coupon may change in any period. (l) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (m) This issuer is in default and interest is not being accrued by the Fund nor paid by the issuer. (n) Senior Floating-Rate Loan Interests ("Senior Loans") in which the Fund invests generally pay interest at rates which are periodically predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the LIBOR, (ii) the prime rate offered by one or more United States banks or (iii) the certificate of deposit rate. Certain Senior Loans are subject to a LIBOR floor that establishes a minimum LIBOR rate. When a range of rates is disclosed, the Fund holds more than one contract within the same tranche with identical LIBOR period, spread and floor, but different LIBOR reset. (o) Senior Loans generally are subject to mandatory and/or optional prepayment. As a result, the actual remaining maturity of Senior Loans may be substantially less than the stated maturities shown. (p) The issuer will pay interest on the loans in cash and in Payment-In-Kind ("PIK") interest. Interest paid in cash will accrue at the rate of 7.00% per annum ("Cash Interest Rate") and PIK interest will accrue on the loan at the rate of 8.25% per annum. For the fiscal year ended August 31, 2021, the Fund received a portion of the interest in cash and PIK interest with a principal value of $141,658 for Cineworld Group PLC. (q) Zero coupon security (r) Rate shown reflects yield as of August 31, 2021. (s) Aggregate cost for federal income tax purposes is $6,462,962,461. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $75,919,647 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $22,561,809. The net unrealized appreciation was $53,357,838. The unrealized amounts presented are inclusive of derivative contracts LIBOR - London Interbank Offered Rate SOFR - Secured Overnight Finance Rate TBA - To-Be-Announced Security Currency Abbreviations: USD - United States Dollar Page 50 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- <S> <C> <C> <C> <C> U.S. Government Bonds and Notes....................... $ 1,953,000,368 $ -- $ 1,953,000,368 $ -- U.S. Government Agency Mortgage-Backed Securities..... 1,593,952,295 -- 1,593,952,295 -- Corporate Bonds and Notes*............................ 951,737,956 -- 951,737,956 -- Asset-Backed Securities............................... 401,772,142 -- 387,985,003 13,787,139 Mortgage-Backed Securities............................ 401,483,888 -- 401,483,888 -- Foreign Corporate Bonds and Notes*.................... 275,905,495 -- 275,905,495 -- Senior Floating-Rate Loan Interests*.................. 94,081,762 -- 94,081,762 -- Foreign Sovereign Bonds and Notes **.................. 84,981,008 -- 84,981,008 -- Municipal Bonds***.................................... 46,761,197 -- 46,761,197 -- U.S. Treasury Bills................................... 573,566,579 -- 573,566,579 -- Money Market Funds.................................... 138,848,485 138,848,485 -- -- ---------------- --------------- ---------------- ---------------- Total Investments..................................... 6,516,091,175 138,848,485 6,363,455,551 13,787,139 Put Swaptions Purchased............................... 527,389 -- 527,389 -- Put Options Purchased................................. 1,525,562 1,525,562 -- -- Futures Contracts****................................. 15,378 15,378 -- -- Interest Rate Swap Agreements......................... 39,708 -- 39,708 -- ---------------- --------------- ---------------- ---------------- Total................................................. $ 6,518,199,212 $ 140,389,425 $ 6,364,022,648 $ 13,787,139 ================ =============== ================ ================ LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- Put Options Written................................... $ (871,750) $ (871,750) $ -- $ -- Futures Contracts****................................. (8,742) (8,742) -- -- Interest Rate Swap Agreements......................... (344,609) -- (344,609) -- ---------------- --------------- ---------------- ---------------- Total................................................. $ (1,225,101) $ (880,492) $ (344,609) $ -- ================ =============== ================ ================ </TABLE> * See Portfolio of Investments for industry breakout. ** See Portfolio of Investments for country breakout. *** See Portfolio of Investments for state breakout. **** Includes cumulative appreciation/depreciation on futures contracts as reported in the Futures Contracts table. Only the current day's variation margin is presented on the Statements of Assets and Liabilities. Level 3 Investments that are fair valued by the Advisor's Pricing Committee are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs. See Notes to Financial Statements Page 51 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES -- 18.4% <S> <C> <C> <C> <C> 321 Henderson Receivables LLC $ 291,103 Series 2013-2A, Class A (a)...................................... 4.21% 03/15/62 $ 334,882 ABFC Trust 91,121 Series 2007-NC1, Class A2, 1 Mo. LIBOR + 0.30% (a) (b)........... 0.38% 05/25/37 88,001 1,110,831 Series 2007-WMC1, Class A1A, 1 Mo. LIBOR + 1.25% (b)............. 1.33% 06/25/37 991,684 ACE Securities Corp. Home Equity Loan Trust 3,717,176 Series 2006-ASP6, Class A2C, 1 Mo. LIBOR + 0.16% (b)............. 0.24% 12/25/36 1,782,133 906,098 Series 2006-HE3, Class A2C, 1 Mo. LIBOR + 0.30% (b).............. 0.38% 06/25/36 804,027 2,434,301 Series 2007-HE1, Class A1, 1 Mo. LIBOR + 0.30% (b)............... 0.38% 01/25/37 1,628,402 3,291,375 Series 2007-WM2, Class A1, 1 Mo. LIBOR + 0.21% (b)............... 0.29% 02/25/37 1,910,836 AGL CLO Ltd. 1,200,000 Series 2021-12A, Class A1, 3 Mo. LIBOR + 1.16% (a) (b)........... 1.29% 07/20/34 1,201,465 AIG CLO Ltd. 1,600,000 Series 2018-1A, Class BR, 3 Mo. LIBOR + 1.70% (a) (b)............ 1.83% 04/20/32 1,601,200 Ameriquest Mortgage Securities, Inc., Asset Backed Pass-Through Certificates 670,015 Series 2002-AR1, Class M1, 1 Mo. LIBOR + 1.07% (b)............... 1.16% 09/25/32 693,448 Argent Securities Trust 1,376,674 Series 2006-W2, Class A2B, 1 Mo. LIBOR + 0.38% (b)............... 0.46% 03/25/36 939,055 Argent Securities, Inc., Asset-Backed Pass-Through Certificates 160,000 Series 2005-W3, Class M1, 1 Mo. LIBOR + 0.66% (b)................ 0.74% 11/25/35 158,161 2,200,000 Series 2005-W3, Class M2, 1 Mo. LIBOR + 0.69% (b)................ 0.77% 11/25/35 2,107,225 BCMSC Trust 2,369,065 Series 2000-A, Class A5.......................................... 8.32% 06/15/30 614,899 BNC Mortgage Loan Trust 855,261 Series 2006-2, Class A4, 1 Mo. LIBOR + 0.32% (b)................. 0.40% 11/25/36 845,158 Carrington Mortgage Loan Trust 26,678 Series 2005-NC5, Class M1, 1 Mo. LIBOR + 0.72% (b)............... 0.80% 10/25/35 26,784 C-BASS Trust 2,916,670 Series 2007-CB1, Class AF2 (c)................................... 3.26% 01/25/37 1,319,637 2,889,064 Series 2007-CB1, Class AF3 (c)................................... 3.26% 01/25/37 1,307,107 Cedar Funding XIV CLO Ltd. 1,850,000 Series 2021-14A, Class A, 3 Mo. LIBOR + 1.10% (a) (b)............ 1.19% 07/15/33 1,851,891 Citigroup Mortgage Loan Trust 1,136,273 Series 2006-HE3, Class A2B, 1 Mo. LIBOR + 0.20% (b).............. 0.28% 12/25/36 915,021 Citigroup Mortgage Loan Trust, Inc. 425,000 Series 2007-WFH3, Class M1, 1 Mo. LIBOR + 0.26% (b).............. 0.34% 06/25/37 417,975 Conseco Finance Corp. 4,085 Series 1996-7, Class M1.......................................... 7.70% 09/15/26 4,107 1,260,041 Series 1999-3, Class A8.......................................... 7.06% 02/01/31 1,225,242 CoreVest American Finance Trust 405,000 Series 2020-1, Class A2 (a)...................................... 2.30% 03/15/50 414,882 1,464,473 Series 2020-1, Class XA, IO (a) (d).............................. 2.84% 03/15/50 143,262 1,326,972 Series 2020-3, Class XA, IO (a) (d).............................. 3.81% 08/15/53 171,412 1,250,000 Series 2020-3, Class XB, IO (a) (d).............................. 2.75% 08/15/53 220,206 Countrywide Asset-Backed Certificates 157,943 Series 2006-6, Class 1A1, 1 Mo. LIBOR + 0.34% (b)................ 0.42% 09/25/36 157,433 Credit-Based Asset Servicing & Securitization LLC 957,000 Series 2006-MH1, Class B1 (a) (c)................................ 6.25% 10/25/36 989,176 CWABS Asset-Backed Certificates Trust 1,600,000 Series 2005-17, Class MV2, 1 Mo. LIBOR + 0.48% (b)............... 0.56% 05/25/36 1,567,242 </TABLE> Page 52 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Dryden CLO Ltd. $ 625,000 Series 2019-72A, Class BR, 3 Mo. LIBOR + 1.65% (a) (b)........... 1.77% 05/15/32 $ 625,013 Eaton Vance CLO Ltd. 1,800,000 Series 2019-1A, Class AR, 3 Mo. LIBOR + 1.10% (a) (b)............ 1.23% 04/15/31 1,801,681 1,750,000 Series 2020-1A, Class AR (a) (b) (e)............................. 0.00% 10/15/34 1,750,875 ECMC Group Student Loan Trust 1,801,575 Series 2017-2A, Class A, 1 Mo. LIBOR + 1.05% (a) (b)............. 1.13% 05/25/67 1,840,366 EquiFirst Mortgage Loan Trust 52,888 Series 2005-1, Class M3, 1 Mo. LIBOR + 0.72% (b)................. 0.80% 04/25/35 52,987 First Franklin Mortgage Loan Trust 76,663 Series 2006-FF11, Class 2A3, 1 Mo. LIBOR + 0.30% (b)............. 0.38% 08/25/36 75,246 Flatiron CLO Ltd. 1,000,000 Series 2021-1A, Class B, 3 Mo. LIBOR + 1.60% (a) (b)............. 1.75% 07/19/34 998,806 Fremont Home Loan Trust 60,856 Series 2005-D, Class 2A4, 1 Mo. LIBOR + 0.68% (b)................ 0.76% 11/25/35 60,753 GCI Funding I LLC 1,597,465 Series 2021-1, Class A (a)....................................... 2.38% 06/18/46 1,612,273 Goldentree Loan Management US CLO Ltd. 1,200,000 Series 2019-4A, Class AR, 3 Mo. LIBOR + 1.11% (a) (b)............ 1.24% 04/24/31 1,200,300 Golub Capital Partners CLO L.P. 1,575,000 Series 2021-54A, Class A, 3 Mo. LIBOR + 1.53% (a) (b)............ 1.65% 08/05/33 1,575,934 GSAA Home Equity Trust 513,072 Series 2007-8, Class A3, 1 Mo. LIBOR + 0.90% (b)................. 0.98% 08/25/37 513,815 GSAMP Trust 1,168,900 Series 2006-HE4, Class A2D, 1 Mo. LIBOR + 0.52% (b).............. 0.60% 06/25/36 1,152,033 1,280,775 Series 2007-FM2, Class A1, 1 Mo. LIBOR + 0.14% (b)............... 0.22% 01/25/37 938,734 HPS Loan Management Ltd. 1,225,000 Series 10A-16, Class A1RR, 3 Mo. LIBOR + 1.14% (a) (b)........... 1.27% 04/20/34 1,226,411 Invitation Homes Trust 1,147,889 Series 2018-SFR4, Class A, 1 Mo. LIBOR + 1.10% (a) (b)........... 1.19% 01/17/38 1,151,839 JP Morgan Mortgage Acquisition Trust 784,280 Series 2006-CH2, Class AF6, steps up to 6.04% after Redemption Date (c)...................................................... 5.54% 10/25/36 613,952 653,264 Series 2006-WF1, Class A5........................................ 6.91% 07/25/36 278,061 1,093,425 Series 2007-CH2, Class AF6, steps up to 6.05% after Redemption Date (c)...................................................... 4.55% 01/25/37 783,378 Lehman XS Trust 1,656,229 Series 2006-15, Class A4, 1 Mo. LIBOR + 0.34% (b)................ 0.42% 10/25/36 1,635,445 986,279 Series 2007-11, Class A3, 1 Mo. LIBOR + 0.52% (b)................ 0.60% 02/25/47 985,488 Long Beach Mortgage Loan Trust 2,426,187 Series 2006-8, Class 2A3, 1 Mo. LIBOR + 0.32% (b)................ 0.40% 09/25/36 966,735 Mastr Asset Backed Securities Trust 136,467 Series 2006-HE5, Class A3, 1 Mo. LIBOR + 0.16% (b)............... 0.24% 11/25/36 100,552 1,792,731 Series 2006-NC2, Class A3, 1 Mo. LIBOR + 0.22% (b)............... 0.30% 08/25/36 930,803 Merrill Lynch First Franklin Mortgage Loan Trust 1,995,151 Series 2007-1, Class A1, 1 Mo. LIBOR + 0.14% (b)................. 0.22% 04/25/37 1,223,301 3,586,796 Series 2007-5, Class 1A, 1 Mo. LIBOR + 0.85% (b)................. 0.93% 10/25/37 2,884,462 Merrill Lynch Mortgage Investors Trust 3,171,455 Series 2006-HE6, Class A2C, 1 Mo. LIBOR + 0.46% (b).............. 0.54% 11/25/37 1,576,505 </TABLE> See Notes to Financial Statements Page 53 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Morgan Stanley ABS Capital I, Inc. Trust $ 2,044,675 Series 2006-HE8, Class A2B, 1 Mo. LIBOR + 0.10% (b).............. 0.18% 10/25/36 $ 1,219,902 1,979,633 Series 2006-HE8, Class A2C, 1 Mo. LIBOR + 0.14% (b).............. 0.22% 10/25/36 1,188,273 1,376,021 Series 2007-HE4, Class A2B, 1 Mo. LIBOR + 0.18% (b).............. 0.26% 02/25/37 608,290 2,113,591 Series 2007-NC3, Class A2D, 1 Mo. LIBOR + 0.26% (b).............. 0.34% 05/25/37 1,886,755 Navient Student Loan Trust 27,480 Series 2014-1, Class A3, 1 Mo. LIBOR + 0.51% (b)................. 0.59% 06/25/31 26,890 967,000 Series 2016-2A, Class A3, 1 Mo. LIBOR + 1.50% (a) (b)............ 1.58% 06/25/65 1,004,939 1,804,624 Series 2016-5A, Class A, 1 Mo. LIBOR + 1.25% (a) (b)............. 1.33% 06/25/65 1,851,333 Nelnet Student Loan Trust 2,271,250 Series 2006-1, Class A6, 3 Mo. LIBOR + 0.45% (a) (b)............. 0.58% 08/23/36 2,261,629 Neuberger Berman Loan Advisers CLO Ltd. 1,300,000 Series 2021-43A, Class A, 3 Mo. LIBOR + 1.13% (a) (b)............ 1.24% 07/17/35 1,301,375 NovaStar Mortgage Funding Trust 842,616 Series 2007-2, Class A1A, 1 Mo. LIBOR + 0.20% (b)................ 0.28% 09/25/37 829,254 OCP CLO Ltd. 1,500,000 Series 2021-21A, Class B, 3 Mo. LIBOR + 1.70% (a) (b)............ 1.83% 07/20/34 1,502,137 OHA Credit Funding Ltd. 2,000,000 Series 2019-3A, Class AR, 3 Mo. LIBOR + 1.14% (a) (b)............ 1.29% 07/02/35 2,002,500 Progress Residential Trust 1,766,000 Series 2018-SFR3, Class E (a).................................... 4.87% 10/17/35 1,770,951 1,045,000 Series 2018-SFR3, Class G (a).................................... 5.62% 10/17/35 1,047,400 1,100,000 Series 2019-SFR1, Class F (a).................................... 5.06% 08/17/35 1,124,474 1,226,000 Series 2019-SFR2, Class E (a).................................... 4.14% 05/17/36 1,252,838 1,200,000 Series 2019-SFR3, Class F (a).................................... 3.87% 09/17/36 1,229,907 Residential Asset Mortgage Products, Inc. 41,565 Series 2005-RZ3, Class M3, 1 Mo. LIBOR + 0.83% (b)............... 0.91% 09/25/35 41,586 1,400,000 Series 2006-NC2, Class M1, 1 Mo. LIBOR + 0.54% (b)............... 0.62% 02/25/36 1,360,545 2,150,000 Series 2006-RZ2, Class M1, 1 Mo. LIBOR + 0.50% (b)............... 0.58% 05/25/36 2,124,049 Residential Asset Securities Corp. 97,419 Series 2005-KS11, Class M2, 1 Mo. LIBOR + 0.63% (b).............. 0.71% 12/25/35 97,266 118,292 Series 2006-KS3, Class M1, 1 Mo. LIBOR + 0.50% (b)............... 0.58% 04/25/36 118,410 Sabey Data Center Issuer LLC 1,210,000 Series 2020-1, Class A2 (a)...................................... 3.81% 04/20/45 1,288,007 Saxon Asset Securities Trust 1,613,237 Series 2006-1, Class M1, 1 Mo. LIBOR + 0.47% (b)................. 0.55% 03/25/36 1,607,780 Securitized Asset Backed Receivables LLC Trust 2,715,331 Series 2006-CB5, Class A3, 1 Mo. LIBOR + 0.28% (b)............... 0.36% 06/25/36 2,111,149 Skyline Aircraft Finance LLC 680,914 Series 2020-1, Class A (f) (g)................................... 3.23% 05/10/37 689,357 SLC Student Loan Trust 1,193,427 Series 2008-1, Class A4A, 3 Mo. LIBOR + 1.60% (b)................ 1.72% 12/15/32 1,207,177 SLM Student Loan Trust 1,375 Series 2007-4, Class R (f)....................................... 0.00% 01/25/42 706,475 905,000 Series 2007-7, Class B, 3 Mo. LIBOR + 0.75% (b).................. 0.88% 10/27/70 826,294 300,000 Series 2008-2, Class B, 3 Mo. LIBOR + 1.20% (b).................. 1.33% 01/25/83 270,405 300,000 Series 2008-3, Class B, 3 Mo. LIBOR + 1.20% (b).................. 1.33% 04/26/83 281,725 918,870 Series 2008-4, Class A4, 3 Mo. LIBOR + 1.65% (b)................. 1.78% 07/25/22 928,478 1,569,972 Series 2008-5, Class A4, 3 Mo. LIBOR + 1.70% (b)................. 1.83% 07/25/23 1,586,213 650,000 Series 2008-5, Class B, 3 Mo. LIBOR + 1.85% (b).................. 1.98% 07/25/73 643,754 300,000 Series 2008-6, Class B, 3 Mo. LIBOR + 1.85% (b).................. 1.98% 07/26/83 301,254 </TABLE> Page 54 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> SLM Student Loan Trust (Continued) $ 220,000 Series 2008-8, Class B, 3 Mo. LIBOR + 2.25% (b).................. 2.38% 10/25/75 $ 223,436 1,274,899 Series 2008-9, Class A, 3 Mo. LIBOR + 1.50% (b).................. 1.63% 04/25/23 1,285,109 800,000 Series 2008-9, Class B, 3 Mo. LIBOR + 2.25% (b).................. 2.38% 10/25/83 809,060 100,000 Series 2012-7, Class B, 1 Mo. LIBOR + 1.80% (b).................. 1.88% 09/25/43 100,263 Soundview Home Loan Trust 2,389,453 Series 2007-OPT1, Class 2A3, 1 Mo. LIBOR + 0.21% (b)............. 0.29% 06/25/37 1,955,227 242,147 Series 2007-OPT2, Class 2A4, 1 Mo. LIBOR + 0.25% (b)............. 0.33% 07/25/37 217,359 Specialty Underwriting & Residential Finance Trust 3,281,337 Series 2006-AB3, Class A2C, 1 Mo. LIBOR + 0.24% (b).............. 0.32% 09/25/37 2,739,492 Stack Infrastructure Issuer LLC 848,250 Series 2019-1A, Class A2 (a)..................................... 4.54% 02/25/44 896,385 Structured Asset Securities Corp Mortgage Loan Trust 1,274,334 Series 2006-BC3, Class A3, 1 Mo. LIBOR + 0.32% (b)............... 0.40% 10/25/36 1,231,258 Structured Receivables Finance LLC 100,457 Series 2010-B, Class A (a)....................................... 3.73% 08/15/36 104,790 TAL Advantage VII LLC 2,259,375 Series 2020-1A, Class A (a)...................................... 2.05% 09/20/45 2,290,246 Textainer Marine Containers VIII Ltd. 1,828,385 Series 2020-2A, Class A (a)...................................... 2.10% 09/20/45 1,860,903 Tricon American Homes Trust 823,000 Series 2017-SFR1, Class D (a).................................... 3.41% 09/17/34 823,427 1,400,000 Series 2017-SFR2, Class E (a).................................... 4.22% 01/17/36 1,442,385 Wachovia Student Loan Trust 1,747,459 Series 2006-1, Class B, 3 Mo. LIBOR + 0.24% (a) (b).............. 0.37% 04/25/40 1,655,192 WaMu Asset-Backed Certificates WaMu Trust 1,726,151 Series 2007-HE2, Class 2A3, 1 Mo. LIBOR + 0.25% (b).............. 0.33% 04/25/37 864,574 Washington Mutural Asset-Backed Certificates WMABS Trust 500,815 Series 2006-HE5, Class 1A, 1 Mo. LIBOR + 0.16% (b)............... 0.24% 10/25/36 436,144 -------------- TOTAL ASSET-BACKED SECURITIES................................................................... 112,221,722 (Cost $112,582,761) -------------- MORTGAGE-BACKED SECURITIES -- 18.3% COLLATERALIZED MORTGAGE OBLIGATIONS -- 11.5% Adjustable Rate Mortgage Trust 99,841 Series 2005-8, Class 3A21 (d).................................... 2.59% 11/25/35 87,785 Alternative Loan Trust 855,425 Series 2005-13CB, Class A8....................................... 5.50% 05/25/35 861,145 281,384 Series 2005-16, Class A3, 1 Mo. LIBOR + 0.50% (b)................ 0.58% 06/25/35 264,047 866,815 Series 2005-65CB, Class 2A4...................................... 5.50% 12/25/35 794,479 81,738 Series 2005-76, Class 1A1, 12 Mo. Treasury Average + 1.48% (b)... 1.58% 01/25/36 82,461 318,244 Series 2006-33CB, Class 2A1...................................... 6.00% 11/25/36 253,453 1,037,145 Series 2007-15CB, Class A6....................................... 5.75% 07/25/37 847,276 548,094 Series 2007-OA6, Class A1B, 1 Mo. LIBOR + 0.20% (b).............. 0.28% 06/25/37 530,418 American Home Mortgage Assets Trust 1,622,693 Series 2006-1, Class 1A1, 1 Mo. LIBOR + 0.42% (b)................ 0.50% 05/25/46 1,543,041 1,546,892 Series 2007-1, Class A1, 12 Mo. Treasury Average + 0.70% (b). 0.80% 02/25/47 880,957 American Home Mortgage Investment Trust 647,556 Series 2005-4, Class 1A1, 1 Mo. LIBOR + 0.58% (b)................ 0.66% 11/25/45 633,493 Banc of America Funding Trust 829,190 Series 2007-1, Class TA3A, 1 Mo. LIBOR + 0.32% (b)............... 0.40% 01/25/37 757,790 </TABLE> See Notes to Financial Statements Page 55 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) BCAP LLC Trust $ 487,595 Series 2007-AA3, Class 1A1A, 1 Mo. LIBOR + 0.42% (b)............. 0.50% 04/25/37 $ 470,131 765,051 Series 2015-RR2, Class 25A3 (a) (d).............................. 0.51% 10/28/36 760,634 Bear Stearns ALT-A Trust 1,107,768 Series 2004-8, Class M1, 1 Mo. LIBOR + 0.92% (b)................. 1.00% 09/25/34 1,117,498 2,028,881 Series 2006-1, Class 21A2 (d).................................... 3.06% 02/25/36 1,708,836 Bear Stearns Mortgage Funding Trust 670,574 Series 2006-AR1, Class 1A1, 1 Mo. LIBOR + 0.21% (b).............. 0.29% 07/25/36 648,998 596,764 Series 2006-AR3, Class 1A1, 1 Mo. LIBOR + 0.18% (b).............. 0.26% 10/25/36 571,728 217,245 Series 2007-AR1, Class 1A1, 1 Mo. LIBOR + 0.16% (b).............. 0.24% 01/25/37 207,862 199,037 Series 2007-AR3, Class 1A1, 1 Mo. LIBOR + 0.14% (b).............. 0.22% 03/25/37 190,634 CIM Trust 195,029 Series 2018-R6, Class A1, 1 Mo. LIBOR + 1.08% (a) (b)............ 1.17% 09/25/58 193,813 835,351 Series 2020-R7, Class A1A (a) (h)................................ 2.25% 12/27/61 840,064 1,614,287 Series 2021-R3, Class A1A (a).................................... 1.95% 06/25/57 1,623,370 Citigroup Mortgage Loan Trust 610,558 Series 2005-8, Class 2A4A........................................ 5.50% 09/25/35 607,612 1,312,651 Series 2009-10, Class 2A2 (a).................................... 7.00% 12/25/35 1,229,527 Credit Suisse Mortgage Trust 24,775 Series 2010-7R, Class 1A12 (a)................................... 4.00% 01/26/37 24,814 61,507 Series 2014-2R, Class 28A1 (a) (d)............................... 3.00% 06/27/37 62,118 906,261 Series 2014-8R, Class 3A2 (a) (d)................................ 3.84% 02/27/36 778,927 1,632,800 Series 2014-11R, Class 17A2, 1 Mo. LIBOR + 0.15% (a) (b)......... 0.24% 12/27/36 1,501,053 1,790,549 Series 2021-RPL4, Class A1 (a)................................... 1.80% 12/27/60 1,801,014 Deutsche Alt-A Securities Mortgage Loan Trust 1,588,063 Series 2007-AR3, Class 2A5, 1 Mo. LIBOR + 0.40% (b).............. 0.48% 06/25/37 1,531,410 DSLA Mortgage Loan Trust 64,593 Series 2004-AR4, Class 2A1A, 1 Mo. LIBOR + 0.72% (b)............. 0.81% 01/19/45 58,664 First Horizon Alternative Mortgage Securities Trust 46,222 Series 2004-AA4, Class A1 (d).................................... 2.38% 10/25/34 47,919 2,185,793 Series 2005-AA4, Class 2A1 (d)................................... 2.35% 06/25/35 2,136,343 1,181,579 Series 2007-FA1, Class A4........................................ 6.25% 03/25/37 768,720 GreenPoint Mortgage Funding Trust 70,644 Series 2006-AR1, Class A1A, 1 Mo. LIBOR + 0.58% (b).............. 0.66% 02/25/36 70,441 415,527 Series 2007-AR1, Class 2A1A, 1 Mo. LIBOR + 0.20% (b)............. 0.28% 03/25/47 422,939 677,539 Series 2007-AR2, Class 2A1, 1 Mo. LIBOR + 0.40% (b).............. 0.48% 05/25/37 678,239 GreenPoint MTA Trust 396,091 Series 2005-AR3, Class 1A1, 1 Mo. LIBOR + 0.48% (b).............. 0.56% 08/25/45 383,320 HarborView Mortgage Loan Trust 196,119 Series 2005-9, Class 2A1A, 1 Mo. LIBOR + 0.68% (b)............... 0.77% 06/20/35 193,202 540,416 Series 2005-9, Class 2A1C, 1 Mo. LIBOR + 0.90% (b)............... 0.99% 06/20/35 536,985 838,375 Series 2007-7, Class 1A1, 1 Mo. LIBOR + 1.00% (b)................ 1.08% 10/25/37 815,119 HomeBanc Mortgage Trust 131,179 Series 2005-4, Class A1, 1 Mo. LIBOR + 0.54% (b)................. 0.62% 10/25/35 131,445 Impac CMB Trust 62,845 Series 2005-1, Class 1A1, 1 Mo. LIBOR + 0.52% (b)................ 0.60% 04/25/35 63,614 IndyMac INDX Mortgage Loan Trust 1,788,765 Series 2005-16IP, Class A1, 1 Mo. LIBOR + 0.64% (b).............. 0.72% 07/25/45 1,595,724 3,169,101 Series 2006-AR2, Class 1A1B, 1 Mo. LIBOR + 0.42% (b)............. 0.50% 04/25/46 3,036,423 587,769 Series 2006-AR4, Class A1A, 1 Mo. LIBOR + 0.42% (b).............. 0.50% 05/25/46 575,812 </TABLE> Page 56 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) IndyMac INDX Mortgage Loan Trust (Continued) $ 247,167 Series 2006-AR21, Class A1, 1 Mo. LIBOR + 0.24% (b).............. 0.32% 08/25/36 $ 243,796 174,244 Series 2007-FLX2, Class A1C, 1 Mo. LIBOR + 0.19% (b)............. 0.27% 04/25/37 166,753 JP Morgan Alternative Loan Trust 685,986 Series 2006-S1, Class 3A4........................................ 6.18% 03/25/36 689,909 70,430 Series 2007-S1, Class A2, 1 Mo. LIBOR + 0.68% (b)................ 0.76% 04/25/47 69,333 Legacy Mortgage Asset Trust 909,849 Series 2020-GS2, Class A1, steps up to 5.75% on 03/26/23 (a) (c).............................................. 2.75% 03/25/60 916,951 Lehman Mortgage Trust 894,076 Series 2006-1, Class 1A5......................................... 5.50% 02/25/36 683,907 Lehman XS Trust 222,791 Series 2005-5N, Class 3A1A, 1 Mo. LIBOR + 0.30% (b).............. 0.38% 11/25/35 221,592 825,491 Series 2006-2N, Class 2A1, 12 Mo. Treasury Average + 2.02% (b)..................................................... 2.12% 02/25/36 842,586 704,434 Series 2007-12N, Class 1A3A, 1 Mo. LIBOR + 0.20% (b)............. 0.28% 07/25/47 708,614 1,768,852 Series 2007-16N, Class 1A1, 1 Mo. LIBOR + 0.47% (b).............. 0.55% 09/25/47 1,771,451 MASTR Adjustable Rate Mortgages Trust 721,505 Series 2004-14, Class B1, 1 Mo. LIBOR + 2.15% (b)................ 2.23% 01/25/35 765,794 414,309 Series 2007-2, Class A1, 1 Mo. LIBOR + 0.30% (b)................. 0.38% 03/25/47 405,460 4,700,000 Series 2007-HF2, Class A2, 1 Mo. LIBOR + 1.10% (b)............... 1.18% 09/25/37 2,281,763 Merrill Lynch Mortgage Investors Trust 150,616 Series 2003-D, Class A, 1 Mo. LIBOR + 0.62% (b).................. 0.70% 08/25/28 150,900 227,713 Series 2004-E, Class A2B, 6 Mo. LIBOR + 0.72% (b)................ 0.93% 11/25/29 234,122 Morgan Stanley Resecuritization Trust 75,060 Series 2014-R8, Class 3B1, 12 Mo. Treasury Average + 0.75% (a) (b)................................................. 0.86% 06/26/47 75,005 Nomura Resecuritization Trust 2,383,526 Series 2014-1R, Class 1A13, 1 Mo. LIBOR + 0.32% (a) (b).......... 0.41% 10/26/36 2,295,267 Opteum Mortgage Acceptance Corp Trust 2,779,376 Series 2006-1, Class 1AC1, 1 Mo. LIBOR + 0.60% (b)............... 0.68% 04/25/36 2,705,434 RALI Trust 1,801,217 Series 2005-QO1, Class A1, 1 Mo. LIBOR + 0.30% (b)............... 0.38% 08/25/35 1,544,956 3,079,471 Series 2006-QO10, Class A1, 1 Mo. LIBOR + 0.32% (b).............. 0.40% 01/25/37 2,959,245 574,736 Series 2006-QS6, Class 1A15...................................... 6.00% 06/25/36 554,390 1,205,453 Series 2007-QH4, Class A1, 1 Mo. LIBOR + 0.19% (b)............... 0.27% 05/25/37 1,162,176 1,117,799 Series 2007-QH9, Class A1 (d).................................... 1.36% 11/25/37 1,071,752 Structured Adjustable Rate Mortgage Loan Trust 42,836 Series 2005-12, Class 3A1 (d).................................... 2.52% 06/25/35 41,249 441,897 Series 2006-11, Class 1A1, 1 Mo. LIBOR + 0.32% (b)............... 0.40% 12/25/36 436,594 695,567 Series 2007-4, Class 1A1, 1 Mo. LIBOR + 0.48% (b)................ 0.56% 05/25/37 715,070 667,498 Series 2007-4, Class 1A2, 1 Mo. LIBOR + 0.44% (b)................ 0.52% 05/25/37 652,809 Structured Asset Mortgage Investments II Trust 329,311 Series 2005-AR2, Class 2A1, 1 Mo. LIBOR + 0.46% (b).............. 0.54% 05/25/45 329,959 514,402 Series 2006-AR1, Class 3A1, 1 Mo. LIBOR + 0.46% (b).............. 0.54% 02/25/36 495,715 398,863 Series 2006-AR3, Class 12A1, 1 Mo. LIBOR + 0.44% (b)............. 0.52% 05/25/36 390,599 451,820 Series 2006-AR4, Class 3A1, 1 Mo. LIBOR + 0.38% (b).............. 0.46% 06/25/36 427,521 65,684 Series 2006-AR5, Class 1A1, 1 Mo. LIBOR + 0.42% (b).............. 0.50% 05/25/36 57,795 1,958,548 Series 2006-AR6, Class 2A1, 1 Mo. LIBOR + 0.38% (b).............. 0.46% 07/25/46 1,713,263 1,077,242 Series 2006-AR8, Class A1A, 1 Mo. LIBOR + 0.40% (b).............. 0.48% 10/25/36 1,046,631 468,177 Series 2007-AR1, Class 1A1, 1 Mo. LIBOR + 0.16% (b).............. 0.24% 01/25/37 454,355 </TABLE> See Notes to Financial Statements Page 57 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) Structured Asset Mortgage Investments II Trust (Continued) $ 182,170 Series 2007-AR1, Class 2A1, 1 Mo. LIBOR + 0.18% (b).............. 0.26% 01/25/37 $ 175,415 730,352 Series 2007-AR6, Class A1, 12 Mo. Treasury Average + 1.50% (b)..................................................... 1.60% 08/25/47 717,752 Structured Asset Mortgage Investments Trust 148,514 Series 2003-AR3, Class A1, 1 Mo. LIBOR + 0.68% (b)............... 0.77% 11/19/33 149,081 TBW Mortgage-Backed Trust 416,294 Series 2006-4, Class A4.......................................... 6.66% 09/25/36 412,259 WaMu Mortgage Pass-Through Certificates Trust 146,021 Series 2004-AR12, Class A2A, 1 Mo. LIBOR + 0.78% (b)............. 0.86% 10/25/44 144,269 344,713 Series 2006-AR3, Class A1A, 12 Mo. Treasury Average + 1.00% (b)..................................................... 1.10% 02/25/46 348,194 54,134 Series 2006-AR11, Class 1A, 12 Mo. Treasury Average + 0.96% (b)..................................................... 1.06% 09/25/46 51,164 915,164 Series 2007-OA5, Class 1A, 12 Mo. Treasury Average + 0.75% (b)..................................................... 0.85% 06/25/47 884,322 Washington Mutual Mortgage Pass-Through Certificates WMALT Trust 2,475,494 Series 2006-AR6, Class 2A, 12 Mo. Treasury Average + 0.96% (b)..................................................... 1.06% 08/25/46 1,655,827 762,049 Series 2007-OC1, Class A4, 1 Mo. LIBOR + 0.32% (b)............... 0.40% 01/25/47 784,077 Wells Fargo Mortgage Backed Securities Trust 289,372 Series 2007-AR5, Class A1 (d).................................... 3.04% 10/25/37 286,128 -------------- 69,812,501 -------------- COMMERCIAL MORTGAGE-BACKED OBLIGATIONS -- 6.8% AREIT Trust 680,000 Series 2020-CRE4, Class B, SOFR + 4.26% (a) (b).................. 4.31% 04/15/37 691,084 Banc of America Commercial Mortgage Trust 15,307,770 Series 2015-UBS7, Class XA, IO (d)............................... 0.94% 09/15/48 415,098 Bayview Commercial Asset Trust 839,422 Series 2005-4A, Class A1, 1 Mo. LIBOR + 0.45% (a) (b)............ 0.53% 01/25/36 808,439 BBCMS Mortgage Trust 1,640,000 Series 2020-BID, Class A, 1 Mo. LIBOR + 2.14% (a) (b)............ 2.24% 10/15/37 1,654,552 BDS Ltd. 1,125,000 Series 2020-FL6, Class D, SOFR + 2.86% (a) (b)................... 2.91% 09/15/35 1,145,134 Benchmark Mortgage Trust 1,182,454 Series 2018-B6, Class A2......................................... 4.20% 10/10/51 1,246,034 BF Mortgage Trust 1,300,000 Series 2019-NYT, Class D, 1 Mo. LIBOR + 2.00% (a) (b)............ 2.10% 12/15/35 1,298,656 BFLD Trust 782,000 Series 2021-FPM, Class A, 1 Mo. LIBOR + 1.60% (a) (b)............ 1.70% 06/15/38 785,047 BXMT Ltd. 1,175,000 Series 2020-FL3, Class A, SOFR + 1.51% (a) (b)................... 1.56% 03/15/37 1,178,120 CAMB Commercial Mortgage Trust 1,000,000 Series 2019-LIFE, Class F, 1 Mo. LIBOR + 2.55% (a) (b)........... 2.65% 12/15/37 1,005,138 Citigroup Commercial Mortgage Trust 976,637 Series 2020-WSS, Class B, 1 Mo. LIBOR + 2.00% (a) (b)............ 2.10% 02/15/39 992,269 COMM Mortgage Trust 1,054,000 Series 2012-CR4, Class AM........................................ 3.25% 10/15/45 1,062,465 1,524,094 Series 2012-CR4, Class XA, IO (d)................................ 1.84% 10/15/45 21,779 1,421,511 Series 2014-CR14, Class A2....................................... 3.15% 02/10/47 1,439,785 </TABLE> Page 58 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED OBLIGATIONS (CONTINUED) COMM Mortgage Trust (Continued) $ 4,601,344 Series 2020-CBM, Class XCP, IO (a) (d)........................... 0.72% 02/10/37 $ 90,578 21,254,000 Series 2020-SBX, Class X, IO (a) (d)............................. 0.66% 01/10/38 507,014 Credit Suisse Mortgage Trust 1,700,000 Series 2019-UVIL, Class D (a) (d)................................ 3.39% 12/15/41 1,623,065 1,180,000 Series 2020-TMIC, Class A, 1 Mo. LIBOR + 3.00%, 3.25% Floor (a) (b)................................................. 3.25% 12/15/35 1,200,609 25,699,000 Series 2021-980M, Class X, IO (a) (d) (f)........................ 1.11% 07/15/31 1,176,038 DBWF Mortgage Trust 600,000 Series 2016-85T, Class A (a)..................................... 3.79% 12/10/36 670,441 DROP Mortgage Trust 1,000,000 Series 2021-FILE, Class B, 1 Mo. LIBOR + 1.70% (a) (b)........... 1.80% 04/15/26 1,005,030 GPMT Ltd. 1,815,000 Series 2021-FL3, Class A, 1 Mo. LIBOR + 1.25% (a) (b)............ 1.34% 07/16/35 1,818,194 GS Mortgage Securities Corp Trust 2,600,000 Series 2020-UPTN, Class XA, IO (a) (d)........................... 0.45% 02/10/37 31,655 GS Mortgage Securities Trust 1,004,580 Series 2014-GC18, Class A3....................................... 3.80% 01/10/47 1,045,490 Hilton USA Trust 1,630,000 Series 2016-SFP, Class C (a)..................................... 4.12% 11/05/35 1,645,358 JP Morgan Chase Commercial Mortgage Securities Trust 1,321,000 Series 2021-1440, Class B, 1 Mo. LIBOR + 1.75% (a) (b)........... 1.85% 03/15/36 1,323,651 700,000 Series 2021-1440, Class C, 1 Mo. LIBOR + 2.30% (a) (b)........... 2.40% 03/15/36 701,722 Life Mortgage Trust 1,130,000 Series 2021-BMR, Class G, 1 Mo. LIBOR + 2.95% (a) (b)............ 3.05% 03/15/38 1,134,202 Merit Hill Commercial Mortgage Pass-Through Certificates 900,000 Series 2020-HILL, Class F, 1 Mo. LIBOR + 4.10% (a) (b)........... 4.20% 08/15/37 909,395 Morgan Stanley Capital I Trust 1,603,000 Series 2016-UB12, Class A3....................................... 3.34% 12/15/49 1,720,503 28,903,282 Series 2018-H4, Class XA, IO (d)................................. 1.03% 12/15/51 1,494,690 1,050,000 Series 2018-MP, Class A (a) (d).................................. 4.42% 07/11/40 1,193,895 MSCG Trust 945,000 Series 2015-ALDR, Class A2 (a) (d)............................... 3.58% 06/07/35 980,241 1,645,000 Series 2018-SELF, Class E, 1 Mo. LIBOR + 2.15% (a) (b)........... 2.25% 10/15/37 1,650,622 MSDB Trust 500,000 Series 2017-712F, Class A (a) (d)................................ 3.43% 07/11/39 539,175 Natixis Commercial Mortgage Securities Trust 1,100,000 Series 2018-850T, Class A, 1 Mo. LIBOR + 0.78% (a) (b)........... 0.88% 07/15/33 1,096,123 One Market Plaza Trust 476,000 Series 2017-1MKT, Class A (a).................................... 3.61% 02/10/32 484,467 RBS Commercial Funding, Inc. Trust 1,285,000 Series 2013-GSP, Class A (a) (d)................................. 3.96% 01/15/32 1,360,086 SFAVE Commercial Mortgage Securities Trust 545,000 Series 2015-5AVE, Class C (a) (d)................................ 4.53% 01/05/43 505,900 VMC Finance LLC 779,000 Series 2021-FL4, Class B, 1 Mo. LIBOR + 1.80% (a) (b)............ 1.89% 06/16/36 781,394 Wells Fargo Commercial Mortgage Trust 10,467,000 Series 2021-SAVE, Class XCP, IO (a) (d).......................... 10.12% 02/15/40 838,320 -------------- 41,271,458 -------------- TOTAL MORTGAGE-BACKED SECURITIES............................................................... 111,083,959 (Cost $110,612,526) -------------- </TABLE> See Notes to Financial Statements Page 59 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES -- 18.2% <S> <C> <C> <C> <C> ADVERTISING -- 0.1% $ 675,000 National CineMedia LLC (a).......................................... 5.88% 04/15/28 $ 596,960 -------------- AEROSPACE/DEFENSE -- 0.1% 635,000 Boeing (The) Co..................................................... 1.43% 02/04/24 636,518 -------------- AGRICULTURE -- 0.4% 30,000 BAT Capital Corp.................................................... 2.73% 03/25/31 29,935 1,250,000 BAT Capital Corp.................................................... 4.54% 08/15/47 1,339,458 645,000 Reynolds American, Inc.............................................. 5.85% 08/15/45 798,346 -------------- 2,167,739 -------------- AIRLINES -- 0.3% 325,476 American Airlines Pass-Through Trust, Series 2014-1, Class A........ 3.70% 10/01/26 331,092 179,442 Continental Airlines Pass-Through Trust, Series 2007-1, Class A..... 5.98% 04/19/22 182,286 580,369 JetBlue Pass-Through Trust, Series 2020-1, Class A.................. 4.00% 11/15/32 638,266 489,719 United Airlines Pass-Through Trust, Series 2013-1, Class A.......... 4.30% 08/15/25 529,816 121,638 US Airways Pass-Through Trust, Series 2012-1, Class A............... 5.90% 10/01/24 127,923 -------------- 1,809,383 -------------- AUTO MANUFACTURERS -- 0.6% 310,000 Daimler Finance North America LLC (a)............................... 2.20% 10/30/21 311,016 520,000 Daimler Finance North America LLC, 3 Mo. LIBOR + 0.90% (a) (b).................................................... 1.02% 02/15/22 522,132 300,000 Ford Motor Credit Co. LLC, 3 Mo. LIBOR + 0.88% (b).................. 1.00% 10/12/21 300,011 96,000 Ford Motor Credit Co. LLC........................................... 3.22% 01/09/22 96,720 500,000 Ford Motor Credit Co. LLC, 3 Mo. LIBOR + 1.27% (b).................. 1.42% 03/28/22 500,208 1,554,000 Ford Motor Credit Co. LLC........................................... 3.34% 03/28/22 1,572,073 115,000 General Motors Financial Co., Inc................................... 4.38% 09/25/21 115,296 80,000 General Motors Financial Co., Inc................................... 3.45% 04/10/22 81,077 -------------- 3,498,533 -------------- BANKS -- 2.7% 750,000 Bank of America Corp. (i)........................................... 1.73% 07/22/27 760,268 2,305,000 Bank of America Corp., Series N (i)................................. 1.66% 03/11/27 2,331,499 390,000 Bank of America Corp., Medium-Term Note (i)......................... 3.82% 01/20/28 434,882 815,000 Bank of America Corp., Medium-Term Note (i)......................... 2.09% 06/14/29 827,404 465,000 Bank of America Corp., Medium-Term Note (i)......................... 3.97% 02/07/30 528,765 165,000 Bank of America Corp., Medium-Term Note (i)......................... 2.88% 10/22/30 174,901 100,000 Citigroup, Inc. (i)................................................. 2.88% 07/24/23 102,194 500,000 Citigroup, Inc. (i)................................................. 3.35% 04/24/25 533,093 225,000 Citigroup, Inc. (i)................................................. 4.08% 04/23/29 255,399 135,000 Comerica, Inc. (i).................................................. 5.63% (j) 149,512 1,495,000 Goldman Sachs Group (The), Inc. (i)................................. 1.43% 03/09/27 1,501,532 615,000 Goldman Sachs Group (The), Inc. (i)................................. 1.54% 09/10/27 618,291 955,000 JPMorgan Chase & Co. (i)............................................ 0.97% 06/23/25 958,096 705,000 JPMorgan Chase & Co. (i)............................................ 0.77% 08/09/25 703,511 355,000 JPMorgan Chase & Co. (i)............................................ 2.01% 03/13/26 366,248 130,000 JPMorgan Chase & Co. (i)............................................ 2.08% 04/22/26 134,309 1,150,000 JPMorgan Chase & Co. (i)............................................ 1.58% 04/22/27 1,161,456 200,000 JPMorgan Chase & Co. (i)............................................ 4.01% 04/23/29 227,177 540,000 Morgan Stanley ABS Capital I, Inc. Trust (i)........................ 1.59% 05/04/27 545,408 510,000 Morgan Stanley, Global Medium-Term Note............................. 3.70% 10/23/24 555,743 1,605,000 Morgan Stanley, Global Medium-Term Note (i)......................... 1.51% 07/20/27 1,612,363 140,000 Wells Fargo & Co., Medium-Term Note (i)............................. 2.16% 02/11/26 145,377 </TABLE> Page 60 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> BANKS (CONTINUED) $ 510,000 Wells Fargo & Co., Medium-Term Note (i)............................. 3.58% 05/22/28 $ 566,313 360,000 Wells Fargo & Co., Medium-Term Note (i)............................. 2.39% 06/02/28 375,696 250,000 Wells Fargo & Co., Medium-Term Note................................. 4.15% 01/24/29 287,935 305,000 Wells Fargo & Co., Medium-Term Note (i)............................. 2.88% 10/30/30 324,607 -------------- 16,181,979 -------------- BEVERAGES -- 0.4% 235,000 Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc.............................................................. 4.90% 02/01/46 300,069 215,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.60% 04/15/48 265,266 500,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.50% 06/01/50 620,924 390,000 Constellation Brands, Inc........................................... 4.25% 05/01/23 413,424 720,000 Primo Water Holdings, Inc. (a)...................................... 4.38% 04/30/29 727,747 -------------- 2,327,430 -------------- BIOTECHNOLOGY -- 0.5% 650,000 Gilead Sciences, Inc., 3 Mo. LIBOR + 0.52% (b)...................... 0.67% 09/29/23 650,230 1,080,000 HCRX Investments Holdco L.P. (a).................................... 4.50% 08/01/29 1,095,484 1,000,000 Illumina, Inc....................................................... 2.55% 03/23/31 1,026,693 -------------- 2,772,407 -------------- CHEMICALS -- 0.1% 475,000 International Flavors & Fragrances, Inc. (a)........................ 1.23% 10/01/25 473,871 -------------- COMMERCIAL SERVICES -- 0.1% 336,000 Adtalem Global Education, Inc. (a).................................. 5.50% 03/01/28 344,407 375,000 Carriage Services, Inc. (a)......................................... 4.25% 05/15/29 376,054 61,000 Service Corp. International......................................... 4.63% 12/15/27 64,565 -------------- 785,026 -------------- COMPUTERS -- 0.1% 465,000 NCR Corp. (a)....................................................... 5.13% 04/15/29 482,711 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.1% 570,000 Air Lease Corp...................................................... 3.88% 07/03/23 602,113 -------------- ELECTRIC -- 0.7% 75,000 Alliant Energy Finance LLC (a)...................................... 3.75% 06/15/23 79,093 365,000 Appalachian Power Co., Series X..................................... 3.30% 06/01/27 397,819 100,000 Evergy Metro, Inc................................................... 4.20% 06/15/47 123,000 1,254,000 FirstEnergy Corp., Series C......................................... 3.40% 03/01/50 1,251,241 100,000 Metropolitan Edison Co. (a)......................................... 3.50% 03/15/23 103,646 550,000 NextEra Energy Capital Holdings, Inc., 3 Mo. LIBOR + 0.27% (b)...... 0.40% 02/22/23 550,062 345,000 NextEra Energy Capital Holdings, Inc................................ 0.65% 03/01/23 346,437 500,000 Pennsylvania Electric Co. (a)....................................... 4.15% 04/15/25 537,968 100,000 Puget Sound Energy, Inc............................................. 4.22% 06/15/48 123,912 450,000 Southwestern Electric Power Co., Series M........................... 4.10% 09/15/28 513,764 -------------- 4,026,942 -------------- ENGINEERING & CONSTRUCTION -- 0.1% 563,000 Artera Services LLC (a)............................................. 9.03% 12/04/25 615,781 -------------- ENTERTAINMENT -- 0.3% 189,000 Caesars Entertainment, Inc. (a)..................................... 6.25% 07/01/25 200,000 515,000 Churchill Downs, Inc. (a)........................................... 5.50% 04/01/27 535,600 600,000 Cinemark USA, Inc. (a).............................................. 5.25% 07/15/28 570,801 117,000 Live Nation Entertainment, Inc. (a)................................. 4.75% 10/15/27 119,018 </TABLE> See Notes to Financial Statements Page 61 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> ENTERTAINMENT (CONTINUED) $ 341,000 Live Nation Entertainment, Inc. (a)................................. 3.75% 01/15/28 $ 341,518 -------------- 1,766,937 -------------- ENVIRONMENTAL CONTROL -- 0.1% 200,000 Clean Harbors, Inc. (a)............................................. 4.88% 07/15/27 209,646 370,000 Waste Pro USA, Inc. (a)............................................. 5.50% 02/15/26 377,552 -------------- 587,198 -------------- FOOD -- 0.7% 240,000 Kraft Heinz Foods Co................................................ 4.38% 06/01/46 278,486 765,000 Kraft Heinz Foods Co................................................ 4.88% 10/01/49 951,928 140,000 Kroger (The) Co..................................................... 4.45% 02/01/47 170,715 20,000 Pilgrim's Pride Corp. (a)........................................... 5.88% 09/30/27 21,370 286,000 Pilgrim's Pride Corp. (a)........................................... 4.25% 04/15/31 308,333 1,200,000 Pilgrim's Pride Corp. (a) (e)....................................... 3.50% 03/01/32 1,227,234 615,000 Post Holdings, Inc. (a)............................................. 4.63% 04/15/30 628,725 400,000 Post Holdings, Inc. (a)............................................. 4.50% 09/15/31 404,000 387,000 Smithfield Foods, Inc. (a).......................................... 5.20% 04/01/29 452,126 -------------- 4,442,917 -------------- FOREST PRODUCTS & PAPER -- 0.1% 600,000 Clearwater Paper Corp. (a).......................................... 4.75% 08/15/28 616,770 -------------- GAS -- 0.0% 155,000 Southern Co. Gas Capital Corp....................................... 5.88% 03/15/41 219,355 -------------- HEALTHCARE-PRODUCTS -- 0.0% 208,000 Hologic, Inc. (a)................................................... 4.63% 02/01/28 221,529 -------------- HEALTHCARE-SERVICES -- 1.5% 635,000 Barnabas Health, Inc., Series 2012.................................. 4.00% 07/01/28 724,944 135,000 Centene Corp........................................................ 4.25% 12/15/27 142,762 953,000 Centene Corp........................................................ 2.45% 07/15/28 968,312 621,000 Centene Corp........................................................ 3.00% 10/15/30 641,547 250,000 CommonSpirit Health................................................. 3.35% 10/01/29 271,780 370,000 CommonSpirit Health................................................. 2.78% 10/01/30 387,468 700,000 Fresenius Medical Care US Finance II, Inc. (a)...................... 5.88% 01/31/22 715,447 260,000 HCA, Inc............................................................ 5.00% 03/15/24 286,064 90,000 HCA, Inc............................................................ 5.25% 04/15/25 102,784 360,000 HCA, Inc............................................................ 7.05% 12/01/27 453,289 417,000 HCA, Inc............................................................ 4.13% 06/15/29 472,263 520,000 HCA, Inc............................................................ 2.38% 07/15/31 520,158 470,000 HCA, Inc............................................................ 5.25% 06/15/49 612,727 365,000 HCA, Inc., Medium-Term Note......................................... 7.58% 09/15/25 443,632 100,000 Humana, Inc......................................................... 3.15% 12/01/22 102,785 919,000 Molina Healthcare, Inc. (a)......................................... 3.88% 11/15/30 981,157 874,000 Prime Healthcare Services, Inc. (a)................................. 7.25% 11/01/25 936,272 150,000 Tenet Healthcare Corp............................................... 4.63% 07/15/24 152,250 250,000 Tenet Healthcare Corp. (a).......................................... 4.88% 01/01/26 259,637 178,000 Tenet Healthcare Corp. (a).......................................... 4.63% 06/15/28 184,453 -------------- 9,359,731 -------------- INSURANCE -- 0.8% 315,000 Acrisure LLC / Acrisure Finance, Inc. (a)........................... 4.25% 02/15/29 312,250 550,000 AmWINS Group, Inc. (a).............................................. 4.88% 06/30/29 559,625 775,000 Farmers Insurance Exchange (a)...................................... 8.63% 05/01/24 923,774 </TABLE> Page 62 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> INSURANCE (CONTINUED) $ 465,000 Farmers Insurance Exchange (a) (i).................................. 4.75% 11/01/57 $ 535,367 750,000 MassMutual Global Funding II (a).................................... 3.40% 03/08/26 826,662 1,000,000 Nationwide Mutual Insurance Co., 3 Mo. LIBOR + 2.29% (a) (b)........ 2.41% 12/15/24 1,001,261 50,000 Teachers Insurance & Annuity Association of America (a)............. 4.27% 05/15/47 61,679 220,000 Teachers Insurance & Annuity Association of America (a)............. 3.30% 05/15/50 236,794 175,000 Teachers Insurance & Annuity Association of America (a) (i)......... 4.38% 09/15/54 183,577 -------------- 4,640,989 -------------- MEDIA -- 1.1% 624,000 Cable One, Inc. (a)................................................. 4.00% 11/15/30 632,171 609,000 CCO Holdings LLC / CCO Holdings Capital Corp. (a)................... 4.50% 08/15/30 637,124 295,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 2.30% 02/01/32 287,729 370,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.38% 05/01/47 455,831 100,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.75% 04/01/48 128,769 173,000 Cox Communications, Inc. (a)........................................ 3.15% 08/15/24 184,017 680,000 Cox Communications, Inc. (a)........................................ 2.60% 06/15/31 696,981 20,000 CSC Holdings LLC (a)................................................ 5.38% 02/01/28 21,075 287,000 CSC Holdings LLC (a)................................................ 6.50% 02/01/29 317,135 500,000 CSC Holdings LLC (a)................................................ 3.38% 02/15/31 476,290 772,000 Diamond Sports Group LLC / Diamond Sports Finance Co. (a)........... 5.38% 08/15/26 512,955 312,000 Diamond Sports Group LLC / Diamond Sports Finance Co. (a)........... 6.63% 08/15/27 134,550 450,000 DIRECTV Holdings LLC / DIRECTV Financing Co., Inc. (a).............. 5.88% 08/15/27 470,995 459,000 Scripps Escrow II, Inc. (a)......................................... 5.38% 01/15/31 454,900 1,145,000 Sinclair Television Group, Inc. (a)................................. 4.13% 12/01/30 1,120,812 390,000 Walt Disney (The) Co................................................ 4.00% 10/01/23 418,788 -------------- 6,950,122 -------------- OIL & GAS -- 0.3% 105,000 Antero Resources Corp. (a).......................................... 8.38% 07/15/26 119,045 210,000 Exxon Mobil Corp.................................................... 4.33% 03/19/50 262,761 295,000 Hess Corp........................................................... 4.30% 04/01/27 328,069 800,000 Sunoco L.P. / Sunoco Finance Corp................................... 4.50% 05/15/29 811,248 -------------- 1,521,123 -------------- OIL & GAS SERVICES -- 0.1% 536,000 Archrock Partners L.P. / Archrock Partners Finance Corp. (a)........ 6.25% 04/01/28 546,720 340,000 USA Compression Partners L.P. / USA Compression Finance Corp............................................................. 6.88% 04/01/26 353,716 -------------- 900,436 -------------- PACKAGING & CONTAINERS -- 0.2% 58,000 Ball Corp........................................................... 4.00% 11/15/23 61,407 650,000 Berry Global, Inc. (a).............................................. 4.88% 07/15/26 686,270 58,000 Graphic Packaging International LLC................................. 4.88% 11/15/22 60,596 20,000 Mauser Packaging Solutions Holding Co. (a).......................... 5.50% 04/15/24 20,259 60,000 Sealed Air Corp. (a)................................................ 5.50% 09/15/25 67,390 20,000 Sealed Air Corp. (a)................................................ 4.00% 12/01/27 21,481 -------------- 917,403 -------------- </TABLE> See Notes to Financial Statements Page 63 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> PHARMACEUTICALS -- 1.1% $ 390,000 AbbVie, Inc......................................................... 4.55% 03/15/35 $ 475,964 433,000 AbbVie, Inc......................................................... 4.50% 05/14/35 526,821 105,000 AbbVie, Inc......................................................... 4.05% 11/21/39 123,404 200,000 AbbVie, Inc......................................................... 4.45% 05/14/46 245,528 180,000 Bayer US Finance II LLC (a)......................................... 4.25% 12/15/25 200,516 880,000 Bayer US Finance II LLC (a)......................................... 4.38% 12/15/28 1,011,596 265,000 Bayer US Finance II LLC (a)......................................... 4.63% 06/25/38 318,234 400,000 Bayer US Finance II LLC (a)......................................... 4.88% 06/25/48 506,997 330,000 Cigna Corp.......................................................... 4.38% 10/15/28 385,461 400,000 Cigna Corp.......................................................... 4.90% 12/15/48 524,184 820,000 CVS Health Corp..................................................... 5.05% 03/25/48 1,085,927 447,000 Elanco Animal Health, Inc........................................... 5.27% 08/28/23 479,430 847,000 Organon & Co. / Organon Foreign Debt Co-Issuer B.V. (a)............. 5.13% 04/30/31 889,553 -------------- 6,773,615 -------------- PIPELINES -- 1.0% 50,000 Energy Transfer L.P................................................. 4.00% 10/01/27 55,616 930,000 Energy Transfer L.P................................................. 5.40% 10/01/47 1,126,892 470,000 Energy Transfer L.P................................................. 5.00% 05/15/50 551,580 594,000 Energy Transfer L.P., Series B (i).................................. 6.63% (j) 573,952 250,000 Kinder Morgan, Inc.................................................. 5.55% 06/01/45 324,596 307,000 NGL Energy Operating LLC / NGL Energy Finance Corp. (a)............. 7.50% 02/01/26 311,989 845,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 4.50% 12/15/26 950,132 350,000 Rockies Express Pipeline LLC (a).................................... 4.95% 07/15/29 364,579 100,000 Rockies Express Pipeline LLC (a).................................... 6.88% 04/15/40 110,637 598,788 Ruby Pipeline LLC (k)............................................... 8.00% 04/01/22 563,965 174,000 TransMontaigne Partners L.P. / TLP Finance Corp..................... 6.13% 02/15/26 178,922 850,000 Venture Global Calcasieu Pass LLC (a)............................... 4.13% 08/15/31 893,643 -------------- 6,006,503 -------------- REAL ESTATE INVESTMENT TRUSTS -- 1.8% 450,000 Alexandria Real Estate Equities, Inc................................ 3.80% 04/15/26 501,791 75,000 Alexandria Real Estate Equities, Inc., Class E...................... 3.45% 04/30/25 81,462 75,000 American Campus Communities Operating Partnership L.P............... 3.75% 04/15/23 78,266 500,000 American Campus Communities Operating Partnership L.P............... 4.13% 07/01/24 544,338 250,000 Boston Properties L.P............................................... 2.75% 10/01/26 266,804 200,000 Boston Properties L.P............................................... 3.40% 06/21/29 219,710 550,000 Camden Property Trust............................................... 2.95% 12/15/22 564,567 500,000 CubeSmart L.P....................................................... 4.38% 02/15/29 575,135 515,000 CyrusOne L.P. / CyrusOne Finance Corp............................... 2.90% 11/15/24 540,457 665,000 CyrusOne L.P. / CyrusOne Finance Corp............................... 3.45% 11/15/29 699,486 200,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 11/01/23 216,994 595,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.25% 06/01/25 667,801 250,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 04/15/26 286,943 175,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.75% 06/01/28 208,641 185,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.30% 01/15/29 217,481 465,000 GLP Capital L.P. / GLP Financing II, Inc............................ 4.00% 01/15/30 502,775 500,000 Healthcare Realty Trust, Inc........................................ 3.63% 01/15/28 552,601 500,000 Hudson Pacific Properties L.P....................................... 3.95% 11/01/27 552,725 175,000 Hudson Pacific Properties L.P....................................... 4.65% 04/01/29 204,221 400,000 Kilroy Realty L.P................................................... 3.45% 12/15/24 427,735 400,000 Kilroy Realty L.P................................................... 4.38% 10/01/25 444,452 </TABLE> Page 64 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> REAL ESTATE INVESTMENT TRUSTS (CONTINUED) $ 500,000 Kimco Realty Corp................................................... 3.40% 11/01/22 $ 515,054 505,000 Lexington Realty Trust.............................................. 2.70% 09/15/30 519,414 117,000 MGM Growth Properties Operating Partnership L.P. / MGP Finance Co-Issuer, Inc................................................... 5.63% 05/01/24 127,676 109,000 MGM Growth Properties Operating Partnership L.P. / MGP Finance Co-Issuer, Inc. (a).............................................. 4.63% 06/15/25 117,290 250,000 National Retail Properties, Inc..................................... 3.90% 06/15/24 269,800 40,000 SBA Communications Corp............................................. 4.88% 09/01/24 40,650 325,000 SL Green Operating Partnership L.P.................................. 3.25% 10/15/22 333,982 300,000 Ventas Realty L.P................................................... 3.75% 05/01/24 320,994 250,000 Ventas Realty L.P................................................... 2.65% 01/15/25 262,266 75,000 Ventas Realty L.P................................................... 4.00% 03/01/28 84,341 250,000 VEREIT Operating Partnership L.P.................................... 4.63% 11/01/25 283,404 -------------- 11,229,256 -------------- RETAIL -- 0.3% 479,000 FirstCash, Inc. (a)................................................. 4.63% 09/01/28 498,737 350,000 Michaels (The) Cos., Inc. (a)....................................... 5.25% 05/01/28 359,625 835,000 Michaels (The) Cos., Inc. (a)....................................... 7.88% 05/01/29 861,469 300,000 Walgreens Boots Alliance, Inc....................................... 3.30% 11/18/21 300,410 -------------- 2,020,241 -------------- SEMICONDUCTORS -- 0.1% 75,000 Broadcom, Inc....................................................... 3.63% 10/15/24 81,150 415,000 Intel Corp.......................................................... 3.73% 12/08/47 475,538 100,000 Intel Corp.......................................................... 3.05% 08/12/51 102,727 -------------- 659,415 -------------- SOFTWARE -- 0.2% 500,000 Oracle Corp......................................................... 2.88% 03/25/31 527,264 850,000 Oracle Corp......................................................... 3.95% 03/25/51 943,780 -------------- 1,471,044 -------------- TELECOMMUNICATIONS -- 2.2% 436,000 AT&T, Inc........................................................... 2.25% 02/01/32 433,609 775,000 AT&T, Inc. (a)...................................................... 2.55% 12/01/33 779,844 150,000 AT&T, Inc........................................................... 4.50% 05/15/35 178,151 200,000 AT&T, Inc........................................................... 5.25% 03/01/37 253,187 594,000 AT&T, Inc........................................................... 4.85% 03/01/39 729,379 605,000 AT&T, Inc........................................................... 4.75% 05/15/46 738,217 1,000,000 AT&T, Inc. (a)...................................................... 3.80% 12/01/57 1,064,524 456,000 Frontier Communications Holdings LLC (a)............................ 5.00% 05/01/28 477,090 625,000 Level 3 Financing, Inc. (a)......................................... 4.63% 09/15/27 645,312 350,000 Level 3 Financing, Inc. (a)......................................... 3.63% 01/15/29 340,123 300,000 Level 3 Financing, Inc. (a)......................................... 3.75% 07/15/29 292,875 850,000 Lumen Technologies, Inc. (a)........................................ 5.38% 06/15/29 874,429 54,000 Qwest Corp.......................................................... 6.75% 12/01/21 54,850 342,000 Qwest Corp.......................................................... 7.25% 09/15/25 405,424 335,000 SES GLOBAL Americas Holdings G.P. (a)............................... 5.30% 03/25/44 393,003 542,000 Sprint Corp......................................................... 7.88% 09/15/23 614,736 2,010,938 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (a)......................................... 4.74% 03/20/25 2,151,100 </TABLE> See Notes to Financial Statements Page 65 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> TELECOMMUNICATIONS (CONTINUED) $ 200,000 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (a)......................................... 5.15% 03/20/28 $ 230,580 125,000 T-Mobile USA, Inc................................................... 2.25% 02/15/26 127,813 950,000 T-Mobile USA, Inc. (a).............................................. 2.25% 02/15/26 971,375 620,000 T-Mobile USA, Inc................................................... 3.75% 04/15/27 687,112 74,000 T-Mobile USA, Inc................................................... 4.75% 02/01/28 79,058 200,000 T-Mobile USA, Inc................................................... 3.88% 04/15/30 224,070 35,000 T-Mobile USA, Inc................................................... 2.55% 02/15/31 35,743 250,000 T-Mobile USA, Inc................................................... 4.38% 04/15/40 292,964 135,000 Verizon Communications, Inc......................................... 2.10% 03/22/28 138,531 400,000 Verizon Communications, Inc......................................... 2.55% 03/21/31 413,682 -------------- 13,626,781 -------------- TOTAL CORPORATE BONDS AND NOTES................................................................ 110,908,758 (Cost $105,795,094) -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 14.6% COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.4% Federal Home Loan Mortgage Corporation 325,323 Series 2019-4919, Class FP, 1 Mo. LIBOR + 0.45% (b).............. 0.53% 09/25/49 328,107 Federal National Mortgage Association 1,553,525 Series 2011-116, Class SA, IO, 1 Mo. LIBOR (x) -1 + 6.00% (l)...................................................... 5.92% 11/25/41 215,213 209,521 Series 2011-130, Class NW, 1 Mo. LIBOR + 1.20% (b)............... 1.30% 12/25/41 213,095 183,944 Series 2012-56, Class FK, 1 Mo. LIBOR + 0.45% (b)................ 0.53% 06/25/42 185,868 256,195 Series 2012-128, Class UA........................................ 2.50% 06/25/42 267,872 1,602,129 Series 2013-18, Class MI, IO..................................... 3.00% 02/25/33 104,007 346,908 Series 2019-33, Class FN, 1 Mo. LIBOR + 0.40% (b)................ 0.48% 07/25/49 349,919 Government National Mortgage Association 1,245,028 Series 2003-110, Class S, IO, 1 Mo. LIBOR (x) -1 + 6.60% (l)...................................................... 6.51% 10/20/33 143,021 1,367,624 Series 2018-63, Class IO, IO..................................... 4.00% 09/20/47 175,873 369,335 Series 2019-86, Class FE, 1 Mo. LIBOR + 0.40% (b)................ 0.49% 07/20/49 373,692 246,181 Series 2020-133, Class FA (h).................................... 0.49% 02/20/49 247,310 -------------- 2,603,977 -------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 3.7% Federal Home Loan Mortgage Corporation Multiclass Certificates 11,374,110 Series 2021-P009, Class X, IO (d)................................ 1.57% 01/25/31 890,421 Federal Home Loan Mortgage Corporation Multifamily PC REMIC Trust 4,095,000 Series 2019-P002, Class X, IO (h)................................ 1.14% 07/25/33 468,366 Federal Home Loan Mortgage Corporation Multifamily Structured Pass Through Certificates 8,139,000 Series 2012-K021, Class X3, IO (d)............................... 2.03% 07/25/40 95,309 2,500,000 Series 2012-K022, Class X3, IO (d)............................... 1.87% 08/25/40 29,857 11,075,000 Series 2013-K025, Class X3, IO (d)............................... 1.81% 11/25/40 214,759 30,000,000 Series 2013-K026, Class X3, IO (d)............................... 1.86% 12/25/40 646,473 73,958,799 Series 2013-K031, Class X1, IO (d)............................... 0.31% 04/25/23 222,439 17,246,059 Series 2013-K035, Class X1, IO (d)............................... 0.47% 08/25/23 99,068 4,000,000 Series 2013-K035, Class X3, IO (d)............................... 1.85% 12/25/41 119,630 2,500,000 Series 2014-K037, Class X3, IO (d)............................... 2.28% 01/25/42 126,819 31,539,103 Series 2014-K039, Class X1, IO (d)............................... 0.84% 07/25/24 563,260 2,145,000 Series 2014-K039, Class X3, IO (d)............................... 2.18% 08/25/42 137,372 </TABLE> Page 66 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) Federal Home Loan Mortgage Corporation Multifamily Structured Pass Through Certificates (Continued) $ 1,747,990 Series 2014-K715, Class X3, IO (d)............................... 3.95% 02/25/41 $ 20,148 517,991 Series 2014-K716, Class X3, IO (d)............................... 3.87% 08/25/42 5 9,368,111 Series 2015-K042, Class X1, IO (d)............................... 1.17% 12/25/24 276,387 31,736,087 Series 2015-K043, Class X1, IO (d)............................... 0.65% 12/25/24 493,277 13,990,334 Series 2015-K044, Class X1, IO (d)............................... 0.85% 01/25/25 270,214 8,502,575 Series 2015-K045, Class X1, IO (d)............................... 0.56% 11/25/25 108,174 16,435,353 Series 2015-K051, Class X1, IO (d)............................... 0.67% 09/25/25 307,691 416,295 Series 2015-K719, Class X1, IO (d)............................... 0.81% 06/25/22 254 1,304,748 Series 2015-K720, Class X1, IO (d)............................... 0.62% 08/25/22 2,833 6,897,149 Series 2016-K056, Class X3, IO (d)............................... 2.18% 06/25/44 633,454 4,756,578 Series 2016-K057, Class X1, IO (d)............................... 1.31% 07/25/26 233,326 1,900,000 Series 2016-K060, Class X3, IO (d)............................... 1.96% 12/25/44 168,949 26,114,565 Series 2016-K723, Class X3, IO (d)............................... 1.98% 10/25/34 1,002,836 135,324 Series 2016-KF25, Class A, 1 Mo. LIBOR + 0.48% (b)............... 0.57% 10/25/23 135,546 4,985,909 Series 2016-KIR1, Class X, IO (d)................................ 1.19% 03/25/26 203,609 868,429 Series 2016-KS05, Class X, IO (d)................................ 0.76% 01/25/23 924 3,699,875 Series 2016-KS06, Class X, IO (d)................................ 1.19% 08/25/26 138,364 4,925,250 Series 2016-KS07, Class X, IO (d)................................ 0.77% 09/25/25 115,949 39,961,937 Series 2016-KW01, Class X1, IO (d)............................... 1.11% 01/25/26 1,409,997 10,664,559 Series 2017-K726, Class X1, IO (d)............................... 1.02% 04/25/24 192,462 2,230,000 Series 2017-K728, Class X3, IO (d)............................... 2.01% 11/25/45 126,330 3,630,000 Series 2018-K078, Class X3, IO (d)............................... 2.29% 06/25/46 485,791 125,000 Series 2018-K155, Class A3....................................... 3.75% 04/25/33 149,546 125,000 Series 2018-W5FX, Class AFX (d).................................. 3.34% 04/25/28 140,019 1,364,259 Series 2019-KC04, Class X1, IO (d)............................... 1.40% 12/25/26 61,299 7,172,219 Series 2019-KC05, Class X1, IO (d)............................... 1.34% 06/25/27 343,738 1,145,424 Series 2019-KF66, Class A, 1 Mo. LIBOR + 0.52% (b)............... 0.61% 07/25/29 1,155,218 182,928 Series 2019-KF73, Class AL, 1 Mo. LIBOR + 0.60% (b).............. 0.69% 11/25/29 184,722 5,665,313 Series 2019-KLU1, Class X3, IO (d)............................... 4.10% 01/25/31 884,331 1,800,000 Series 2019-KS11, Class XFX, IO (d).............................. 1.76% 06/25/29 180,781 467,814 Series 2020-KF75, Class AL, 1 Mo. LIBOR + 0.51% (b).............. 0.60% 12/25/29 474,272 291,651 Series 2020-KF80, Class AL, 1 Mo. LIBOR + 0.44% (b).............. 0.53% 06/25/30 293,521 877,752 Series 2020-KF84, Class AL, 1 Mo. LIBOR + 0.30% (b).............. 0.39% 07/25/30 880,928 1,869,935 Series 2020-KF85, Class AL, 1 Mo. LIBOR + 0.30% (b).............. 0.39% 08/25/30 1,876,662 560,814 Series 2020-KF86, Class AL, 1 Mo. LIBOR + 0.29% (b).............. 0.38% 08/25/27 562,154 1,950,000 Series 2020-KF87, Class AL, 1 Mo. LIBOR + 0.35% (b).............. 0.44% 08/25/30 1,957,405 1,346,166 Series 2020-KF88, Class AL, 1 Mo. LIBOR + 0.33% (b).............. 0.42% 09/25/30 1,351,316 Federal National Mortgage Association 1,187,380 Series 2012-M4, Class X1, IO (d) (h) (m)......................... 0.51% 04/25/22 934 18,117,956 Series 2015-M4, Class X2, IO (d)................................. 0.63% 07/25/22 22,421 148,718 Series 2016-M2, Class AL......................................... 3.47% 04/25/36 149,867 62,092 Series 2016-M2, Class X3, IO (d) (m)............................. 2.09% 04/25/36 1 2,436,296 Series 2016-M4, Class X2, IO (d)................................. 2.71% 01/25/39 109,733 183,656 Series 2016-M11, Class X2, IO (d)................................ 2.97% 07/25/39 4,231 1,060,593 Series 2018-M10, Class A1 (d).................................... 3.48% 07/25/28 1,153,572 6,100,000 Series 2019-M29, Class X4, IO.................................... 0.70% 03/25/29 248,232 </TABLE> See Notes to Financial Statements Page 67 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) Government National Mortgage Association $ 385,949 Series 2011-119, Class D......................................... 3.51% 04/16/45 $ 400,407 0 Series 2011-77, Class IO, IO (h)................................. 4.31% 04/16/42 0 481,352 Series 2013-125, Class IO, IO (h)................................ 0.26% 10/16/54 7,922 985,618 Series 2014-125, Class IO, IO (h)................................ 0.90% 11/16/54 35,548 -------------- 22,569,073 -------------- PASS-THROUGH SECURITIES -- 10.5% Federal Home Loan Mortgage Corporation 568,929 Pool WN0006...................................................... 3.42% 07/01/30 646,733 Federal National Mortgage Association 395,402 Pool 464398...................................................... 5.97% 01/01/40 455,090 299,673 Pool 464400...................................................... 5.97% 01/01/40 344,910 474,285 Pool AM2974...................................................... 4.10% 04/01/43 536,847 1,531,489 Pool AM9897...................................................... 3.50% 09/01/35 1,728,922 32,575,000 Pool TBA (n)..................................................... 2.00% 10/15/51 32,972,760 26,050,000 Pool TBA (n)..................................................... 2.50% 10/15/51 27,011,195 -------------- 63,696,457 -------------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES........................................ 88,869,507 (Cost $89,660,700) -------------- PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES -- 6.4% BANKS -- 1.7% 365,000 Credit Suisse Group AG (USD)........................................ 3.75% 03/26/25 396,053 65,000 Credit Suisse Group AG (USD) (a) (i)................................ 2.59% 09/11/25 67,670 125,000 Credit Suisse Group AG (USD)........................................ 4.55% 04/17/26 141,625 1,275,000 Credit Suisse Group AG (USD) (a) (i)................................ 2.19% 06/05/26 1,308,728 520,000 Credit Suisse Group AG (USD) (a) (i)................................ 1.31% 02/02/27 512,111 420,000 Credit Suisse Group AG (USD) (a) (i)................................ 3.09% 05/14/32 438,424 200,000 Global Bank Corp. (USD) (i) (o)..................................... 5.25% 04/16/29 214,041 590,000 HSBC Holdings PLC (USD) (i)......................................... 0.98% 05/24/25 590,464 525,000 HSBC Holdings PLC (USD) (i)......................................... 1.59% 05/24/27 526,989 540,000 HSBC Holdings PLC (USD) (i)......................................... 2.01% 09/22/28 545,438 1,440,000 HSBC Holdings PLC (USD) (i)......................................... 2.21% 08/17/29 1,452,451 115,000 Lloyds Banking Group PLC (USD) (i).................................. 2.86% 03/17/23 116,536 200,000 Lloyds Banking Group PLC (USD)...................................... 3.90% 03/12/24 215,976 365,000 Lloyds Banking Group PLC (USD) (i).................................. 3.87% 07/09/25 395,423 565,000 Macquarie Group Ltd. (USD) (a) (i).................................. 1.34% 01/12/27 563,514 350,000 Macquarie Group Ltd. (USD) (a) (i).................................. 1.63% 09/23/27 351,687 100,000 Santander UK Group Holdings PLC (USD) (i)........................... 4.80% 11/15/24 108,718 525,000 Santander UK Group Holdings PLC (USD) (i)........................... 1.09% 03/15/25 526,672 1,795,000 Santander UK Group Holdings PLC (USD) (i)........................... 1.67% 06/14/27 1,802,113 -------------- 10,274,633 -------------- BEVERAGES -- 0.3% 505,000 Bacardi Ltd. (USD) (a).............................................. 2.75% 07/15/26 532,201 670,000 Bacardi Ltd. (USD) (a).............................................. 4.70% 05/15/28 782,549 </TABLE> Page 68 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> BEVERAGES (CONTINUED) 265,000 Bacardi Ltd. (USD) (a).............................................. 5.30% 05/15/48 $ 353,486 -------------- 1,668,236 -------------- CHEMICALS -- 0.0% 275,000 Herens Holdco Sarl (USD) (a)........................................ 4.75% 05/15/28 276,328 -------------- COMMERCIAL SERVICES -- 0.5% 200,000 DP World Crescent Ltd. (USD) (a).................................... 4.85% 09/26/28 229,868 1,430,000 IHS Markit Ltd. (USD) (a)........................................... 5.00% 11/01/22 1,487,128 980,000 IHS Markit Ltd. (USD) (a)........................................... 4.75% 02/15/25 1,089,368 215,000 IHS Markit Ltd. (USD)............................................... 4.75% 08/01/28 254,714 -------------- 3,061,078 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.9% 20,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 3.95% 02/01/22 20,228 110,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 3.50% 05/26/22 112,114 55,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 4.13% 07/03/23 58,099 900,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 3.50% 01/15/25 953,144 115,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)...................................................... 3.88% 01/23/28 123,426 100,000 Avolon Holdings Funding Ltd. (USD) (a).............................. 3.95% 07/01/24 106,726 785,000 Avolon Holdings Funding Ltd. (USD) (a).............................. 2.88% 02/15/25 809,868 230,000 Avolon Holdings Funding Ltd. (USD) (a).............................. 2.53% 11/18/27 228,507 2,440,000 GE Capital International Funding Co. Unlimited Co. (USD)............ 4.42% 11/15/35 2,963,325 82,000 Park Aerospace Holdings Ltd. (USD) (a).............................. 5.50% 02/15/24 90,021 -------------- 5,465,458 -------------- ELECTRIC -- 0.0% 250,000 Mong Duong Finance Holdings B.V. (USD) (o).......................... 5.13% 05/07/29 251,563 -------------- ENVIRONMENTAL CONTROL -- 0.1% 300,000 Waste Connections, Inc. (USD)....................................... 2.60% 02/01/30 313,822 -------------- FOOD -- 0.1% 443,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (a).......................................... 5.50% 01/15/30 500,501 300,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (a).......................................... 3.75% 12/01/31 316,875 -------------- 817,376 -------------- INTERNET -- 0.1% 200,000 Tencent Holdings Ltd. (USD) (a)..................................... 3.68% 04/22/41 211,180 200,000 Tencent Holdings Ltd. (USD) (a)..................................... 3.84% 04/22/51 216,748 -------------- 427,928 -------------- MACHINERY-DIVERSIFIED -- 0.0% 222,000 Titan Acquisition Ltd. / Titan Co.-Borrower LLC (USD) (a)........... 7.75% 04/15/26 228,427 -------------- MEDIA -- 0.1% 270,000 Virgin Media Secured Finance PLC (USD) (a).......................... 5.50% 05/15/29 289,575 100,000 Virgin Media Secured Finance PLC (USD) (a).......................... 4.50% 08/15/30 101,555 -------------- 391,130 -------------- </TABLE> See Notes to Financial Statements Page 69 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> MINING -- 0.3% 450,000 Corp. Nacional del Cobre de Chile (USD) (o)......................... 3.15% 01/14/30 $ 475,720 700,000 Indonesia Asahan Aluminium Persero PT (USD) (o)..................... 4.75% 05/15/25 763,952 700,000 Indonesia Asahan Aluminium Persero PT (USD) (a)..................... 6.53% 11/15/28 860,534 -------------- 2,100,206 -------------- MISCELLANEOUS MANUFACTURING -- 0.0% 40,000 Ingersoll-Rand Luxembourg Finance S.A. (USD)........................ 3.55% 11/01/24 43,213 -------------- OIL & GAS -- 0.8% 200,000 KazMunayGas National Co. JSC (USD) (a).............................. 3.50% 04/14/33 209,700 600,000 KazMunayGas National Co. JSC (USD) (o).............................. 3.50% 04/14/33 629,100 600,000 Pertamina Persero PT (USD) (a)...................................... 3.10% 08/27/30 627,888 370,000 Petroleos Mexicanos (USD)........................................... 6.63% 06/15/35 358,893 105,000 Petroleos Mexicanos (USD)........................................... 6.75% 09/21/47 92,872 180,000 Petroleos Mexicanos (USD)........................................... 7.69% 01/23/50 173,162 110,000 Petroleos Mexicanos (USD)........................................... 6.95% 01/28/60 97,219 1,300,000 Petronas Capital Ltd. (USD) (a)..................................... 3.50% 04/21/30 1,434,526 700,000 Saudi Arabian Oil Co. (USD) (o)..................................... 1.63% 11/24/25 707,910 200,000 Saudi Arabian Oil Co. (USD) (a)..................................... 2.25% 11/24/30 199,008 89,780 Transocean Pontus Ltd. (USD) (a).................................... 6.13% 08/01/25 89,356 379,000 Transocean Poseidon Ltd. (USD) (a).................................. 6.88% 02/01/27 367,156 -------------- 4,986,790 -------------- OIL & GAS SERVICES -- 0.1% 35,750 Transocean Phoenix 2 Ltd. (USD) (a)................................. 7.75% 10/15/24 36,331 338,250 Transocean Proteus Ltd. (USD) (a)................................... 6.25% 12/01/24 333,599 -------------- 369,930 -------------- PACKAGING & CONTAINERS -- 0.1% 395,000 Intertape Polymer Group, Inc. (USD) (a)............................. 4.38% 06/15/29 403,548 18,000 OI European Group B.V. (USD) (a).................................... 4.00% 03/15/23 18,649 -------------- 422,197 -------------- PHARMACEUTICALS -- 0.3% 400,000 Bausch Health Cos., Inc. (USD) (a).................................. 4.88% 06/01/28 411,500 1,450,000 Endo Dac / Endo Finance LLC / Endo Finco, Inc. (USD) (a)............ 6.00% 06/30/28 908,244 365,000 Jazz Securities DAC (USD) (a)....................................... 4.38% 01/15/29 378,740 -------------- 1,698,484 -------------- PIPELINES -- 0.1% 400,000 Galaxy Pipeline Assets Bidco Ltd. (USD) (a)......................... 2.16% 03/31/34 399,064 400,000 KazTransGas JSC (USD) (o)........................................... 4.38% 09/26/27 443,034 -------------- 842,098 -------------- RETAIL -- 0.2% 568,000 1011778 BC ULC / New Red Finance, Inc. (USD) (a).................... 3.50% 02/15/29 565,946 510,000 Alimentation Couche-Tard, Inc. (USD) (a)............................ 3.55% 07/26/27 564,590 -------------- 1,130,536 -------------- SAVINGS & LOANS -- 0.2% 630,000 Nationwide Building Society (USD) (a) (i)........................... 3.62% 04/26/23 643,114 135,000 Nationwide Building Society (USD) (a) (i)........................... 3.77% 03/08/24 141,194 175,000 Nationwide Building Society (USD) (a) (i)........................... 4.36% 08/01/24 186,771 -------------- 971,079 -------------- </TABLE> Page 70 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> TELECOMMUNICATIONS -- 0.5% 200,000 C&W Senior Financing DAC (USD) (a).................................. 6.88% 09/15/27 $ 212,870 600,000 Intelsat Jackson Holdings S.A. (USD) (p)............................ 5.50% 08/01/23 317,250 750,000 Intelsat Jackson Holdings S.A. (USD) (a) (p)........................ 8.50% 10/15/24 405,938 303,000 Intelsat Jackson Holdings S.A. (USD) (a) (p)........................ 9.75% 07/15/25 163,999 200,000 SES S.A. (USD) (a).................................................. 3.60% 04/04/23 208,534 335,000 Vmed O2 UK Financing I PLC (USD) (a)................................ 4.25% 01/31/31 337,107 400,000 Vmed O2 UK Financing I PLC (USD) (a)................................ 4.75% 07/15/31 411,500 250,000 Vodafone Group PLC (USD)............................................ 5.25% 05/30/48 334,079 113,000 Vodafone Group PLC (USD)............................................ 4.88% 06/19/49 145,466 580,000 Vodafone Group PLC (USD)............................................ 4.25% 09/17/50 683,558 -------------- 3,220,301 -------------- TRANSPORTATION -- 0.0% 200,000 Empresa de Transporte de Pasajeros Metro S.A. (USD) (a)............. 3.65% 05/07/30 219,073 -------------- TOTAL FOREIGN CORPORATE BONDS AND NOTES........................................................ 39,179,886 (Cost $38,310,182) -------------- FOREIGN SOVEREIGN BONDS -- 3.9% BRAZIL -- 0.3% 950,000 Brazilian Government International Bond (USD)....................... 2.88% 06/06/25 982,215 850,000 Brazilian Government International Bond (USD)....................... 3.88% 06/12/30 853,697 -------------- 1,835,912 -------------- CHILE -- 0.2% 500,000 Chile Government International Bond (USD)........................... 3.24% 02/06/28 544,232 400,000 Chile Government International Bond (USD)........................... 2.45% 01/31/31 410,996 400,000 Chile Government International Bond (USD)........................... 2.55% 01/27/32 411,908 -------------- 1,367,136 -------------- COLOMBIA -- 0.4% 1,550,000 Colombia Government International Bond (USD)........................ 4.50% 01/28/26 1,687,741 1,000,000 Colombia Government International Bond (USD)........................ 3.00% 01/30/30 982,565 -------------- 2,670,306 -------------- DOMINICAN REPUBLIC -- 0.2% 1,050,000 Dominican Republic International Bond (USD) (a)..................... 4.50% 01/30/30 1,094,635 350,000 Dominican Republic International Bond (USD) (o)..................... 4.88% 09/23/32 368,379 -------------- 1,463,014 -------------- EGYPT -- 0.1% 200,000 Egypt Government International Bond (USD) (a)....................... 5.25% 10/05/25 211,020 200,000 Egypt Government International Bond (USD) (o)....................... 5.25% 10/05/25 211,020 -------------- 422,040 -------------- INDONESIA -- 0.1% 600,000 Indonesia Government International Bond (USD)....................... 2.85% 02/14/30 631,641 -------------- MEXICO -- 0.5% 900,000 Mexico Government International Bond (USD).......................... 3.75% 01/11/28 995,891 1,460,000 Mexico Government International Bond (USD).......................... 2.66% 05/24/31 1,449,152 300,000 Mexico Government International Bond (USD).......................... 4.75% 04/27/32 348,321 -------------- 2,793,364 -------------- </TABLE> See Notes to Financial Statements Page 71 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS (CONTINUED) <S> <C> <C> <C> <C> OMAN -- 0.2% 600,000 Oman Government International Bond (USD) (o)........................ 6.75% 10/28/27 $ 678,490 500,000 Oman Government International Bond (USD) (o)........................ 5.63% 01/17/28 531,178 -------------- 1,209,668 -------------- PANAMA -- 0.3% 1,100,000 Panama Government International Bond (USD).......................... 3.16% 01/23/30 1,167,034 400,000 Panama Government International Bond (USD).......................... 2.25% 09/29/32 390,772 -------------- 1,557,806 -------------- PARAGUAY -- 0.1% 400,000 Paraguay Government International Bond (USD) (a).................... 4.95% 04/28/31 464,504 400,000 Paraguay Government International Bond (USD) (a).................... 2.74% 01/29/33 398,500 -------------- 863,004 -------------- PERU -- 0.1% 453,000 Peruvian Government International Bond (USD)........................ 2.84% 06/20/30 469,263 -------------- PHILIPPINES -- 0.2% 1,100,000 Philippine Government International Bond (USD)...................... 2.46% 05/05/30 1,162,542 300,000 Philippine Government International Bond (USD)...................... 1.95% 01/06/32 300,322 -------------- 1,462,864 -------------- QATAR -- 0.3% 902,000 Qatar Government International Bond (USD) (o)....................... 4.50% 04/23/28 1,066,615 600,000 Qatar Government International Bond (USD) (o)....................... 3.75% 04/16/30 684,869 -------------- 1,751,484 -------------- ROMANIA -- 0.2% 950,000 Romanian Government International Bond (USD) (o).................... 3.00% 02/14/31 993,500 -------------- SAUDI ARABIA -- 0.2% 400,000 Saudi Government International Bond (USD) (o)....................... 3.25% 10/26/26 435,202 200,000 Saudi Government International Bond (USD) (o)....................... 3.63% 03/04/28 222,100 400,000 Saudi Government International Bond (USD) (o)....................... 3.25% 10/22/30 434,921 -------------- 1,092,223 -------------- SOUTH AFRICA -- 0.3% 658,000 Republic of South Africa Government International Bond (USD)........ 4.30% 10/12/28 680,747 820,000 Republic of South Africa Government International Bond (USD)........ 4.85% 09/30/29 869,139 -------------- 1,549,886 -------------- UNITED ARAB EMIRATES -- 0.1% 600,000 Abu Dhabi Government International Bond (USD) (o)................... 2.50% 09/30/29 635,800 -------------- URUGUAY -- 0.1% 600,000 Uruguay Government International Bond (USD)......................... 4.38% 01/23/31 705,462 -------------- TOTAL FOREIGN SOVEREIGN BONDS AND NOTES........................................................ 23,474,373 (Cost $23,240,079) -------------- PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT BONDS AND NOTES -- 0.4% $ 2,420,000 U.S. Treasury Floating Rate Note, 3 Mo. U.S. T-Bill Money Market Yield + 0.06% (b)................................................ 0.10% 10/31/22 2,421,663 (Cost $2,420,142) -------------- </TABLE> Page 72 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MUNICIPAL BONDS -- 0.3% <S> <C> <C> <C> <C> CALIFORNIA -- 0.2% $ 500,000 Los Angeles CA Unif School District................................. 5.75% 07/01/34 $ 674,815 500,000 Los Angeles Dept of Water........................................... 6.01% 07/01/39 677,376 75,000 Univ of CA Rev TXBL Gen Ref, Ser AJ................................. 4.60% 05/15/31 89,204 -------------- 1,441,395 -------------- COLORADO -- 0.1% 220,000 City & Cnty of Denver Cnty Aprt Rev................................. 2.24% 11/15/30 229,708 -------------- FLORIDA -- 0.0% 105,000 Cnty of Miami-Dade FL Aviation Rev.................................. 3.45% 10/01/30 114,647 -------------- NEW YORK -- 0.0% 50,000 Metro Transprtn Auth................................................ 5.18% 11/15/49 69,179 -------------- TOTAL MUNICIPAL BONDS.......................................................................... 1,854,929 (Cost $1,699,160) -------------- U.S. TREASURY BILLS -- 22.1% 13,740,000 U.S. Cash Management Bill........................................... (q) 12/14/21 13,738,492 14,630,000 U.S. Treasury Bill.................................................. (q) 10/05/21 14,629,478 10,755,000 U.S. Treasury Bill.................................................. (q) 10/07/21 10,754,597 27,820,000 U.S. Treasury Bill.................................................. (q) 12/09/21 27,816,748 29,900,000 U.S. Treasury Bill.................................................. (q) 01/06/22 29,895,781 16,385,000 U.S. Treasury Bill.................................................. (q) 01/20/22 16,382,433 21,360,000 U.S. Treasury Bill.................................................. (q) 02/03/22 21,356,321 -------------- TOTAL U.S. TREASURY BILLS...................................................................... 134,573,850 (Cost $134,573,385) -------------- SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 7.1% <S> <C> <C> 42,951,583 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 0.01% (r)..... 42,951,583 (Cost $42,951,583) -------------- TOTAL INVESTMENTS -- 109.7%.................................................................... 667,540,230 (Cost $661,845,612) (s) NET OTHER ASSETS AND LIABILITIES -- (9.7)%..................................................... (59,222,924) -------------- NET ASSETS -- 100.0%........................................................................... $ 608,317,306 ============== </TABLE> Futures Contracts at August 31, 2021 (See Note 2D - Futures Contracts in the Notes to Financial Statements): <TABLE> <CAPTION> UNREALIZED APPRECIATION NUMBER OF (DEPRECIATION)/ FUTURES CONTRACTS POSITION CONTRACTS EXPIRATION DATE NOTIONAL VALUE VALUE ----------------------------------- ---------------- --------------- --------------- -------------- --------------- <S> <C> <C> <C> <C> <C> U.S. 5-Year Treasury Notes Long 265 Dec-2021 $ 32,785,469 $ 74,240 U.S. 10-Year Ultra Treasury Notes Short 359 Dec-2021 (53,137,610) (51,705) Ultra U.S. Treasury Bond Futures Short 101 Dec-2021 (19,925,406) (49,482) ------------- ----------- $ (40,277,547) $ (26,947) ============= =========== </TABLE> See Notes to Financial Statements Page 73 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 Interest Rate Swap Agreements at August 31, 2021 (see Note 2F - Swap Agreements in the Notes to Financial Statements): <TABLE> <CAPTION> UNREALIZED APPRECIATION FLOATING EXPIRATION NOTIONAL (DEPRECIATION)/ COUNTERPARTY RATE DATE VALUE FIXED RATE VALUE ----------------------------------- ---------------- --------------- --------------- -------------- --------------- <S> <C> <C> <C> <C> <C> Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 $ 12,290,000 1.026%(1) $ (18,187) Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 9,080,000 1.034%(1) (12,002) Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 6,145,000 1.073%(1) (3,388) Citibank, Global Markets, Inc. 3 month LIBOR(2) 07/24/2053 1,030,000 1.773%(2) 3,712 Citibank, Global Markets, Inc. 3 month LIBOR(2) 07/24/2053 755,000 1.785%(2) 453 Citibank, Global Markets, Inc. 3 month LIBOR(2) 07/24/2053 515,000 1.808%(2) (2,477) --------------- ------------- $ 29,815,000 $ (31,889) =============== ============= </TABLE> (1) The Fund pays the floating rate and receives the fixed rate. The floating rate is not effective until 07/24/2023 and no interest is being accrued until that date. (2) The Fund pays the fixed rate and receives the floating rate. The floating rate is not effective until 07/24/2023 and no interest is being accrued until that date. ----------------------------- (a) This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act"), and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Trust's Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P., the Fund's Advisor (the "Advisor"). Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At August 31, 2021, securities noted as such amounted to $158,443,384 or 26.0% of net assets. (b) Floating or variable rate security. (c) Step-up security. A security where the coupon increases or steps up at a predetermined date. The coupon rate is determined based on the underlying investments. The coupon rate resets periodically. (d) Collateral Strip Rate security. Coupon is based on the weighted net interest rate of the investment's underlying collateral. The interest rate resets periodically. (e) When-issued security. The interest rate shown reflects the rate in effect at August 31, 2021. Interest will begin accruing on the security's first settlement date. (f) This security is fair valued by the Advisor's Pricing Committee in accordance with procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the Investment Company Act of 1940, as amended. At August 31, 2021, securities noted as such are valued at $2,571,870 or 0.4% of net assets. (g) This security's value was determined using significant unobservable inputs (See Note 2A - Portfolio Valuation in the Notes to Financial Statements). (h) Weighted Average Coupon security. Coupon is based on the blended interest rate of the underlying holdings, which may have different coupons. The coupon may change in any period. (i) Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at August 31, 2021. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. (j) Perpetual maturity. (k) This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A under the 1933 Act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers (see Note 2C - Restricted Securities in the Notes to Financial Statements). (l) Inverse floating rate security. (m) Pursuant to procedures adopted by the Trust's Board of Trustees, this security has been determined to be illiquid by the Advisors. (n) All or a portion of this security is part of a mortgage dollar roll agreement (see Note 2K - Mortgage Dollar Rolls in the Notes to Financial Statements). (o) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (p) This issuer is in default and interest is not being accrued by the Fund nor paid by the issuer. (q) Zero coupon security. (r) Rate shown reflects yield as of August 31, 2021. Page 74 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 (s) Aggregate cost for federal income tax purposes is $661,692,472. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $9,295,559 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $3,506,637. The net unrealized appreciation was $5,788,922. The unrealized amounts presented are inclusive of derivative contracts. IO - Interest-Only Security -- Principal amount shown represents par value on which interest payments are based. LIBOR - London Interbank Offered Rate SOFR - Secured Overnight Finance Rate TBA - To-Be-Announced Security Currency Abbreviations: USD - United States Dollar ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- <S> <C> <C> <C> <C> Asset-Backed Securities............................... $ 112,221,722 $ -- $ 111,532,365 $ 689,357 Mortgage-Backed Securities............................ 111,083,959 -- 111,083,959 -- Corporate Bonds and Notes*............................ 110,908,758 -- 110,908,758 -- U.S. Government Agency Mortgage-Backed Securities..... 88,869,507 -- 88,869,507 -- Foreign Corporate Bonds and Notes*.................... 39,179,886 -- 39,179,886 -- Foreign Sovereign Bonds and Notes**................... 23,474,373 -- 23,474,373 -- U.S. Government Bonds and Notes....................... 2,421,663 -- 2,421,663 -- Municipal Bonds***.................................... 1,854,929 -- 1,854,929 -- U.S. Treasury Bills................................... 134,573,850 -- 134,573,850 -- Money Market Funds.................................... 42,951,583 42,951,583 -- -- ---------------- --------------- ---------------- ---------------- Total Investments..................................... 667,540,230 42,951,583 623,899,290 689,357 Futures Contracts****................................. 74,240 74,240 -- -- Interest Rate Swap Agreements......................... 4,165 -- 4,165 -- ---------------- --------------- ---------------- ---------------- Total................................................. $ 667,618,635 $ 43,025,823 $ 623,903,455 $ 689,357 ================ =============== ================ ================ LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- Futures Contracts****................................. $ (101,187) $ (101,187) $ -- $ -- Interest Rate Swap Agreements......................... (36,054) -- (36,054) -- ---------------- --------------- --- ------------- ---------------- Total................................................. $ (137,241) $ (101,187) $ (36,054) $ -- ================ =============== ================ ================ </TABLE> * See Portfolio of Investments for industry breakout. ** See Portfolio of Investments for country breakout. *** See Portfolio of Investments for state breakout. **** Includes cumulative appreciation/depreciation on futures contracts as reported in the Futures Contracts table. Only the current day's variation margin is presented on the Statements of Assets and Liabilities. Level 3 Investments that are fair valued by the Advisor's Pricing Committee are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs. See Notes to Financial Statements Page 75 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 52.1% <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.4% Federal Home Loan Mortgage Corporation $ 55,384 Series 2005-3071, Class TF, 1 Mo. LIBOR + 0.30% (a).............. 0.40% 04/15/35 $ 55,523 90,441 Series 2010-3778, Class L........................................ 3.50% 12/15/25 95,076 152,926 Series 2017-360, Class 250....................................... 2.50% 11/15/47 160,333 87,214 Series 2020-4993, Class OP, PO................................... (b) 10/25/58 84,626 Federal National Mortgage Association 158,229 Series 2006-56, Class FE, 1 Mo. LIBOR + 0.43% (a)................ 0.51% 07/25/36 159,790 124,445 Series 2011-47, Class GF, 1 Mo. LIBOR + 0.57% (a)................ 0.65% 06/25/41 126,522 184,787 Series 2018-50, Class BA......................................... 3.00% 07/25/48 192,765 12,886 Series 2018-86, Class JA......................................... 4.00% 05/25/47 13,424 112,298 Series 2019-67, Class FE, 1 Mo. LIBOR + 0.45% (a)................ 0.53% 11/25/49 113,205 -------------- 1,001,264 -------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.1% Federal Home Loan Mortgage Corporation Multifamily Structured Pass-Through Certificates 3,200,000 Series 2013-K024, Class X3, IO (c)............................... 1.71% 11/25/40 52,364 1,000,000 Series 2018-K732, Class X3, IO (c)............................... 2.25% 05/25/46 76,755 300,000 Series 2019-KS11, Class XFX, IO (c).............................. 1.76% 06/25/29 30,130 FREMF Mortgage Trust 21,686,166 Series 2017-K726, Class X2B, IO (d).............................. 0.10% 07/25/49 53,650 -------------- 212,899 -------------- PASS-THROUGH SECURITIES -- 51.6% Federal Home Loan Mortgage Corporation 77,138 Pool G08681...................................................... 3.50% 12/01/45 82,891 41,190 Pool G08792...................................................... 3.50% 12/01/47 43,850 137,420 Pool G60659...................................................... 3.50% 08/01/46 148,740 159,181 Pool G61748...................................................... 3.50% 11/01/48 173,317 183,168 Pool G67706...................................................... 3.50% 12/01/47 198,952 240,369 Pool G67710...................................................... 3.50% 03/01/48 258,926 147,404 Pool SD0499...................................................... 3.00% 08/01/50 157,206 88,859 Pool SD7502...................................................... 3.50% 07/01/49 95,472 181,767 Pool SD7511...................................................... 3.50% 01/01/50 196,637 105,285 Pool SD7513...................................................... 3.50% 04/01/50 114,141 107,959 Pool ZM1779...................................................... 3.00% 09/01/46 114,369 Federal National Mortgage Association 44,615 Pool BE3619...................................................... 4.00% 05/01/47 48,239 69,046 Pool CA0995...................................................... 3.50% 01/01/48 75,211 741,446 Pool CA5689...................................................... 3.00% 05/01/50 788,920 90,905 Pool FM2870...................................................... 3.00% 03/01/50 96,579 80,730 Pool MA4093...................................................... 2.00% 08/01/40 82,342 113,909 Pool MA4152...................................................... 2.00% 10/01/40 116,820 176,352 Pool MA4176...................................................... 2.00% 11/01/40 180,266 184,962 Pool MA4204...................................................... 2.00% 12/01/40 188,437 220,797 Pool MA4333...................................................... 2.00% 05/01/41 226,447 4,475,000 Pool TBA (e)..................................................... 1.50% 10/15/36 4,542,993 8,525,000 Pool TBA (e)..................................................... 2.00% 10/15/36 8,810,377 40,775,000 Pool TBA (e)..................................................... 2.00% 10/15/51 41,272,887 39,750,000 Pool TBA (e)..................................................... 2.50% 10/15/51 41,216,699 </TABLE> Page 76 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> PASS-THROUGH SECURITIES (CONTINUED) Government National Mortgage Association $ 71,060 Pool MA3873...................................................... 3.00% 08/20/46 $ 74,729 91,310 Pool MA4382...................................................... 3.50% 04/20/47 96,483 71,064 Pool MA4778...................................................... 3.50% 10/20/47 75,840 52,405 Pool MA4779...................................................... 4.00% 10/20/47 55,836 6,600,000 Pool TBA (e)..................................................... 2.00% 10/15/51 6,727,102 10,650,000 Pool TBA (e)..................................................... 2.50% 10/15/51 11,026,494 -------------- 117,287,202 -------------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES........................................ 118,501,365 (Cost $118,262,587) -------------- MORTGAGE-BACKED SECURITIES -- 26.5% COLLATERALIZED MORTGAGE OBLIGATIONS -- 13.5% Alternative Loan Trust 255,804 Series 2005-16, Class A4, 1 Mo. LIBOR + 0.48% (a)................ 0.56% 06/25/35 239,774 114,326 Series 2006-HY12, Class A5 (c)................................... 2.98% 08/25/36 114,977 154,260 Series 2007-5CB, Class 1A11...................................... 6.00% 04/25/37 118,238 136,639 Series 2007-15CB, Class A5....................................... 5.75% 07/25/37 111,625 441,210 Series 2007-HY8C, Class A1, 1 Mo. LIBOR + 0.16% (a).............. 0.24% 09/25/47 430,350 203,362 Series 2007-OA7, Class A1A, 1 Mo. LIBOR + 0.18% (a).............. 0.26% 05/25/47 194,970 American Home Mortgage Assets Trust 435,490 Series 2006-1, Class 1A1, 1 Mo. LIBOR + 0.42% (a)................ 0.50% 05/25/46 414,113 140,234 Series 2006-3, Class 1A1, 12 Mo. Treasury Average + 0.97% (a)..................................................... 1.07% 10/25/46 134,700 419,381 Series 2007-2, Class A1, 1 Mo. LIBOR + 0.13% (a)................. 0.21% 03/25/47 403,742 American Home Mortgage Investment Trust 417,640 Series 2006-3, Class 11A1, 1 Mo. LIBOR + 0.36% (a)............... 0.44% 12/25/46 403,490 Banc of America Funding Trust 159,274 Series 2007-C, Class 7A1, 1 Mo. LIBOR + 0.42% (a)................ 0.51% 05/20/47 159,190 27,059 Series 2015-R2, Class 4A1, 1 Mo. LIBOR + 0.17% (a) (d)........... 0.25% 09/29/36 27,061 BCAP LLC Trust 113,189 Series 2006-AA2, Class A1, 1 Mo. LIBOR + 0.34% (a)............... 0.42% 01/25/37 111,957 Bear Stearns ALT-A Trust 980 Series 2004-8, Class 2A, 1 Mo. LIBOR + 0.68% (a)................. 0.76% 09/25/34 981 516,536 Series 2005-1, Class M2, 1 Mo. LIBOR + 1.13% (a)................. 1.21% 01/25/35 552,740 789,009 Series 2006-1, Class 21A2 (c).................................... 3.06% 02/25/36 664,547 Bear Stearns ARM Trust 210,876 Series 2005-1, Class 2A1 (c)..................................... 2.85% 03/25/35 211,289 Bear Stearns Mortgage Funding Trust 125,110 Series 2006-AR5, Class 2A1, 1 Mo. LIBOR + 0.19% (a).............. 0.27% 01/25/37 117,210 CHL Mortgage Pass-Through Trust 246,586 Series 2004-25, Class 2A1, 1 Mo. LIBOR + 0.68% (a)............... 0.76% 02/25/35 232,897 124,217 Series 2007-20, Class A1......................................... 6.50% 01/25/38 93,207 CIM Trust 331,826 Series 2021-R3, Class A1A (d).................................... 1.95% 06/25/57 333,692 784,618 Series 2021-R4, Class A1A (d).................................... 2.00% 05/01/61 790,307 143,066 Series 2021-NR3, Class A1, steps up to 5.57% on 04/26/24 (d) (f)............................................... 2.57% 06/25/57 143,386 Citigroup Mortgage Loan Trust 310,152 Series 2009-10, Class 2A2 (d).................................... 7.00% 12/25/35 290,512 </TABLE> See Notes to Financial Statements Page 77 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) Credit Suisse Mortgage Trust $ 542,297 Series 2014-8R, Class 3A2 (c) (d)................................ 3.84% 02/27/36 $ 466,101 405,564 Series 2019-RPL9, Class A1 (d)................................... 2.97% 10/27/59 408,950 354,894 Series 2020-RPL2, Class A12 (d).................................. 3.43% 02/25/60 358,868 442,824 Series 2021-RPL4, Class A1 (d)................................... 1.80% 12/27/60 445,412 Deutsche Alt-A Securities Mortgage Loan Trust 218,244 Series 2007-3, Class 2A1, 1 Mo. LIBOR + 0.75% (a)................ 0.83% 10/25/47 205,949 370,548 Series 2007-AR3, Class 2A5, 1 Mo. LIBOR + 0.40% (a).............. 0.48% 06/25/37 357,329 DSLA Mortgage Loan Trust 480,460 Series 2005-AR6, Class 2A1A, 1 Mo. LIBOR + 0.29% (a)............. 0.38% 10/19/45 468,919 GreenPoint Mortgage Funding Trust 188,600 Series 2005-AR4, Class G41B, 1 Mo. LIBOR + 0.20% (a)............. 0.28% 10/25/45 177,254 GreenPoint MTA Trust 399,891 Series 2005-AR1, Class A2, 1 Mo. LIBOR + 0.44% (a)............... 0.52% 06/25/45 378,931 41,694 Series 2005-AR3, Class 1A1, 1 Mo. LIBOR + 0.48% (a).............. 0.56% 08/25/45 40,349 GSR Mortgage Loan Trust 259,979 Series 2006-OA1, Class 2A2, 1 Mo. LIBOR + 0.52% (a).............. 0.60% 08/25/46 149,038 HomeBanc Mortgage Trust 700,000 Series 2005-4, Class M1, 1 Mo. LIBOR + 0.71% (a)................. 0.79% 10/25/35 701,386 Impac CMB Trust 279,941 Series 2007-A, Class A, 1 Mo. LIBOR + 0.50% (a) (d).............. 0.58% 05/25/37 279,994 IndyMac INDX Mortgage Loan Trust 163,172 Series 2005-AR29, Class A1 (c)................................... 3.05% 01/25/36 157,631 978,873 Series 2006-AR2, Class 1A1B, 1 Mo. LIBOR + 0.42% (a)............. 0.50% 04/25/46 937,891 85,598 Series 2006-AR3, Class 2A1A (c).................................. 2.97% 03/25/36 75,940 65,881 Series 2006-AR9, Class 3A2, 1 Mo. LIBOR + 0.35% (a).............. 0.43% 06/25/36 60,747 734,935 Series 2006-AR13, Class A3 (c)................................... 2.91% 07/25/36 651,838 176,781 Series 2006-AR19, Class 5A2 (c).................................. 3.03% 08/25/36 157,735 572,898 Series 2006-AR31, Class A3 (c)................................... 3.13% 11/25/36 568,937 851,923 Series 2007-AR21, Class 6A1 (c).................................. 2.78% 09/25/37 733,089 122,269 Series 2007-FLX2, Class A1A, 1 Mo. LIBOR + 0.16% (a)............. 0.24% 04/25/37 115,801 975,212 Series 2007-FLX3, Class A1, 1 Mo. LIBOR + 0.24% (a).............. 0.32% 06/25/37 977,062 JP Morgan Alternative Loan Trust 482,611 Series 2006-A1, Class 1A1, 1 Mo. LIBOR + 0.46% (a)............... 0.54% 03/25/36 472,704 Lehman XS Trust 136,802 Series 2005-5N, Class 3A1A, 1 Mo. LIBOR + 0.30% (a).............. 0.38% 11/25/35 136,065 1,012,111 Series 2005-7N, Class 1A1A, 1 Mo. LIBOR + 0.54% (a).............. 0.62% 12/25/35 998,508 480,593 Series 2006-10N, Class 1A4A, 1 Mo. LIBOR + 0.60% (a)............. 0.68% 07/25/46 422,879 240,991 Series 2007-12N, Class 1A3A, 1 Mo. LIBOR + 0.20% (a)............. 0.28% 07/25/47 242,421 487,959 Series 2007-16N, Class 1A1, 1 Mo. LIBOR + 0.47% (a).............. 0.55% 09/25/47 488,676 Luminent Mortgage Trust 752,994 Series 2005-1, Class A1, 1 Mo. LIBOR + 0.52% (a)................. 0.60% 11/25/35 740,808 MASTR Adjustable Rate Mortgages Trust 707,087 Series 2007-2, Class A1, 1 Mo. LIBOR + 0.30% (a)................. 0.38% 03/25/47 691,985 1,800,000 Series 2007-HF2, Class A2, 1 Mo. LIBOR + 1.10% (a)............... 1.18% 09/25/37 873,866 Opteum Mortgage Acceptance Corp. Asset Backed Pass-Through Certificates 300,000 Series 2005-4, Class M2, 1 Mo. LIBOR + 0.75% (a)................. 0.83% 11/25/35 293,367 RALI Trust 562,763 Series 2005-QO1, Class A1, 1 Mo. LIBOR + 0.30% (a)............... 0.38% 08/25/35 482,698 158,519 Series 2006-QA6, Class A1, 1 Mo. LIBOR + 0.38% (a)............... 0.46% 07/25/36 161,387 </TABLE> Page 78 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) RALI Trust (Continued) $ 3,400,020 Series 2006-QO2, Class A1, 1 Mo. LIBOR + 0.44% (a)............... 0.52% 02/25/46 $ 1,001,995 270,752 Series 2006-QS7, Class A2........................................ 6.00% 06/25/36 257,888 399,046 Series 2007-QH4, Class A1, 1 Mo. LIBOR + 0.19% (a)............... 0.27% 05/25/37 384,721 461,913 Series 2007-QH9, Class A1 (c).................................... 1.36% 11/25/37 442,885 124,576 Series 2007-QS1, Class 1A4....................................... 6.00% 01/25/37 122,011 224,397 Series 2007-QS2, Class A4........................................ 6.25% 01/25/37 215,908 Residential Asset Securitization Trust 269,448 Series 2006-A8, Class 3A4........................................ 6.00% 08/25/36 193,443 RFMSI Trust 738,488 Series 2006-S10, Class 1A1....................................... 6.00% 10/25/36 727,041 Structured Adjustable Rate Mortgage Loan Trust 993,140 Series 2005-17, Class 3A1 (c).................................... 2.88% 08/25/35 959,034 532,532 Series 2006-12, Class 1A1, 1 Mo. LIBOR + 0.32% (a)............... 0.40% 01/25/37 536,603 Structured Asset Mortgage Investments II Trust 268,954 Series 2005-AR8, Class A2, 12 Mo. Treasury Average + 1.48% (a)... 1.98% 02/25/36 266,457 746,113 Series 2006-AR6, Class 2A1, 1 Mo. LIBOR + 0.38% (a).............. 0.46% 07/25/46 652,672 184,735 Series 2006-AR7, Class A1A, 1 Mo. LIBOR + 0.42% (a).............. 0.50% 08/25/36 186,968 179,293 Series 2006-AR7, Class A1BG, 1 Mo. LIBOR + 0.12% (a)............. 0.20% 08/25/36 169,513 980,238 Series 2007-AR1, Class 2A1, 1 Mo. LIBOR + 0.18% (a).............. 0.26% 01/25/37 943,891 55,741 Series 2007-AR3, Class 2A1, 1 Mo. LIBOR + 0.19% (a).............. 0.27% 09/25/47 53,626 WaMu Mortgage Pass-Through Certificates Trust 403,702 Series 2005-AR8, Class 2AC2, 1 Mo. LIBOR + 0.92% (a)............. 1.00% 07/25/45 401,359 186,625 Series 2005-AR17, Class A1A2, 1 Mo. LIBOR + 0.58% (a)............ 0.66% 12/25/45 178,433 68,141 Series 2006-AR3, Class A1A, 12 Mo. Treasury Average + 1.00% (a)..................................................... 1.10% 02/25/46 68,829 1,105,369 Series 2006-AR17, Class 1A1A, 12 Mo. Treasury Average + 0.81% (a)..................................................... 0.92% 12/25/46 1,068,775 Washington Mutual Mortgage Pass-Through Certificates WMALT 742,648 Series 2006-AR6, Class 2A, 12 Mo. Treasury Average + 0.96% (a)... 1.06% 08/25/46 496,748 282,658 Series 2006-AR10, Class A2A, 1 Mo. LIBOR + 0.17% (a)............. 0.25% 12/25/36 276,416 -------------- 30,780,686 -------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 13.0% BAMLL Commercial Mortgage Securities Trust 105,000 Series 2018-PARK, Class A (c) (d)................................ 4.23% 08/10/38 121,084 163,000 Series 2020-JGDN, Class A, 1 Mo. LIBOR + 2.75% (a) (d)........... 2.85% 11/15/30 165,939 BBCMS Mortgage Trust 210,000 Series 2013-TYSN, Class E (d).................................... 3.71% 09/05/32 209,822 120,000 Series 2015-SRCH, Class A2 (d)................................... 4.20% 08/10/35 136,887 500,000 Series 2020-BID, Class A, 1 Mo. LIBOR + 2.14% (a) (d)............ 2.24% 10/15/37 504,437 545,000 Series 2020-BID, Class D, 1 Mo. LIBOR + 4.63% (a) (d)............ 4.73% 10/15/37 553,025 BDS Ltd. 662,000 Series 2020-FL6, Class C, SOFR + 2.36% (a) (d)................... 2.41% 09/15/35 673,879 Benchmark Mortgage Trust 117,000 Series 2020-B18, Class AGNF (d).................................. 4.14% 07/15/53 119,170 BF Mortgage Trust 450,000 Series 2019-NYT, Class A, 1 Mo. LIBOR + 1.20% (a) (d)............ 1.30% 12/15/35 451,468 BFLD Trust 450,000 Series 2020-EYP, Class F, 1 Mo. LIBOR + 4.20% (a) (d)............ 4.30% 10/15/35 456,116 320,000 Series 2020-OBRK, Class A, 1 Mo. LIBOR + 2.05% (a) (d)........... 2.15% 11/15/28 323,797 200,000 Series 2021-FPM, Class B, 1 Mo. LIBOR + 2.50% (a) (d)............ 2.60% 06/15/38 200,932 </TABLE> See Notes to Financial Statements Page 79 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) BPR Trust $ 290,597 Series 2021-WILL, Class A, 1 Mo. LIBOR + 1.75% (a) (d)........... 1.85% 06/15/38 $ 291,165 BWAY Mortgage Trust 19,560,737 Series 2013-1515, Class XA, IO (c) (d)........................... 0.73% 03/10/33 329,057 BX Commercial Mortgage Trust 35,000 Series 2018-IND, Class G, 1 Mo. LIBOR + 2.05% (a) (d)............ 2.15% 11/15/35 35,149 405,071 Series 2020-FOX, Class F, 1 Mo. LIBOR + 4.25% (a) (d)............ 4.35% 11/15/32 408,450 750,000 Series 2021-SOAR, Class J, 1 Mo. LIBOR + 3.75% (a) (d)........... 3.85% 06/15/38 754,883 BX Trust 127,000 Series 2019-CALM, Class A, 1 Mo. LIBOR + 0.88% (a) (d)........... 0.97% 11/15/32 127,209 CALI Mortgage Trust 100,000 Series 2019-101C, Class A (d).................................... 3.96% 03/10/39 114,492 CAMB Commercial Mortgage Trust 332,500 Series 2019-LIFE, Class A, 1 Mo. LIBOR + 1.07% (a) (d)........... 1.17% 12/15/37 333,648 890,000 Series 2019-LIFE, Class G, 1 Mo. LIBOR + 3.25% (a) (d)........... 3.35% 12/15/37 895,674 Citigroup Commercial Mortgage Trust 1,113,133 Series 2012-GC8, Class XA, IO (c) (d)............................ 1.89% 09/10/45 11,708 757,724 Series 2013-GC15, Class XA, IO (c)............................... 1.00% 09/10/46 10,392 4,674,228 Series 2016-P3, Class XA, IO (c)................................. 1.85% 04/15/49 264,597 151,379 Series 2020-WSS, Class A, 1 Mo. LIBOR + 1.95% (a) (d)............ 2.05% 02/15/39 156,997 COMM Mortgage Trust 317,000 Series 2012-CR4, Class AM........................................ 3.25% 10/15/45 319,546 4,643,327 Series 2012-CR4, Class XA, IO (c)................................ 1.84% 10/15/45 66,352 7,619,284 Series 2013-CR12, Class XA, IO (c)............................... 1.28% 10/10/46 152,130 1,131,743 Series 2013-LC13, Class XA, IO (c)............................... 1.18% 08/10/46 18,606 567,014 Series 2014-CR14, Class A2....................................... 3.15% 02/10/47 574,303 25,005,324 Series 2014-CR14, Class XA, IO (c)............................... 0.71% 02/10/47 295,523 6,684,755 Series 2014-CR17, Class XA, IO (c)............................... 1.12% 05/10/47 138,099 1,638,022 Series 2014-UBS2, Class XA, IO (c)............................... 1.29% 03/10/47 37,315 579,050 Series 2014-UBS3, Class XA, IO (c)............................... 1.23% 06/10/47 13,980 11,151,000 Series 2014-UBS3, Class XB, IO (c) (d)........................... 0.42% 06/10/47 94,177 7,000,000 Series 2015-LC21, Class XE, IO (c) (d)........................... 1.23% 07/10/48 271,068 35,000 Series 2020-CX, Class E (c) (d).................................. 2.77% 11/10/46 33,648 CSAIL Commercial Mortgage Trust 21,838,335 Series 2015-C2, Class XA, IO (c)................................. 0.88% 06/15/57 489,137 6,154,525 Series 2015-C4, Class XA, IO (c)................................. 0.97% 11/15/48 183,496 3,080,123 Series 2016-C5, Class XA, IO (c)................................. 1.09% 11/15/48 97,878 Credit Suisse Mortgage Trust 182,000 Series 2019-UVIL, Class B (c) (d)................................ 3.39% 12/15/41 190,977 800,000 Series 2020-TMIC, Class A, 1 Mo. LIBOR + 3.00% (a) (d)........... 3.25% 12/15/35 813,972 611,000 Series 2021-BPNY, Class A, 1 Mo. LIBOR + 3.71% (a) (d)........... 3.81% 08/15/23 612,526 DBUBS Mortgage Trust 120,000 Series 2017-BRBK, Class A (d).................................... 3.45% 10/10/34 128,024 DC Office Trust 75,000 Series 2019-MTC, Class A (d)..................................... 2.97% 09/15/45 80,823 DROP Mortgage Trust 340,000 Series 2021-FILE, Class A, 1 Mo. LIBOR + 1.15% (a) (d)........... 1.25% 04/15/26 342,543 386,000 Series 2021-FILE, Class B, 1 Mo. LIBOR + 1.70% (a) (d)........... 1.80% 04/15/26 387,942 GPMT Ltd. 840,000 Series 2021-FL3, Class A, 1 Mo. LIBOR + 1.25% (a) (d)............ 1.34% 07/16/35 841,478 </TABLE> Page 80 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) Grace Trust $ 1,000,000 Series 2020-GRCE, Class X, IO (c) (d)............................ 0.30% 12/10/40 $ 26,358 GS Mortgage Securities Corp. Trust 763,434 Series 2019-BOCA, Class A, 1 Mo. LIBOR + 1.20% (a) (d)........... 1.30% 06/15/38 765,153 GS Mortgage Securities Corp. II 5,825,033 Series 2013-GC10, Class XA, IO (c)............................... 1.63% 02/10/46 95,838 GS Mortgage Securities Corp. Trust 320,000 Series 2012-ALOH, Class A (d).................................... 3.55% 04/10/34 322,441 175,000 Series 2020-TWN3, Class A, 1 Mo. LIBOR + 2.00% (a) (d)........... 2.10% 11/15/37 176,194 GS Mortgage Securities Trust 170,990 Series 2011-GC5, Class AS (d).................................... 5.21% 08/10/44 171,856 2,116,657 Series 2011-GC5, Class XA, IO (c) (g)............................ 0.09% 08/10/44 21 8,476,732 Series 2012-GC6, Class XA, IO (c) (g)............................ 1.91% 01/10/45 85 21,269,635 Series 2015-GC28, Class XA, IO (c)............................... 1.13% 02/10/48 601,531 280,000 Series 2018-HART, Class A, 1 Mo. LIBOR + 1.09% (a) (d)........... 1.19% 10/15/31 280,215 Hilton USA Trust 700,000 Series 2016-SFP, Class C (d)..................................... 4.12% 11/05/35 706,595 Hudson Yards Mortgage Trust 75,000 Series 2019-55HY, Class A (c) (d)................................ 3.04% 12/10/41 81,235 JP Morgan Chase Commercial Mortgage Securities Trust 5,358,061 Series 2013-C16, Class XA, IO (c)................................ 1.08% 12/15/46 87,724 1,905,060 Series 2013-LC11, Class XA, IO (c)............................... 1.38% 04/15/46 28,949 19,243,579 Series 2014-C20, Class XA, IO (c)................................ 1.01% 07/15/47 302,496 374,000 Series 2021-1440, Class B, 1 Mo. LIBOR + 1.75% (a) (d)........... 1.85% 03/15/36 374,751 JPMBB Commercial Mortgage Securities Trust 1,006,997 Series 2015-C32, Class XA, IO (c)................................ 1.36% 11/15/48 28,820 JPMCC Commercial Mortgage Securities Trust 184,217 Series 2017-JP5, Class A2........................................ 3.24% 03/15/50 185,493 JPMDB Commercial Mortgage Securities Trust 6,183,222 Series 2016-C2, Class XA, IO (c)................................. 1.71% 06/15/49 324,912 KKR Industrial Portfolio Trust 226,588 Series 2020-AIP, Class F, 1 Mo. LIBOR + 3.43% (a) (d)............ 3.52% 03/15/37 227,430 Last Mile Logistics Pan Euro Finance DAC........................ 720,000 Series 1A, Class E, 3 Mo. EURIBOR + 2.70% (a) (d)................ 2.70% 08/17/33 851,599 Merit Hill Commercial Mortgage Pass-Through Certificates 320,000 Series 2020-HILL, Class F, 1 Mo. LIBOR + 4.10% (a) (d)........... 4.20% 08/15/37 323,340 MF1 Ltd. 365,288 Series 2020-FL3, Class A, SOFR + 2.16% (a) (d)................... 2.21% 07/15/35 369,507 MHC Commercial Mortgage Trust 205,000 Series 2021-MHC, Class E, 1 Mo. LIBOR + 2.10% (a) (d)............ 2.20% 04/15/38 205,565 MKT Mortgage Trust 95,000 Series 2020-525M, Class A (d).................................... 2.69% 02/12/40 100,644 Morgan Stanley Bank of America Merrill Lynch Trust 1,865,790 Series 2013-C13, Class XA, IO (c)................................ 1.11% 11/15/46 31,823 5,326,730 Series 2014-C14, Class XA, IO (c)................................ 1.16% 02/15/47 99,381 10,866,482 Series 2015-C20, Class XA, IO (c)................................ 1.41% 02/15/48 358,691 MSCG Trust 540,000 Series 2015-ALDR, Class A2 (c) (d)............................... 3.58% 06/07/35 560,137 </TABLE> See Notes to Financial Statements Page 81 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) Natixis Commercial Mortgage Securities Trust $ 415,000 Series 2019-1776, Class A (d).................................... 2.51% 10/15/36 $ 427,899 435,000 Series 2019-FAME, Class A (d).................................... 3.05% 08/15/36 445,552 330,000 Series 2019-MILE, Class D, 1 Mo. LIBOR + 2.75% (a) (d)........... 2.85% 07/15/36 330,529 75,000 Series 2020-2PAC, Class A (d).................................... 2.97% 12/15/38 78,667 One Bryant Park Trust 125,000 Series 2019-OBP, Class A (d)..................................... 2.52% 09/15/54 131,064 One Market Plaza Trust 1,055,000 Series 2017-1MKT, Class C (d).................................... 4.02% 02/10/32 1,070,377 417,000 Series 2017-1MKT, Class D (d).................................... 4.15% 02/10/32 423,851 SFAVE Commercial Mortgage Securities Trust 270,000 Series 2015-5AVE, Class A2A (c) (d).............................. 3.66% 01/05/43 302,609 340,000 Series 2015-5AVE, Class A2B (c) (d).............................. 4.14% 01/05/43 377,811 SG Commercial Mortgage Securities Trust 750,000 Series 2019-787E, Class E (c) (d)................................ 4.66% 02/15/41 768,453 Shops at Crystals Trust 170,000 Series 2016-CSTL, Class A (d).................................... 3.13% 07/05/36 179,072 SLG Office Trust 385,000 Series 2021-OVA, Class G (d)..................................... 2.85% 07/15/41 356,920 UBS Commercial Mortgage Trust 3,045,940 Series 2012-C1, Class XA, IO (c) (d)............................. 2.20% 05/10/45 9,963 UBS-Barclays Commercial Mortgage Trust 5,262,602 Series 2012-C2, Class XA, IO (c) (d)............................. 1.43% 05/10/63 35,607 650,922 Series 2012-C3, Class XA, IO (c) (d)............................. 1.98% 08/10/49 7,667 161,765 Series 2012-C4, Class A3......................................... 2.53% 12/10/45 162,285 Wells Fargo Commercial Mortgage Trust 8,808,922 Series 2015-C26, Class XA, IO (c)................................ 1.35% 02/15/48 305,971 16,256,221 Series 2015-C27, Class XA, IO (c)................................ 1.43% 02/15/48 392,540 29,398,553 Series 2015-C28, Class XA, IO (c)................................ 0.74% 05/15/48 550,714 3,527,038 Series 2015-C30, Class XA, IO (c)................................ 1.04% 09/15/58 107,141 1,993,112 Series 2015-LC22, Class XA, IO (c)............................... 0.93% 09/15/58 52,165 6,979,206 Series 2015-NXS3, Class XA, IO (c)............................... 1.05% 09/15/57 216,835 3,948,934 Series 2016-C33, Class XA, IO (c)................................ 1.78% 03/15/59 241,875 5,823,000 Series 2016-C37, Class XEF, IO (c) (d)........................... 1.60% 12/15/49 426,658 1,237,236 Series 2016-BNK1, Class XA, IO (c)............................... 1.86% 08/15/49 84,853 WFRBS Commercial Mortgage Trust 633,474 Series 2012-C9, Class XA, IO (c) (d)............................. 2.02% 11/15/45 8,345 3,862,381 Series 2014-C20, Class XA, IO (c)................................ 1.08% 05/15/47 72,730 1,039,474 Series 2014-C22, Class XA, IO (c)................................ 0.94% 09/15/57 20,080 4,999,709 Series 2014-C24, Class XA, IO (c)................................ 1.00% 11/15/47 115,274 13,098,729 Series 2014-LC14, Class XA, IO (c)............................... 1.43% 03/15/47 324,373 -------------- 29,550,184 -------------- TOTAL MORTGAGE-BACKED SECURITIES............................................................... 60,330,870 (Cost $60,053,642) -------------- U.S. GOVERNMENT BONDS AND NOTES -- 20.0% 130,000 U.S. Treasury Bond.................................................. 2.38% 05/15/51 143,396 465,000 U.S. Treasury Bond.................................................. 2.00% 08/15/51 472,629 4,115,000 U.S. Treasury Note.................................................. 0.13% 06/30/23 4,111,946 7,570,000 U.S. Treasury Note.................................................. 0.13% 07/31/23 7,561,425 </TABLE> Page 82 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> $ 16,215,000 U.S. Treasury Note.................................................. 0.13% 08/31/23 $ 16,189,031 3,795,000 U.S. Treasury Note.................................................. 0.88% 06/30/26 3,816,643 3,810,000 U.S. Treasury Note.................................................. 0.63% 07/31/26 3,784,402 4,330,000 U.S. Treasury Note.................................................. 0.75% 08/31/26 4,325,771 5,135,000 U.S. Treasury Note.................................................. 1.25% 08/15/31 5,110,528 -------------- Total U.S. Government Bonds and Notes.......................................................... 45,515,771 (Cost $45,421,028) -------------- ASSET-BACKED SECURITIES -- 18.9% Accredited Mortgage Loan Trust 169,452 Series 2005-1, Class M2, 1 Mo. LIBOR + 1.04% (a)................. 1.12% 04/25/35 169,898 ACE Securities Corp. Home Equity Loan Trust 104,302 Series 2006-OP2, Class A1, 1 Mo. LIBOR + 0.16% (a)............... 0.24% 08/25/36 102,207 1,619,782 Series 2007-HE1, Class A1, 1 Mo. LIBOR + 0.30% (a)............... 0.38% 01/25/37 1,083,537 AGL CLO 7 Ltd. 1,000,000 Series 2020-7A, Class BR, 3 Mo. LIBOR + 1.70% (a) (d)............ 1.83% 07/15/34 1,001,240 AIG CLO Ltd. 320,000 Series 2018-1A, Class BR, 3 Mo. LIBOR + 1.70% (a) (d)............ 1.83% 04/20/32 320,240 Aimco CLO 12 Ltd. 850,000 Series 2020-12A, Class A, 3 Mo. LIBOR + 1.21% (a) (d)............ 1.34% 01/17/32 851,837 Ameriquest Mortgage Securities, Inc., Asset Backed Pass-Through Ctfs 290,000 Series 2005-R11, Class M3, 1 Mo. LIBOR + 0.75% (a)............... 0.83% 01/25/36 287,414 AMMC CLO 169,842 Series 2016-19A, Class AR, 3 Mo. LIBOR + 1.14% (a) (d)........... 1.27% 10/16/28 169,926 450,000 Series 2013-13A, Class A1R2, 3 Mo. LIBOR + 1.05% (a) (d)......... 1.18% 07/24/29 449,888 Argent Securities Trust 799,487 Series 2006-M1, Class A2C, 1 Mo. LIBOR + 0.30% (a)............... 0.38% 07/25/36 328,198 Argent Securities, Inc., Asset-Backed Pass-Through Certificates 600,000 Series 2005-W3, Class M2, 1 Mo. LIBOR + 0.69% (a)................ 0.77% 11/25/35 574,698 225,806 Series 2005-W5, Class A2D, 1 Mo. LIBOR + 0.64% (a)............... 0.72% 01/25/36 220,160 Blackrock DLF VIII-L CLO Trust 425,000 Series 2021-1A, Class A, 3 Mo. LIBOR + 1.35% (a) (d)............. 1.43% 04/17/32 425,210 BlueMountain CLO XXX Ltd. 60,000 Series 2020-30A, Class B, 3 Mo. LIBOR + 1.80% (a) (d)............ 1.93% 01/15/33 60,075 Carvana Auto Receivables Trust 750,000 Series 2021-N3, Class N (d) (h).................................. 2.53% 06/12/28 752,954 C-BASS Mortgage Loan Trust 910,443 Series 2007-CB3, Class A3 (f).................................... 3.43% 03/25/37 456,063 1,047,009 Series 2007-CB3, Class A4 (f).................................... 3.43% 03/25/37 524,261 C-BASS Trust 230,828 Series 2006-CB7, Class A5, 1 Mo. LIBOR + 0.24% (a)............... 0.32% 10/25/36 198,173 1,039,436 Series 2007-CB1, Class AF1B (f).................................. 3.26% 01/25/37 472,055 Citigroup Mortgage Loan Trust, Inc. 160,000 Series 2007-WFH3, Class M1, 1 Mo. LIBOR + 0.26% (a).............. 0.34% 06/25/37 157,355 CoreVest American Finance Trust 237,000 Series 2017-1, Class D (d)....................................... 4.36% 10/15/49 240,627 3,068,984 Series 2021-2, Class XA, IO (c) (d).............................. 3.16% 07/15/54 425,723 Credit-Based Asset Servicing and Securitization LLC 158,509 Series 2007-CB6, Class A1, 1 Mo. LIBOR + 0.12% (a) (d)........... 0.21% 07/25/37 126,161 </TABLE> See Notes to Financial Statements Page 83 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> CWABS Asset-Backed Certificates Trust $ 169,648 Series 2005-1, Class MV6, 1 Mo. LIBOR + 1.10% (a)................ 1.18% 07/25/35 $ 170,293 31,516 Series 2005-16, Class MV1, 1 Mo. LIBOR + 0.46% (a)............... 0.54% 05/25/36 31,518 350,000 Series 2005-17, Class MV2, 1 Mo. LIBOR + 0.48% (a)............... 0.56% 05/25/36 342,834 Dryden CLO Ltd. 615,000 Series 2019-72A, Class BR, 3 Mo. LIBOR + 1.65% (a) (d)........... 1.77% 05/15/32 615,013 Eaton Vance CLO Ltd. 575,000 Series 2019-1A, Class AR, 3 Mo. LIBOR + 1.10% (a) (d)............ 1.23% 04/15/31 575,537 First Franklin Mortgage Loan Trust 565,000 Series 2006-FF7, Class 2A4, 1 Mo. LIBOR + 0.48% (a).............. 0.56% 05/25/36 531,230 479,144 Series 2006-FF11, Class 2A3, 1 Mo. LIBOR + 0.30% (a)............. 0.38% 08/25/36 470,287 Fremont Home Loan Trust 90,214 Series 2005-A, Class M3, 1 Mo. LIBOR + 0.74% (a)................. 0.82% 01/25/35 89,750 GCI Funding I LLC 1,051,869 Series 2021-1, Class A (d)....................................... 2.38% 06/18/46 1,061,620 GoldenTree Loan Opportunities IX Ltd. 400,000 Series 2014-9A, Class AR2, 3 Mo. LIBOR + 1.11% (a) (d)........... 1.24% 10/29/29 400,199 Golub Capital Partners CLO L.P. 1,100,000 Series 2021-54A, Class A, 3 Mo. LIBOR + 1.53% (a) (d)............ 1.65% 08/05/33 1,100,652 GSAA Home Equity Trust 1,900,000 Series 2007-5, Class 1F3B........................................ 6.00% 05/25/37 258,372 GSAA Trust 1,720,472 Series 2007-6, Class 3A1A, 1 Mo. LIBOR + 0.42% (a)............... 0.50% 05/25/47 1,432,527 GSAMP Trust 193,963 Series 2005-HE6, Class M2, 1 Mo. LIBOR + 0.68% (a)............... 0.76% 11/25/35 193,380 300,000 Series 2006-HE3, Class A2D, 1 Mo. LIBOR + 0.50% (a).............. 0.58% 05/25/46 292,557 Home Partners of America Trust 545,000 Series 2017-1, Class E, 1 Mo. LIBOR + 2.65% (a) (d).............. 2.74% 07/17/34 546,743 HSI Asset Securitization Corp. Trust 231,665 Series 2006-WMC1, Class A4, 1 Mo. LIBOR + 0.50% (a).............. 0.58% 07/25/36 140,561 Invitation Homes Trust 722,733 Series 2018-SFR2, Class A, 1 Mo. LIBOR + 0.90% (a) (d)........... 1.00% 06/17/37 724,851 JP Morgan Mortgage Acquisition Corp. 37,340 Series 2005-OPT1, Class M2, 1 Mo. LIBOR + 0.71% (a).............. 0.79% 06/25/35 37,381 6,137 Series 2005-WMC1, Class M2, 1 Mo. LIBOR + 0.66% (a).............. 0.74% 09/25/35 6,273 208,713 Series 2006-FRE1, Class M1, 1 Mo. LIBOR + 0.59% (a).............. 0.67% 05/25/35 208,206 JP Morgan Mortgage Acquisition Trust 1,562,776 Series 2006-WMC2, Class A4, 1 Mo. LIBOR + 0.30% (a).............. 0.38% 07/25/36 920,111 141,029 Series 2006-WMC4, Class A1A, 1 Mo. LIBOR + 0.13% (a)............. 0.21% 12/25/36 105,270 Lehman XS Trust 414,057 Series 2006-15, Class A4, 1 Mo. LIBOR + 0.34% (a)................ 0.42% 10/25/36 408,861 Long Beach Mortgage Loan Trust 154,514 Series 2005-WL2, Class M2, 1 Mo. LIBOR + 0.74% (a)............... 0.82% 08/25/35 155,110 315,080 Series 2006-10, Class 2A3, 1 Mo. LIBOR + 0.16% (a)............... 0.24% 11/25/36 139,329 Madison Park Funding XLV Ltd. 825,000 Series 2020-45A, Class BR, 3 Mo. LIBOR + 1.70% (a) (d)........... 1.83% 07/15/34 826,023 Mastr Asset Backed Securities Trust 370,000 Series 2005-WMC1, Class M5, 1 Mo. LIBOR + 1.01% (a).............. 1.09% 03/25/35 371,013 1,685,941 Series 2006-HE2, Class A3, 1 Mo. LIBOR + 0.30% (a)............... 0.38% 06/25/36 929,927 Merrill Lynch First Franklin Mortgage Loan Trust 394,104 Series 2007-1, Class A1, 1 Mo. LIBOR + 0.14% (a)................. 0.22% 04/25/37 241,640 769,275 Series 2007-3, Class A2B, 1 Mo. LIBOR + 0.13% (a)................ 0.21% 06/25/37 723,760 </TABLE> Page 84 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Merrill Lynch Mortgage Investors Trust $ 1,257,063 Series 2006-HE6, Class A2B, 1 Mo. LIBOR + 0.30% (a).............. 0.38% 11/25/37 $ 609,171 1,000,000 Series 2006-OPT1, Class A2D, 1 Mo. LIBOR + 0.24% (a)............. 0.32% 08/25/37 923,231 Morgan Stanley Capital I, Inc., Trust 212,025 Series 2006-HE1, Class A4, 1 Mo. LIBOR + 0.58% (a)............... 0.66% 01/25/36 209,685 30,411 Series 2006-NC2, Class A2D, 1 Mo. LIBOR + 0.58% (a).............. 0.66% 02/25/36 30,286 Navient Student Loan Trust 320,000 Series 2015-3, Class B, 1 Mo. LIBOR + 1.50% (a).................. 1.58% 10/25/58 323,936 Nelnet Student Loan Trust 404,953 Series 2005-4, Class B, 3 Mo. LIBOR + 0.28% (a).................. 0.41% 09/22/35 372,348 159,577 Series 2007-2A, Class A3L, 3 Mo. LIBOR + 0.35% (a) (d)........... 0.50% 03/25/26 159,459 215,000 Series 2014-4A, Class A2, 1 Mo. LIBOR + 0.95% (a) (d)............ 1.03% 11/25/48 220,128 370,000 Series 2015-3A, Class A3, 1 Mo. LIBOR + 0.90% (a) (d)............ 0.98% 06/25/54 365,616 Nomura Home Equity Loan, Inc., Home Equity Loan Trust 60,079 Series 2006-HE1, Class M1, 1 Mo. LIBOR + 0.62% (a)............... 0.70% 02/25/36 60,102 Oakwood Mortgage Investors, Inc. 1,005,445 Series 1999-C, Class A2.......................................... 7.48% 08/15/27 951,281 582,662 Series 2001-C, Class A2.......................................... 5.92% 06/15/31 101,065 Option One Mortgage Loan Trust 397,746 Series 2007-4, Class 2A3, 1 Mo. LIBOR + 0.24% (a)................ 0.32% 04/25/37 279,369 Ownit Mortgage Loan Trust 748,072 Series 2006-6, Class A2C, 1 Mo. LIBOR + 0.32% (a)................ 0.40% 09/25/37 460,277 Palmer Square CLO Ltd. 400,000 Series 2018-1A, Class A1, 3 Mo. LIBOR + 1.03% (a) (d)............ 1.16% 04/18/31 400,202 Park Avenue Institutional Advisers CLO Ltd. 150,000 Series 2018-1A, Class A2R, 3 Mo. LIBOR + 1.60% (a) (d)........... 1.73% 10/20/31 150,039 Park Place Securities Inc Asset-Backed Pass-Through Certificates 367,964 Series 2004-WHQ2, Class M4, 1 Mo. LIBOR + 1.58% (a).............. 1.66% 02/25/35 371,360 338,020 Series 2004-WWF1, Class M5, 1 Mo. LIBOR + 1.80% (a).............. 1.88% 12/25/34 341,556 Progress Residential Trust 370,000 Series 2018-SFR3, Class E (d).................................... 4.87% 10/17/35 371,037 364,000 Series 2018-SFR3, Class G (d).................................... 5.62% 10/17/35 364,836 500,000 Series 2019-SFR1, Class F (d).................................... 5.06% 08/17/35 511,125 1,169,000 Series 2019-SFR3, Class F (d).................................... 3.87% 09/17/36 1,198,134 RASC Trust 576,000 Series 2005-KS11, Class M3, 1 Mo. LIBOR + 0.66% (a).............. 0.74% 12/25/35 561,260 Rockford Tower CLO Ltd. 775,000 Series 2021-1A, Class A1, 3 Mo. LIBOR + 1.17% (a) (d)............ 1.25% 07/20/34 776,729 Sabey Data Center Issuer LLC 650,000 Series 2020-1, Class A2 (d)...................................... 3.81% 04/20/45 691,905 Saxon Asset Securities Trust 83,383 Series 2005-1, Class M2, 1 Mo. LIBOR + 0.72% (a)................. 0.80% 05/25/35 82,417 Securitized Asset Backed Receivables LLC Trust 662,511 Series 2006-CB5, Class A3, 1 Mo. LIBOR + 0.28% (a)............... 0.36% 06/25/36 515,097 95,004 Series 2006-NC2, Class A3, 1 Mo. LIBOR + 0.48% (a)............... 0.56% 03/25/36 94,290 411,656 Series 2007-NC2, Class A2B, 1 Mo. LIBOR + 0.14% (a).............. 0.22% 01/25/37 374,370 SLM Student Loan Trust 65,000 Series 2008-4, Class B, 3 Mo. LIBOR + 1.85% (a).................. 1.98% 04/25/73 64,565 709,395 Series 2008-5, Class A4, 3 Mo. LIBOR + 1.70% (a)................. 1.83% 07/25/23 716,733 65,000 Series 2008-5, Class B, 3 Mo. LIBOR + 1.85% (a).................. 1.98% 07/25/73 64,376 615,045 Series 2008-6, Class A4, 3 Mo. LIBOR + 1.10% (a)................. 1.23% 07/25/23 617,311 </TABLE> See Notes to Financial Statements Page 85 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Soundview Home Loan Trust $ 112,063 Series 2006-2, Class M2, 1 Mo. LIBOR + 0.53% (a)................. 0.61% 03/25/36 $ 111,993 388,981 Series 2007-OPT1, Class 2A2, 1 Mo. LIBOR + 0.15% (a)............. 0.23% 06/25/37 316,128 231,853 Series 2007-OPT3, Class 1A1, 1 Mo. LIBOR + 0.17% (a)............. 0.25% 08/25/37 217,939 700,000 Series 2007-OPT3, Class 2A4, 1 Mo. LIBOR + 0.25% (a)............. 0.33% 08/25/37 642,241 Specialty Underwriting & Residential Finance Trust 1,409,336 Series 2006-AB3, Class A2C, 1 Mo. LIBOR + 0.24% (a).............. 0.32% 09/25/37 1,176,614 Structured Asset Securities Corp. Mortgage Loan Trust 95,954 Series 2006-OPT1, Class A1, 1 Mo. LIBOR + 0.18% (a).............. 0.26% 04/25/36 94,870 TAL Advantage VII LLC 519,656 Series 2020-1A, Class A (d)...................................... 2.05% 09/20/45 526,757 Textainer Marine Containers VIII Ltd. 91,419 Series 2020-2A, Class A (d)...................................... 2.10% 09/20/45 93,045 91,658 Series 2020-3A, Class A (d)...................................... 2.11% 09/20/45 92,892 TRP LLC 289,208 Series 2021-1, Class A (d)....................................... 2.07% 06/19/51 290,354 USQ Rail II LLC 1,190,776 Series 2021-3, Class A (d)....................................... 2.21% 06/28/51 1,199,862 VOYA CLO 175,000 Series 2017-2A, Class A2AR, 3 Mo. LIBOR + 1.65% (a) (d).......... 1.78% 06/07/30 175,356 Wachovia Student Loan Trust 670,342 Series 2006-1, Class B, 3 Mo. LIBOR + 0.24% (a) (d).............. 0.37% 04/25/40 634,947 WaMu Asset-Backed Certificates WaMuTrust 1,180,911 Series 2007-HE1, Class 2A4, 1 Mo. LIBOR + 0.23% (a).............. 0.31% 01/25/37 750,821 -------------- TOTAL ASSET-BACKED SECURITIES.................................................................. 43,105,843 (Cost $42,817,930) -------------- U.S. TREASURY BILLS -- 31.3% 3,890,000 U.S. Cash Management Bill........................................... (b) 12/14/21 3,889,573 20,220,000 U.S. Cash Management Bill........................................... (b) 12/21/21 20,217,631 21,020,000 U.S. Treasury Bill.................................................. (b) 10/05/21 21,019,249 7,000,000 U.S. Treasury Bill.................................................. (b) 10/28/21 6,999,446 10,915,000 U.S. Treasury Bill.................................................. (b) 01/06/22 10,913,460 8,120,000 U.S. Treasury Bill.................................................. (b) 01/20/22 8,118,728 -------------- TOTAL U.S. TREASURY BILLS...................................................................... 71,158,087 (Cost $71,158,139) -------------- SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.5% 3,378,300 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 0.01% (i)..... 3,378,300 (Cost $3,378,300) -------------- TOTAL INVESTMENTS -- 150.3%.................................................................... 341,990,236 (Cost $341,091,626) (j) NET OTHER ASSETS AND LIABILITIES -- (50.3)%.................................................... (114,446,066) -------------- NET ASSETS -- 100.0%........................................................................... $ 227,544,170 ============== </TABLE> Page 86 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 Forward Foreign Currency Contracts at August 31, 2021 (See Note 2E - Forward Foreign Currency Contracts in the Notes to Financial Statements): <TABLE> <CAPTION> PURCHASE VALUE SALE VALUE UNREALIZED SETTLEMENT AMOUNT AMOUNT AS OF AS OF APPRECIATION DATE COUNTERPARTY PURCHASED SOLD AUGUST 31, 2021 AUGUST 31, 2021 (DEPRECIATION) ---------------- -------------- --------------- ---------------- ---------------- --------------- ---------------- <S> <C> <C> <C> <C> <C> <C> 10/22/2021 GS USD 852,035 EUR 720,000 $ 852,035 $ 851,021 $ 1,014 ------- Net Unrealized Appreciation (Depreciation) $ 1,014 ======= </TABLE> Counterparty Abbreviations: GS - Goldman Sachs and Co. Futures Contracts at August 31, 2021 (See Note 2D - Futures Contracts in the Notes to Financial Statements): <TABLE> <CAPTION> UNREALIZED APPRECIATION NUMBER OF (DEPRECIATION)/ FUTURES CONTRACTS POSITION CONTRACTS EXPIRATION DATE NOTIONAL VALUE VALUE ----------------------------------- ---------------- --------------- --------------- -------------- --------------- <S> <C> <C> <C> <C> <C> U.S. 5-Year Treasury Notes Short 13 Dec-2021 $ (1,608,344) $ (1,698) U.S. 10-Year Ultra Treasury Notes Short 2 Dec-2021 (296,031) (474) Ultra U.S. Treasury Bond Futures Short 7 Dec-2021 (1,380,969) (2,503) -------------- ----------- $ (3,285,344) $ (4,675) ============== =========== </TABLE> ----------------------------- (a) Floating or variable rate security. (b) Zero coupon security. (c) Collateral Strip Rate security. Coupon is based on the weighted net interest rate of the investment's underlying collateral. The interest rate resets periodically. (d) This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, (the "1933 Act") as amended, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Trust's Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P., the Fund's Advisor. Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At August 31, 2021, securities noted as such amounted to $44,591,105 or 19.6% of net assets. (e) All or a portion of this security is part of a mortgage dollar roll agreement (see Note 2K - Mortgage Dollar Rolls in the Notes to Financial Statements). (f) Step-up security. A security where the coupon increases or steps up at a predetermined date. (g) This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A under the 1933 Act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers (see Note 2C -- Restricted Securities in the Notes to Financial Statements). (h) When-issued security. The interest rate shown reflects the rate in effect at August 31, 2021. (i) Rate shown reflects yield as of August 31, 2021. (j) Aggregate cost for federal income tax purposes is $340,960,328. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $1,540,004 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $513,757. The net unrealized appreciation was $1,026,247. The unrealized amounts presented are inclusive of derivative contracts. IO - Interest-Only Security -- Principal amount shown represents par value on which interest payments are based. EURIBOR - Euro Interbank Offered Rate LIBOR - London Interbank Offered Rate PO - Principal-Only Security SOFR - Secured Overnight Finance Rate TBA - To-Be-Announced Security Currency Abbreviations: EUR - Euro USD - United States Dollar See Notes to Financial Statements Page 87 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- <S> <C> <C> <C> <C> U.S. Government Agency Mortgage-Backed Securities..... $ 118,501,365 $ -- $ 118,501,365 $ -- Mortgage-Backed Securities............................ 60,330,870 -- 60,330,870 -- U.S. Government Bonds and Notes....................... 45,515,771 -- 45,515,771 -- Asset-Backed Securities............................... 43,105,843 -- 43,105,843 -- U.S. Treasury Bills................................... 71,158,087 -- 71,158,087 -- Money Market Funds.................................... 3,378,300 3,378,300 -- -- ---------------- --------------- ---------------- ---------------- Total Investments..................................... 341,990,236 3,378,300 338,611,936 -- Forward Foreign Currency Contracts . . . ............. 1,014 -- 1,014 -- ---------------- --------------- ---------------- ---------------- Total................................................. $ 341,991,250 $ 3,378,300 $ 338,612,950 $ -- ================ =============== ================ ================ LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- Futures Contracts*.................................... $ (4,675) $ (4,675) $ -- $ -- ================ =============== ================ ================ </TABLE> * Includes cumulative appreciation/depreciation on futures contracts as reported in the Futures Contracts table. Only the current day's variation margin is presented on the Statements of Assets and Liabilities. Page 88 See Notes to Financial Statements <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS AND NOTES -- 60.2% <S> <C> <C> <C> <C> ANGOLA -- 2.4% 200,000 Angolan Government International Bond (USD) (a)..................... 8.25% 05/09/28 $ 213,679 250,000 Angolan Government International Bond (USD) (a)..................... 9.13% 11/26/49 261,889 -------------- 475,568 -------------- ARGENTINA -- 1.5% 61,000 Argentine Republic Government International Bond (USD).............. 1.00% 07/09/29 25,091 245,000 Argentine Republic Government International Bond, steps up to 1.50% on 07/10/2022 (USD) (b).................................... 1.13% 07/09/35 85,990 255,894 Argentine Republic Government International Bond, steps up to 3.50% on 07/10/2022 (USD) (b).................................... 2.50% 07/09/41 100,088 54,106 Argentine Republic Government International Bond, steps up to 3.88% on 07/10/2022 (USD) (b).................................... 2.00% 01/09/38 22,327 158,000 Argentine Republic Government International Bond, steps up to 0.75% on 07/10/2023 (USD) (b).................................... 0.50% 07/09/30 61,935 -------------- 295,431 -------------- BAHRAIN -- 3.2% 450,000 Bahrain Government International Bond (USD) (a)..................... 5.25% 01/25/33 434,467 200,000 Bahrain Government International Bond (USD) (c)..................... 7.50% 09/20/47 212,508 -------------- 646,975 -------------- BRAZIL -- 1.0% 200,000 Brazilian Government International Bond (USD)....................... 3.88% 06/12/30 200,870 -------------- CHILE -- 2.6% 300,000 Chile Government International Bond (USD)........................... 2.55% 01/27/32 308,931 200,000 Chile Government International Bond (USD)........................... 2.55% 07/27/33 204,044 -------------- 512,975 -------------- COLOMBIA -- 2.9% 200,000 Colombia Government International Bond (USD)........................ 3.13% 04/15/31 195,792 400,000 Colombia Government International Bond (USD)........................ 4.13% 02/22/42 384,880 -------------- 580,672 -------------- DOMINICAN REPUBLIC -- 2.4% 450,000 Dominican Republic International Bond (USD) (a)..................... 4.88% 09/23/32 473,629 -------------- ECUADOR -- 1.9% 65,000 Ecuador Government International Bond, steps up to 1.50% on 08/01/2022 (USD) (a) (b)......................................... 0.50% 07/31/40 41,763 285,000 Ecuador Government International Bond, steps up to 2.50% on 08/01/2022 (USD) (a) (b)......................................... 1.00% 07/31/35 206,628 153,700 Ecuador Government International Bond, steps up to 5.50% on 08/01/2022 (USD) (b) (c)......................................... 5.00% 07/31/30 137,179 -------------- 385,570 -------------- EGYPT -- 3.8% 525,000 Egypt Government International Bond (USD) (a)....................... 7.05% 01/15/32 545,365 200,000 Egypt Government International Bond (USD) (c)....................... 8.50% 01/31/47 210,564 -------------- 755,929 -------------- EL SALVADOR -- 1.0% 34,000 El Salvador Government International Bond (USD) (c)................. 6.38% 01/18/27 29,750 45,000 El Salvador Government International Bond (USD) (c)................. 8.25% 04/10/32 40,951 150,000 El Salvador Government International Bond (USD) (c)................. 7.63% 02/01/41 128,175 -------------- 198,876 -------------- </TABLE> See Notes to Financial Statements Page 89 <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> GHANA -- 2.1% 225,000 Ghana Government International Bond (USD) (c)....................... 8.13% 03/26/32 $ 226,353 200,000 Ghana Government International Bond (USD) (a)....................... 8.95% 03/26/51 196,910 -------------- 423,263 -------------- INDONESIA -- 3.2% 200,000 Indonesia Government International Bond (USD)....................... 3.85% 10/15/30 226,748 200,000 Perusahaan Penerbit SBSN Indonesia III (USD) (c).................... 2.55% 06/09/31 203,800 200,000 Perusahaan Penerbit SBSN Indonesia III (USD) (a).................... 3.80% 06/23/50 211,836 -------------- 642,384 -------------- IRAQ -- 1.0% 203,125 Iraq International Bond (USD) (c)................................... 5.80% 01/15/28 195,173 -------------- IVORY COAST (COTE D'IVOIRE) -- 1.3% 100,000 Ivory Coast Government International Bond (EUR) (a)................. 4.88% 01/30/32 120,763 100,000 Ivory Coast Government International Bond (EUR) (a)................. 6.88% 10/17/40 132,359 -------------- 253,122 -------------- MEXICO -- 1.6% 300,000 Mexico Government International Bond (USD).......................... 4.28% 08/14/41 321,795 -------------- NIGERIA -- 2.1% 200,000 Nigeria Government International Bond (USD) (c)..................... 7.88% 02/16/32 216,082 200,000 Nigeria Government International Bond (USD) (a)..................... 7.70% 02/23/38 205,630 -------------- 421,712 -------------- OMAN -- 2.1% 200,000 Oman Government International Bond (USD) (a)........................ 6.25% 01/25/31 218,618 200,000 Oman Government International Bond (USD) (c)........................ 6.50% 03/08/47 201,333 -------------- 419,951 -------------- PAKISTAN -- 2.1% 200,000 Pakistan Government International Bond (USD) (c).................... 6.88% 12/05/27 205,184 200,000 Pakistan Government International Bond (USD) (a).................... 7.38% 04/08/31 203,661 -------------- 408,845 -------------- PANAMA -- 2.0% 400,000 Panama Government International Bond (USD).......................... 2.25% 09/29/32 390,772 -------------- PARAGUAY -- 2.4% 400,000 Paraguay Government International Bond (USD) (c).................... 5.60% 03/13/48 482,000 -------------- PHILIPPINES -- 2.0% 200,000 Philippine Government International Bond (USD)...................... 1.95% 01/06/32 200,215 200,000 Philippine Government International Bond (USD)...................... 3.20% 07/06/46 207,215 -------------- 407,430 -------------- QATAR -- 1.1% 200,000 Qatar Government International Bond (USD) (a)....................... 3.75% 04/16/30 228,290 -------------- ROMANIA -- 1.4% 274,000 Romanian Government International Bond (USD) (a).................... 3.00% 02/14/31 286,546 -------------- SAUDI ARABIA -- 2.3% 200,000 Saudi Government International Bond (USD) (a)....................... 2.50% 02/03/27 209,505 250,000 Saudi Government International Bond (USD) (a)....................... 2.25% 02/02/33 246,879 -------------- 456,384 -------------- SENEGAL -- 0.6% 100,000 Senegal Government International Bond (EUR) (a)..................... 5.38% 06/08/37 120,991 -------------- </TABLE> Page 90 See Notes to Financial Statements <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> SOUTH AFRICA -- 1.0% 200,000 Republic of South Africa Government International Bond (USD)........ 5.75% 09/30/49 $ 201,770 -------------- SRI LANKA -- 0.7% 200,000 Sri Lanka Government International Bond (USD) (c)................... 6.75% 04/18/28 129,500 -------------- TURKEY -- 2.4% 200,000 Turkey Government International Bond (USD).......................... 4.25% 04/14/26 195,763 300,000 Turkey Government International Bond (USD).......................... 5.25% 03/13/30 291,957 -------------- 487,720 -------------- UKRAINE -- 3.9% 350,000 Ukraine Government International Bond (USD) (c)..................... 7.75% 09/01/27 390,216 200,000 Ukraine Government International Bond (USD) (c)..................... 7.25% 03/15/33 212,399 150,000 Ukraine Government International Bond (USD) (c) (d)................. 1.26% 05/31/40 171,450 -------------- 774,065 -------------- UNITED ARAB EMIRATES -- 1.2% 250,000 Abu Dhabi Government International Bond (USD) (c)................... 1.70% 03/02/31 246,033 -------------- URUGUAY -- 1.0% 164,000 Uruguay Government International Bond (USD)......................... 4.38% 01/23/31 192,826 -------------- TOTAL FOREIGN SOVEREIGN BONDS AND NOTES........................................................ 12,017,067 (Cost $11,980,235) -------------- FOREIGN CORPORATE BONDS AND NOTES -- 33.9% BANKS -- 1.8% 200,000 Akbank TAS (USD) (a) (e)............................................ 6.80% 06/22/31 203,331 150,000 Banco GNB Sudameris S.A. (USD) (a) (e).............................. 7.50% 04/16/31 154,093 -------------- 357,424 -------------- CHEMICALS -- 1.0% 200,000 OCP S.A. (USD) (a).................................................. 5.13% 06/23/51 202,577 -------------- ELECTRIC -- 4.7% 200,000 AES Andes S.A. (USD) (a) (e)........................................ 7.13% 03/26/79 214,250 200,000 Eskom Holdings SOC Ltd. (USD) (c)................................... 6.35% 08/10/28 221,798 250,000 India Green Power Holdings (USD) (a)................................ 4.00% 02/22/27 253,000 250,000 Mong Duong Finance Holdings B.V. (USD) (a).......................... 5.13% 05/07/29 251,562 -------------- 940,610 -------------- ENGINEERING & CONSTRUCTION -- 1.3% 250,000 India Airport Infra (USD) (a)....................................... 6.25% 10/25/25 247,825 -------------- FOOD -- 1.0% 200,000 JBS Finance Luxembourg Sarl (USD) (a)............................... 3.63% 01/15/32 207,293 -------------- LODGING -- 1.0% 200,000 Studio City Finance Ltd. (USD) (a).................................. 5.00% 01/15/29 197,429 -------------- MINING -- 2.9% 200,000 Cia de Minas Buenaventura SAA (USD) (a)............................. 5.50% 07/23/26 197,641 45,000 Freeport-McMoRan, Inc. (USD)........................................ 4.63% 08/01/30 49,612 275,000 Indonesia Asahan Aluminium Persero PT (USD) (a)..................... 5.45% 05/15/30 321,833 -------------- 569,086 -------------- OIL & GAS -- 15.2% 125,000 Energean Israel Finance Ltd. (USD) (a) (c).......................... 5.88% 03/30/31 128,452 400,000 KazMunayGas National Co. JSC (USD) (a).............................. 3.50% 04/14/33 419,400 </TABLE> See Notes to Financial Statements Page 91 <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> OIL & GAS (CONTINUED) 80,000 Leviathan Bond Ltd. (USD) (a) (c)................................... 6.75% 06/30/30 $ 89,800 200,000 MC Brazil Downstream Trading Sarl (USD) (a)......................... 7.25% 06/30/31 208,462 200,000 OQ SAOC (USD) (c)................................................... 5.13% 05/06/28 203,355 109,000 Petrobras Global Finance B.V. (USD)................................. 5.50% 06/10/51 109,050 80,000 Petrobras Global Finance B.V. (USD)................................. 6.85% 06/05/15 88,800 370,000 Petroleos Mexicanos (USD)........................................... 5.35% 02/12/28 368,679 185,000 Petroleos Mexicanos (USD)........................................... 5.95% 01/28/31 181,652 235,000 Petroleos Mexicanos (USD)........................................... 6.63% 06/15/35 227,945 600,000 Qatar Petroleum (USD) (a)........................................... 2.25% 07/12/31 605,884 200,000 SA Global Sukuk Ltd. (USD) (c)...................................... 1.60% 06/17/26 200,589 200,000 SA Global Sukuk Ltd. (USD) (a)...................................... 2.69% 06/17/31 204,964 -------------- 3,037,032 -------------- PIPELINES -- 2.0% 200,000 Galaxy Pipeline Assets Bidco Ltd. (USD) (a)......................... 2.63% 03/31/36 200,330 200,000 Galaxy Pipeline Assets Bidco Ltd. (USD) (a)......................... 2.94% 09/30/40 203,706 -------------- 404,036 -------------- REAL ESTATE -- 2.0% 200,000 New Metro Global Ltd. (USD) (c)..................................... 6.80% 08/05/23 208,500 200,000 Ronshine China Holdings Ltd. (USD) (c).............................. 7.35% 12/15/23 181,000 -------------- 389,500 -------------- TRANSPORTATION -- 1.0% 200,000 Georgian Railway JSC (USD) (a)...................................... 4.00% 06/17/28 203,460 -------------- TOTAL FOREIGN CORPORATE BONDS AND NOTES........................................................ 6,756,272 (Cost $6,732,044) -------------- SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 3.4% <S> <C> <C> 680,749 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 0.01% (f)..... 680,749 (Cost $680,749) -------------- TOTAL INVESTMENTS -- 97.5%..................................................................... 19,454,088 (Cost $19,393,028) (g) NET OTHER ASSETS AND LIABILITIES -- 2.5%....................................................... 495,705 -------------- NET ASSETS -- 100.0%........................................................................... $ 19,949,793 ============== </TABLE> ----------------------------- (a) This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act") and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Trust's Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P. Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At August 31, 2021, securities noted as such amounted to $9,274,700 or 46.5% of net assets. (b) Step-up security. A security where the coupon increases or steps up at a predetermined date. (c) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (d) Floating or variable rate security. (e) Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at August 31, 2021. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. (f) Rate shown reflects yield as of August 31, 2021. Page 92 See Notes to Financial Statements <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 (g) Aggregate cost for federal income tax purposes is $19,422,776. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $214,075 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $182,763. The net unrealized appreciation was $31,312. Currency Abbreviations: EUR - Euro USD - United States Dollar ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- <S> <C> <C> <C> <C> Foreign Sovereign Bonds and Notes*.................... $ 12,017,067 $ -- $ 12,017,067 $ -- Foreign Corporate Bonds and Notes**................... 6,756,272 -- 6,756,272 -- Money Market Funds.................................... 680,749 680,749 -- -- ---------------- --------------- ---------------- ---------------- Total Investments..................................... $ 19,454,088 $ 680,749 $ 18,773,339 $ -- ================ =============== ================ ================ </TABLE> * See Portfolio of Investments for country breakout. ** See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 93 <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- COMMON STOCKS -- 97.0% <S> <C> <C> AEROSPACE & DEFENSE -- 9.7% 968 HEICO Corp. ................................................................................... $ 122,762 141 TransDigm Group, Inc. (a)...................................................................... 85,653 -------------- 208,415 -------------- BEVERAGES -- 4.5% 2,715 Keurig Dr Pepper, Inc. ........................................................................ 96,844 -------------- CAPITAL MARKETS -- 8.9% 347 Morningstar, Inc. ............................................................................. 92,992 155 MSCI, Inc. .................................................................................... 98,360 -------------- 191,352 -------------- COMMERCIAL SERVICES & SUPPLIES -- 4.8% 710 Copart, Inc. (a)............................................................................... 102,467 -------------- ELECTRICAL EQUIPMENT -- 11.9% 605 AMETEK, Inc. .................................................................................. 82,262 6,181 Vertiv Holdings Co. ........................................................................... 174,119 -------------- 256,381 -------------- HOUSEHOLD DURABLES -- 2.9% 2,237 Cricut, Inc., Class A (a)...................................................................... 62,412 -------------- IT SERVICES -- 4.6% 830 Fiserv, Inc. (a)............................................................................... 97,766 -------------- LIFE SCIENCES TOOLS & SERVICES -- 4.9% 68 Mettler-Toledo International, Inc. (a)......................................................... 105,593 -------------- PROFESSIONAL SERVICES -- 21.9% 8,593 Clarivate PLC (a).............................................................................. 216,458 1,043 CoStar Group, Inc. (a)......................................................................... 88,384 228 Equifax, Inc. ................................................................................. 62,075 856 IHS Markit Ltd. ............................................................................... 103,233 -------------- 470,150 -------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.2% 768 Marvell Technology, Inc. ...................................................................... 46,994 -------------- SOFTWARE -- 20.7% 3,121 Dye & Durham Ltd. ............................................................................. 117,898 526 Manhattan Associates, Inc. (a)................................................................. 85,733 402 Microsoft Corp. ............................................................................... 121,356 517 Trade Desk (The), Inc., Class A (a)............................................................ 41,386 163 Tyler Technologies, Inc. (a)................................................................... 79,169 -------------- 445,542 -------------- TOTAL COMMON STOCKS............................................................................ 2,083,916 (Cost $1,941,270) -------------- MONEY MARKET FUNDS -- 3.1% 66,576 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (b)................................................................................... 66,576 (Cost $66,576) -------------- TOTAL INVESTMENTS -- 100.1%.................................................................... 2,150,492 (Cost $2,007,846) (c) NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (1,303) -------------- NET ASSETS -- 100.0%........................................................................... $ 2,149,189 ============== </TABLE> Page 94 See Notes to Financial Statements <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $2,008,373. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $191,758 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $49,639. The net unrealized appreciation was $142,119. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- <S> <C> <C> <C> <C> Common Stocks*........................................ $ 2,083,916 $ 2,083,916 $ -- $ -- Money Market Funds.................................... 66,576 66,576 -- -- ---------------- --------------- ---------------- ---------------- Total Investments..................................... $ 2,150,492 $ 2,150,492 $ -- $ -- ================ =============== ================ ================ </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 95 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2021 <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW FIRST TRUST TCW OPPORTUNISTIC FIXED UNCONSTRAINED SECURITIZED INCOME ETF PLUS BOND ETF PLUS ETF (FIXD) (UCON) (DEED) ------------------- ------------------- ------------------- ASSETS: <S> <C> <C> <C> ASSETS: Investments, at value............................................ $ 6,516,091,175 $ 667,540,230 $ 341,990,236 Options contracts purchased, at value............................ 1,525,562 -- -- Swaptions contracts purchased, at value.......................... 527,389 -- -- Swap contracts, at value......................................... 39,708 4,165 -- Cash............................................................. 21,472,605 25 -- Cash segregated as collateral for open swap contracts............ 3,026,958 316,614 -- Cash segregated as collateral for open futures contracts......... -- 1,845,999 80,000 Unrealized appreciation on forward foreign currency contracts.... -- -- 1,014 Receivables: Investment securities sold.................................... 1,159,079,937 60,032,712 113,651,159 Capital shares sold........................................... -- -- 2,604,605 Interest...................................................... 15,512,854 2,594,703 477,298 Dividends..................................................... 1,434 75 46 Variation margin.............................................. -- 200,601 8,070 Reclaims...................................................... -- -- 395 ------------------- ------------------- ------------------- Total Assets............................................... 7,717,277,622 732,535,124 458,812,823 ------------------- ------------------- ------------------- LIABILITIES: Options contracts written, at value.............................. 871,750 -- -- Swap contracts, at value......................................... 344,609 36,054 -- Payables: Investment securities purchased............................... 2,410,277,322 123,745,456 231,147,470 Distributions to shareholders................................. 5,632,125 -- -- Investment advisory fees...................................... 2,464,453 371,734 121,183 Variation margin.............................................. 19,891 -- -- Other liabilities................................................ -- 64,574 -- ------------------- ------------------- ------------------- Total Liabilities.......................................... 2,419,610,150 124,217,818 231,268,653 ------------------- ------------------- ------------------- NET ASSETS....................................................... $ 5,297,667,472 $ 608,317,306 $ 227,544,170 =================== =================== =================== NET ASSETS CONSIST OF: Paid-in capital.................................................. $ 5,272,599,521 $ 602,090,236 $ 225,634,180 Par value........................................................ 981,500 229,000 87,500 Accumulated distributable earnings (loss)........................ 24,086,451 5,998,070 1,822,490 ------------------- ------------------- ------------------- NET ASSETS....................................................... $ 5,297,667,472 $ 608,317,306 $ 227,544,170 =================== =================== =================== NET ASSET VALUE, per share....................................... $ 53.98 $ 26.56 $ 26.01 =================== =================== =================== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)........................ 98,150,002 22,900,002 8,750,002 =================== =================== =================== Investments, at cost............................................. $ 6,458,981,728 $ 661,845,612 $ 341,091,626 =================== =================== =================== Premiums paid on options contracts purchased..................... $ 1,391,414 $ -- $ -- =================== =================== =================== Premiums paid on swaptions contracts purchased................... $ 571,710 $ -- $ -- =================== =================== =================== Premiums received on options contracts written................... $ 894,422 $ -- $ -- =================== =================== =================== </TABLE> Page 96 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW EMERGING MARKETS ESG PREMIER DEBT ETF EQUITY ETF (EFIX) (EPRE) ------------------- ------------------- <S> <C> $ 19,454,088 $ 2,150,492 -- -- -- -- -- -- 431,396 -- -- -- -- -- -- -- 335,445 -- -- -- 230,818 -- 4 226 -- -- -- -- ------------------- ------------------- 20,451,751 2,150,718 ------------------- ------------------- -- -- -- -- 487,657 -- -- -- 14,301 1,529 -- -- -- -- ------------------- ------------------- 501,958 1,529 ------------------- ------------------- $ 19,949,793 $ 2,149,189 =================== =================== $ 20,024,040 $ 1,997,385 10,000 1,000 (84,247) 150,804 ------------------- ------------------- $ 19,949,793 $ 2,149,189 =================== =================== $ 19.95 $ 21.49 =================== =================== 1,000,002 100,002 =================== =================== $ 19,393,028 $ 2,007,846 =================== =================== $ -- $ -- =================== =================== $ -- $ -- =================== =================== $ -- $ -- =================== =================== </TABLE> See Notes to Financial Statements Page 97 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2021 <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW FIRST TRUST TCW OPPORTUNISTIC FIXED UNCONSTRAINED SECURITIZED INCOME ETF PLUS BOND ETF PLUS ETF (FIXD) (UCON) (DEED) ------------------- ------------------- ------------------- <S> <C> <C> <C> INVESTMENT INCOME: Interest......................................................... $ 90,588,266 $ 8,720,478 $ 1,310,350 Dividends........................................................ 12,469 381 7,134 ------------------- ------------------- ------------------- Total investment income....................................... 90,600,735 8,720,859 1,317,484 ------------------- ------------------- ------------------- EXPENSES: Investment advisory fees......................................... 31,100,419 2,795,947 607,453 Excise Tax....................................................... -- -- 509 ------------------- ------------------- ------------------- Total expenses................................................ 31,100,419 2,795,947 607,962 Less fees waived by the investment advisor.................... (4,784,680) (328,935) (80,994) ------------------- ------------------- ------------------- Net expenses.................................................. 26,315,739 2,467,012 526,968 ------------------- ------------------- ------------------- NET INVESTMENT INCOME (LOSS)..................................... 64,284,996 6,253,847 790,516 ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments................................................... (25,295,104) 4,117,242 1,548,793 Futures contracts............................................. (85,949) 779,174 37,123 Forward foreign currency contracts............................ 6,971,474 350,472 (735) Foreign currency transactions................................. 14,948 754 (501) ------------------- ------------------- ------------------- Net realized gain (loss)......................................... (18,394,631) 5,247,642 1,584,680 ------------------- ------------------- ------------------- Net change in unrealized appreciation (depreciation) on: Investments................................................... (9,786,304) (473,586) 214,761 Purchased swaptions contracts................................. (44,321) -- -- Purchased options contracts................................... 134,148 -- -- Written options contracts..................................... 22,672 -- -- Futures contracts............................................. 14,576 (311,725) (10,848) Forward foreign currency contracts............................ -- -- 1,014 Swap contracts................................................ (304,901) (31,889) -- Foreign currency translations................................. -- -- 9 ------------------- ------------------- ------------------- Net change in unrealized appreciation (depreciation)............. (9,964,130) (817,200) 204,936 ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAIN (LOSS).......................... (28,358,761) 4,430,442 1,789,616 ------------------- ------------------- ------------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ 35,926,235 $ 10,684,289 $ 2,580,132 =================== =================== =================== </TABLE> (a) Inception date is February 17, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is May 25, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 98 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW EMERGING MARKETS ESG PREMIER DEBT ETF EQUITY ETF (EFIX) (a) (EPRE) (b) ------------------- ------------------- <S> <C> $ 482,519 $ 1,527 21 (18) ------------------- ------------------- 482,540 1,509 ------------------- ------------------- 99,628 4,769 -- -- ------------------- ------------------- 99,628 4,769 (10,487) -- ------------------- ------------------- 89,141 4,769 ------------------- ------------------- 393,399 (3,260) ------------------- ------------------- (108,492) 11,413 -- -- -- -- (2,573) 5 ------------------- ------------------- (111,065) 11,418 ------------------- ------------------- 61,060 142,646 -- -- -- -- -- -- -- -- -- -- -- -- (140) -- ------------------- ------------------- 60,920 142,646 ------------------- ------------------- (50,145) 154,064 ------------------- ------------------- $ 343,254 $ 150,804 =================== =================== </TABLE> See Notes to Financial Statements Page 99 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW OPPORTUNISTIC FIXED UNCONSTRAINED INCOME ETF PLUS BOND ETF (FIXD) (UCON) ---------------------------------- ---------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 8/31/2021 8/31/2020 8/31/2021 8/31/2020 ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> OPERATIONS: Net investment income (loss).............................. $ 64,284,996 $ 29,119,269 $ 6,253,847 $ 5,880,143 Net realized gain (loss).................................. (18,394,631) 70,279,466 5,247,642 2,072,669 Net change in unrealized appreciation (depreciation)...... (9,964,130) 40,497,582 (817,200) (2,882,860) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........................................ 35,926,235 139,896,317 10,684,289 5,069,952 ---------------- ---------------- ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations..................................... (135,544,495) (50,508,968) (8,311,326) (6,674,002) Return of capital......................................... (3,126,328) -- -- -- ---------------- ---------------- ---------------- ---------------- Total distributions to shareholders....................... (138,670,823) (50,508,968) (8,311,326) (6,674,002) ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold................................. 1,797,708,750 2,802,717,770 401,649,334 80,410,130 Cost of shares redeemed................................... (37,801,569) (152,059,261) -- (82,116,874) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions.......................... 1,759,907,181 2,650,658,509 401,649,334 (1,706,744) ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets................... 1,657,162,593 2,740,045,858 404,022,297 (3,310,794) NET ASSETS: Beginning of period....................................... 3,640,504,879 900,459,021 204,295,009 207,605,803 ---------------- ---------------- ---------------- ---------------- End of period............................................. $ 5,297,667,472 $ 3,640,504,879 $ 608,317,306 $ 204,295,009 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................... 66,000,002 17,000,002 7,800,002 8,050,002 Shares sold............................................... 32,850,000 51,950,000 15,100,000 3,100,000 Shares redeemed........................................... (700,000) (2,950,000) -- (3,350,000) ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period......................... 98,150,002 66,000,002 22,900,002 7,800,002 ================ ================ ================ ================ </TABLE> (a) Inception date is April 29, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is February 17, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (c) Inception date is May 25, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 100 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW FIRST TRUST TCW SECURITIZED EMERGING MARKETS ESG PREMIER PLUS ETF DEBT ETF EQUITY ETF (DEED) (EFIX) (EPRE) ---------------------------------- ---------------- ---------------- YEAR PERIOD PERIOD PERIOD ENDED ENDED ENDED ENDED 8/31/2021 8/31/2020 (a) 8/31/2021 (b) 8/31/2021 (c) ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> $ 790,516 $ 81,001 $ 393,399 $ (3,260) 1,584,680 142,593 (111,065) 11,418 204,936 690,022 60,920 142,646 ---------------- ---------------- ---------------- ---------------- 2,580,132 913,616 343,254 150,804 ---------------- ---------------- ---------------- ---------------- (1,603,367) (68,400) (427,501) -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- (1,603,367) (68,400) (427,501) -- ---------------- ---------------- ---------------- ---------------- 203,281,137 25,031,300 20,034,040 1,998,385 (2,590,248) -- -- -- ---------------- ---------------- ---------------- ---------------- 200,690,889 25,031,300 20,034,040 1,998,385 ---------------- ---------------- ---------------- ---------------- 201,667,654 25,876,516 19,949,793 2,149,189 25,876,516 -- -- -- ---------------- ---------------- ---------------- ---------------- $ 227,544,170 $ 25,876,516 $ 19,949,793 $ 2,149,189 ================ ================ ================ ================ 1,000,002 -- -- -- 7,850,000 1,000,002 1,000,002 100,002 (100,000) -- -- -- ---------------- ---------------- ---------------- ---------------- 8,750,002 1,000,002 1,000,002 100,002 ================ ================ ================ ================ </TABLE> See Notes to Financial Statements Page 101 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD --------------------------------------------------------- ENDED 2021 2020 2019 2018 8/31/2017 (a) ------------ ------------ ------------ ------------ -------------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period................. $ 55.16 $ 52.97 $ 49.40 $ 51.01 $ 50.00 ---------- ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.76 1.06 1.39 1.15 0.49 Net realized and unrealized gain (loss).............. (0.34) 2.85 3.63 (1.46) 1.12 ---------- ---------- ---------- ---------- ---------- Total from investment operations..................... 0.42 3.91 5.02 (0.31) 1.61 ---------- ---------- ---------- ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.81) (1.12) (1.45) (1.30) (0.60) Net realized gain.................................... (0.75) (0.60) -- (0.00) (b) -- Return of capital.................................... (0.04) -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total distributions.................................. (1.60) (1.72) (1.45) (1.30) (0.60) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period....................... $ 53.98 $ 55.16 $ 52.97 $ 49.40 $ 51.01 ========== ========== ========== ========== ========== TOTAL RETURN (c)..................................... 0.77% 7.57% 10.33% (0.57)% 3.23% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $5,297,667 $3,640,505 $ 900,459 $ 318,605 $ 51,011 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.65% 0.65% 0.65% 0.65% 0.65% (d) Ratio of net expenses to average net assets.......... 0.55% 0.55% 0.55% 0.55% 0.55% (d) Ratio of net investment income (loss) to average net assets ....................................... 1.34% 1.61% 2.69% 2.29% 1.81% (d) Portfolio turnover rate (e) (f)...................... 497% 431% 246% 358% 231% </TABLE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ------------------------------------------ ENDED 2021 2020 2019 8/31/2018 (a) ------------ ------------ ------------ -------------- <S> <C> <C> <C> <C> Net asset value, beginning of period................. $ 26.19 $ 25.79 $ 25.12 $ 25.00 ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.53 0.75 0.77 0.17 Net realized and unrealized gain (loss).............. 0.52 0.50 0.75 0.10 ---------- ---------- ---------- ---------- Total from investment operations..................... 1.05 1.25 1.52 0.27 ---------- ---------- ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.51) (0.85) (0.81) (0.15) Net realized gain.................................... (0.17) -- (0.04) -- ---------- ---------- ---------- ---------- Total distributions.................................. (0.68) (0.85) (0.85) (0.15) ---------- ---------- ---------- ---------- Net asset value, end of period....................... $ 26.56 $ 26.19 $ 25.79 $ 25.12 ========== ========== ========== ========== TOTAL RETURN (c)..................................... 4.04% 4.97% 6.15% 1.06% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $ 608,317 $ 204,295 $ 207,606 $ 25,125 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.85% 0.85% 0.85% 0.85% (d) Ratio of net expenses to average net assets.......... 0.75% 0.75% 0.75% 0.75% (d) Ratio of net investment income (loss) to average net assets ....................................... 1.90% 2.88% 3.16% 2.68% (d) Portfolio turnover rate (e).......................... 190% (g) 111% (g) 40% (g) 70% </TABLE> (a) Inception dates for FIXD and UCON are February 14, 2017 and June 4, 2018, respectively, which are consistent with the respective Fund's commencement of investment operations and are the dates the initial creation units were established. (b) Amount is less than $0.01. (c) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived by the investment advisor. (d) Annualized. (e) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. (f) The portfolio turnover rate not including mortgage dollar rolls was 282%, 270%, 223%, 241% and 158% for the periods ending August 31, 2021, August 31, 2020, August 31, 2019, August 31, 2018 and August 31, 2017, respectively. (g) The portfolio turnover rate not including mortgage dollar rolls was 40%, 67% and 39% for the periods ending August 31, 2021, August 31, 2020 and August 31, 2019, respectively. Page 102 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2021 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period................. $ 25.88 $ 25.00 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.28 0.08 Net realized and unrealized gain (loss).............. 0.47 0.87 ---------- ---------- Total from investment operations..................... 0.75 0.95 ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.29) (0.07) Net realized gain.................................... (0.33) -- ---------- ---------- Total distributions.................................. (0.62) (0.07) ---------- ---------- Net asset value, end of period....................... $ 26.01 $ 25.88 ========== ========== TOTAL RETURN (b)..................................... 2.93% 3.80% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $ 227,544 $ 25,877 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.75% 0.75% (c) Ratio of net expenses to average net assets.......... 0.65% 0.65% (c) Ratio of net investment income (loss) to average net assets ....................................... 0.98% 0.94% (c) Portfolio turnover rate (d) (e)...................... 678% 186% </TABLE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period................. $ 20.00 ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.40 Net realized and unrealized gain (loss).............. (0.02) ---------- Total from investment operations..................... 0.38 ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.43) ---------- Net asset value, end of period....................... $ 19.95 ========== TOTAL RETURN (b)..................................... 1.93% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $ 19,950 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.95% (c) Ratio of net expenses to average net assets.......... 0.85% (c) Ratio of net investment income (loss) to average net assets........................................ 3.75% (c) Portfolio turnover rate (d).......................... 100% </TABLE> (a) Inception dates for DEED and EFIX are April 29, 2020 and February 17, 2021, respectively, which are consistent with the respective Fund's commencement of investment operations and are the dates the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived by the investment advisor. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. (e) The portfolio turnover rate not including mortgage dollar rolls was 299% and 21% for the periods ending August 31, 2021 and August 31, 2020, respectively. See Notes to Financial Statements Page 103 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period................. $ 19.98 ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... (0.03) Net realized and unrealized gain (loss).............. 1.54 ---------- Total from investment operations..................... 1.51 ---------- Net asset value, end of period....................... $ 21.49 ========== TOTAL RETURN (b)..................................... 7.56% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $ 2,149 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.85% (c) Ratio of net expenses to average net assets.......... 0.85% (c) Ratio of net investment income (loss) to average net assets........................................ (0.58)% (c) Portfolio turnover rate (d).......................... 17% </TABLE> (a) Inception date is May 25, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. Page 104 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 1. ORGANIZATION First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management investment company organized as a Massachusetts business trust on February 22, 2016, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of forty-nine funds that are offering shares. This report covers the five funds (each a "Fund" and collectively, the "Funds") listed below: First Trust TCW Opportunistic Fixed Income ETF - (The Nasdaq Stock Market LLC ("Nasdaq") ticker "FIXD") First Trust TCW Unconstrained Plus Bond ETF - (NYSE Arca, Inc. ("NYSE Arca") ticker "UCON") First Trust TCW Securitized Plus ETF - (NYSE Arca ticker "DEED") First Trust TCW Emerging Markets Debt ETF - (NYSE Arca ticker "EFIX")(1) First Trust TCW ESG Premier Equity ETF - (NYSE Arca ticker "EPRE")(2) (1) Commenced investment operations on February 17, 2021. (2) Commenced investment operations on May 25, 2021. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value ("NAV"), only in large blocks of shares known as "Creation Units." Each Fund is an actively managed exchange-traded fund. FIXD's, UCON's, and DEED's investment objective is to seek to maximize long-term total return. EFIX's investment objective seeks to provide high total return from current income and capital appreciation. EPRE's investment objective is to seek to provide investors with long-term capital appreciation. Each of FIXD and UCON seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (including investment borrowings) in fixed income securities. DEED seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (including investment borrowings) in securitized debt securities. EFIX seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (including investment borrowings) in securitized debt securities issued or guaranteed in emerging market countries. EPRE seeks to achieve its investment objective by investing at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. companies that meet the sub-advisor's environmental, social and governance (ESG) criteria. Although EPRE emphasizes investments in equity securities of large capitalization companies, it may invest in the equity securities of companies of any size. 2. SIGNIFICANT ACCOUNTING POLICIES The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. PORTFOLIO VALUATION Each Fund's NAV is determined daily as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Domestic debt securities and foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. Each Fund's NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding. Each Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds' investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"), in accordance with valuation procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the 1940 Act. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund's investments are valued as follows: Page 105 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Corporate bonds, corporate notes, U.S. government securities, mortgage-backed securities, asset-backed securities, municipal securities, capital preferred securities, and other debt securities are fair valued on the basis of valuations provided by dealers who make markets in such securities or by a third-party pricing service approved by the Trust's Board of Trustees, which may use the following valuation inputs when available: 1) benchmark yields; 2) reported trades; 3) broker/dealer quotes; 4) issuer spreads; 5) benchmark securities; 6) bids and offers; and 7) reference data including market research publications. Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the principal market for such securities. Securities traded in an over-the-counter market are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Options on swaps ("swaptions") are valued by a third-party pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments. Shares of open-end funds are valued at fair value which is based on NAV per share. Senior Floating-Rate Loan Interests ("Senior Loans")(1) are not listed on any securities exchange or board of trade. Senior Loans are typically bought and sold by institutional investors in individually negotiated private transactions that function in many respects like an over-the-counter secondary market, although typically no formal market-makers exist. This market, while having grown substantially since its inception, generally has fewer trades and less liquidity than the secondary market for other types of securities. Some Senior Loans have few or no trades, or trade infrequently, and information regarding a specific Senior Loan may not be widely available or may be incomplete. Accordingly, determinations of the market value of Senior Loans may be based on infrequent and dated information. Because there is less reliable, objective data available, elements of judgment may play a greater role in valuation of Senior Loans than for other types of securities. Typically, Senior Loans are valued using information provided by a third-party pricing service. The third-party pricing service primarily uses over-the-counter pricing from dealer runs and broker quotes from indicative sheets to value the Senior Loans. Forward foreign currency contracts are fair valued at the current day's interpolated foreign exchange rate, as calculated using the current day's spot rate, and the thirty, sixty, ninety, and one-hundred eighty day forward rates provided by a third-party pricing service. Exchange-traded futures contracts are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded futures contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Exchange-traded options contracts are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded options contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Swaps are fair valued utilizing quotations provided by a third-party pricing service or, if the third-party pricing service does not provide a value, by quotes provided by the selling dealer or financial institution. Fixed income and other debt securities having a remaining maturity of sixty days or less when purchased are fair valued at cost adjusted for amortization of premiums and accretion of discounts (amortized cost), provided the Advisor's Pricing Committee has determined that the use of amortized cost is an appropriate reflection of fair value given market and issuer-specific conditions existing at the time of the determination. Factors that may be considered in determining the appropriateness of the use of amortized cost include, but are not limited to, the following: ----------------------------- (1) The terms "security" and "securities" used throughout the Notes to Financial Statements include Senior Loans. Page 106 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 1) the credit conditions in the relevant market and changes thereto; 2) the liquidity conditions in the relevant market and changes thereto; 3) the interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates); 4) issuer-specific conditions (such as significant credit deterioration); and 5) any other market-based data the Advisor's Pricing Committee considers relevant. In this regard, the Advisor's Pricing Committee may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost. Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Trust's Board of Trustees or its delegate, the Advisor's Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended (the "1933 Act")) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following: 1) the fundamental business data relating to the issuer; 2) an evaluation of the forces which influence the market in which these securities are purchased and sold; 3) the type, size and cost of a security; 4) the financial statements of the issuer; 5) the credit quality and cash flow of the issuer, based on TCW Investment Management Company LLC's ("TCW" or the "Sub-Advisor") or external analysis; 6) the information as to any transactions in or offers for the security; 7) the price and extent of public trading in similar securities of the issuer, or comparable companies; 8) the coupon payments; 9) the quality, value and salability of collateral, if any, securing the security; 10) the business prospects of the issuer, including any ability to obtain money or resources from a parent or affiliate and an assessment of the issuer's management (for corporate debt only); 11) the economic, political and social prospects/developments of the country of issue and the assessment of the country's government leaders/officials (for sovereign debt only); 12) the prospects for the issuer's industry, and multiples (of earnings and/or cash flows) being paid for similar businesses in that industry (for corporate debt only); and 13) other relevant factors. Because foreign markets may be open on different days than the days during which investors may transact in the shares of a Fund, the value of the Fund's securities may change on the days when investors are not able to transact in the shares of the Fund. The value of the securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of the close of regular trading on the NYSE. The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows: o Level 1 - Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. o Level 2 - Level 2 inputs are observable inputs, either directly or indirectly, and include the following: o Quoted prices for similar investments in active markets. o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. o Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the investment. Page 107 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund's investments as of August 31, 2021, is included with each Fund's Portfolio of Investments. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded daily on the accrual basis. Amortization of premiums and accretion of discounts are recorded using the effective interest method. The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rates ("LIBOR"), announced on March 5, 2021 that all non-USD LIBOR reference rates and the 1-week and 2-month USD LIBOR reference rates will cease to be provided or no longer be representative immediately after December 31, 2021 and the remaining USD LIBOR settings will cease to be provided or no longer be representative immediately after June 30, 2023. The International Swaps and Derivatives Association, Inc. ("ISDA") confirmed that the March 5, 2021 announcement constituted an index cessation event under the Interbank Offered Rates ("IBOR") Fallbacks Supplement and the ISDA 2020 IBOR Fallbacks Protocol for all 35 LIBOR settings and confirmed that the spread adjustment to be used in ISDA fallbacks was fixed as of the date of the announcement. In the United States, the Alternative Reference Rates Committee (the "ARRC"), a group of market participants convened by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York in cooperation with other federal and state government agencies, has since 2014 undertaken efforts to identify U.S. dollar reference interest rates as alternatives to LIBOR and to facilitate the mitigation of LIBOR-related risks. In June 2017, the ARRC identified the Secured Overnight Financing Rate ("SOFR"), a broad measure of the cost of cash overnight borrowing collateralized by U.S. Treasury securities, as the preferred alternative for U.S. dollar LIBOR. The Federal Reserve Bank of New York began daily publishing of SOFR in April 2018. At this time, it is not possible to predict the full impact of the elimination of LIBOR and the establishment of an alternative reference rate on the Funds or their investments. Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund's understanding of the applicable country's tax rules and rates. Securities purchased or sold on a when-issued, delayed-delivery or forward purchase commitment basis may have extended settlement periods. The value of the security so purchased is subject to market fluctuations during this period. Each Fund maintains liquid assets with a current value at least equal to the amount of its when-issued, delayed-delivery or forward purchase commitments until payment is made. At August 31, 2021, FIXD, UCON, and DEED held $11,206,754, $2,978,109 and $752,954, respectively, of when-issued or delayed-delivery securities. At August 31, 2021, FIXD, UCON, and DEED held $1,148,323,686, $59,983,955 and $113,596,552, respectively, of forward purchase commitments. C. RESTRICTED SECURITIES FIXD, UCON, and DEED invest in restricted securities, which are securities that may not be offered for public sale without first being registered under the 1933 Act. Prior to registration, restricted securities may only be resold in transactions exempt from registration under Rule 144A under the 1933 Act, normally to qualified institutional buyers. As of August 31, 2021, FIXD, UCON, and DEED held restricted securities as shown in the following table that the Advisor has deemed illiquid pursuant to procedures adopted by the Trust's Board of Trustees. Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security-specific factors and assumptions, which require subjective judgment. Each Fund does not have the right to demand that such securities be registered. These securities are valued according to the valuation procedures as stated in the Portfolio Valuation note (Note 2A) and are not expressed as a discount to the carrying value of a comparable unrestricted security. There are no unrestricted securities with the same maturity dates and yields for these issuers. Page 108 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 <TABLE> <CAPTION> ACQUISITION PRINCIPAL CURRENT CARRYING % OF SECURITIES DATE VALUE PRICE COST VALUE NET ASSETS ------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> FIXD Ruby Pipeline LLC, 8.00%, 04/01/22 12/08/2017 $ 329,909 $ 94.18 $ 348,942 $ 310,723 0.01% ======================================= UCON Ruby Pipeline LLC, 8.00%, 07/25/2018, 04/01/22 04/01/2021, 08/02/2021 $ 598,788 $ 94.18 $ 560,019 $ 563,965 0.09% ======================================= DEED GS Mortgage Securities Trust, Series 2011-GC5, Class XA, IO, 0.09%, 08/10/44 05/19/20 $ 2,116,657 $ 0.00 $ 0 $ 21 0.00%* GS Mortgage Securities Trust, Series 2012-GC6, Class XA, IO, 1.91%, 01/10/45 03/15/21 8,476,732 0.00 14,809 85 0.00%* --------------------------------------- $ 14,809 $ 106 0.00%* ======================================= </TABLE> * Amount is less than 0.01%. D. FUTURES CONTRACTS Each Fund, with the exception of EPRE, may purchase or sell (i.e., is long or short) exchange-listed futures contracts to hedge against changes in interest rates (interest rate risk). Futures contracts are agreements between a Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Open futures contracts can also be closed out prior to settlement by entering into an offsetting transaction in a matching futures contract. If a Fund is not able to enter into an offsetting transaction, the Fund will continue to be required to maintain margin deposits on the futures contract. When the contract is closed or expires, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed or expired. This gain or loss is included in "Net realized gain (loss) on futures contracts" on the Statements of Operations. Upon entering into a futures contract, a Fund must deposit funds, called margin, with its custodian in the name of the clearing broker equal to a specified percentage of the current value of the contract. Open futures contacts are marked-to-market daily with the change in value recognized as a component of "Net change in unrealized appreciation (depreciation) on futures contracts" on the Statements of Operations. Pursuant to the contract, a Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are included in "Variation margin" receivable or payable on the Statements of Assets and Liabilities. If market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contract and may realize a loss. The use of futures contracts involves the risk of imperfect correlation in movements in the price of the futures contracts, interest rates and the underlying instruments. E. FORWARD FOREIGN CURRENCY CONTRACTS Each Fund, with the exception of EPRE, is subject to foreign currency risk in the normal course of pursuing its investment objective. Forward foreign currency contracts are agreements between two parties ("Counterparties") to exchange one currency for another at a future date and at a specified price. Each Fund, with the exception of EPRE, uses forward foreign currency contracts to facilitate transactions in foreign securities and to manage the Fund's foreign currency exposure. These contracts are valued daily, and a Fund's net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in "Unrealized appreciation (depreciation) on forward foreign currency contracts" on the Statements of Assets and Liabilities. The change in unrealized appreciation/(depreciation) is included in "Net change in unrealized appreciation (depreciation) on forward foreign currency contracts" on the Statements of Operations. When the forward contract is closed, a Fund records a realized gain or loss equal to the difference between the proceeds from (or the cost of) the closing transaction and the Fund's basis in the contract. This realized gain or loss is included in "Net realized gain (loss) on forward foreign currency contracts" on the Statements of Operations. Risks arise from the possible inability of Counterparties to meet the terms of their contracts and from movement in currency and securities values and interest rates. Due to the risks, a Fund could incur losses in excess of the net unrealized value shown on the forward foreign currency contracts table in the Fund's Portfolio of Investments. In the event of default by the Counterparty, a Fund will provide notice to the Counterparty of the Fund's intent to convert the currency held by the Fund into the currency that the Counterparty agreed to exchange with the Page 109 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Fund. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, a Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. F. SWAP AGREEMENTS Each Fund, with the exception of EPRE, may enter into swap agreements. A swap is a financial instrument that typically involves the exchange of cash flows between two parties on specified dates (settlement dates), where the cash flows are based on agreed upon prices, rates, etc. Payment received or made by the Fund for interest rate swaps, if any, are recorded on the Statements of Operations as "Net realized gain (loss) on swap contracts." When an interest rate swap is terminated, the Fund will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund's basis in the contract, if any. Generally, the basis of the contracts, if any, is the premium received or paid. Swap agreements are individually negotiated and involve the risk of the potential inability of the Counterparties to meet the terms of the agreement. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. In the event of a default by a Counterparty, the Fund will seek withdrawal of the collateral and may incur certain costs exercising its rights with respect to the collateral. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. Swap agreements may increase or decrease the overall volatility of the investments of the Fund. The performance of swap agreements may be affected by changes in the specific interest rate, security, currency, or other factors that determine the amounts of payments due to and from the Fund. The Fund's maximum interest rate risk to meet its future payments under swap agreements is equal to the total notional amount as shown on the Portfolio of Investments. The notional amount represents the U.S. dollar value of the contract as of the day of the opening transaction or contract reset. When the Fund enters into a swap agreement, any premium paid is included in "Swap contracts, at value" on the Statements of Assets and Liabilities. FIXD and UCON held interest rate swap agreements at August 31, 2021. An interest rate swap agreement involves the Fund's agreement to exchange a stream of interest payments for another party's stream of cash flows. Interest rate swaps do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that the Fund is contractually obligated to make. G. OPTIONS AND SWAPTIONS FIXD may invest in option contracts to adjust its exposure to interest rate risk. The primary risk associated with purchasing options is that the value of the underlying investments may move in such a way that the option is out-of-the-money (the exercise price of the option exceeds the value of the underlying investment), the position is worthless at expiration, and the Fund loses the premium paid. The primary risk associated with selling options is that the value of the underlying investments may move in such a way that the option is in-the money (the exercise price of the option exceeds the value of the underlying investment), the counterparty exercises the option, and the Fund loses an amount equal to the market value of the option written less the premium received. FIXD invests in options on swaps (swaptions), which are transacted over-the-counter ("OTC") and not on an exchange. The purchaser and writer of a swaption is buying or granting the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of OTC options generally are established through negotiation with the other party to the option contract. Although this type of arrangement allows the purchaser or writer greater flexibility to tailor an option to its needs, OTC options have the risk of the potential inability of counterparties to meet the terms of their contracts. The Fund's maximum equity price risk for purchased options is limited to the premium initially paid. FIXD may purchase or write (sell) put and call options on futures contracts and enter into closing transactions with respect to such options to terminate an existing position. A futures option gives the holder the right, in return for the premium paid, to assume a long position (call) or short position (put) in a futures contract at a specified exercise price prior to the expiration of the option. Upon exercise of a call option, the holder acquires a long position in the futures contract and the writer is assigned the opposite short position. In the case of a put option, the opposite is true. Prior to exercise or expiration, a futures contract may be closed out by an offsetting purchase or sale of a futures option of the same series. Options are marked-to-market daily and their value is affected by changes in the value of the underlying security, changes in interest rates, changes in the actual or perceived volatility of the securities markets and the underlying securities, and the remaining time to the option's expiration. The value of options may also be adversely affected if the market for the options becomes less liquid or the trading volume diminishes. Page 110 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 When a Fund purchases a call or put option, the premium paid represents the cost of the call or put option, which is included in "Options contracts purchased, at value" on the Statements of Assets and Liabilities. When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is included in "Options contracts written, at value" on the Statements of Assets and Liabilities. Options are marked-to-market daily and their value will be affected by changes in the value and dividend rates of the underlying equity securities, changes in interest rates, changes in the actual or perceived volatility of the securities markets and the underlying equity securities and the remaining time to the options' expiration. The value of options may also be adversely affected if the market for the options becomes less liquid or trading volume diminishes When the Fund purchases a call or put swaption, the premium paid represents the cost of the call or put swaption, which is included in "Swaptions contracts purchased, at value" on the Statements of Assets and Liabilities and is subsequently adjusted daily to the current market value of the option purchased. Fluctuations in the value of the swaptions are recorded in the Statements of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized. If the Fund elects to allow a put swaption to expire, then the interest rate risk for purchased swaptions is limited to the premium initially paid. Any gain or loss on swaptions would be included in "Purchased swaptions contracts" on the Statements of Operations. H. OFFSETTING ON THE STATEMENTS OF ASSETS AND LIABILITIES Offsetting Assets and Liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities, and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on a fund's financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting arrangements ("MNAs") or similar agreements on the Statements of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency) for the non-defaulting Counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral. The Funds do not have the right to offset financial assets and financial liabilities related to options and swaptions contracts, forward foreign currency contracts, futures contracts or swap contracts on the Statements of Assets and Liabilities. I. FOREIGN CURRENCY The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in "Net change in unrealized appreciation (depreciation) on foreign currency translation" on the Statements of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from changes in market price and are shown in "Net change in unrealized appreciation (depreciation) on investments" on the Statements of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and are included in "Net realized gain (loss) on foreign currency transactions" on the Statements of Operations. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase settlement date and subsequent sale trade date for fixed-income securities is included in "Net realized gain (loss) on investments" on the Statements of Operations. J. INTEREST-ONLY SECURITIES An interest-only security ("IO Security") is the interest-only portion of a mortgage-backed security that receives some or all of the interest portion of the underlying mortgage-backed security and little or no principal. A reference principal value called a notional value is used to calculate the amount of interest due to the IO Security. IO Securities are sold at a deep discount to their notional principal amount. Generally speaking, when interest rates are falling and prepayment rates are increasing, the value of an IO Security will fall. Conversely, when interest rates are rising and prepayment rates are decreasing, generally the value of an IO Security will rise. These securities, if any, are identified on each Fund's Portfolio of Investments. Page 111 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 K. MORTGAGE DOLLAR ROLLS Each Fund, with the exception of EPRE, may invest, without limitation, in mortgage dollar rolls. The Funds intend to enter into mortgage dollar rolls only with high quality securities dealers and banks, as determined by the Funds' Sub-Advisor. In a mortgage dollar roll, a Fund will sell (or buy) mortgage-backed securities for delivery on a specified date and simultaneously contract to repurchase (or sell) substantially similar (same type, coupon and maturity) securities on a future date. Mortgage dollar rolls are recorded as separate purchases and sales in a Fund. L. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income, if any, are declared and paid monthly for FIXD, UCON, DEED, and EFIX and quarterly for EPRE, or as the Board of Trustees may determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually. Distributions in cash may be reinvested automatically in additional whole shares only if the broker through whom the shares were purchased makes such option available. Such shares will generally be reinvested by the broker based upon the market price of those shares and investors may be subject to customary brokerage commissions charged by the broker. Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future. The tax character of distributions paid by each Fund during the fiscal period ended August 31, 2021 was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions paid from paid from paid from Ordinary Capital Return of Income Gains Capital ------------- ------------- ------------- <S> <C> <C> <C> First Trust TCW Opportunistic Fixed Income ETF $ 122,548,756 $ 7,363,614 $ 3,126,328 First Trust TCW Unconstrained Plus Bond ETF 7,774,045 537,281 -- First Trust TCW Securitized Plus ETF 1,573,671 29,696 -- First Trust TCW Emerging Markets Debt ETF 427,501 -- -- First Trust TCW ESG Premier Equity ETF -- -- -- </TABLE> The tax character of distributions paid by each Fund during the fiscal period ended August 31, 2020 was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions paid from paid from paid from Ordinary Capital Return of Income Gains Capital ------------- ------------- ------------- <S> <C> <C> <C> First Trust TCW Opportunistic Fixed Income ETF $ 49,116,293 $ 1,392,675 $ -- First Trust TCW Unconstrained Plus Bond ETF 6,674,002 -- -- First Trust TCW Securitized Plus ETF 68,400 -- -- </TABLE> As of August 31, 2021, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Ordinary Other Appreciation Income Gain (Loss) (Depreciation) ------------- ------------- ------------- <S> <C> <C> <C> First Trust TCW Opportunistic Fixed Income ETF $ (5,632,125) $ (23,639,262) $ 53,357,838 First Trust TCW Unconstrained Plus Bond ETF -- 209,148 5,788,922 First Trust TCW Securitized Plus ETF 796,234 -- 1,026,256 First Trust TCW Emerging Markets Debt ETF 5,812 (121,232) 31,173 First Trust TCW ESG Premier Equity ETF 8,685 -- 142,119 </TABLE> Page 112 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 M. INCOME TAXES Each Fund intends to qualify or continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund's taxable income exceeds the distributions from such taxable income for the calendar year. The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For FIXD and UCON, the taxable years ended 2018, 2019, 2020, and 2021 remain open to federal and state audit. For DEED, the taxable years ended 2020 and 2021 remain open to federal and state audit. For EFIX and EPRE, the taxable year ended 2021 remains open to federal and state audit. As of August 31, 2021, management has evaluated the application of these standards to the Funds, and has determined that no provision for income tax is required in the Funds' financial statements for uncertain tax positions. Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At August 31, 2021, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the table below, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund's shareholders. Non-Expiring Capital Loss Carryforward ----------------- First Trust TCW Opportunistic Fixed Income ETF $ -- First Trust TCW Unconstrained Plus Bond ETF -- First Trust TCW Securitized Plus ETF -- First Trust TCW Emerging Markets Debt ETF 121,232 First Trust TCW ESG Premier Equity ETF -- Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal period ended August 31, 2021, the following Fund listed below incurred and elected to defer net late year ordinary or capital losses as follows: <TABLE> <CAPTION> Qualified Late Year Losses --------------------------------- Ordinary Losses Capital Losses --------------- --------------- <S> <C> <C> First Trust TCW Opportunistic Fixed Income ETF $ -- $ 23,639,262 </TABLE> In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds. The results of operations and net assets were not affected by these adjustments. For the fiscal period ended August 31, 2021, the adjustments for each Fund were as follows: <TABLE> <CAPTION> Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- ------------- <S> <C> <C> <C> First Trust TCW Opportunistic Fixed Income ETF $ (1,867,205) $ 1,867,205 $ -- First Trust TCW Unconstrained Plus Bond ETF 703,331 (703,331) -- First Trust TCW Securitized Plus ETF 98,005 (97,496) (509) First Trust TCW Emerging Markets Debt ETF 39,914 (39,914) -- First Trust TCW ESG Premier Equity ETF 3,260 (3,260) -- </TABLE> Page 113 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 N. EXPENSES Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3). 3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the ongoing monitoring of the securities in each Fund's portfolio, managing the Funds' business affairs and providing certain administrative services necessary for the management of the Funds. TCW serves as the Funds' sub-advisor and manages each Fund's portfolio subject to First Trust's supervision. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Funds, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of the Funds, the Advisor and TCW, First Trust will supervise TCW and its management of the investment of each Fund's assets and will pay TCW for its services as the Funds' sub-advisor. TCW receives a sub-advisory fee equal to 50% of any remaining monthly unitary management fee paid to the Advisor after the average Fund's expenses accrued during the most recent twelve months are subtracted from the unitary management fee for that month. First Trust will also be responsible for each Fund's expenses, including the cost of transfer agency, sub-advisory, custody, fund administration, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. FIXD, UCON, DEED, EFIX, and EPRE have each agreed to pay First Trust an annual unitary management fee equal to 0.65%, 0.85%, 0.75%, 0.95, and 0.85%, respectively, of its average daily net assets. Pursuant to a contractual agreement, First Trust has agreed to waive management fees of 0.10% of average daily net assets until December 31, 2021 for FIXD and UCON, April 6, 2022 for DEED, and February 12, 2023 for EFIX. The waiver agreement may be terminated by action of the Trust's Board of Trustees at any time upon 60 days' written notice by the Trust on behalf of each Fund or by the Funds' investment advisor only after December 31, 2021 for FIXD and UCON, April 6, 2022 for DEED, and February 12, 2023 for EFIX. During the fiscal period ended August 31, 2021, the Advisor waived fees of $4,784,680, $328,935, $80,994, and $10,487, for FIXD, UCON, DEED, and EFIX, respectively. The Trust has multiple service agreements with The Bank of New York Mellon ("BNYM"). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund's assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund's securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company. Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or is an index fund. Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. Page 114 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 4. PURCHASES AND SALES OF SECURITIES For the fiscal period ended August 31, 2021, the cost of purchases and proceeds from sales and paydowns of U.S. Government securities and non-U.S. Government securities for each Fund, excluding short-term investments and in-kind transactions, were as follows: <TABLE> <CAPTION> Purchases Sales --------------- --------------- <S> <C> <C> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF U.S. Government securities $25,838,304,053 $24,480,407,057 Non-U.S. Government securities 1,738,764,945 831,382,349 FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF U.S. Government securities 515,909,943 450,798,405 Non-U.S. Government securities 317,758,193 75,150,875 FIRST TRUST TCW SECURITIZED PLUS ETF U.S. Government securities 793,636,665 644,628,874 Non-U.S. Government securities 101,874,706 8,428,754 FIRST TRUST TCW EMERGING MARKETS DEBT ETF U.S. Government securities -- -- Non-U.S. Government securities 37,745,685 18,892,492 FIRST TRUST TCW ESG PREMIER EQUITY ETF U.S. Government securities -- -- Non-U.S. Government securities 468,896 348,948 </TABLE> For the fiscal period ended August 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows: <TABLE> <CAPTION> Purchases Sales --------------- --------------- <S> <C> <C> First Trust TCW Opportunistic Fixed Income ETF $ -- $ -- First Trust TCW Unconstrained Plus Bond ETF -- -- First Trust TCW Securitized Plus ETF -- -- First Trust TCW Emerging Markets Debt ETF -- -- First Trust TCW ESG Premier Equity ETF 1,809,909 -- </TABLE> Page 115 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 5. DERIVATIVE TRANSACTIONS The following table presents the types of derivatives held by each Fund at August 31, 2021, the primary underlying risk exposure and the location of these instruments as presented on the Statements of Assets and Liabilities. <TABLE> <CAPTION> ASSET DERIVATIVES LIABILITY DERIVATIVES ---------------------------------------- ---------------------------------------- DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE ------------------ ------------------ -------------------------- ----------- -------------------------- ----------- <S> <C> <C> <C> <C> <C> FIXD Options contracts Options contracts Options contracts Interest Rate Risk purchased, at value $ 1,525,562 written, at value $ 871,750 Swaption contracts Swaption contracts Swaption contracts Interest Rate Risk purchased, at value 527,389 written, at value -- Unrealized appreciation Unrealized depreciation Futures contracts Interest Rate Risk on futures contracts * 15,378 on futures contracts* 8,742 Swap contracts, Swap contracts, Swap contracts Interest Rate Risk at value 39,708 at value 344,609 UCON Unrealized appreciation Unrealized depreciation Futures contracts Interest Rate Risk on futures contracts* 74,240 on futures contracts* 101,187 Swap contracts, Swap contracts, Swap contracts Interest Rate Risk at value 4,165 at value 36,054 DEED Forward foreign Unrealized appreciation on Unrealized depreciation on currency forward foreign currency forward foreign currency contracts Currency Risk contracts 1,014 contracts -- Unrealized appreciation Unrealized depreciation Futures contracts Interest Rate Risk on futures contracts* -- on futures contracts* 4,675 </TABLE> * Includes cumulative appreciation/depreciation on futures contracts as reported in each Fund's Portfolio of Investments. Only the current day's variation margin is presented on the Statements of Assets and Liabilities. The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal period ended August 31, 2021, on each Fund's derivative instruments, as well as the primary underlying risk exposure associated with the instruments. <TABLE> <CAPTION> STATEMENTS OF OPERATIONS LOCATION FIXD UCON DEED ------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> CURRENCY RISK EXPOSURE Net realized gain (loss) on forward foreign currency contracts $ 6,971,474 $ 350,472 $ (735) Net change in unrealized appreciation (depreciation) on forward foreign currency contracts -- -- 1,014 INTEREST RATE RISK EXPOSURE Net realized gain (loss) on futures contracts (85,949) 779,174 37,123 Net change in unrealized appreciation (depreciation) on: Purchased swaptions contracts (44,321) -- -- Purchased options contracts 134,148 -- -- Written options contracts 22,672 -- -- Futures contracts 14,576 (311,725) (10,848) Swap contracts (304,901) (31,889) -- </TABLE> Page 116 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 FIXD During the fiscal year ended August 31, 2021, the premiums for purchased swaptions contracts opened were $571,710 and the premiums for purchased swaptions contracts closed, exercised and expired were $0. During the fiscal year ended August 31, 2021, the premiums for purchased options contracts opened were $1,391,414 and the premiums for purchased options contracts closed, exercised and expired were $0. During the fiscal year ended August 31, 2021, the premiums for written options contracts opened were $894,422 and the premiums for written options contracts closed, exercised and expired were $0. During the fiscal year ended August 31, 2021, the notional value of forward foreign currency contracts opened and closed were $139,727,415 and $139,727,415, respectively. During the fiscal year ended August 31, 2021, the notional value of futures contracts opened and closed were $113,005,236 and $202,409,287, respectively. The Fund entered into interest rate swap agreements on July 21, 2021. For the period July 21, 2021 through August 31, 2021, the average volume of interest rate swaps was $279,758,571. UCON During the fiscal year ended August 31, 2021, the notional value of forward foreign currency contracts opened and closed were $7,024,904 and $7,024,904, respectively. During the fiscal year ended August 31, 2021, the notional value of futures contracts opened and closed were $304,777,938 and $243,541,323, respectively. The Fund entered into interest rate swap agreements on July 21, 2021. For the period July 21, 2021 through August 31, 2021, the average volume of interest rate swaps was $29,263,690. DEED During the fiscal year ended August 31, 2021, the notional value of forward foreign currency contracts opened and closed were $1,702,408 and $850,373, respectively. During the fiscal year ended August 31, 2021, the notional value of futures contracts opened and closed were $21,441,283 and $22,468,217, respectively. 6. CREATIONS, REDEMPTIONS AND TRANSACTION FEES Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as "Authorized Participants" have contractual arrangements with a Fund or one of the Fund's service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as "Creation Units." Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation ("NSCC") the "basket" of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund's shares. An Authorized Participant that wishes to effectuate a creation of a Fund's shares deposits with the Fund the "basket" of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund's shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund's shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund's shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund's shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund's shares at or close to the NAV per share of the Fund. Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket. Page 117 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed. 7. DISTRIBUTION PLAN The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services. No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before December 31, 2022 for FIXD, UCON, and DEED, February 10, 2023 for EFIX, and April 30, 2023 for EPRE. 8. INDEMNIFICATION The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 9. OTHER MATTERS By operation of law, UCON now operates as a diversified open-end management investment company as defined in Section 5(b) of the 1940 Act. 10. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were the following subsequent events: On September 20, 2021, FT Cboe Vest International Equity Buffer ETF - September and FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, each an additional series of the Trust, began trading under the symbols "YSEP" and "QSPT," respectively, on Cboe BZX Exchange, Inc. On September 21, 2021, First Trust SkyBridge Crypto Industry and Digital Economy ETF, an additional series of the Trust, began trading under the symbol "CRPT" on NYSE Arca. On October 14, 2021, First Trust Multi-Manager Small Cap Opportunities ETF, an additional series of the Trust, began trading under the symbol "MMSC" on NYSE Arca. Page 118 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED FUND VIII: OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS We have audited the accompanying statements of assets and liabilities of First Trust TCW Opportunistic Fixed Income ETF, First Trust TCW Unconstrained Plus Bond ETF, First Trust TCW Securitized Plus ETF, First Trust TCW Emerging Markets Debt ETF and First Trust TCW ESG Premier Equity ETF (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2021, the related statements of operations, the changes in net assets, and the financial highlights for the periods indicated in the table below, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of August 31, 2021, and the results of their operations, the changes in their net assets, and the financial highlights for the periods listed in the table below, in conformity with accounting principles generally accepted in the United States of America. <TABLE> <CAPTION> ----------------------------------------------------------------------------------------------------------------------------- INDIVIDUAL FUNDS INCLUDED STATEMENTS OF STATEMENTS OF CHANGES IN THE TRUST OPERATIONS IN NET ASSETS FINANCIAL HIGHLIGHTS ----------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> First Trust TCW Opportunistic For the year ended For the years ended For the years ended Fixed Income ETF August 31, 2021 August 31, 2021 and 2020 August 31, 2021, 2020, 2019, 2018, and the period from February 14, 2017 (commencement of operations) through August 31, 2017 ----------------------------------------------------------------------------------------------------------------------------- First Trust TCW Unconstrained For the year ended For the years ended For the years ended Plus Bond ETF August 31, 2021 August 31, 2021 and 2020 August 31, 2021, 2020, 2019, and the period from June 4, 2018 (commencement of operations) through August 31, 2018 ----------------------------------------------------------------------------------------------------------------------------- First Trust TCW Securitized Plus For the year ended For the year ended For the year ended ETF August 31, 2021 August 31, 2021 and for August 31, 2021 and for the period from April 29, the period from April 29, 2020 (commencement of 2020 (commencement of operations) through operations) through August 31, 2020 August 31, 2020 ----------------------------------------------------------------------------------------------------------------------------- First Trust TCW Emerging For the period from February 17, 2021 (commencement of operations) through Markets Debt ETF August 31, 2021 ----------------------------------------------------------------------------------------------------------------------------- First Trust TCW ESG Premier For the period from May 25, 2021 (commencement of operations) through August 31, 2021 Equity ETF ----------------------------------------------------------------------------------------------------------------------------- </TABLE> BASIS FOR OPINION These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. Page 119 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED) -------------------------------------------------------------------------------- Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian, agent banks, and brokers; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 26, 2021 We have served as the auditor of one or more First Trust investment companies since 2001. Page 120 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov. PORTFOLIO HOLDINGS Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC's website at www.sec.gov. Each Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above. FEDERAL TAX INFORMATION Distributions paid to foreign shareholders for the taxable period ended August 31, 2021 that were properly designated by each Fund as "interest-related dividends" or "short-term capital gain dividends," may not be subject to federal income tax provided that the income was earned directly by such foreign shareholders. Of the ordinary income (including short-term capital gain) distribution made by each Fund during the fiscal period ended August 31, 2021, none qualify for the corporate dividends received deduction available to corporate shareholders or as qualified dividend income. Long-term capital gain distributions designated by the Funds are taxable at the applicable capital gain tax rates for federal income tax purposes. For the fiscal year ended August 31, 2021, the below Funds designated long-term capital gain distributions in the following amounts. Long-Term Capital Gain Distributions -------------------- First Trust TCW Opportunistic Fixed Income ETF $ 7,363,614 First Trust TCW Unconstrained Plus Bond ETF 537,281 First Trust TCW Securitized Plus ETF 29,696 RISK CONSIDERATIONS RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND. CONCENTRATION RISK. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund's investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund's corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified. CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments. CYBER SECURITY RISK. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund's third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches. Page 121 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor's investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund's share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless. DERIVATIVES RISK. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund. EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the value of the fund's shares will fluctuate with changes in the value of the 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 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 capital rises and borrowing costs increase. 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. ETF RISK. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange 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). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF's shares, or decisions by an ETF's authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF's shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads. FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund's fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities. INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund's net asset value could be negatively impacted and the fund's market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund's shares. INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund's costs. The Index Provider does not Page 122 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders. INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund's investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests. LIBOR Risk. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund. MANAGEMENT RISK. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund's investment portfolio, the fund's portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective. MARKET RISK. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. 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; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries. OPERATIONAL RISK. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund's ability to meet its investment objective. Although the funds and the funds' investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE Page 123 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS FIRST TRUST TCW EMERGING MARKETS DEBT ETF The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, approved the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor"), on behalf of First Trust TCW Emerging Markets Debt ETF (the "Fund"), and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, on behalf of the Fund, the Advisor and TCW Investment Management Company LLC (the "Sub-Advisor"), for an initial two-year term at a meeting held on January 14, 2021. The Board determined that the Agreements are in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its reasonable business judgment. To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreements for the Fund, the Independent Trustees received a separate report from each of the Advisor and the Sub-Advisor in advance of the Board meeting responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor and the Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by the Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor; the proposed sub-advisory fee rate; the estimated expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to the Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor and the Sub-Advisor. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor are reasonable business arrangements from the Fund's perspective. In evaluating whether to approve the Agreements for the Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor will be responsible for the overall management and administration of the Fund and reviewed all of the services to be provided by the Advisor to the Fund, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board considered that the Fund will be an actively-managed ETF and will employ an advisor/sub-advisor management structure and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor will oversee the Sub-Advisor's day-to-day management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objective, policies and restrictions. The Board noted that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. With respect to the Sub-Advisory Agreement, in addition to the written materials provided by the Sub-Advisor, at the January 14, 2021 meeting, the Board also received a presentation from representatives of the Sub-Advisor discussing the services that the Sub-Advisor will provide to the Fund, and the Trustees were able to ask questions about the proposed investment strategy for the Fund. The Board noted the background and experience of the Sub-Advisor's portfolio management team and the Sub-Advisor's investment style. The Board also noted that the Sub-Advisor sub-advises three other fixed-income ETFs in the First Trust Fund Complex. Because the Fund had yet to commence investment operations, the Board could not consider the historical investment performance of the Fund. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to the Fund by the Advisor and the Sub-Advisor under the Agreements are expected to be satisfactory. The Board considered the proposed unitary fee rate payable by the Fund under the Advisory Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal to an annual rate of 0.95% of its average daily net assets. The Board considered that, from the unitary fee for the Fund, the Advisor would pay the Sub-Advisor a sub-advisory fee equal to 50% of the Fund's unitary fee remaining after the Fund's expenses are paid. The Board noted that the Advisor would be responsible Page 124 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) for the Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board noted that the Advisor would contractually agree to waive fees in the amount of 0.10% of the Fund's average daily net assets for at least a two-year period beginning upon the effectiveness of the Fund's registration statement and also to reduce fees to the extent of acquired fund fees and expenses of funds managed by the Advisor that are held by the Fund. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other ETFs. Because the Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for the Fund (after fee waivers) was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board discussed with representatives of the Advisor how the Expense Group was assembled and how the Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other ETFs managed by the Advisor, the Board considered the Advisor's statement that the Fund will be unique to the First Trust Fund Complex given its focus on hard currency emerging market debt, but will be most similar to two other fixed-income ETFs in the First Trust Fund Complex managed by the Advisor that pay unitary fees equal to annual rates of 0.85% or 0.95% of their respective average daily net assets. In light of the information considered and the nature, extent and quality of the services expected to be provided to the Fund under the Agreements, the Board determined that the proposed unitary fee, including the sub-advisory fee to be paid by the Advisor to the Sub-Advisor from the unitary fee, was fair and reasonable. The Board noted that the proposed unitary fee for the Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Fund would benefit the Advisor and the Sub-Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Fund. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for the Fund under the Advisory Agreement. The Board considered the Advisor's estimate of the asset level for the Fund at which the Advisor expects the Advisory Agreement to be profitable to the Advisor and the Advisor's estimate of the profitability of the Advisory Agreement if the Fund's assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for the Fund was not unreasonable. The Board reviewed financial information provided by the Sub-Advisor, but did not review any potential profitability of the Sub-Advisory Agreement to the Sub-Advisor. The Board considered that the Sub-Advisor would be paid by the Advisor from the Fund's unitary fee and its understanding that the sub-advisory fee rate was the product of an arm's length negotiation. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP. The Board also considered fall-out benefits to the Sub-Advisor that may be realized from its relationship with the Fund, noting the Sub-Advisor's statements that it is not aware of any other benefits derived or that may be derived by the Sub-Advisor or its affiliates from the Sub-Advisor's relationship with the Advisor and the Fund and that the Sub-Advisor does not enter into soft-dollar arrangements. The Board concluded that the character and amount of potential fall-out benefits to the Advisor and the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Agreements are fair and reasonable and that the approval of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board's analysis. BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS FIRST TRUST TCW ESG PREMIER EQUITY ETF The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, approved the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor"), on behalf of First Trust TCW ESG Premier Equity ETF (the "Fund"), and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, on behalf of the Fund, the Advisor and TCW Investment Management Company LLC (the "Sub-Advisor"), for an initial two-year term at a meeting held on April 26, 2021. The Board determined that the Agreements are in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the Page 125 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreements for the Fund, the Independent Trustees received a separate report from each of the Advisor and the Sub-Advisor in advance of the Board meeting responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor and the Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by the Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor; the proposed sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the estimated expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to the Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor and the Sub-Advisor. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor are reasonable business arrangements from the Fund's perspective. In evaluating whether to approve the Agreements for the Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor will be responsible for the overall management and administration of the Fund and reviewed all of the services to be provided by the Advisor to the Fund, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board considered that the Fund will be an actively-managed ETF and will employ an advisor/sub-advisor management structure and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor will oversee the Sub-Advisor's day-to-day management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objective, policies and restrictions. The Board noted that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. With respect to the Sub-Advisory Agreement, in addition to the written materials provided by the Sub-Advisor, at the April 26, 2021 meeting, the Board also received a presentation from a representative of the Sub-Advisor discussing the services that the Sub-Advisor will provide to the Fund, and the Trustees were able to ask questions about the proposed investment strategy for the Fund. The Board noted the background and experience of the Sub-Advisor's portfolio management team and the Sub-Advisor's investment style. The Board also noted that the Sub-Advisor sub-advises four other ETFs in the First Trust Fund Complex. Because the Fund had yet to commence investment operations, the Board could not consider the historical investment performance of the Fund. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to the Fund by the Advisor and the Sub-Advisor under the Agreements are expected to be satisfactory. The Board considered the proposed unitary fee rate payable by the Fund under the Advisory Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal to an annual rate of 0.85% of its average daily net assets. The Board considered that, from the unitary fee for the Fund, the Advisor would pay the Sub-Advisor a sub-advisory fee equal to 50% of the Fund's unitary fee remaining after the Fund's expenses are paid. The Board noted that the Advisor would be responsible for the Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other ETFs. Because the Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board discussed with representatives of the Advisor how the Expense Group was assembled and how the Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other ETFs managed by the Advisor, the Board considered the Advisor's statement that the Fund will be unique to the market and the First Trust Fund Complex as an ETF with an actively-managed focus on ESG with strong enterprise valuations, but will be most similar to three other actively-managed equity ETFs in the First Trust Fund Complex managed by the Advisor that employ an advisor/sub-advisor management structure and pay unitary fees at annual rates that range from 0.80% Page 126 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) to 0.95% of their respective average daily net assets. In light of the information considered and the nature, extent and quality of the services expected to be provided to the Fund under the Agreements, the Board determined that the proposed unitary fee, including the sub-advisory fee to be paid by the Advisor to the Sub-Advisor from the unitary fee, was fair and reasonable. The Board noted that the proposed unitary fee for the Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Fund would benefit the Advisor and the Sub-Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Fund. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for the Fund under the Advisory Agreement. The Board considered the Advisor's estimate of the asset level for the Fund at which the Advisor expects the Advisory Agreement to be profitable to the Advisor and the Advisor's estimate of the profitability of the Advisory Agreement if the Fund's assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for the Fund was not unreasonable. The Board reviewed financial information provided by the Sub-Advisor, but did not review any potential profitability of the Sub-Advisory Agreement to the Sub-Advisor. The Board considered that the Sub-Advisor would be paid by the Advisor from the Fund's unitary fee and its understanding that the sub-advisory fee rate was the product of an arm's length negotiation. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP. The Board also considered fall-out benefits to the Sub-Advisor that may be realized from its relationship with the Fund. The Board noted the Sub-Advisor's statement that it does not accrue scale-related, ancillary or indirect benefits or achieve increased name recognition due to its relationship with the Fund and considered the Sub-Advisor's description of its soft-dollar policy. The Board concluded that the character and amount of potential fall-out benefits to the Advisor and the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Agreements are fair and reasonable and that the approval of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board's analysis. BOARD CONSIDERATIONS REGARDING APPROVAL OF CONTINUATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF, FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF AND FIRST TRUST TCW SECURITIZED PLUS ETF The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreements (as applicable to a specific Fund, the "Advisory Agreement" and collectively, the "Advisory Agreements") with First Trust Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreements (as applicable to a specific Fund, the "Sub-Advisory Agreement" and collectively, the "Sub-Advisory Agreements" and together with the Advisory Agreements, the "Agreements") among the Trust, the Advisor and TCW Investment Management Company LLC (the "Sub-Advisor") on behalf of the following three series of the Trust (each a "Fund" and collectively, the "Funds"): First Trust TCW Opportunistic Fixed Income ETF (FIXD) First Trust TCW Unconstrained Plus Bond ETF (UCON) First Trust TCW Securitized Plus ETF (DEED) The Board approved the continuation of the applicable Agreements for each Fund for a one-year period ending June 30, 2022 at a meeting held on June 6-7 2021. The Board determined for each Fund that the continuation of the applicable Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 26, 2021 and June 6-7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and the Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor and the Sub-Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Page 127 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund's performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the "Performance Universe"), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6-7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor continue to be reasonable business arrangements from each Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor and the Sub-Advisor manage the Fund and knowing the Fund's unitary fee. In reviewing the applicable Agreements for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor under the applicable Agreements. With respect to the Advisory Agreements, the Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board noted that the Advisor oversees the Sub-Advisor's day-to-day management of each Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreements, the Board noted that each Fund is an actively-managed ETF and the Sub-Advisor actively manages the Fund's investments. The Board reviewed the materials provided by the Sub-Advisor and considered the services that the Sub-Advisor provides to each Fund, including the Sub-Advisor's day-to-day management of the Funds' investments. In considering the Sub-Advisor's management of the Funds, the Board noted the background and experience of the Sub-Advisor's portfolio management teams, including the Board's prior meetings with members of the portfolio management teams. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor and the Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Sub-Advisor, under the oversight of the Advisor, has managed each Fund consistent with its investment objective, policies and restrictions. The Board considered the unitary fee rate payable by each Fund under the applicable Advisory Agreement for the services provided. The Board noted that the sub-advisory fee for each Fund is paid by the Advisor from the Fund's unitary fee. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the applicable Advisory Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board noted that the Advisor had previously agreed to waive a portion of its unitary fee for each Fund in an amount equal to 0.10% of the Fund's average daily net assets until at least December 31, 2021 for FIXD and UCON and until at least April 6, 2022 for DEED. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for FIXD, after taking into account the contractual fee waiver, was equal to the median total (net) expense ratio of the peer funds in its Expense Group and that the unitary fee rate for each of UCON and DEED, after taking into account the contractual fee waiver, was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including that the Expense Group for DEED Page 128 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) contained both actively-managed ETFs and open-end mutual funds, and different business models that may affect the pricing of services among ETF sponsors. The Board also noted that not all peer funds employ an advisor/sub-advisor management structure. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rates overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex. The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor and the Sub-Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund's performance. The Board received and reviewed information comparing FIXD's performance for the one- and three-year periods ended December 31, 2020 to the performance of the funds in its Performance Universe and a benchmark index and information comparing UCON's performance for the one-year period ended December 31, 2020 to the performance of the funds in its Performance Universe and a benchmark index. Based on the information provided, the Board noted that FIXD outperformed its Performance Universe median and benchmark index for the one- and three-year periods ended December 31, 2020 and that UCON outperformed its Performance Universe median and benchmark index for the one-year period ended December 31, 2020. Because DEED commenced operations on April 29, 2020 and therefore has a limited performance history, comparative performance information for the Fund was not considered. On the basis of all the information provided on the unitary fee and performance, as applicable, of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund (out of which the Sub-Advisor is compensated) continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor to each Fund under the Agreements. The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds and noted the Advisor's statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Funds. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each of FIXD and UCON for the twelve months ended December 31, 2020 and to DEED for the period from inception through December 31, 2020 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the twelve months ended December 31, 2020. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for each Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. The Board considered the Sub-Advisor's statements that the Sub-Advisor believes economies of scale in managing fixed-income portfolios are limited and that the current sub-advisory fees appropriately reflect economies of scale, and that the Sub-Advisor continues to add resources commensurate with and often ahead of the demands of its business. The Board did not review the profitability of the Sub-Advisor with respect to each Fund. The Board noted that the Advisor pays the Sub-Advisor for each Fund from its unitary fee and its understanding that each Fund's sub-advisory fee rate was the product of an arm's length negotiation. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered the potential fall-out benefits to the Sub-Advisor from being associated with the Advisor and the Funds, and noted the Sub-Advisor's statements that the Sub-Advisor does not accrue scale-related, ancillary or indirect benefits or achieve increased name recognition due to its relationship with the Funds, and that the Sub-Advisor's Fixed Income Team does not enter into soft dollar arrangements. The Board concluded that the character and amount of potential fall-out benefits to the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board's analysis. Page 129 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) LIQUIDITY RISK MANAGEMENT PROGRAM In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program (the "Program") reasonably designed to assess and manage the funds' liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust Liquidity Committee (the "Liquidity Committee"). Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund's portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment minimum for certain funds, monitors the funds' holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund's net assets and establishes policies and procedures regarding redemptions in kind. At the April 26, 2021 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 20, 2020 through the Liquidity Committee's annual meeting held on March 16, 2021 and assessed the Program's adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums. As stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund's investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4. Page 130 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The Trust's statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891. <TABLE> <CAPTION> NUMBER OF OTHER PORTFOLIOS IN TRUSTEESHIPS OR TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> Richard E. Erickson, Trustee o Indefinite Term Physician, Officer, Wheaton Orthopedics; 210 None (1951) Limited Partner, Gundersen Real Estate o Since Inception Limited Partnership (June 1992 to December 2016) Thomas R. Kadlec, Trustee o Indefinite Term President, ADM Investors Services, Inc. 210 Director of ADM (1957) (Futures Commission Merchant) Investor Services, o Since Inception Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises (Financial 210 Director of Trust (1956) and Management Consulting) Company of o Since Inception Illinois Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (August 2018 to Present), 210 None (1954) Managing Director and Chief Operating o Since Inception Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First Trust 210 None Chairman of the Board Advisors L.P. and First Trust (1955) o Since Inception Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) </TABLE> ----------------------------- (1) Mr. Bowen is deemed an "interested person" of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust. Page 131 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS AND YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS(2) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer (1966) Executive Officer (January 2016 to Present), Controller (January 2011 o Since Inception to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to Present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President (July 2016 to Present), Vice (1972) Officer and Chief President (April 2012 to July 2016), First Trust Accounting Officer o Since Inception Advisors L.P. and First Trust Portfolios L.P. W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P. and (1960) Legal Officer First Trust Portfolios L.P.; Secretary and General o Since Inception Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and (1970) First Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. (1966) and Assistant Secretary and First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1966) and First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1970) and First Trust Portfolios L.P. o Since Inception </TABLE> ----------------------------- (2) The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. Page 132 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PRIVACY POLICY First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information. SOURCES OF INFORMATION We collect nonpublic personal information about you from the following sources: o Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; o Information about your transactions with us, our affiliates or others; o Information we receive from your inquiries by mail, e-mail or telephone; and o Information we collect on our website through the use of "cookies". For example, we may identify the pages on our website that your browser requests or visits. INFORMATION COLLECTED The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information. DISCLOSURE OF INFORMATION We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons: o In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. o We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust. USE OF WEBSITE ANALYTICS We currently use third party analytics tools, Google Analytics and AddThis to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis. CONFIDENTIALITY AND SECURITY With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information. POLICY UPDATES AND INQUIRIES As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors). March 2021 Page 133 <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. <PAGE> FIRST TRUST First Trust Exchange-Traded Fund VIII INVESTMENT ADVISOR First Trust Advisors L.P. 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 INVESTMENT SUB-ADVISOR TCW Investment Management Company LLC 865 South Figueroa Street Los Angeles, CA 90017 ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 111 S. Wacker Drive Chicago, IL 60606 LEGAL COUNSEL Chapman and Cutler LLP 111 W. Monroe Street Chicago, IL 60603 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- EquityCompass Risk Manager ETF (ERM) EquityCompass Tactical Risk Manager ETF (TERM) ----------------------------- Annual Report For the Year Ended August 31, 2021 ----------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 Shareholder Letter........................................................... 1 Fund Performance Overview EquityCompass Risk Manager ETF (ERM)...................................... 2 EquityCompass Tactical Risk Manager ETF (TERM)............................ 4 Notes to Fund Performance Overview........................................... 6 Portfolio Commentary......................................................... 7 Understanding Your Fund Expenses............................................. 9 Portfolio of Investments EquityCompass Risk Manager ETF (ERM)...................................... 10 EquityCompass Tactical Risk Manager ETF (TERM)............................ 13 Statements of Assets and Liabilities......................................... 16 Statements of Operations..................................................... 17 Statements of Changes in Net Assets.......................................... 18 Financial Highlights......................................................... 19 Notes to Financial Statements................................................ 20 Report of Independent Registered Public Accounting Firm...................... 26 Additional Information....................................................... 27 Board of Trustees and Officers............................................... 33 Privacy Policy............................................................... 35 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. ("First Trust" or the "Advisor") and/or EquityCompass Investment Management, LLC (the "Sub-Advisor") and their representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as "anticipate," "estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or other words that convey uncertainty of future events or outcomes. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of any series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (each such series is referred to as a "Fund" and collectively, as the "Funds") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof. PERFORMANCE AND RISK DISCLOSURE There is no assurance that any Fund described in this report will achieve its investment objectives. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund's shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in a Fund. See "Risk Considerations" in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds. Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost. The Advisor may also periodically provide additional information on Fund performance on each Fund's webpage at www.ftportfolios.com. HOW TO READ THIS REPORT This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund's performance and investment approach. By reading the portfolio commentary from the portfolio management team of the Funds, you may obtain an understanding of how the market environment affected each Fund's performance. The statistical information that follows may help you understand each Fund's performance compared to that of relevant market benchmarks. It is important to keep in mind that the opinions expressed by personnel of the Advisor and/or Sub-Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings. <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2021 Dear Shareholders: First Trust is pleased to provide you with the annual report for the EquityCompass Risk Manager ETF ("ERM") and the EquityCompass Tactical Risk Manager ETF ("TERM" and together with ERM, the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, which contains detailed information about the Funds for the twelve months ended August 31, 2021. The coronavirus ("COVID-19") pandemic has proven to be as stubborn as advertised. We were warned by the scientific community early on that we would have to coexist with this virus from here on out, and that appears to be the case some 19 months after its onset. While the three main vaccines have proven to be effective at keeping those people who have gotten all the required shots out of the hospital, the U.S., unfortunately, had only achieved a 54% fully vaccinated rate as of September 9, 2021, according to the Centers for Disease Control and Prevention. If you add in the people ages 18 and older who have received just one of the two-dose vaccines, it jumps to 75.3%. The U.S. and global economies continue to underperform due to the pandemic. The U.S. alone had a record high 10.9 million job openings at the end of July 2021, according to the latest Job Openings and Labor Turnover Survey from the Department of Labor. It appears that many people do not seem to want to work right now. An estimated 7.5 million unemployment recipients in the U.S. were scheduled to lose their benefits on September 6, 2021. Perhaps that will be enough to incentivize people to go back to work. The Federal Reserve (the "Fed") continues to play a major role in the U.S. economy. It has kept short-term interest rates artificially low for the better part of the past 13 years. The Federal Funds target rate (upper bound), while held at 0.25% for roughly nine of those 13 years, reached as high as 2.50% in the same 13-year period, but only for a few months and that was just prior to the COVID-19 pandemic, according to data from the Fed. For comparative purposes, the target rate averaged 2.56% for the 30-year period ended September 21, 2021. It currently stands at 0.25%. In addition to keeping rates low, the Fed has been buying assets, specifically Treasuries and mortgage-backed securities. It has been buying a combined $120 billion of these securities every month. This has helped keep bond yields artificially low as well. As of February 26, 2020, the value of the assets on the Fed's balance sheet totaled $4.16 trillion, according to its own data. As of September 15, 2021, the assets were valued at $8.45 trillion. Keep in mind, the balance sheet stood at $1 trillion on September 17, 2008. That was during the 2007-2008 Financial Crisis. Due to the reopening of the U.S. economy and a bigger-than-expected rise in inflation this year, the Fed has signaled that it could begin to taper its bond buying program by the end of 2021. With respect to the Federal Funds rate, the Fed continues to say it intends to leave short-term rates where they are until 2023. In other words, the Fed is poised to maintain its accommodative stance towards monetary policy. They are not looking to get tight - just less loose. We will monitor this scenario closely in the months ahead to see if the Fed's actions impact the direction of interest rates and bond yields. Overall, I am pleased to report that the securities markets have performed well in this tumultuous climate. It appears, in our opinion, that the extremely low interest rates offered on savings vehicles has motivated many investors to assume more risk to potentially generate higher returns. The S&P 500(R) Index (the "Index") posted a total return of 31.17% for the 12-month period ended August 31, 2021, according to Bloomberg. For comparative purposes, from 1926 through 2020 (95 years), the Index returned an average of 10.28% per year on a total return basis, according to Morningstar/Ibbotson Associates. Should interest rates and bond yields eventually trend higher, investors should be prepared for a bit of turbulence as stocks and bonds may be subjected to some potential short-term profit taking, in my opinion. Having said that, I encourage investors to stay the course. I remain optimistic due in large part to the trillions of dollars in government stimulus money already circulating in the economy as well as the potential for trillions of additional dollars from President Joe Biden's infrastructure and "human infrastructure" bills still weaving their way through Congress. It's hard to bet against growth in the current climate. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months. Sincerely, /s/ James A. Bowen James A. Bowen Chairman of the Board of Trustees Chief Executive Officer of First Trust Advisors L.P. Page 1 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) The EquityCompass Risk Manager ETF (the "Fund") seeks to provide long term capital appreciation with capital preservation as a secondary objective. Under normal market conditions, the Fund seeks to achieve its investment objectives by investing in equity securities of companies domiciled in the U.S. or listed on a U.S. exchange. During periods when the U.S. equity market is determined to be unfavorable by the Fund's Sub-Advisor, the Fund may invest all or a portion of its assets in cash, cash equivalents, money market funds and/or short-term fixed income exchange-traded funds ("ETFs"), or the Fund may invest all or a portion of its assets in a single short-term fixed income ETF, the First Trust Enhanced Short Maturity ETF (FTSM). Certain of the ETFs in which the Fund invests may be advised by First Trust. The Fund is classified as "diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the NYSE Arca, Inc., under the ticker symbol "ERM." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (4/10/17) Inception (4/10/17) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 41.52% 7.34% 36.47% Market Price 41.78% 7.36% 36.58% INDEX PERFORMANCE S&P 500(R) Index 31.17% 18.18% 108.22% Hedge Fund Research HFRI Equity Hedge Index(1) 26.92% 10.09% 51.84% --------------------------------------------------------------------------------------------------------------------- </TABLE> (1) Cumulative total return for the period April 30, 2017 through August 31, 2021. Performance data is not available for the entire period shown in the table for the index because performance data for the index is only available on a month-end basis. Performance data for the index may be updated on an ongoing basis and is subject to change. (See Notes to Fund Performance Overview on page 6.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 21.2% Health Care 13.1 Consumer Discretionary 12.5 Financials 11.8 Communication Services 11.6 Industrials 9.2 Consumer Staples 8.0 Energy 3.8 Utilities 3.4 Real Estate 2.7 Materials 2.7 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- American International Group, Inc. 0.8% Norwegian Cruise Line Holdings Ltd. 0.8 NVIDIA Corp. 0.7 Netflix, Inc. 0.7 Booking Holdings, Inc. 0.7 NetApp, Inc. 0.7 Assurant, Inc. 0.7 salesforce.com, Inc. 0.7 Goldman Sachs Group (The), Inc. 0.7 Walgreens Boots Alliance, Inc. 0.7 -------- Total 7.2% ======== Page 2 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 10, 2017 - AUGUST 31, 2021 EquityCompass S&P 500(R) Risk Manager ETF Index <S> <C> <C> 4/10/17 $10,000 $10,000 8/31/17 10,244 10,571 2/28/18 11,107 11,716 8/31/18 11,804 12,649 2/28/19 10,382 12,264 8/31/19 10,190 13,019 2/29/20 10,171 13,269 8/31/20 9,644 15,875 2/28/21 11,883 17,421 8/31/21 13,647 20,822 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 3 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS TACTICAL RISK MANAGER ETF (TERM) The EquityCompass Tactical Risk Manager ETF (the "Fund") seeks to provide long term capital appreciation with capital preservation as a secondary objective. Under normal market conditions, the Fund seeks to achieve its investment objectives by investing in equity securities of companies domiciled in the U.S. or listed on a U.S. exchange. During periods when the U.S. equity market is determined to be unfavorable by the Fund's Sub-Advisor, the Fund may invest all or a portion of its assets in cash, cash equivalents, money market funds and/or short-term fixed income exchange-traded funds ("ETFs"), or the Fund may invest all or a portion of its assets in a single short-term fixed income ETF, the First Trust Enhanced Short Maturity ETF (FTSM). During such periods, the Fund may also invest a significant portion of its assets in securities designed to provide short exposure to broad U.S. market indices including by investing in inverse ETFs. Certain of the ETFs in which the Fund invests may be advised by First Trust. The Fund is classified as "diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the NYSE Arca, Inc., under the ticker symbol "TERM." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (4/10/17) Inception (4/10/17) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 41.54% 3.97% 18.63% Market Price 41.43% 3.98% 18.69% INDEX PERFORMANCE S&P 500(R) Index 31.17% 18.18% 108.22% Hedge Fund Research HFRI Equity Hedge Index(1) 26.92% 10.09% 51.84% --------------------------------------------------------------------------------------------------------------------- </TABLE> (1) Cumulative total return for the period April 30, 2017 through August 31, 2021. Performance data is not available for the entire period shown in the table for the index because performance data for the index is only available on a month-end basis. Performance data for the index may be updated on an ongoing basis and is subject to change. (See Notes to Fund Performance Overview on page 6.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 21.2% Health Care 13.1 Consumer Discretionary 12.5 Financials 11.8 Communication Services 11.6 Industrials 9.2 Consumer Staples 8.0 Energy 3.8 Utilities 3.4 Real Estate 2.7 Materials 2.7 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- American International Group, Inc. 0.8% Norwegian Cruise Line Holdings Ltd. 0.8 Netflix, Inc. 0.7 NVIDIA Corp. 0.7 Assurant, Inc. 0.7 NetApp, Inc. 0.7 salesforce.com, Inc. 0.7 Walgreens Boots Alliance, Inc. 0.7 Booking Holdings, Inc. 0.7 Goldman Sachs Group (The), Inc. 0.7 -------- Total 7.2% ======== Page 4 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS TACTICAL RISK MANAGER ETF (TERM) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 10, 2017 - AUGUST 31, 2021 EquityCompass Tactical S&P 500(R) Risk Manager ETF Index <S> <C> <C> 4/10/17 $10,000 $10,000 8/31/17 10,244 10,571 2/28/18 11,107 11,716 8/31/18 11,805 12,649 2/28/19 9,102 12,264 8/31/19 8,856 13,019 2/29/20 8,835 13,269 8/31/20 8,382 15,875 2/28/21 10,328 17,421 8/31/21 11,863 20,822 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 5 <PAGE> -------------------------------------------------------------------------------- NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- Total returns for the periods since inception are calculated from the inception date of each Fund. "Average Annual Total Returns" represent the average annual change in value of an investment over the periods indicated. "Cumulative Total Returns" represent the total change in value of an investment over the periods indicated. The total returns would have been lower if certain fees had not been waived by the advisor. Each Fund's per share net asset value ("NAV") is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return ("Market Price") is determined by using the midpoint of the national best bid and offer price ("NBBO") as of the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund's NAV is calculated. Prior to January 1, 2019, the price used was the midpoint between the highest bid and the lowest offer on the stock exchange on which shares of the Fund were listed for trading as of the time that the Fund's NAV was calculated. Since shares of each Fund did not trade in the secondary market until after the Fund's inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund's past performance is no guarantee of future performance. Page 6 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) INVESTMENT ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to EquityCompass Risk Manager ETF ("ERM") and EquityCompass Tactical Risk Manager ETF ("TERM") (each a "Fund" and, collectively, the "Funds"). First Trust is responsible for the selection and ongoing monitoring of the securities in the Funds' portfolio and certain other services necessary for the management of the portfolios. SUB-ADVISOR EquityCompass Investment Management, LLC ("EquityCompass Investment Management" or the "Sub-Advisor") serves as the investment sub-advisor to the Funds. PORTFOLIO MANAGEMENT ADVISOR'S INVESTMENT COMMITTEE The Advisor's Investment Committee (the "Investment Committee"), which manages the Funds' investments, consists of: DANIEL J. LINDQUIST, MANAGING DIRECTOR OF FIRST TRUST JON C. ERICKSON, SENIOR VICE PRESIDENT OF FIRST TRUST DAVID G. MCGAREL, CHIEF INVESTMENT OFFICER, CHIEF OPERATING OFFICER AND MANAGING DIRECTOR OF FIRST TRUST ROGER F. TESTIN, SENIOR VICE PRESIDENT OF FIRST TRUST TODD LARSON, CFA, VICE PRESIDENT OF FIRST TRUST CHRIS A. PETERSON, CFA, SENIOR VICE PRESIDENT OF FIRST TRUST JOHN GAMBLA, SENIOR PORTFOLIO MANAGER, ALTERNATIVES INVESTMENT TEAM OF FIRST TRUST ROB A. GUTTSCHOW, CFA, SENIOR PORTFOLIO MANAGER, ALTERNATIVES INVESTMENT TEAM OF FIRST TRUST SUB-ADVISOR PORTFOLIO MANAGERS The Sub-Advisor portfolio managers, as set forth below, provide non-discretionary investment advice to the Investment Committee: TIMOTHY M. MCCANN, SENIOR PORTFOLIO MANAGER, EQUITYCOMPASS INVESTMENT MANAGEMENT, LLC CHRISTOPHER M. MUTASCIO, SENIOR MANAGING DIRECTOR AND PORTFOLIO MANAGER, EQUITYCOMPASS INVESTMENT MANAGEMENT, LLC The Investment Committee members are primarily and jointly responsible for the day-to-day management of the Funds, while the Sub-Advisor portfolio managers provide non-discretionary investment advice to the Investment Committee. Timothy M. McCann has served as part of the portfolio management team of the Funds since 2017 and Christopher M. Mutascio has served as part of the portfolio management team of the Funds since 2020. COMMENTARY MARKET RECAP In the fall of 2020, we suggested that the introduction of coronavirus ("COVID-19") vaccines would not only protect individuals from contracting COVID-19 but would also work to help reopen our economy that had been shut down as a result of the global pandemic. We were optimistic that after enough vaccines were administered, economic growth would return most likely by the spring of 2021, accompanied by a significant recovery in the earnings of companies that had been shackled by the worst contraction to the U.S. gross domestic product ("GDP") and corporate profitability since The Great Depression 100 years ago. In addition, we believed the next pivot in the stock market would likely favor value stocks over growth stocks. Although the outperformance of growth stocks over value stocks in 2020 was perfectly sensible (growth stocks were able to continue growing sales and earnings despite the recession) the reopening of the economy would, in our opinion, soon benefit value stocks as these businesses were strong beneficiaries of a rapidly expanding economy. Specifically, we believed the most mispriced segment of the market in the fall of 2020 would be high-quality, dividend-paying stocks within the value stock camp. With dividend payments between 4%-6%, the yields of these value stocks were at record levels compared to the sub 1% yield on the 10-Year U.S. Treasury Note. We continued to reiterate our belief that stocks with above average income yields might soon become an opportunistic segment of the stock market. To this point, we also believed the significant lag in price performance among value stocks relative to growth stocks that occurred in 2020 might soon reverse. In 2020, the economic impact of COVID-19 caused U.S. real GDP growth to decline 2.4%--the first negative yearly reading in over 10 years. However, with the introduction of vaccines beginning in November 2020, the U.S. economy began to slowly reopen. In the first quarter of 2021, U.S. real GDP advanced 0.4%--a small economic advance, but definitely in the right direction. With several vaccines being administered and more doors of the U.S. economy starting to open, the recovery was soon full speed ahead. Page 7 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) For the 12-month period ended August 31, 2021, large cap stocks, as represented by the S&P 500(R) Index, gained 31.17%, mid-cap stocks, represented by the S&P MidCap 400(R) Index, returned 44.75% and small-cap stocks, represented by the S&P SmallCap 600(R) Index, gained 53.91%. The disparity between the Russell 1000(R) Growth Index and the Russell 1000(R) Value Index was 7.90%, with growth stocks returning 28.52% and the value stocks counterpart returning 36.42% over the same period. The Financials, Energy, and Communication Services sectors were the strongest advancing sectors while the Utilities, Consumer Discretionary, and Consumer Staples sectors were the weakest, yet still earning positive returns, during the same period. Bonds, as represented by the Bloomberg U.S. Aggregate Bond Total Return Index, fell relatively flat at -0.08% for the same period. Forward 12-month earnings estimates for the S&P 500(R) Index were $211.68 on August 31, 2021. PERFORMANCE REVIEW (ERM/TERM) ERM and TERM were fully long equities throughout the 12-month period ended August 31, 2021, with the exception of two brief periods where both Funds held a partially defensive position (25% cash) during the periods of March 3, 2021 through March 17, 2021 and, again, on July 22, 2021 through August 2, 2021. On both occasions, the criteria used to trigger the positioning was a sudden and significant single day widening in credit spreads. The actions in the credit markets appeared to be limited to just single daily events. Credit market conditions on both occasions stabilized fairly quickly after each of these signals. Therefore, the duration of both defensive positions was minimal. For the twelve-month period ended August 31, 2021, ERM and TERM posted net asset value ("NAV") returns of 41.52% and 41.54%, respectively. Market price returns for ERM and TERM were 41.78% and 41.43%, respectively, for the same period. The primary benchmark for the Funds is the S&P 500(R) Index (the "Benchmark"). For the period, the S&P 500(R) Equal Weight Index was up 42.67% on a total return basis. Both TERM and ERM outperformed their Benchmark. The greatest contribution to the active return for the Funds relative to the Benchmark was their exposure to equally weighted positions. Market breadth was strong for the period, particularly during the reflationary period of September 2020 through March 2021 when the yield on the 10-Year U.S. Treasury Note rose over 100 basis points ("bps"). For the 12-month period ended August 31, 2021, the S&P market-cap weighted index advanced 31.17%, while its equal weighted counterpart rose 42.67%. The Funds' disproportionate exposure to smaller companies also provided a modest tailwind to performance as evidenced with the S&P 100(R) Index advancing 28.77% while the S&P SmallCap 600(R) rose 53.91%. All sector exposures provided a positive contribution to the Funds' active returns for the period except for the Health Care sector. The sectors with the greatest contribution to the Funds' active return were the stocks held in the Consumer Discretionary and the Financials sectors. Our selection process for the underlying 150 names--representing the long component--tends to result in two distinct biases relative to the equal weight S&P 500(R) Index. Roughly one-third of the portfolio will generally be comprised of the smallest names in the S&P 500(R) Index across all major sectors. As a result, they tend to have smaller capitalizations and value-like characteristics. Seven of the 11 Benchmark sectors produced positive returns during the 12-month period ended August 31, 2021, with the Financials (+56.32%), Energy (+42.90%), and Communication Services (+38.55%) sectors leading the advancers. The Utilities, Consumer Discretionary, and Consumer Staples sectors were the under-performing sectors for the same period, gaining 19.71%, 17.85%, and 14.44%, respectively. MARKET AND FUND OUTLOOK As of August 31, 2021, earnings expectations for the S&P 500(R) Index have climbed steadily within the last year. For the full 12-month period ended August 31, 2021, earnings estimates have expanded at a rate of 24 cents (14 bps growth) per day from a low of $152.08 to $211.68. The growth in corporate profitability has seen a very steady incline that is broadly in line with the direction of the S&P 500(R) Index. Earnings multiples on the S&P 500(R) Index have softened slightly from 23.01x in August of 2020 to 20.9x in August of 2021. This multiple compression comes as prices continue to chase expectations, with the direction of both trending upward in tandem. Buoys to the financial market within the period included improving business expectations, strong consumer spending, and government aid to individuals and corporations. So long as expectations for earnings continue to rise, and technical patterns remain favorable, we anticipate both Funds to maintain full equity exposure. Looking forward, it is clear, in our view, the U.S. economy is in the midst of its strongest recovery since World War II. However, it is important to understand this flurry of activity is a direct result of the reopening of our economy after spending almost a year in lockdown because of the COVID-19 global pandemic. The unleashing of pent-up demand, by both consumers and businesses, is unprecedented. Once businesses renormalize their supply chains, employees return back to the workforce, and consumer appetites have been satisfied, the U.S. economy should reset to a slower and lower level of economic activity, in our opinion. The Equity Risk Management Strategy ("ERMS") is designed to remove emotional decision making and react to, not anticipate, changes in fundamental and technical conditions to adjust equity exposure accordingly. Currently, the ERMS is fully invested as both fundamental and technical indicators signal favorable near-term outcomes. Should either of these conditions deteriorate, the strategy will move to a partially defensive position. However, if both signals deteriorate concurrently the strategy will move to a more significant defensive position. Page 8 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2021 (UNAUDITED) As a shareholder of EquityCompass Risk Manager ETF or EquityCompass Tactical Risk Manager ETF (each a "Fund" and collectively, the "Funds"), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended August 31, 2021. ACTUAL EXPENSES The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this six-month period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------- ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD (a) PERIOD (a) (b) ------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> EQUITYCOMPASS RISK MANAGER ETF (ERM) Actual $1,000.00 $1,148.40 0.65% $3.52 Hypothetical (5% return before expenses) $1,000.00 $1,021.93 0.65% $3.31 EQUITYCOMPASS TACTICAL RISK MANAGER ETF (TERM) Actual $1,000.00 $1,148.70 0.65% $3.52 Hypothetical (5% return before expenses) $1,000.00 $1,021.93 0.65% $3.31 </TABLE> (a) Annualized expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which each Fund may invest. (b) Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 1, 2021 through August 31, 2021), multiplied by 184/365 (to reflect the six-month period). Page 9 <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.6% AEROSPACE & DEFENSE -- 2.6% 332 Boeing (The) Co. (a) $ 72,874 383 General Dynamics Corp. 76,719 207 Lockheed Martin Corp. 74,479 873 Raytheon Technologies Corp. 73,995 ------------- 298,067 ------------- AIR FREIGHT & LOGISTICS -- 1.3% 271 FedEx Corp. 72,002 391 United Parcel Service, Inc., Class B 76,491 ------------- 148,493 ------------- AUTOMOBILES -- 1.9% 5,562 Ford Motor Co. (a) 72,473 1,420 General Motors Co. (a) 69,594 105 Tesla, Inc. (a) 77,251 ------------- 219,318 ------------- BANKS -- 3.4% 1,951 Bank of America Corp. 81,454 1,091 Citigroup, Inc. 78,454 493 JPMorgan Chase & Co. 78,855 1,355 U.S. Bancorp 77,764 1,611 Wells Fargo & Co. 73,623 ------------- 390,150 ------------- BEVERAGES -- 1.9% 1,339 Coca-Cola (The) Co. 75,399 1,547 Molson Coors Beverage Co., Class B 73,529 487 PepsiCo, Inc. 76,162 ------------- 225,090 ------------- BIOTECHNOLOGY -- 2.7% 651 AbbVie, Inc. 78,628 329 Amgen, Inc. 74,199 222 Biogen, Inc. (a) 75,238 1,081 Gilead Sciences, Inc. 78,675 ------------- 306,740 ------------- CAPITAL MARKETS -- 2.8% 1,445 Bank of New York Mellon (The) Corp. 79,793 85 BlackRock, Inc. 80,180 198 Goldman Sachs Group (The), Inc. 81,875 777 Morgan Stanley 81,142 ------------- 322,990 ------------- CHEMICALS -- 2.0% 1,658 CF Industries Holdings, Inc. 75,306 1,224 Dow, Inc. 76,990 1,004 DuPont de Nemours, Inc. 74,316 ------------- 226,612 ------------- COMMUNICATIONS EQUIPMENT -- 2.6% 198 Arista Networks, Inc. (a) 73,167 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT (CONTINUED) 1,347 Cisco Systems, Inc. $ 79,500 352 F5 Networks, Inc. (a) 71,656 2,606 Juniper Networks, Inc. 75,522 ------------- 299,845 ------------- CONSUMER FINANCE -- 1.3% 445 American Express Co. 73,852 461 Capital One Financial Corp. 76,512 ------------- 150,364 ------------- CONTAINERS & PACKAGING -- 0.7% 1,290 Sealed Air Corp. 78,729 ------------- DIVERSIFIED FINANCIAL SERVICES -- 0.7% 268 Berkshire Hathaway, Inc., Class B (a) 76,586 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.0% 2,693 AT&T, Inc. 73,842 6,567 Lumen Technologies, Inc. 80,774 1,357 Verizon Communications, Inc. 74,635 ------------- 229,251 ------------- ELECTRIC UTILITIES -- 3.3% 710 Duke Energy Corp. 74,309 1,615 Exelon Corp. 79,167 949 NextEra Energy, Inc. 79,707 969 Pinnacle West Capital Corp. 74,516 1,184 Southern (The) Co. 77,824 ------------- 385,523 ------------- ELECTRICAL EQUIPMENT -- 0.7% 746 Emerson Electric Co. 78,703 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.6% 416 IPG Photonics Corp. (a) 71,003 ------------- ENERGY EQUIPMENT & SERVICES -- 1.3% 2,700 Schlumberger N.V. 75,708 10,923 TechnipFMC PLC (a) 72,419 ------------- 148,127 ------------- ENTERTAINMENT -- 2.8% 538 Electronic Arts, Inc. 78,123 936 Live Nation Entertainment, Inc. (a) 81,151 146 Netflix, Inc. (a) 83,102 436 Walt Disney (The) Co. (a) 79,047 ------------- 321,423 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 2.7% 265 American Tower Corp. 77,425 653 Federal Realty Investment Trust 79,516 Page 10 See Notes to Financial Statements <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) EQUITY REAL ESTATE INVESTMENT TRUSTS (CONTINUED) 580 Simon Property Group, Inc. $ 77,981 1,060 SL Green Realty Corp. 74,285 ------------- 309,207 ------------- FOOD & STAPLES RETAILING -- 2.1% 173 Costco Wholesale Corp. 78,800 1,610 Walgreens Boots Alliance, Inc. 81,708 525 Walmart, Inc. 77,752 ------------- 238,260 ------------- FOOD PRODUCTS -- 1.3% 2,030 Kraft Heinz (The) Co. 73,060 1,213 Mondelez International, Inc., Class A 75,291 ------------- 148,351 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 2.7% 616 Abbott Laboratories 77,844 246 Danaher Corp. 79,743 1,174 DENTSPLY SIRONA, Inc. 72,436 582 Medtronic PLC 77,685 ------------- 307,708 ------------- HEALTH CARE PROVIDERS & SERVICES -- 3.2% 919 CVS Health Corp. 79,392 561 DaVita, Inc. (a) 73,362 967 Henry Schein, Inc. (a) 73,096 178 UnitedHealth Group, Inc. 74,096 481 Universal Health Services, Inc., Class B 74,921 ------------- 374,867 ------------- HOTELS, RESTAURANTS & LEISURE -- 2.8% 36 Booking Holdings, Inc. (a) 82,788 320 McDonald's Corp. 75,987 3,335 Norwegian Cruise Line Holdings Ltd. (a) 86,176 636 Starbucks Corp. 74,724 ------------- 319,675 ------------- HOUSEHOLD DURABLES -- 1.3% 1,551 Leggett & Platt, Inc. 75,053 2,998 Newell Brands, Inc. 76,179 ------------- 151,232 ------------- HOUSEHOLD PRODUCTS -- 1.3% 959 Colgate-Palmolive Co. 74,754 525 Procter & Gamble (The) Co. 74,755 ------------- 149,509 ------------- INDUSTRIAL CONGLOMERATES -- 2.0% 380 3M Co. 74,001 736 General Electric Co. 77,582 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES (CONTINUED) 327 Honeywell International, Inc. $ 75,835 ------------- 227,418 ------------- INSURANCE -- 3.5% 578 Allstate (The) Corp. 78,192 1,589 American International Group, Inc. 86,696 482 Assurant, Inc. 81,993 1,310 MetLife, Inc. 81,220 2,999 Unum Group 79,833 ------------- 407,934 ------------- INTERACTIVE MEDIA & SERVICES -- 1.4% 28 Alphabet, Inc., Class A (a) 81,031 209 Facebook, Inc., Class A (a) 79,290 ------------- 160,321 ------------- INTERNET & DIRECT MARKETING RETAIL -- 0.7% 22 Amazon.com, Inc. (a) 76,357 ------------- IT SERVICES -- 6.5% 236 Accenture PLC, Class A 79,428 666 Akamai Technologies, Inc. (a) 75,424 431 Broadridge Financial Solutions, Inc. 74,227 256 Gartner, Inc. (a) 79,037 525 International Business Machines Corp. 73,679 431 Jack Henry & Associates, Inc. 76,020 204 Mastercard, Inc., Class A 70,631 274 PayPal Holdings, Inc. (a) 79,093 316 Visa, Inc., Class A 72,396 3,380 Western Union (The) Co. 73,143 ------------- 753,078 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.7% 139 Thermo Fisher Scientific, Inc. 77,138 ------------- MACHINERY -- 1.3% 365 Caterpillar, Inc. 76,967 1,757 Flowserve Corp. 68,295 ------------- 145,262 ------------- MEDIA -- 5.4% 98 Charter Communications, Inc., Class A (a) 80,033 1,296 Comcast Corp., Class A 78,641 2,650 Discovery, Inc., Class A (a) 76,426 1,816 DISH Network Corp., Class A (a) 79,160 2,158 Fox Corp., Class A 80,796 2,109 Interpublic Group of Cos. (The), Inc. 78,518 3,208 News Corp., Class B 70,672 1,047 Omnicom Group, Inc. 76,661 ------------- 620,907 ------------- See Notes to Financial Statements Page 11 <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) MULTILINE RETAIL -- 0.6% 287 Target Corp. $ 70,883 ------------- OIL, GAS & CONSUMABLE FUELS -- 2.5% 749 Chevron Corp. 72,481 1,358 ConocoPhillips 75,410 1,316 Exxon Mobil Corp. 71,748 4,374 Kinder Morgan, Inc. 71,165 ------------- 290,804 ------------- PHARMACEUTICALS -- 3.8% 1,093 Bristol-Myers Squibb Co. 73,078 282 Eli Lilly and Co. 72,838 431 Johnson & Johnson 74,619 991 Merck & Co., Inc. 75,603 1,563 Perrigo Co. PLC 64,005 1,648 Pfizer, Inc. 75,923 ------------- 436,066 ------------- PROFESSIONAL SERVICES -- 0.7% 783 Leidos Holdings, Inc. 76,820 ------------- ROAD & RAIL -- 0.6% 344 Union Pacific Corp. 74,593 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 3.3% 1,392 Intel Corp. 75,251 372 NVIDIA Corp. 83,272 386 Qorvo, Inc. (a) 72,580 506 QUALCOMM, Inc. 74,225 390 Texas Instruments, Inc. 74,455 ------------- 379,783 ------------- SOFTWARE -- 4.0% 120 Adobe, Inc. (a) 79,644 741 Citrix Systems, Inc. 76,227 262 Microsoft Corp. 79,093 835 Oracle Corp. 74,423 309 salesforce.com, Inc. (a) 81,968 153 Tyler Technologies, Inc. (a) 74,312 ------------- 465,667 ------------- SPECIALTY RETAIL -- 2.0% 2,729 Gap (The), Inc. 72,946 227 Home Depot (The), Inc. 74,043 394 Lowe's Cos., Inc. 80,333 ------------- 227,322 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 4.0% 511 Apple, Inc. 77,585 5,110 Hewlett Packard Enterprise Co. 79,001 922 NetApp, Inc. 81,993 838 Seagate Technology Holdings PLC 73,400 1,143 Western Digital Corp. (a) 72,238 3,186 Xerox Holdings Corp. 71,717 ------------- 455,934 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS -- 3.2% 4,065 Hanesbrands, Inc. $ 75,934 437 NIKE, Inc., Class B 71,992 699 PVH Corp. (a) 73,248 600 Ralph Lauren Corp. 69,678 3,135 Under Armour, Inc., Class A (a) 72,544 ------------- 363,396 ------------- TOBACCO -- 1.4% 1,602 Altria Group, Inc. 80,468 756 Philip Morris International, Inc. 77,868 ------------- 158,336 ------------- TOTAL COMMON STOCKS -- 99.6% 11,443,842 (Cost $9,544,925) ------------- MONEY MARKET FUNDS -- 0.3% 26,222 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class 0.01% (b) 26,222 (Cost $26,222) ------------- TOTAL INVESTMENTS -- 99.9% 11,470,064 (Cost $9,571,147) (c) NET OTHER ASSETS AND LIABILITIES -- 0.1% 16,912 ------------- NET ASSETS -- 100.0% $ 11,486,976 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $9,708,336. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $2,083,492 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $321,764. The net unrealized appreciation was $1,761,728. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $ 11,443,842 $ -- $ -- Money Market Funds 26,222 -- -- --------------------------------------------- Total Investments $ 11,470,064 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. Page 12 See Notes to Financial Statements <PAGE> EQUITYCOMPASS TACTICAL RISK MANAGER ETF (TERM) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.7% AEROSPACE & DEFENSE -- 2.6% 355 Boeing (The) Co. (a) $ 77,922 410 General Dynamics Corp. 82,127 221 Lockheed Martin Corp. 79,516 934 Raytheon Technologies Corp. 79,166 ------------- 318,731 ------------- AIR FREIGHT & LOGISTICS -- 1.3% 289 FedEx Corp. 76,785 418 United Parcel Service, Inc., Class B 81,773 ------------- 158,558 ------------- AUTOMOBILES -- 1.9% 5,959 Ford Motor Co. (a) 77,646 1,523 General Motors Co. (a) 74,642 113 Tesla, Inc. (a) 83,136 ------------- 235,424 ------------- BANKS -- 3.4% 2,086 Bank of America Corp. 87,090 1,168 Citigroup, Inc. 83,991 528 JPMorgan Chase & Co. 84,454 1,451 U.S. Bancorp 83,273 1,725 Wells Fargo & Co. 78,832 ------------- 417,640 ------------- BEVERAGES -- 1.9% 1,431 Coca-Cola (The) Co. 80,580 1,655 Molson Coors Beverage Co., Class B 78,662 521 PepsiCo, Inc. 81,479 ------------- 240,721 ------------- BIOTECHNOLOGY -- 2.7% 695 AbbVie, Inc. 83,942 352 Amgen, Inc. 79,386 238 Biogen, Inc. (a) 80,661 1,155 Gilead Sciences, Inc. 84,061 ------------- 328,050 ------------- CAPITAL MARKETS -- 2.8% 1,546 Bank of New York Mellon (The) Corp. 85,370 90 BlackRock, Inc. 84,896 211 Goldman Sachs Group (The), Inc. 87,251 831 Morgan Stanley 86,781 ------------- 344,298 ------------- CHEMICALS -- 2.0% 1,775 CF Industries Holdings, Inc. 80,621 1,310 Dow, Inc. 82,399 1,074 DuPont de Nemours, Inc. 79,497 ------------- 242,517 ------------- COMMUNICATIONS EQUIPMENT -- 2.6% 212 Arista Networks, Inc. (a) 78,340 1,440 Cisco Systems, Inc. 84,989 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT (CONTINUED) 377 F5 Networks, Inc. (a) $ 76,746 2,788 Juniper Networks, Inc. 80,796 ------------- 320,871 ------------- CONSUMER FINANCE -- 1.3% 476 American Express Co. 78,997 494 Capital One Financial Corp. 81,989 ------------- 160,986 ------------- CONTAINERS & PACKAGING -- 0.7% 1,381 Sealed Air Corp. 84,282 ------------- DIVERSIFIED FINANCIAL SERVICES -- 0.7% 287 Berkshire Hathaway, Inc., Class B (a) 82,016 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.0% 2,883 AT&T, Inc. 79,052 7,056 Lumen Technologies, Inc. 86,789 1,451 Verizon Communications, Inc. 79,805 ------------- 245,646 ------------- ELECTRIC UTILITIES -- 3.3% 758 Duke Energy Corp. 79,332 1,725 Exelon Corp. 84,560 1,014 NextEra Energy, Inc. 85,166 1,037 Pinnacle West Capital Corp. 79,745 1,265 Southern (The) Co. 83,148 ------------- 411,951 ------------- ELECTRICAL EQUIPMENT -- 0.7% 797 Emerson Electric Co. 84,084 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.6% 447 IPG Photonics Corp. (a) 76,294 ------------- ENERGY EQUIPMENT & SERVICES -- 1.3% 2,884 Schlumberger N.V. 80,868 11,683 TechnipFMC PLC (a) 77,458 ------------- 158,326 ------------- ENTERTAINMENT -- 2.8% 575 Electronic Arts, Inc. 83,496 1,002 Live Nation Entertainment, Inc. (a) 86,873 156 Netflix, Inc. (a) 88,794 466 Walt Disney (The) Co. (a) 84,486 ------------- 343,649 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 2.7% 283 American Tower Corp. 82,684 698 Federal Realty Investment Trust 84,995 620 Simon Property Group, Inc. 83,359 1,136 SL Green Realty Corp. 79,611 ------------- 330,649 ------------- See Notes to Financial Statements Page 13 <PAGE> EQUITYCOMPASS TACTICAL RISK MANAGER ETF (TERM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD & STAPLES RETAILING -- 2.1% 185 Costco Wholesale Corp. $ 84,266 1,723 Walgreens Boots Alliance, Inc. 87,442 561 Walmart, Inc. 83,084 ------------- 254,792 ------------- FOOD PRODUCTS -- 1.3% 2,176 Kraft Heinz (The) Co. 78,314 1,296 Mondelez International, Inc., Class A 80,443 ------------- 158,757 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 2.7% 658 Abbott Laboratories 83,151 262 Danaher Corp. 84,930 1,256 DENTSPLY SIRONA, Inc. 77,495 622 Medtronic PLC 83,025 ------------- 328,601 ------------- HEALTH CARE PROVIDERS & SERVICES -- 3.3% 983 CVS Health Corp. 84,921 599 DaVita, Inc. (a) 78,331 1,035 Henry Schein, Inc. (a) 78,236 190 UnitedHealth Group, Inc. 79,091 515 Universal Health Services, Inc., Class B 80,217 ------------- 400,796 ------------- HOTELS, RESTAURANTS & LEISURE -- 2.8% 38 Booking Holdings, Inc. (a) 87,388 342 McDonald's Corp. 81,211 3,589 Norwegian Cruise Line Holdings Ltd. (a) 92,740 680 Starbucks Corp. 79,893 ------------- 341,232 ------------- HOUSEHOLD DURABLES -- 1.3% 1,660 Leggett & Platt, Inc. 80,327 3,207 Newell Brands, Inc. 81,490 ------------- 161,817 ------------- HOUSEHOLD PRODUCTS -- 1.3% 1,024 Colgate-Palmolive Co. 79,821 561 Procter & Gamble (The) Co. 79,881 ------------- 159,702 ------------- INDUSTRIAL CONGLOMERATES -- 2.0% 406 3M Co. 79,064 787 General Electric Co. 82,958 349 Honeywell International, Inc. 80,937 ------------- 242,959 ------------- INSURANCE -- 3.5% 618 Allstate (The) Corp. 83,603 1,701 American International Group, Inc. 92,806 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- INSURANCE (CONTINUED) 515 Assurant, Inc. $ 87,607 1,402 MetLife, Inc. 86,924 3,206 Unum Group 85,344 ------------- 436,284 ------------- INTERACTIVE MEDIA & SERVICES -- 1.4% 30 Alphabet, Inc., Class A (a) 86,818 223 Facebook, Inc., Class A (a) 84,602 ------------- 171,420 ------------- INTERNET & DIRECT MARKETING RETAIL -- 0.7% 24 Amazon.com, Inc. (a) 83,299 ------------- IT SERVICES -- 6.5% 253 Accenture PLC, Class A 85,150 710 Akamai Technologies, Inc. (a) 80,407 461 Broadridge Financial Solutions, Inc. 79,393 273 Gartner, Inc. (a) 84,286 562 International Business Machines Corp. 78,871 461 Jack Henry & Associates, Inc. 81,311 218 Mastercard, Inc., Class A 75,478 292 PayPal Holdings, Inc. (a) 84,289 339 Visa, Inc., Class A 77,665 3,618 Western Union (The) Co. 78,294 ------------- 805,144 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.7% 149 Thermo Fisher Scientific, Inc. 82,688 ------------- MACHINERY -- 1.3% 390 Caterpillar, Inc. 82,239 1,881 Flowserve Corp. 73,115 ------------- 155,354 ------------- MEDIA -- 5.4% 104 Charter Communications, Inc., Class A (a) 84,933 1,386 Comcast Corp., Class A 84,102 2,831 Discovery, Inc., Class A (a) 81,646 1,945 DISH Network Corp., Class A (a) 84,782 2,313 Fox Corp., Class A 86,599 2,256 Interpublic Group of (The) Cos., Inc. 83,991 3,433 News Corp., Class B 75,629 1,118 Omnicom Group, Inc. 81,860 ------------- 663,542 ------------- MULTILINE RETAIL -- 0.6% 307 Target Corp. 75,823 ------------- OIL, GAS & CONSUMABLE FUELS -- 2.5% 801 Chevron Corp. 77,513 1,452 ConocoPhillips 80,629 1,407 Exxon Mobil Corp. 76,710 Page 14 See Notes to Financial Statements <PAGE> EQUITYCOMPASS TACTICAL RISK MANAGER ETF (TERM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) OIL, GAS & CONSUMABLE FUELS (CONTINUED) 4,674 Kinder Morgan, Inc. $ 76,046 ------------- 310,898 ------------- PHARMACEUTICALS -- 3.8% 1,168 Bristol-Myers Squibb Co. 78,093 301 Eli Lilly and Co. 77,745 461 Johnson & Johnson 79,813 1,059 Merck & Co., Inc. 80,791 1,670 Perrigo Co. PLC 68,387 1,762 Pfizer, Inc. 81,175 ------------- 466,004 ------------- PROFESSIONAL SERVICES -- 0.7% 839 Leidos Holdings, Inc. 82,314 ------------- ROAD & RAIL -- 0.6% 368 Union Pacific Corp. 79,797 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 3.3% 1,489 Intel Corp. 80,495 396 NVIDIA Corp. 88,645 413 Qorvo, Inc. (a) 77,656 541 QUALCOMM, Inc. 79,359 416 Texas Instruments, Inc. 79,419 ------------- 405,574 ------------- SOFTWARE -- 4.0% 129 Adobe, Inc. (a) 85,617 793 Citrix Systems, Inc. 81,576 280 Microsoft Corp. 84,526 892 Oracle Corp. 79,504 330 salesforce.com, Inc. (a) 87,539 164 Tyler Technologies, Inc. (a) 79,655 ------------- 498,417 ------------- SPECIALTY RETAIL -- 2.0% 2,932 Gap (The), Inc. 78,372 243 Home Depot (The), Inc. 79,262 421 Lowe's Cos., Inc. 85,838 ------------- 243,472 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 4.0% 545 Apple, Inc. 82,747 5,475 Hewlett Packard Enterprise Co. 84,644 985 NetApp, Inc. 87,596 897 Seagate Technology Holdings PLC 78,568 1,223 Western Digital Corp. (a) 77,294 3,408 Xerox Holdings Corp. 76,714 ------------- 487,563 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 3.2% 4,354 Hanesbrands, Inc. 81,333 468 NIKE, Inc., Class B 77,098 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS (CONTINUED) 751 PVH Corp. (a) $ 78,697 644 Ralph Lauren Corp. 74,788 3,369 Under Armour, Inc., Class A (a) 77,959 ------------- 389,875 ------------- TOBACCO -- 1.4% 1,713 Altria Group, Inc. 86,044 808 Philip Morris International, Inc. 83,224 ------------- 169,268 ------------- TOTAL COMMON STOCKS -- 99.7% 12,240,085 (Cost $10,263,437) ------------- MONEY MARKET FUNDS -- 0.2% 18,654 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (b) 18,654 (Cost $18,654) ------------- TOTAL INVESTMENTS -- 99.9% 12,258,739 (Cost $10,282,091) (c) NET OTHER ASSETS AND LIABILITIES -- 0.1% 18,093 ------------- NET ASSETS -- 100.0% $ 12,276,832 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $10,429,641. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $2,188,384 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $359,286. The net unrealized appreciation was $1,829,098. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $ 12,240,085 $ -- $ -- Money Market Funds 18,654 -- -- --------------------------------------------- Total Investments $ 12,258,739 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 15 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2021 <TABLE> <CAPTION> EQUITYCOMPASS EQUITYCOMPASS TACTICAL RISK MANAGER ETF RISK MANAGER ETF (ERM) (TERM) ---------------- ---------------- <S> <C> <C> ASSETS: Investments, at value.................................................. $ 11,470,064 $ 12,258,739 Dividends receivable................................................... 23,203 24,817 ---------------- ---------------- Total Assets........................................................ 11,493,267 12,283,556 ---------------- ---------------- LIABILITIES: Investment advisory fees payable....................................... 6,291 6,724 ---------------- ---------------- Total Liabilities................................................... 6,291 6,724 ---------------- ---------------- NET ASSETS............................................................. $ 11,486,976 $ 12,276,832 ================ ================ NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 14,383,484 $ 24,892,272 Par value.............................................................. 4,500 5,500 Accumulated distributable earnings (loss).............................. (2,901,008) (12,620,940) ---------------- ---------------- NET ASSETS............................................................. $ 11,486,976 $ 12,276,832 ================ ================ NET ASSET VALUE, per share............................................. $ 25.53 $ 22.32 ================ ================ Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 450,002 550,002 ================ ================ Investments, at cost................................................... $ 9,571,147 $ 10,282,091 ================ ================ </TABLE> Page 16 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2021 <TABLE> <CAPTION> EQUITYCOMPASS EQUITYCOMPASS TACTICAL RISK MANAGER ETF RISK MANAGER ETF (ERM) (TERM) ---------------- ---------------- <S> <C> <C> INVESTMENT INCOME: Dividends.............................................................. $ 218,133 $ 242,010 ---------------- ---------------- Total investment income............................................. 218,133 242,010 ---------------- ---------------- EXPENSES: Investment advisory fees............................................... 73,669 82,246 ---------------- ---------------- Total expenses...................................................... 73,669 82,246 ---------------- ---------------- NET INVESTMENT INCOME (LOSS)........................................... 144,464 159,764 ---------------- ---------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... 1,221,451 1,390,226 In-kind redemptions................................................. 930,817 1,109,043 ---------------- ---------------- Net realized gain (loss)............................................... 2,152,268 2,499,269 ---------------- ---------------- Net change in unrealized appreciation (depreciation) on investments.... 1,638,311 1,805,285 ---------------- ---------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ 3,790,579 4,304,554 ---------------- ---------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ 3,935,043 $ 4,464,318 ================ ================ </TABLE> See Notes to Financial Statements Page 17 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> EQUITYCOMPASS EQUITYCOMPASS RISK MANAGER ETF TACTICAL RISK MANAGER ETF (ERM) (TERM) -------------------------------- -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 8/31/2021 8/31/2020 8/31/2021 8/31/2020 --------------- --------------- --------------- --------------- <S> <C> <C> <C> <C> OPERATIONS: Net investment income (loss).............................. $ 144,464 $ 272,270 $ 159,764 $ 374,510 Net realized gain (loss).................................. 2,152,268 (1,969,777) 2,499,269 (3,816,922) Net change in unrealized appreciation (depreciation)...... 1,638,311 1,007,138 1,805,285 1,457,681 --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations........................................ 3,935,043 (690,369) 4,464,318 (1,984,731) --------------- --------------- --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations..................................... (142,476) (352,901) (157,826) (499,661) --------------- --------------- --------------- --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold................................. -- 1,596,480 -- -- Cost of shares redeemed................................... (4,180,754) (9,347,428) (4,809,293) (14,846,973) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from shareholder transactions.......................... (4,180,754) (7,750,948) (4,809,293) (14,846,973) --------------- --------------- --------------- --------------- Total increase (decrease) in net assets................... (388,187) (8,794,218) (502,801) (17,331,365) NET ASSETS: Beginning of period....................................... 11,875,163 20,669,381 12,779,633 30,110,998 --------------- --------------- --------------- --------------- End of period............................................. $ 11,486,976 $ 11,875,163 $ 12,276,832 $ 12,779,633 =============== =============== =============== =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................... 650,002 1,050,002 800,002 1,750,002 Shares sold............................................... -- 100,000 -- -- Shares redeemed........................................... (200,000) (500,000) (250,000) (950,000) --------------- --------------- --------------- --------------- Shares outstanding, end of period......................... 450,002 650,002 550,002 800,002 =============== =============== =============== =============== </TABLE> Page 18 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD EQUITYCOMPASS RISK MANAGER ETF (ERM) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ---------------------------------------------- ENDED 2021 2020 2019 2018 8/31/2017 (a) ---------- ---------- ---------- ---------- -------------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period.................. $ 18.27 $ 19.69 $ 23.32 $ 20.50 $ 20.05 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).......................... 0.29 0.33 0.39 0.30 0.10 Net realized and unrealized gain (loss)............... 7.24 (1.36) (3.56) 2.80 0.39 -------- -------- -------- -------- -------- Total from investment operations...................... 7.53 (1.03) (3.17) 3.10 0.49 -------- -------- -------- -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................. (0.27) (0.39) (0.46) (0.28) (0.04) Net realized gain..................................... -- -- (0.00)(b) -- -- -------- -------- -------- -------- -------- Total distributions................................... (0.27) (0.39) (0.46) (0.28) (0.04) -------- -------- -------- -------- -------- Net asset value, end of period........................ $ 25.53 $ 18.27 $ 19.69 $ 23.32 $ 20.50 ======== ======== ======== ======== ======== TOTAL RETURN (c)...................................... 41.52% (5.36)% (13.68)% 15.23% 2.44% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's).................. $ 11,487 $ 11,875 $ 20,669 $ 27,988 $ 10,250 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (d)..... 0.65% 0.65% 0.65% 0.65% 0.65% (e) Ratio of net expenses to average net assets (d)....... 0.65% 0.65% 0.59% 0.64% 0.65% (e) Ratio of net investment income (loss) to average net assets............................................. 1.27% 1.61% 1.89% 1.52% 1.81% (e) Portfolio turnover rate (f)........................... 79% 81% 207% 121% 8% </TABLE> EQUITYCOMPASS TACTICAL RISK MANAGER ETF (TERM) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ---------------------------------------------- ENDED 2021 2020 2019 2018 8/31/2017 (a) ---------- ---------- ---------- ---------- -------------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period.................. $ 15.97 $ 17.21 $ 23.33 $ 20.50 $ 20.05 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss).......................... 0.26 0.29 0.34 0.29 0.09 Net realized and unrealized gain (loss)............... 6.33 (1.19) (6.13) 2.81 0.40 -------- -------- -------- -------- -------- Total from investment operations...................... 6.59 (0.90) (5.79) 3.10 0.49 -------- -------- -------- -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................. (0.24) (0.34) (0.33) (0.27) (0.04) -------- -------- -------- -------- -------- Net asset value, end of period........................ $ 22.32 $ 15.97 $ 17.21 $ 23.33 $ 20.50 ======== ======== ======== ======== ======== TOTAL RETURN (c)...................................... 41.54% (5.36)% (24.98)% 15.24% 2.44% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's).................. $ 12,277 $ 12,780 $ 30,111 $ 61,836 $ 22,551 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (d)..... 0.65% 0.65% 0.65% 0.65% 0.65% (e) Ratio of net expenses to average net assets (d)....... 0.65% 0.65% 0.59% 0.64% 0.65% (e) Ratio of net investment income (loss) to average net assets............................................. 1.26% 1.68% 1.65% 1.52% 1.85% (e) Portfolio turnover rate (f)........................... 80% 74% 317% 120% 10% </TABLE> (a) Inception date is April 10, 2017, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Amount is less than $0.01. (c) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. The total returns would have been lower if certain fees had not been waived by the Advisor. (d) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. (e) Annualized. (f) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. See Notes to Financial Statements Page 19 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 1. ORGANIZATION First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management investment company organized as a Massachusetts business trust on February 22, 2016, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of forty-nine funds that are offering shares. This report covers the two funds (each a "Fund" and collectively, the "Funds") listed below. The shares of each Fund are listed and traded on the NYSE Arca, Inc. ("NYSE Arca"). EquityCompass Risk Manager ETF - (ticker "ERM") EquityCompass Tactical Risk Manager ETF - (ticker "TERM") Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value ("NAV"), only in large blocks of shares known as "Creation Units." Each Fund is an actively managed exchange-traded fund. ERM's and TERM's primary investment objective is to seek to provide long term capital appreciation with capital preservation as a secondary objective. Each Fund seeks to achieve its investment objectives by investing, under normal market conditions, in equity securities of companies domiciled in the U.S. or listed on a U.S. exchange. During periods when the U.S. equity market is determined to be unfavorable by the Funds' sub-advisor, EquityCompass Investment Management, LLC (the "Sub-Advisor"), each Fund may invest all or a portion of its assets in cash, cash equivalents, money market funds and/or short-term fixed income exchange-traded funds ("ETFs"), or each Fund may invest all or a portion of its assets in a single short-term fixed income ETF, the First Trust Enhanced Short Maturity ETF ("FTSM"). Certain of the ETFs in which each Fund invests may be advised by First Trust Advisors L.P. ("First Trust" or the "Advisor"). During such periods, the Fund may also invest a significant portion of its assets in securities designed to provide short exposure to broad U.S. market indices including by investing in inverse ETFs. 2. SIGNIFICANT ACCOUNTING POLICIES The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. PORTFOLIO VALUATION Each Fund's NAV is determined daily as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund's NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding. Each Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds' investment advisor, First Trust, in accordance with valuation procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the 1940 Act. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund's investments are valued as follows: Common stocks and other equity securities listed on any national or foreign exchange (excluding The Nasdaq Stock Market LLC ("Nasdaq") and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the principal market for such securities. Securities traded in an over-the-counter market are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Shares of open-end funds are valued at fair value which is based on NAV per share. Page 20 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Trust's Board of Trustees or its delegate, the Advisor's Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following: 1) the type of security; 2) the size of the holding; 3) the initial cost of the security; 4) transactions in comparable securities; 5) price quotes from dealers and/or third-party pricing services; 6) relationships among various securities; 7) information obtained by contacting the issuer, analysts, or the appropriate stock exchange; 8) an analysis of the issuer's financial statements; and 9) the existence of merger proposals or tender offers that might affect the value of the security. The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows: o Level 1 - Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. o Level 2 - Level 2 inputs are observable inputs, either directly or indirectly, and include the following: o Quoted prices for similar investments in active markets. o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. o Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the investment. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund's investments as of August 31, 2021, is included with each Fund's Portfolio of Investments. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income of each Fund, if any, are declared and paid quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually. Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future. Page 21 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The tax character of distributions paid by each Fund during the fiscal year ended August 31, 2021 was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions paid from paid from paid from Ordinary Capital Return of Income Gains Capital ------------- ------------- ------------- <S> <C> <C> <C> EquityCompass Risk Manager ETF $ 142,476 $ -- $ -- EquityCompass Tactical Risk Manager ETF 157,826 -- -- </TABLE> The tax character of distributions paid by each Fund during the fiscal year ended August 31, 2020 was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions paid from paid from paid from Ordinary Capital Return of Income Gains Capital ------------- ------------- ------------- <S> <C> <C> <C> EquityCompass Risk Manager ETF $ 352,901 $ -- $ -- EquityCompass Tactical Risk Manager ETF 499,661 -- -- </TABLE> As of August 31, 2021, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Ordinary Other Appreciation Income Gain (Loss) (Depreciation) ------------- ------------- ------------- <S> <C> <C> <C> EquityCompass Risk Manager ETF $ 27,748 $ (4,690,484) $ 1,761,728 EquityCompass Tactical Risk Manager ETF 29,592 (14,479,630) 1,829,098 </TABLE> D. INCOME TAXES Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund's taxable income exceeds the distributions from such taxable income for the calendar year. The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. Taxable years ended 2018, 2019, 2020, and 2021 remain open to federal and state audit. As of August 31, 2021, management has evaluated the application of these standards to the Funds, and has determined that no provision for income tax is required in the Funds' financial statements for uncertain tax positions. Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At August 31, 2021, for federal income tax purposes, each applicable Fund had a capital loss carryforward available that is shown in the table below, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to each applicable Fund's shareholders. Non-Expiring Capital Loss Carryforwards ------------------------- EquityCompass Risk Manager ETF $ 4,690,484 EquityCompass Tactical Risk Manager ETF 14,479,630 Page 22 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 During the taxable year ended August 31, 2021, the following Funds utilized non-expiring capital loss carryforwards in the following amounts: Capital Loss Carryforwards Utilized ------------------------- EquityCompass Risk Manager ETF $ 1,347,231 EquityCompass Tactical Risk Manager ETF 1,532,772 Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended August 31, 2021, the Funds had no net late year ordinary or capital losses. In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal year ended August 31, 2021, the adjustments for each Fund were as follows: <TABLE> <CAPTION> Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- ------------- <S> <C> <C> <C> EquityCompass Risk Manager ETF $ -- $ (922,613) $ 922,613 EquityCompass Tactical Risk Manager ETF -- (1,106,372) 1,106,372 </TABLE> E. EXPENSES Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3). 3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for supervising the selection and ongoing monitoring of the securities in each Fund's portfolio, managing the Funds' business affairs and providing certain administrative services necessary for the management of the Funds. Pursuant to the Investment Management Agreement between the Trust and the Advisor, First Trust manages the investment of each Fund's assets and is responsible for the expenses of each Fund including the cost of transfer agency, sub-advisory, custody, fund administration, legal, audit, other services and license fees, but excluding fee payments under the Investment Management Agreement, interest, taxes, pro rata share of fees and expenses attributable to investments in other investment companies ("acquired fund fees and expenses"), brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. The Funds have each agreed to pay First Trust an annual unitary management fee equal to 0.65% of its average daily net assets. In addition, each Fund incurs acquired fund fees and expenses. The total of unitary management fee and acquired fund fees and expenses represents each Fund's total annual operating expenses. The Funds and First Trust have retained the Sub-Advisor to provide recommendations to the Advisor regarding the selection and allocation of the securities in each Fund's investment portfolio. Pursuant to the Sub-Advisory Agreement, the Advisor has agreed to pay for the services and facilities provided by the Sub-Advisor through sub-advisory fees. The Sub-Advisor's fees are paid by the Advisor out of the Advisor's management fee. For each Fund, the Sub-Advisor receives a sub-advisory fee equal to 0.25% of each Fund's average daily net assets. Pursuant to a contractual agreement between the Trust, on behalf of the Funds, and First Trust, the management fees paid to First Trust will be reduced by the proportional amount of the acquired fund fees and expenses of the shares of investment companies held by the Funds so that the Funds would not bear the indirect costs of holding them, provided that the investment companies are advised by First Trust. This contractual agreement shall continue until the earlier of (i) its termination at the direction of the Trust's Board of Trustees or (ii) the termination of the Funds' management agreement with First Trust. First Trust does not have the right to recover the waived fees on the shares of investment companies advised by First Trust. Page 23 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The Trust has multiple service agreements with The Bank of New York Mellon ("BNYM"). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund's assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund's securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company. Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or is an index fund. Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. 4. PURCHASES AND SALES OF SECURITIES For the fiscal year ended August 31, 2021, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows: <TABLE> <CAPTION> Purchases Sales ------------- ------------- <S> <C> <C> EquityCompass Risk Manager ETF $ 8,772,609 $ 8,694,533 EquityCompass Tactical Risk Manager ETF 9,881,186 9,757,485 </TABLE> For the fiscal year ended August 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows: <TABLE> <CAPTION> Purchases Sales ------------- ------------- <S> <C> <C> EquityCompass Risk Manager ETF $ -- $ 4,152,021 EquityCompass Tactical Risk Manager ETF -- 4,783,796 </TABLE> 5. CREATIONS, REDEMPTIONS AND TRANSACTION FEES Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as "Authorized Participants" have contractual arrangements with a Fund or one of the Fund's service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as "Creation Units." Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation ("NSCC") the "basket" of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund's shares. An Authorized Participant that wishes to effectuate a creation of a Fund's shares deposits with the Fund the "basket" of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund's shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund's shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund's shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund's shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund's shares at or close to the NAV per share of the Fund. Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket. Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market Page 24 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed. 6. DISTRIBUTION PLAN The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services. No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before December 31, 2022. 7. INDEMNIFICATION The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 8. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were the following subsequent events: On September 20, 2021, FT Cboe Vest International Equity Buffer ETF - September and FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, each an additional series of the Trust, began trading under the symbols "YSEP" and "QSPT," respectively, on Cboe BZX Exchange, Inc. On September 21, 2021, First Trust SkyBridge Crypto Industry and Digital Economy ETF, an additional series of the Trust, began trading under the symbol "CRPT" on NYSE Arca. On October 14, 2021, First Trust Multi-Manager Small Cap Opportunities ETF, an additional series of the Trust, began trading under the symbol "MMSC" on NYSE Arca. On October 18, 2021, First Trust announced that the reorganization of TERM into ERM was completed prior to the open of the NYSE Arca on October 18, 2021. As previously announced, the shareholders of TERM and ERM approved TERM's reorganization into ERM at a Joint Special Meeting of Shareholders on September 13, 2021. The reorganization was previously approved by the Board of Trustees of each of TERM and ERM. In the reorganization, the assets of TERM were transferred to, and the liabilities of TERM were assumed by, ERM. The shareholders of TERM received shares of ERM with a value equal to the aggregate net asset value of the shares of TERM held by them. The exchange of shares took place based upon TERM's and ERM's closing net asset values on October 15, 2021. The exchange ratio at which shares of TERM were exchanged for shares of ERM is 0.870700. Page 25 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED FUND VIII: OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS We have audited the accompanying statements of assets and liabilities of EquityCompass Risk Manager ETF and EquityCompass Tactical Risk Manager ETF (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for years ended August 31, 2021, 2020, 2019, and 2018, and the period from April 10, 2017 (commencement of operations) through August 31, 2017, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of August 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the years ended August 31, 2021, 2020, 2019, and 2018, and for the period from April 10, 2017 (commencement of operations) through August 31, 2017, in conformity with accounting principles generally accepted in the United States of America. BASIS FOR OPINION These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 22, 2021 We have served as the auditor of one or more First Trust investment companies since 2001. Page 26 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov. PORTFOLIO HOLDINGS Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC's website at www.sec.gov. Each Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above. FEDERAL TAX INFORMATION For the taxable year ended August 31, 2021, the following percentages of income dividend paid by the Funds qualify for the dividends received deduction available to corporations: Dividends Received Deduction ---------------------------- EquityCompass Risk Manager ETF 100.00% EquityCompass Tactical Risk Manager ETF 100.00% For the taxable year ended August 31, 2021, the following percentages of income dividend paid by the Funds are hereby designated as qualified dividend income: Qualified Dividend Income ---------------------------- EquityCompass Risk Manager ETF 100.00% EquityCompass Tactical Risk Manager ETF 100.00% A portion of each of the Funds' 2021 ordinary dividends (including short-term capital gains) paid to its shareholders during the fiscal year ended August 31, 2021, may be eligible for the Qualified Business Income Deduction (QBI) under Internal Revenue Code of 1986, as amended, Section 199A for the aggregate dividends each Fund received from the underlying Real Estate Investment Trusts (REITs) these Funds invest in. RISK CONSIDERATIONS RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND. CONCENTRATION RISK. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund's investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund's corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified. CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments. CYBER SECURITY RISK. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, Page 27 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund's third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches. DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor's investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund's share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless. DERIVATIVES RISK. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund. EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the value of the fund's shares will fluctuate with changes in the value of the 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 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 capital rises and borrowing costs increase. 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. ETF RISK. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange 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). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF's shares, or decisions by an ETF's authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF's shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads. FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund's fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities. INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund's net asset value could be negatively impacted and the fund's market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund's shares. INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an Page 28 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund's costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders. INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund's investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests. LIBOR RISK. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund. MANAGEMENT RISK. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund's investment portfolio, the fund's portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective. MARKET RISK. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. 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; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries. OPERATIONAL RISK. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund's ability to meet its investment objective. Although the funds and the funds' investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE Page 29 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, the Advisor and EquityCompass Investment Management, LLC (the "Sub-Advisor") on behalf of the following two series of the Trust (each a "Fund" and collectively, the "Funds"): EquityCompass Equity Risk Manager ETF (ERM) EquityCompass Tactical Equity Risk Manager ETF (TERM) The Board approved the continuation of the Agreements for each Fund for a one-year period ending June 30, 2022 at a meeting held on June 6-7, 2021. The Board determined for each Fund that the continuation of the Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 26, 2021 and June 6-7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and the Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor and the Sub-Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund's performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the "Performance Universe"), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6-7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor continue to be reasonable business arrangements from each Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor and the Sub-Advisor manage the Fund and knowing the Fund's unitary fee. In reviewing the Agreements for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board noted that the Advisor oversees the Sub-Advisor's day-to-day management of each Fund's investments, including portfolio risk monitoring and performance review. The Board considered that the Sub-Advisor is responsible for the selection and ongoing monitoring of the securities in the Funds' investment portfolios, but that the Advisor executes each Fund's portfolio trades. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to Page 30 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) the operation of the Funds. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreement, the Board noted that each Fund is an actively-managed ETF and the Sub-Advisor actively manages the Fund's investments. The Board reviewed the materials provided by the Sub-Advisor and considered the services that the Sub-Advisor provides to each Fund, including the Sub-Advisor's day-to-day management of the Funds' investments. In considering the Sub-Advisor's management of the Funds, the Board noted the background and experience of the Sub-Advisor's portfolio management team, including the Board's prior meetings with members of the portfolio management team. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor and the Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Sub-Advisor, under the oversight of the Advisor, has managed each Fund consistent with its investment objective, policies and restrictions. The Board considered the unitary fee rate payable by each Fund under the Advisory Agreement for the services provided. The Board noted that the sub-advisory fee for each Fund is paid by the Advisor from the Fund's unitary fee. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b 1 plan, if any, and extraordinary expenses, if any. The Board noted that the Advisor had previously agreed to waive its unitary fee to the extent of acquired fund fees and expenses of shares of investment companies advised by the Advisor that are held by the Fund. The Board received and reviewed information showing the advisory fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for each Fund was above the median total (net) expense ratio of the peer funds in its respective Expense Group. With respect to the Expense Groups, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including that the Funds' Expense Groups contained actively-managed and passively-managed ETFs and open-end mutual funds, and different business models that may affect the pricing of services among ETF sponsors. The Board also noted that not all peer funds employ an advisor/sub-advisor management structure. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rates overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex. The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor and the Sub-Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund's performance. The Board received and reviewed information comparing each Fund's performance for periods ended December 31, 2020 to the performance of the funds in its Performance Universe and a benchmark index. Based on the information provided, the Board noted that each Fund underperformed its Performance Universe median and benchmark index for the one- and three-year periods ended December 31, 2020. On the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund (out of which the Sub-Advisor is compensated) continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor to each Fund under the Agreements. The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds and noted the Advisor's statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Funds. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2020 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for each Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to Page 31 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. The Board considered the Sub-Advisor's statements to the effect that it does not believe there are any economies of scale to be achieved in connection with providing sub-advisory services to the Funds and that the Sub-Advisor does not expect that its expenses relating to providing services to the Funds to change in the next twelve months. The Board did not review the profitability of the Sub-Advisor with respect to each Fund. The Board noted that the Advisor pays the Sub-Advisor for each Fund from its unitary fee and its understanding that each Fund's sub-advisory fee rate was the product of an arm's length negotiation. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered the potential fall-out benefits to the Sub-Advisor from being associated with the Advisor and the Funds, and noted the Sub-Advisor's statements to the effect that it does not believe there will be any fall-out benefits to the Sub-Advisor from its relationship with the Advisor and the Funds. The Board concluded that the character and amount of potential fall-out benefits to the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board's analysis. With regard to TERM, the Board noted that it had previously approved the reorganization of the Fund into ERM, subject to shareholder approval, and determined that the continuation of the Agreements for the Fund would allow the Fund to operate until completion of the reorganization and would provide for continuous operation of the Fund going forward in the event shareholders do not approve the reorganization. LIQUIDITY RISK MANAGEMENT PROGRAM In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program (the "Program") reasonably designed to assess and manage the funds' liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust Liquidity Committee (the "Liquidity Committee"). Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund's portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment minimum for certain funds, monitors the funds' holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund's net assets and establishes policies and procedures regarding redemptions in kind. At the April 26, 2021 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 20, 2020 through the Liquidity Committee's annual meeting held on March 16, 2021 and assessed the Program's adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums. As stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund's investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4. Page 32 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The Trust's statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891. <TABLE> <CAPTION> NUMBER OF OTHER PORTFOLIOS IN TRUSTEESHIPS OR TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> Richard E. Erickson, Trustee o Indefinite Term Physician, Officer, Wheaton Orthopedics; 210 None (1951) Limited Partner, Gundersen Real Estate o Since Inception Limited Partnership (June 1992 to December 2016) Thomas R. Kadlec, Trustee o Indefinite Term President, ADM Investors Services, Inc. 210 Director of ADM (1957) (Futures Commission Merchant) Investor Services, o Since Inception Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises (Financial 210 Director of Trust (1956) and Management Consulting) Company of o Since Inception Illinois Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (August 2018 to Present), 210 None (1954) Managing Director and Chief Operating o Since Inception Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First Trust 210 None Chairman of the Board Advisors L.P. and First Trust (1955) o Since Inception Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) </TABLE> ----------------------------- (1) Mr. Bowen is deemed an "interested person" of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust. Page 33 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS AND YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS(2) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer (1966) Executive Officer (January 2016 to Present), Controller (January 2011 o Since Inception to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to Present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President (July 2016 to Present), Vice (1972) Officer and Chief President (April 2012 to July 2016), First Trust Accounting Officer o Since Inception Advisors L.P. and First Trust Portfolios L.P. W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P. and (1960) Legal Officer First Trust Portfolios L.P.; Secretary and General o Since Inception Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and (1970) First Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. (1966) and Assistant Secretary and First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1966) and First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1970) and First Trust Portfolios L.P. o Since Inception </TABLE> ----------------------------- (2) The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. Page 34 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PRIVACY POLICY First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information. SOURCES OF INFORMATION We collect nonpublic personal information about you from the following sources: o Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; o Information about your transactions with us, our affiliates or others; o Information we receive from your inquiries by mail, e-mail or telephone; and o Information we collect on our website through the use of "cookies". For example, we may identify the pages on our website that your browser requests or visits. INFORMATION COLLECTED The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information. DISCLOSURE OF INFORMATION We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons: o In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. o We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust. USE OF WEBSITE ANALYTICS We currently use third party analytics tools, Google Analytics and AddThis to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis. CONFIDENTIALITY AND SECURITY With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information. POLICY UPDATES AND INQUIRIES As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors). March 2021 Page 35 <PAGE> This page intentionally left blank. <PAGE> FIRST TRUST First Trust Exchange-Traded Fund VIII INVESTMENT ADVISOR First Trust Advisors L.P. 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 INVESTMENT SUB-ADVISOR EquityCompass Investment Management, LLC 1 South Street, 16th Floor Baltimore, Maryland 21202 ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 111 S. Wacker Drive Chicago, IL 60606 LEGAL COUNSEL Chapman and Cutler LLP 111 W. Monroe Street Chicago, IL 60603 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer ETF - January (FJAN) FT Cboe Vest U.S. Equity Deep Buffer ETF - January (DJAN) FT Cboe Vest U.S. Equity Buffer ETF - February (FFEB) FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DFEB) FT Cboe Vest U.S. Equity Buffer ETF - March (FMAR) FT Cboe Vest U.S. Equity Deep Buffer ETF - March (DMAR) FT Cboe Vest U.S. Equity Buffer ETF - April (FAPR) FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR) FT Cboe Vest U.S. Equity Buffer ETF - May (FMAY) FT Cboe Vest U.S. Equity Deep Buffer ETF - May (DMAY) FT Cboe Vest U.S. Equity Buffer ETF - June (FJUN) FT Cboe Vest U.S. Equity Deep Buffer ETF - June (DJUN) FT Cboe Vest U.S. Equity Buffer ETF - July (FJUL) FT Cboe Vest U.S. Equity Deep Buffer ETF - July (DJUL) FT Cboe Vest U.S. Equity Buffer ETF - August (FAUG) FT Cboe Vest U.S. Equity Deep Buffer ETF - August (DAUG) FT Cboe Vest U.S. Equity Buffer ETF - September (FSEP) FT Cboe Vest U.S. Equity Deep Buffer ETF - September (DSEP) FT Cboe Vest U.S. Equity Buffer ETF - October (FOCT) FT Cboe Vest U.S. Equity Deep Buffer ETF - October (DOCT) FT Cboe Vest U.S. Equity Buffer ETF - November (FNOV) FT Cboe Vest U.S. Equity Deep Buffer ETF - November (DNOV) FT Cboe Vest U.S. Equity Buffer ETF - December (FDEC) FT Cboe Vest U.S. Equity Deep Buffer ETF - December (DDEC) FT Cboe Vest Fund of Buffer ETFs (BUFR) FT Cboe Vest Fund of Deep Buffer ETFs (BUFD) ---------------------------- Annual Report For the Period Ended August 31, 2021 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 Shareholder Letter.......................................................... 2 Fund Performance Overview: FT Cboe Vest U.S. Equity Buffer ETF - January (FJAN).................... 3 FT Cboe Vest U.S. Equity Deep Buffer ETF - January (DJAN)............... 4 FT Cboe Vest U.S. Equity Buffer ETF - February (FFEB)................... 5 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DFEB).............. 6 FT Cboe Vest U.S. Equity Buffer ETF - February (FMAR)................... 7 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DMAR).............. 8 FT Cboe Vest U.S. Equity Buffer ETF - February (FAPR)................... 9 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DAPR).............. 10 FT Cboe Vest U.S. Equity Buffer ETF - May (FMAY)........................ 11 FT Cboe Vest U.S. Equity Deep Buffer ETF - May (DMAY)................... 12 FT Cboe Vest U.S. Equity Buffer ETF - June (FJUN)....................... 13 FT Cboe Vest U.S. Equity Deep Buffer ETF - June (DJUN).................. 14 FT Cboe Vest U.S. Equity Buffer ETF - July (FJUL)....................... 15 FT Cboe Vest U.S. Equity Deep Buffer ETF - July (DJUL).................. 16 FT Cboe Vest U.S. Equity Buffer ETF - August (FAUG)..................... 17 FT Cboe Vest U.S. Equity Deep Buffer ETF - August (DAUG)................ 18 FT Cboe Vest U.S. Equity Buffer ETF - September (FSEP).................. 19 FT Cboe Vest U.S. Equity Deep Buffer ETF - September (DSEP)............. 20 FT Cboe Vest U.S. Equity Buffer ETF - October (FOCT).................... 21 FT Cboe Vest U.S. Equity Deep Buffer ETF - October (DOCT)............... 22 FT Cboe Vest U.S. Equity Buffer ETF - November (FNOV)................... 23 FT Cboe Vest U.S. Equity Deep Buffer ETF - November (DNOV).............. 24 FT Cboe Vest U.S. Equity Buffer ETF - December (FDEC)................... 25 FT Cboe Vest U.S. Equity Deep Buffer ETF - December (DDEC).............. 26 FT Cboe Vest Fund of Buffer ETFs (BUFR)................................. 27 FT Cboe Vest Fund of Deep Buffer ETFs (BUFD)............................ 28 Notes to Fund Performance Overview.......................................... 29 Portfolio Commentary........................................................ 30 Understanding Your Fund Expenses............................................ 35 Portfolio of Investments: FT Cboe Vest U.S. Equity Buffer ETF - January (FJAN).................... 38 FT Cboe Vest U.S. Equity Deep Buffer ETF - January (DJAN)............... 40 FT Cboe Vest U.S. Equity Buffer ETF - February (FFEB)................... 42 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DFEB).............. 44 FT Cboe Vest U.S. Equity Buffer ETF - February (FMAR)................... 46 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DMAR).............. 48 FT Cboe Vest U.S. Equity Buffer ETF - February (FAPR)................... 50 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DAPR).............. 52 FT Cboe Vest U.S. Equity Buffer ETF - May (FMAY)........................ 54 FT Cboe Vest U.S. Equity Deep Buffer ETF - May (DMAY)................... 56 FT Cboe Vest U.S. Equity Buffer ETF - June (FJUN)....................... 58 FT Cboe Vest U.S. Equity Deep Buffer ETF - June (DJUN).................. 60 FT Cboe Vest U.S. Equity Buffer ETF - July (FJUL)....................... 62 FT Cboe Vest U.S. Equity Deep Buffer ETF - July (DJUL).................. 64 FT Cboe Vest U.S. Equity Buffer ETF - August (FAUG)..................... 66 FT Cboe Vest U.S. Equity Deep Buffer ETF - August (DAUG)................ 68 FT Cboe Vest U.S. Equity Buffer ETF - September (FSEP).................. 70 FT Cboe Vest U.S. Equity Deep Buffer ETF - September (DSEP)............. 72 FT Cboe Vest U.S. Equity Buffer ETF - October (FOCT).................... 74 FT Cboe Vest U.S. Equity Deep Buffer ETF - October (DOCT)............... 76 FT Cboe Vest U.S. Equity Buffer ETF - November (FNOV)................... 78 FT Cboe Vest U.S. Equity Deep Buffer ETF - November (DNOV).............. 80 FT Cboe Vest U.S. Equity Buffer ETF - December (FDEC)................... 82 FT Cboe Vest U.S. Equity Deep Buffer ETF - December (DDEC).............. 84 FT Cboe Vest Fund of Buffer ETFs (BUFR)................................. 86 FT Cboe Vest Fund of Deep Buffer ETFs (BUFD)............................ 87 <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 Statements of Assets and Liabilities........................................ 88 Statements of Operations.................................................... 94 Statements of Changes in Net Assets......................................... 100 Financial Highlights........................................................ 108 Notes to Financial Statements............................................... 121 Report of Independent Registered Public Accounting Firm .................... 140 Additional Information...................................................... 143 Board of Trustees and Officers ............................................. 151 Privacy Policy.............................................................. 153 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. ("First Trust" or the "Advisor") and/or Cboe Vest(SM) Financial LLC ("Cboe Vest" or the "Sub-Advisor") and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as "anticipate," "estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or other words that convey uncertainty of future events or outcomes. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (each such series is referred to as a "Fund" and collectively, as the "Funds") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof. PERFORMANCE AND RISK DISCLOSURE There is no assurance that any Fund described in this report will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund's shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in a Fund. See "Risk Considerations" in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds. Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost. The Advisor may also periodically provide additional information on Fund performance on each Fund's webpage at www.ftportfolios.com. HOW TO READ THIS REPORT This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund's performance and investment approach. By reading the portfolio commentary from the portfolio management team of the Funds, you may obtain an understanding of how the market environment affected each Fund's performance. The statistical information that follows may help you understand each Fund's performance compared to that of a relevant market benchmark. It is important to keep in mind that the opinions expressed by personnel of the Advisor and/or Sub-Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in the prospectus, statement of additional information, and other Fund regulatory filings. Page 1 <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2021 Dear Shareholders: First Trust is pleased to provide you with the annual report for certain series of the First Trust Exchange-Traded Fund VIII (the "Funds"), which contains detailed information about the Funds for the twelve months ended August 31, 2021. Please note that some of the Funds were incepted after September 1, 2020, the start of the reporting period, so information in this letter and the report prior to those inception dates will not apply to all Funds. The coronavirus ("COVID-19") pandemic has proven to be as stubborn as advertised. We were warned by the scientific community early on that we would have to coexist with this virus from here on out, and that appears to be the case some 19 months after its onset. While the three main vaccines have proven to be effective at keeping those people who have gotten all the required shots out of the hospital, the U.S., unfortunately, had only achieved a 54% fully vaccinated rate as of September 9, 2021, according to the Centers for Disease Control and Prevention. If you add in the people ages 18 and older who have received just one of the two-dose vaccines, it jumps to 75.3%. The U.S. and global economies continue to underperform due to the pandemic. The U.S. alone had a record high 10.9 million job openings at the end of July 2021, according to the latest Job Openings and Labor Turnover Survey from the Department of Labor. It appears that many people do not seem to want to work right now. An estimated 7.5 million unemployment recipients in the U.S. were scheduled to lose their benefits on September 6, 2021. Perhaps that will be enough to incentivize people to go back to work. The Federal Reserve (the "Fed") continues to play a major role in the U.S. economy. It has kept short-term interest rates artificially low for the better part of the past 13 years. The Federal Funds target rate (upper bound), while held at 0.25% for roughly nine of those 13 years, reached as high as 2.50% in the same 13-year period, but only for a few months and that was just prior to the COVID-19 pandemic, according to data from the Fed. For comparative purposes, the target rate averaged 2.56% for the 30-year period ended September 21, 2021. It currently stands at 0.25%. In addition to keeping rates low, the Fed has been buying assets, specifically Treasuries and mortgage-backed securities. It has been buying a combined $120 billion of these securities every month. This has helped keep bond yields artificially low as well. As of February 26, 2020, the value of the assets on the Fed's balance sheet totaled $4.16 trillion, according to its own data. As of September 15, 2021, the assets were valued at $8.45 trillion. Keep in mind, the balance sheet stood at $1 trillion on September 17, 2008. That was during the 2007-2008 Financial Crisis. Due to the reopening of the U.S. economy and a bigger-than-expected rise in inflation this year, the Fed has signaled that it could begin to taper its bond buying program by the end of 2021. With respect to the Federal Funds rate, the Fed continues to say it intends to leave short-term rates where they are until 2023. In other words, the Fed is poised to maintain its accommodative stance towards monetary policy. They are not looking to get tight - just less loose. We will monitor this scenario closely in the months ahead to see if the Fed's actions impact the direction of interest rates and bond yields. Overall, I am pleased to report that the securities markets have performed well in this tumultuous climate. It appears, in our opinion, that the extremely low interest rates offered on savings vehicles has motivated many investors to assume more risk to potentially generate higher returns. The S&P 500(R) Index (the "Index") posted a total return of 31.17% for the 12-month period ended August 31, 2021, according to Bloomberg. For comparative purposes, from 1926 through 2020 (95 years), the Index returned an average of 10.28% per year on a total return basis, according to Morningstar/Ibbotson Associates. Should interest rates and bond yields eventually trend higher, investors should be prepared for a bit of turbulence as stocks and bonds may be subjected to some potential short-term profit taking, in my opinion. Having said that, I encourage investors to stay the course. I remain optimistic due in large part to the trillions of dollars in government stimulus money already circulating in the economy as well as the potential for trillions of additional dollars from President Joe Biden's infrastructure and "human infrastructure" bills still weaving their way through Congress. It's hard to bet against growth in the current climate. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months. Sincerely, /s/ James A. Bowen James A. Bowen Chairman of the Board of Trustees Chief Executive Officer of First Trust Advisors L.P. Page 2 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - January (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 14.50% (before fees, expenses and taxes) and 13.64% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from January 19, 2021 to January 21, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FJAN." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (1/15/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 11.01% Market Price 11.08% INDEX PERFORMANCE S&P 500(R) Index - Price Return 20.02% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 15, 2021 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - January Price Return <S> <C> <C> 1/15/21 $10,000 $10,000 2/28/21 10,053 10,114 8/31/21 11,101 12,002 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 3 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JANUARY (DJAN) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - January (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 8.20% (before fees, expenses and taxes) and 7.34% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from January 19, 2021 to January 21, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DJAN." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (1/15/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 6.25% Market Price 6.05% INDEX PERFORMANCE S&P 500(R) Index - Price Return 20.02% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 15, 2021 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - January Price Return <S> <C> <C> 1/15/21 $10,000 $10,000 2/28/21 10,033 10,114 8/31/21 10,625 12,002 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 4 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY (FFEB) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - February (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 15.85% (before fees, expenses and taxes) and 15.00% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from February 22, 2021 to February 18, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FFEB." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (2/21/20) (2/21/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 19.00% 13.98% 22.10% Market Price 18.49% 13.78% 21.77% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 22.07% 35.50% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 21, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - February Price Return <S> <C> <C> 2/21/20 $10,000 $10,000 2/29/20 9,214 8,851 8/31/20 10,260 10,488 2/28/21 10,825 11,418 8/31/21 12,210 13,550 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to February 22, 2021, the Fund's investment objective included an upside cap of 10.75% (before fees, expenses and taxes) and 9.90% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of February 24, 2020 to February 19, 2021. Page 5 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - FEBRUARY (DFEB) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - February (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 8.85% (before fees, expenses and taxes) and 8.00% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from February 22, 2021 to February 18, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DFEB." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (2/21/20) (2/21/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 11.01% 8.36% 13.04% Market Price 10.73% 8.36% 13.04% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 22.07% 35.50% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 21, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - February Price Return <S> <C> <C> 2/21/20 $10,000 $10,000 2/29/20 9,462 8,851 8/31/20 10,182 10,488 2/28/21 10,600 11,418 8/31/21 11,304 13,550 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to February 22, 2021, the Fund's investment objective included an upside cap of 7.50% (before fees, expenses and taxes) and 6.65% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of February 24, 2020 to February 19, 2021. Page 6 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - March (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 14.20% (before fees, expenses and taxes) and 13.35% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from March 22, 2021 to March 18, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FMAR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (3/19/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 9.46% Market Price 9.22% INDEX PERFORMANCE S&P 500(R) Index - Price Return 15.58% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - March Price Return <S> <C> <C> 3/19/21 $10,000 $10,000 8/31/21 10,946 11,558 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 7 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MARCH (DMAR) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - March (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 9.30% (before fees, expenses and taxes) and 8.45% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from March 22, 2021 to March 18, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DMAR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (3/19/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 6.25% Market Price 6.01% INDEX PERFORMANCE S&P 500(R) Index - Price Return 15.58% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - March Price Return <S> <C> <C> 3/19/21 $10,000 $10,000 8/31/21 10,625 11,558 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 8 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - April (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 12.00% (before fees, expenses and taxes) and 11.15% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from April 19, 2021 to April 14, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FAPR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (4/16/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 5.56% Market Price 5.26% INDEX PERFORMANCE S&P 500(R) Index - Price Return 8.06% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 16, 2021 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - April Price Return <S> <C> <C> 4/16/21 $10,000 $10,000 8/31/21 10,556 10,806 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 9 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - APRIL (DAPR) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - April (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.50% (before fees, expenses and taxes) and 6.65% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from April 19, 2021 to April 14, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DAPR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (4/16/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 3.46% Market Price 3.23% INDEX PERFORMANCE S&P 500(R) Index - Price Return 8.06% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 16, 2021 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - February Price Return <S> <C> <C> 4/16/21 $10,000 $10,000 8/31/21 10,346 10,806 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 10 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - MAY (FMAY) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - May (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 12.50% (before fees, expenses and taxes) and 11.65% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from May 24, 2021 to May 20, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FMAY." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (5/15/20) (5/15/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 11.41% 17.25% 22.91% Market Price 11.61% 17.06% 22.64% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 42.28% 57.93% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MAY 15, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - May Price Return <S> <C> <C> 5/15/20 $10,000 $10,000 8/31/20 11,032 12,223 2/28/21 11,454 13,308 8/31/21 12,291 15,793 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to May 24, 2021, the Fund's investment objective included an upside cap of 17.07% (before fees, expenses and taxes) and 16.21% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of May 18, 2020 to May 21, 2021. Page 11 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MAY (DMAY) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - May (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.60% (before fees, expenses and taxes) and 6.75% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from May 24, 2021 to May 20, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DMAY." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (5/15/20) (5/15/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 6.50% 9.78% 12.85% Market Price 6.65% 9.53% 12.52% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 42.28% 57.93% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MAY 15, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - May Price Return <S> <C> <C> 5/15/20 $10,000 $10,000 8/31/20 10,596 12,223 2/28/21 10,843 13,308 8/31/21 11,284 15,793 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to May 24, 2021, the Fund's investment objective included an upside cap of 9.95% (before fees, expenses and taxes) and 9.09% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of May 18, 2020 to May 21, 2021. Page 12 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE (FJUN) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - June (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 11.70% (before fees, expenses and taxes) and 10.85% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from June 21, 2021 to June 17, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FJUN." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (6/19/20) (6/19/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 13.85% 18.46% 22.55% Market Price 13.82% 18.25% 22.28% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 37.08% 46.00% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 19, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - June Price Return <S> <C> <C> 5/19/20 $10,000 $10,000 8/31/20 10,764 11,300 2/28/21 11,342 12,303 8/31/21 12,255 14,600 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to June 21, 2021, the Fund's investment objective included an upside cap of 17.72% (before fees, expenses and taxes) and 16.87% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of June 22, 2020 to June 18, 2021. Page 13 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JUNE (DJUN) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - June (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.06% (before fees, expenses and taxes) and 6.21% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from June 21, 2021 to June 17, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DJUN." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (6/19/20) (6/19/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 7.65% 10.34% 12.53% Market Price 7.64% 10.15% 12.30% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 37.08% 46.00% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 19, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - June Price Return <S> <C> <C> 6/19/20 $10,000 $10,000 8/31/20 10,453 11,300 2/28/21 10,750 12,303 8/31/21 11,253 14,600 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to June 21, 2021, the Fund's investment objective included an upside cap of 10.28% (before fees, expenses and taxes) and 9.43% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of June 22, 2020 to June 18, 2021. Page 14 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - July (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 11.70% (before fees, expenses and taxes) and 10.85% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from July 19, 2021 to July 15, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FJUL." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (7/17/20) (7/17/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 12.72% 15.72% 17.82% Market Price 12.69% 15.40% 17.46% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 35.14% 40.25% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 17, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - July Price Return <S> <C> <C> 7/17/20 $10,000 $10,000 8/31/20 10,453 10,855 2/28/21 10,992 11,819 8/31/21 11,782 14,025 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to July 19, 2021, the Fund's investment objective included an upside cap of 14.95% (before fees, expenses and taxes) and 14.10% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of July 20, 2020 to July 16, 2021. Page 15 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JULY (DJUL) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - July (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.30% (before fees, expenses and taxes) and 6.45% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from July 19, 2021 to July 15, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DJUL." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (7/17/20) (7/17/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 7.14% 8.58% 9.69% Market Price 7.12% 8.44% 9.52% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 35.14% 40.25% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 17, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - July Price Return <S> <C> <C> 7/17/20 $10,000 $10,000 8/31/20 10,238 10,855 2/28/21 10,546 11,819 8/31/21 10,969 14,025 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to July 19, 2021, the Fund's investment objective included an upside cap of 8.40% (before fees, expenses and taxes) and 7.55% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of July 20, 2020 to July 16, 2021. Page 16 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST (FAUG) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - August (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 11.64% (before fees, expenses and taxes) and 10.79% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from August 23, 2021 to August 19, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FAUG." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (11/6/19) (11/6/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 13.81% 12.84% 24.58% Market Price 13.70% 12.86% 24.62% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 23.62% 46.99% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 6, 2019 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - August Price Return <S> <C> <C> 11/6/19 $10,000 $10,000 2/29/20 9,764 9,602 8/31/20 10,947 11,377 2/28/21 11,615 12,387 8/31/21 12,458 14,699 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to August 24, 2020, the Fund's investment objective included an upside cap of 8.60% (before fees, expenses and taxes) and 7.93% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not including the Fund's management fee) and an Outcome Period of November 7, 2019 to August 21, 2020. Page 17 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - AUGUST (DAUG) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - August (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.37% (before fees, expenses and taxes) and 6.52% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from August 23, 2021 to August 19, 2022 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DAUG." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (11/6/19) (11/6/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 8.12% 8.23% 15.48% Market Price 7.93% 8.13% 15.28% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 23.62% 46.99% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 6, 2019 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - August Price Return <S> <C> <C> 11/6/19 $10,000 $10,000 2/29/20 9,804 9,602 8/31/20 10,681 11,377 2/28/21 11,056 12,387 8/31/21 11,548 14,699 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to August 24, 2020, the Fund's investment objective included an upside cap of 6.58% (before fees, expenses and taxes) and 5.91% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not including the Fund's management fee) and an Outcome Period of November 7, 2019 to August 21, 2020. Page 18 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - SEPTEMBER (FSEP) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - September (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 12.20% (before fees, expenses and taxes) and 11.35% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from September 20, 2021 to September 16, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FSEP." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (9/18/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 15.76% Market Price 15.69% INDEX PERFORMANCE S&P 500(R) Index - Price Return 36.25% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 18, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - September Price Return <S> <C> <C> 9/18/20 $10,000 $10,000 2/28/21 10,887 11,481 8/31/21 11,576 13,625 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 19 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - SEPTEMBER (DSEP) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - September (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.43% (before fees, expenses and taxes) and 6.58% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from September 20, 2021 to September 16, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DSEP." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (9/18/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 8.53% Market Price 8.80% INDEX PERFORMANCE S&P 500(R) Index - Price Return 36.25% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 18, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - September Price Return <S> <C> <C> 9/18/20 $10,000 $10,000 2/28/21 10,494 11,481 8/31/21 10,853 13,625 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 20 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - October (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 16.22% (before fees, expenses and taxes) and 15.37% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from October 19, 2020 to October 15, 2021 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FOCT." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (10/16/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 15.17% Market Price 15.10% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.82% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT OCTOBER 16, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - October Price Return <S> <C> <C> 10/16/20 $10,000 $10,000 2/28/21 10,639 10,940 8/31/21 11,517 12,982 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 21 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - OCTOBER (DOCT) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - October (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 9.34% (before fees, expenses and taxes) and 8.49% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from October 19, 2020 to October 15, 2021 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DOCT." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (10/16/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 8.50% Market Price 8.50% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.82% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT OCTOBER 16, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - October Price Return <S> <C> <C> 10/16/20 $10,000 $10,000 2/28/21 10,372 10,940 8/31/21 10,850 12,982 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 22 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER (FNOV) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - November (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 13.72% (before fees, expenses and taxes) and 12.87% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from November 23, 2020 to November 19, 2021 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FNOV." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (11/15/19) (11/15/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 16.45% 13.41% 25.33% Market Price 16.12% 13.32% 25.16% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 23.01% 44.94% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 15, 2019 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - November Price Return <S> <C> <C> 11/15/19 $10,000 $10,000 2/29/20 9,705 9,467 8/31/20 10,762 11,217 2/28/21 11,603 12,213 8/31/21 12,533 14,494 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to November 23, 2020, the Fund's investment objective included an upside cap of 12.36% (before fees, expenses and taxes) and 11.50% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of November 18, 2019 to November 20, 2020. Page 23 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - NOVEMBER (DNOV) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - November (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.75% (before fees, expenses and taxes) and 6.90% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from November 23, 2020 to November 19, 2021 (the "Outcome Period")*. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DNOV." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (11/15/19) (11/15/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 9.04% 7.86% 14.53% Market Price 9.11% 7.86% 14.53% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 23.01% 44.94% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 15, 2019 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - November Price Return <S> <C> <C> 11/15/19 $10,000 $10,000 2/29/20 9,705 9,467 8/31/20 10,504 11,217 2/28/21 10,949 12,213 8/31/21 11,453 14,494 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. ----------------------------- * Prior to November 23, 2020, the Fund's investment objective included an upside cap of 8.12% (before fees, expenses and taxes) and 7.26% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of November 18, 2019 to November 20, 2020. Page 24 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) The investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - December (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 14.00% (before fees, expenses and taxes) and 13.15% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from December 21, 2020 to December 17, 2021 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "FDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (12/18/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 11.60% Market Price 11.53% INDEX PERFORMANCE S&P 500(R) Index - Price Return 21.92% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Buffer ETF - December Price Return <S> <C> <C> 12/18/20 $10,000 $10,000 2/28/21 10,195 10,274 8/31/21 11,160 12,192 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 25 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - DECEMBER (DDEC) The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - December (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 8.00% (before fees, expenses and taxes) and 7.15% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes), over the period from December 21, 2020 to December 17, 2021 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "DDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (12/18/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 6.34% Market Price 6.41% INDEX PERFORMANCE S&P 500(R) Index - Price Return 21.92% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Deep Buffer ETF - December Price Return <S> <C> <C> 12/18/20 $10,000 $10,000 2/28/21 10,089 10,274 8/31/21 10,634 12,192 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 26 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST FUND OF BUFFER ETFS (BUFR) The investment objective of the FT Cboe Vest Fund of Buffer ETFs (the "Fund") is to seek to provide investors with capital appreciation. The Fund seeks to achieve its investment objective by providing investors with US large-cap equity market exposure while limiting downside risk through a laddered portfolio of twelve FT Cboe Vest U.S. Equity Buffer ETFs ("Underlying ETFs"). Under normal market conditions the Fund will invest substantially all of its assets in the Underlying ETFs, which seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust ("SPY"), up to a predetermined upside cap, while providing a buffer against the first 10% (before fees, expenses and taxes) of SPY losses, over a defined one-year period. The Fund itself does not provide any buffer against losses. The Fund simply seeks to provide diversified exposure to the Underlying ETFs in a single investment. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "BUFR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (8/10/20) (8/10/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 14.16% 15.26% 16.21% Market Price 14.63% 15.50% 16.46% INDEX PERFORMANCE S&P 500(R) Index - Price Return 29.21% 32.43% 34.58% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT AUGUST 10, 2020 - AUGUST 31, 2021 FT Cboe Vest Fund S&P 500(R) Index - of Buffer ETFs Price Return <S> <C> <C> 8/10/20 $10,000 $10,000 8/31/20 10,180 10,416 2/28/21 10,773 11,341 8/31/21 11,621 13,458 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 27 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST FUND OF DEEP BUFFER ETFS (BUFD) The investment objective of the FT Cboe Vest Fund of Deep Buffer ETFs (the "Fund") seeks to provide investors with capital appreciation. The Fund seeks to achieve its investment objective by providing investors with US large-cap equity market exposure while limiting downside risk through a laddered portfolio of twelve FT Cboe Vest U.S. Equity Deep Buffer ETFs ("Underlying ETFs"). Under normal market conditions the Fund will invest substantially all of its assets in the Underlying ETFs, which seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust ("SPY"), up to a predetermined upside cap, while providing a buffer against losses between -5% and -30% (before fees, expenses and taxes) of SPY, over a defined one-year period. The Fund itself does not provide any buffer against losses. The Fund simply seeks to provide diversified exposure to the Underlying ETFs in a single investment. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "BUFD." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (1/20/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 4.24% Market Price 4.48% INDEX PERFORMANCE S&P 500(R) Index - Price Return 17.42% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 20, 2021 - AUGUST 31, 2021 FT Cboe Vest Fund S&P 500(R) Index - of Deep Buffer ETFs Price Return <S> <C> <C> 1/20/21 $10,000 $10,000 2/28/21 9,980 9,894 8/31/21 10,424 11,742 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 28 <PAGE> -------------------------------------------------------------------------------- NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- Total returns for the periods since inception are calculated from the inception date of each Fund. "Average Annual Total Returns" represent the average annual change in value of an investment over the periods indicated. "Cumulative Total Returns" represent the total change in value of an investment over the periods indicated. Each Fund's per share net asset value ("NAV") is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return ("Market Price") is determined by using the midpoint of the national best bid and offer price ("NBBO") as of the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund's NAV is calculated. Since shares of each Fund did not trade in the secondary market until after the Fund's inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund's past performance is no guarantee of future performance. Page 29 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to FT Cboe Vest U.S. Equity Buffer ETF - January ("FJAN"), FT Cboe Vest U.S. Equity Deep Buffer ETF - January ("DJAN"), FT Cboe Vest U.S. Equity Buffer ETF - February ("FFEB"), FT Cboe Vest U.S. Equity Deep Buffer ETF - February ("DFEB"), FT Cboe Vest U.S. Equity Buffer ETF - March ("FMAR"), FT Cboe Vest U.S. Equity Deep Buffer ETF - March ("DMAR"), FT Cboe Vest U.S. Equity Buffer ETF - April ("FAPR"), FT Cboe Vest U.S. Equity Deep Buffer ETF - April ("DAPR"), FT Cboe Vest U.S. Equity Buffer ETF - May ("FMAY"), FT Cboe Vest U.S. Equity Deep Buffer ETF - May ("DMAY"), FT Cboe Vest U.S. Equity Buffer ETF - June ("FJUN"), FT Cboe Vest U.S. Equity Deep Buffer ETF - June ("DJUN"), FT Cboe Vest U.S. Equity Buffer ETF - July ("FJUL"), FT Cboe Vest U.S. Equity Deep Buffer ETF - July ("DJUL"), FT Cboe Vest U.S. Equity Buffer ETF - August ("FAUG"), FT Cboe Vest U.S. Equity Deep Buffer ETF - August ("DAUG"), FT Cboe Vest U.S. Equity Buffer ETF - September ("FSEP"), FT Cboe Vest U.S. Equity Deep Buffer ETF - September ("DSEP"), FT Cboe Vest U.S. Equity Buffer ETF - October ("FOCT"), FT Cboe Vest U.S. Equity Deep Buffer ETF - October ("DOCT"), FT Cboe Vest U.S. Equity Buffer ETF - November ("FNOV"), FT Cboe Vest U.S. Equity Deep Buffer ETF - November ("DNOV"), FT Cboe Vest U.S. Equity Buffer ETF - December ("FDEC"), FT Cboe Vest U.S. Equity Deep Buffer ETF - December ("DDEC"), FT Cboe Vest Fund of Buffer ETFs ("BUFR"), and FT Cboe Vest Fund of Deep Buffer ETFs ("BUFD"), (each a "Fund" and collectively, the "Funds"). First Trust is responsible for the ongoing monitoring of each Fund's investment portfolio, managing each Fund's business affairs and providing certain administrative services necessary for the management of each Fund. SUB-ADVISOR Cboe VestSM Financial LLC ("Cboe Vest" or the "Sub-Advisor") serves as the sub-advisor to the Funds. In this capacity, Cboe Vest is responsible for the selection and ongoing monitoring of the securities in each Fund's investment portfolio. Cboe Vest, with principal offices at 1765 Greensboro Station Pl., 9th Floor, McLean, Virginia 22102, was founded in 2012. Cboe Vest had approximately $3.9 billion under management or committed to management as of August 31, 2021. PORTFOLIO MANAGEMENT TEAM KARAN SOOD, MANAGING DIRECTOR OF CBOE VEST HOWARD RUBIN, MANAGING DIRECTOR OF CBOE VEST COMMENTARY MARKET RECAP Each of the monthly FT Cboe Vest Funds has an investment objective that seeks to provide investors with returns (before fees, expenses, and taxes) that match those of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF" or "Reference ETF"), up to a predetermined upside cap (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against a specific level (before fees, expenses and taxes) of losses in the Reference ETF, over a specified time period. Both the FT Cboe Vest Fund of Buffer ETFs and the FT Cboe Vest Fund of Deep Buffer ETFs are each designed to hold approximately equal weights of twelve month FT Cboe Vest Funds and thus targets to provide investors with returns (before fees, expenses, and taxes) that approximately averages the returns of its twelve monthly ETF holdings. During the 12-month period ended August 31, 2021, stock markets continued to soar extending the massive rally from the March 2020 lows brought on by the coronavirus ("COVID-19") pandemic. Governments across the globe continue to support their economies with extensive fiscal and monetary programs. These efforts, combined with extraordinarily strong corporate earnings, have fueled equity markets across the globe. Markets moved persistently higher during the period, with intermittent pull backs being both small and infrequent. The S&P 500(R) Index, the well-known measure of U.S. large-cap stocks, ended the same period up 31.17%. Mid- and small-cap stocks, as measured by the S&P MidCap 400(R) Index and the Russell 2000(R) Small Cap Index, rose even more, gaining 44.8% and 47.1%, respectively. The Nasdaq 100 Index, a tech-heavy market measure, gained 29.6% during the same period. International markets fared well, too, albeit not to the same extent as the U.S. markets, with broad foreign market indices such as MSCI EAFE and MSCI Emerging Markets gaining 26.8% and 21.5%, respectively, during the same period. Page 30 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) Within the S&P 500(R) Index, the market continued to see significant variation in returns across the various sectors of the economy for the 12-month period ended August 31, 2021. While the variation was not as dramatic as in the prior twelve months, sector performances still saw an approximately 42 percentage point differential from top to bottom: the top performing sector was the Financials sector, up 56.5%, while the worst performing sector was the Consumer Staples sector, up 14.4%, during the same period. U.S. economic data printed in the period all pointed to a rapidly recovering economy. Gross domestic product ("GDP") growth in the most recent four quarterly reports (the third quarter of 2020 through the second quarter of 2021) came in at seasonally adjusted annualized rates of +33.8%, +4.5%, +6.3%, and 6.6%, sequentially. This recent growth has brought the U.S. GDP back to 0.8% above the level it was at in the fourth quarter of 2019, just prior to the pandemic. A current Bloomberg survey of economists shows a consensus projection of 4.4% GDP growth over the coming four quarters. The U.S. unemployment rate, which had been sitting at a 50-year low of 3.5% in February of 2020, shot up to 14.7% just two months later, at the height of the pandemic frenzy. This rate had fallen to 8.4% in August of 2020, as the 12-month period ended August 31, 2021 began. Throughout the same period, unemployment continued to move sharply lower, ending the period at 5.2%, well below the 50-year average of 6.3%. U.S. inflation levels accelerated dramatically over the 12-month period ended August 31, 2021, as the Federal Reserve (the "Fed") kept short-term interest rates near zero throughout the period. The most recent (July 2021) Consumer Price Index report shows year-over-year inflation running at a 5.4% rate, up from just 1.0% from the report twelve months earlier. One particular component of the economy that is clearly overheating, in our view, is the housing market. Housing prices in the U.S. increased by 18.6% over the last twelve months, according to the most recent (June 2021) S&P Case-Shiller U.S. National Home Price Index. The Fed has made comments that they see this increase in inflation as transitory and expect it to cool off as the economy stabilizes after the sharp growth of the last year. That said, the Fed has said they will continue to monitor signs of persistent inflation and will be prepared to taper back on their easy money policies as needed. MARKET AND FUND OUTLOOK Over the 12-month period ended August 31, 2021, implied volatilities in U.S. equity markets fell sharply. We expect to see implied volatilities continue to decline over the coming year. Buffer strategies, such as those used in the FT Cboe Vest Funds, generally benefit from declining implied volatilities. The CBOE S&P 500 1-Year Volatility Index, which is derived from option prices, estimates the market's expectation of S&P 500 volatility for the next twelve months. This index, which peaked during the period at about 41% on September 3, 2020, was down, though still at an elevated level of 25%, as of August 31, 2021. For comparison purposes, the historical volatility of the S&P 500 since its inception in 1937 has been about 15.7%. From short-term Treasuries to High Yield Bonds, fixed income investments continue to linger at or around all-time lows in nominal yield. Combined with the elevated inflation levels seen in the last half year, almost all fixed income investments currently have negative real yields (i.e., nominal yield less inflation.) This bodes quite poorly for future fixed income returns. For this reason, many market analysts are claiming the traditional "60/40 stock/bond allocation" strategy is dead. Investors are looking to reallocate away from fixed income. The FT Cboe Vest Funds are an alternative that these investors should consider. The FT Cboe Vest Funds are designed to protect investors against varying levels of downside movements in their Reference ETF (e.g., SPY), while limiting the investor's participation in larger upside moves in the Reference ETF. In the current negative real yield environment, such Funds, in appropriate allocations, can be suitable alternatives to fixed investments. PERFORMANCE ANALYSIS The following table provides information pertaining to recent caps and performance for the 12-month period ended August 31, 2021 for each FT Cboe Vest Fund, as well as an attribution analysis that estimates the impact of various factors on each Fund's performance. Page 31 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) Each Fund's cap is reset at the Fund's annual reset date. The table shows the caps that were in effect both at the beginning of the period and after the annual reset date if it occurred within the period. Both of these caps are shown pre and post expenses. Funds that were launched within the period do not yet have new caps, as they have not yet reached their first annual reset date. Each Fund's performance may be impacted by a number of factors. These factors include changes in each of: the level of the Reference ETF, the Reference ETF's dividends, interest rates, implied volatility, and time to option expiration. Generally, changes in the level of the Reference ETF is the primary factor, but the other factors can also contribute significantly to Fund performance. Additionally, expenses will impact Fund performance. The impact from these factors for the period are shown in the table under "Estimated Performance Attribution." <TABLE> <CAPTION> <S> <C> <C> <C> <C> <C> <C> <C> FUND TICKER FJAN DJAN FFEB DFEB FMAR DMAR FAPR Annual Expense Ratio 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% Reporting Period Start Date (close of Seed Date) 1/15/21 1/15/21 8/31/20 8/31/20 3/19/21 3/19/21 4/16/21 Reporting Period End Date (close of Period) 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 14.50% 8.20% 10.75% 7.50% 14.20% 9.30% 12.00% Cap Prior to Annual Reset (post-expenses) 13.64% 7.34% 9.90% 6.65% 13.35% 8.45% 11.15% Reset Date (prior to 8/31/21) None None 2/19/21 2/19/21 None None None New Cap on Annual Reset Date (pre-expenses) None None 15.85% 8.85% None None None New Cap on Annual Reset Date (post-expenses) None None 15.00% 8.00% None None None PERFORMANCE (LATER OF 8/31/20 OR SEED DATE, TO 8/31/21): Fund Performance (using NAVs) 11.01% 6.25% 19.00% 11.01% 9.46% 6.25% 5.56% Fund Performance (using Market Price) 11.08% 6.05% 18.49% 10.73% 9.22% 6.01% 5.26% Reference Asset Price Return 20.19% 20.19% 29.27% 29.27% 15.94% 15.94% 8.22% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset 9.25% 5.36% 14.17% 8.84% 7.70% 4.99% 4.51% b) Changes in other Variables* 2.29% 1.42% 5.68% 3.02% 2.14% 1.64% 1.37% c) Expenses (pro-rated annual expense ratio) -0.53% -0.53% -0.85% -0.85% -0.38% -0.38% -0.32% Attribution TOTAL 11.01% 6.25% 19.00% 11.01% 9.46% 6.25% 5.56% </TABLE> * Includes changes in a) SPY dividends, b) interest rates, c) implied volatility, and d) time to option expiration. Page 32 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> <S> <C> <C> <C> <C> <C> <C> <C> FUND TICKER DAPR FMAY DMAY FJUN DJUN FJUL DJUL Annual Expense Ratio 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% Reporting Period Start Date (close of Seed Date) 4/16/21 8/31/20 8/31/20 8/31/20 8/31/20 8/31/20 8/31/20 Reporting Period End Date (close of Period) 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 7.50% 17.07% 9.95% 17.72% 10.28% 14.95% 8.40% Cap Prior to Annual Reset (post-expenses) 6.65% 16.21% 9.09% 16.87% 9.43% 14.10% 7.55% Reset Date (prior to 8/31/21) None 5/21/21 5/21/21 6/18/21 6/18/21 7/16/21 7/16/21 New Cap on Annual Reset Date (pre-expenses) None 12.50% 7.60% 11.70% 7.06% 11.70% 7.30% New Cap on Annual Reset Date (post-expenses) None 11.65% 6.75% 10.85% 6.21% 10.85% 6.45% PERFORMANCE (LATER OF 8/31/20 OR SEED DATE, TO 8/31/21): Fund Performance (using NAVs) 3.46% 11.41% 6.50% 13.85% 7.65% 12.72% 7.14% Fund Performance (using Market Price) 3.23% 11.61% 6.65% 13.82% 7.64% 12.69% 7.12% Reference Asset Price Return 8.22% 29.27% 29.27% 29.27% 29.27% 29.27% 29.27% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset 2.96% 8.35% 4.99% 9.70% 5.58% 9.59% 5.59% b) Changes in other Variables* 0.82% 3.91% 2.36% 5.00% 2.92% 3.98% 2.40% c) Expenses (pro-rated annual expense ratio) -0.32% -0.85% -0.85% -0.85% -0.85% -0.85% -0.85% Attribution TOTAL 3.46% 11.41% 6.50% 13.85% 7.65% 12.72% 7.14% </TABLE> <TABLE> <CAPTION> <S> <C> <C> <C> <C> <C> <C> <C> FUND TICKER FAUG DAUG FSEP DSEP FOCT DOCT FNOV Annual Expense Ratio 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% Reporting Period Start Date (close of Seed Date) 8/31/20 8/31/20 9/18/20 9/18/20 10/16/20 10/16/20 8/31/20 Reporting Period End Date (close of Period) 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 14.71% 8.63% 12.20% 7.43% 16.22% 9.34% 12.36% Cap Prior to Annual Reset (post-expenses) 13.86% 7.78% 11.35% 6.58% 15.37% 8.49% 11.50% Reset Date (prior to 8/31/21) 8/20/21 8/20/21 None None None None 11/20/20 New Cap on Annual Reset Date (pre-expenses) 11.64% 7.37% None None None None 13.72% New Cap on Annual Reset Date (post-expenses) 10.79% 6.52% None None None None 12.87% PERFORMANCE (LATER OF 8/31/20 OR SEED DATE, TO 8/31/21): Fund Performance (using NAVs) 13.81% 8.12% 15.76% 8.53% 15.17% 8.50% 16.45% Fund Performance (using Market Price) 13.70% 7.93% 15.69% 8.80% 15.10% 8.50% 16.12% Reference Asset Price Return 29.27% 29.27% 36.57% 36.57% 30.02% 30.02% 29.27% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset 10.54% 6.21% 12.06% 6.71% 11.90% 6.75% 11.22% b) Changes in other Variables* 4.12% 2.76% 4.51% 2.63% 4.01% 2.49% 6.08% c) Expenses (pro-rated annual expense ratio) -0.85% -0.85% -0.81% -0.81% -0.74% -0.74% -0.85% Attribution TOTAL 13.81% 8.12% 15.76% 8.53% 15.17% 8.50% 16.45% </TABLE> * Includes changes in a) SPY dividends, b) interest rates, c) implied volatility, and d) time to option expiration. Page 33 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> <S> <C> <C> <C> <C> <C> FUND TICKER DNOV FDEC DDEC BUFR BUFD Annual Expense Ratio (includes any Acquired Fund Fees and Expenses) 0.85% 0.85% 0.85% 1.05% 1.05% Reporting Period Start Date (close of Seed Date) 8/31/20 12/18/20 12/18/20 8/31/20 1/20/21 Reporting Period End Date (close of Period) 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 8.12% 14.00% 8.00% N/A N/A Cap Prior to Annual Reset (post-expenses) 7.26% 13.15% 7.15% N/A N/A Reset Date (prior to 8/31/21) 11/20/20 None None N/A N/A New Cap on Annual Reset Date (pre-expenses) 7.75% None None N/A N/A New Cap on Annual Reset Date (post-expenses) 6.90% None None N/A N/A PERFORMANCE (LATER OF 8/31/20 OR SEED DATE, TO 8/31/21): Fund Performance (using NAVs) 9.04% 11.60% 6.34% 14.16% 4.24% Fund Performance (using Market Price) 9.11% 11.53% 6.41% 14.63% 4.48% Reference Asset Price Return 29.27% 22.31% 22.31% 29.27% 17.63% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset 6.69% 9.65% 5.63% 11.76% 4.25% b) Changes in other Variables* 3.20% 2.55% 1.31% 3.45% 0.63% c) Expenses (pro-rated annual expense ratio) -0.85% -0.60% -0.60% -1.05% -0.64% Attribution TOTAL 9.04% 11.60% 6.34% 14.16% 4.24% </TABLE> * Includes changes in a) SPY dividends, b) interest rates, c) implied volatility, and d) time to option expiration. Page 34 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2021 (UNAUDITED) As a shareholder of FT Cboe Vest U.S. Equity Buffer ETF - January, FT Cboe Vest U.S. Equity Deep Buffer ETF - January, FT Cboe Vest U.S. Equity Buffer ETF - February, FT Cboe Vest U.S. Equity Deep Buffer ETF - February, FT Cboe Vest U.S. Equity Buffer ETF - March, FT Cboe Vest U.S. Equity Deep Buffer ETF - March, FT Cboe Vest U.S. Equity Buffer ETF - April, FT Cboe Vest U.S. Equity Deep Buffer ETF - April, FT Cboe Vest U.S. Equity Buffer ETF - May, FT Cboe Vest U.S. Equity Deep Buffer ETF - May, FT Cboe Vest U.S. Equity Buffer ETF - June, FT Cboe Vest U.S. Equity Deep Buffer ETF - June, FT Cboe Vest U.S. Equity Buffer ETF - July, FT Cboe Vest U.S. Equity Deep Buffer ETF - July, FT Cboe Vest U.S. Equity Buffer ETF - August, FT Cboe Vest U.S. Equity Deep Buffer ETF - August, FT Cboe Vest U.S. Equity Buffer ETF - September, FT Cboe Vest U.S. Equity Deep Buffer ETF - September, FT Cboe Vest U.S. Equity Buffer ETF - October, FT Cboe Vest U.S. Equity Deep Buffer ETF - October, FT Cboe Vest U.S. Equity Buffer ETF - November, FT Cboe Vest U.S. Equity Deep Buffer ETF - November, FT Cboe Vest U.S. Equity Buffer ETF - December, FT Cboe Vest U.S. Equity Deep Buffer ETF - December, FT Cboe Vest Fund of Buffer ETFs or FT Cboe Vest Fund of Deep Buffer ETFs (each a "Fund" and collectively, the "Funds"), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period (or since inception) and held through the six-month (or shorter) period ended August 31, 2021. ACTUAL EXPENSES The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this six-month (or shorter) period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) Actual $1,000.00 $1,104.20 0.85% $4.51 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JANUARY (DJAN) Actual $1,000.00 $1,059.00 0.85% $4.41 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY (FFEB) Actual $1,000.00 $1,128.00 0.85% $4.56 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - FEBRUARY (DFEB) Actual $1,000.00 $1,066.40 0.85% $4.43 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> Page 35 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES (CONTINUED) AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - MAY (FMAY) Actual $1,000.00 $1,073.10 0.85% $4.44 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MAY (DMAY) Actual $1,000.00 $1,040.70 0.85% $4.37 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE (FJUN) Actual $1,000.00 $1,080.40 0.85% $4.46 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JUNE (DJUN) Actual $1,000.00 $1,046.70 0.85% $4.38 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) Actual $1,000.00 $1,071.90 0.85% $4.44 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JULY (DJUL) Actual $1,000.00 $1,040.10 0.85% $4.37 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST (FAUG) Actual $1,000.00 $1,072.20 0.85% $4.44 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - AUGUST (DAUG) Actual $1,000.00 $1,044.50 0.85% $4.38 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - SEPTEMBER (FSEP) Actual $1,000.00 $1,063.30 0.85% $4.42 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - SEPTEMBER (DSEP) Actual $1,000.00 $1,034.30 0.85% $4.36 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) Actual $1,000.00 $1,082.40 0.85% $4.46 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - OCTOBER (DOCT) Actual $1,000.00 $1,046.20 0.85% $4.38 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER (FNOV) Actual $1,000.00 $1,080.10 0.85% $4.46 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - NOVEMBER (DNOV) Actual $1,000.00 $1,046.00 0.85% $4.38 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> Page 36 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES (CONTINUED) AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) Actual $1,000.00 $1,094.60 0.85% $4.49 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - DECEMBER (DDEC) Actual $1,000.00 $1,054.00 0.85% $4.40 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. FUND OF BUFFER ETFS (BUFR) (b) Actual $1,000.00 $1,078.70 0.20% $1.05 Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02 FT CBOE VEST FUND OF DEEP BUFFER ETFS (BUFD) (b) Actual $1,000.00 $1,044.40 0.20% $1.03 Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02 </TABLE> <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE MARCH 19, 2021 (c) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO MARCH 19, 2021 (c) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (d) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) Actual $1,000.00 $1,094.60 0.85% $4.05 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MARCH (DMAR) Actual $1,000.00 $1,062.50 0.85% $3.99 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE APRIL 16, 2021 (c) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO APRIL 16, 2021 (c) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (e) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) Actual $1,000.00 $1,055.60 0.85% $3.30 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - APRIL (DAPR) Actual $1,000.00 $1,034.60 0.85% $3.27 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> (a) Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 1, 2021 through August 31, 2021), multiplied by 184/365 (to reflect the six-month period). (b) Annualized expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which the Fund invests. (c) Inception date. (d) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 19, 2021 through August 31, 2021), multiplied by 166/365. Hypothetical expenses are assumed for the most recent six-month period. (e) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (April 16, 2021 through August 31, 2021), multiplied by 138/365. Hypothetical expenses are assumed for the most recent six-month period. Page 37 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.6% <S> <C> <C> 760,729 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 760,729 (Cost $760,729) -------------- TOTAL INVESTMENTS -- 0.6%...................................................................... 760,729 (Cost $760,729) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 107.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 106.6% 3,040 SPDR(R) S&P 500(R) ETF Trust....................... $ 137,274,240 $ 3.76 01/21/22 135,146,240 (Cost $116,967,012) -------------- PUT OPTIONS PURCHASED -- 1.2% 3,040 SPDR(R) S&P 500(R) ETF Trust....................... 137,274,240 375.70 01/21/22 1,562,560 (Cost $8,199,509) -------------- TOTAL PURCHASED OPTIONS........................................................................ 136,708,800 (Cost $125,166,521) (b) -------------- WRITTEN OPTIONS -- (8.3)% CALL OPTIONS WRITTEN -- (7.6)% (3,040) SPDR(R) S&P 500(R) ETF Trust....................... (137,274,240) 430.18 01/21/22 (9,694,560) (Premiums received $3,646,289) -------------- PUT OPTIONS WRITTEN -- (0.7)% (3,040) SPDR(R) S&P 500(R) ETF Trust....................... (137,274,240) 338.13 01/21/22 (857,280) (Premiums received $5,165,257) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (10,551,840) (Premiums received $8,811,546) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (106,450) -------------- NET ASSETS -- 100.0%........................................................................... $ 126,811,239 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $117,146,678. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $22,471,718 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $12,700,707. The net unrealized appreciation was $9,771,011. The amounts presented are inclusive of derivative contracts. Page 38 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 760,729 $ 760,729 $ -- $ -- Call Options Purchased............................... 135,146,240 -- 135,146,240 -- Put Options Purchased................................ 1,562,560 -- 1,562,560 -- -------------- -------------- -------------- -------------- Total................................................ $ 137,469,529 $ 760,729 $ 136,708,800 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (9,694,560) $ -- $ (9,694,560) $ -- Put Options Written.................................. (857,280) -- (857,280) -- -------------- -------------- -------------- -------------- Total................................................ $ (10,551,840) $ -- $ (10,551,840) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 39 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JANUARY (DJAN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.6% <S> <C> <C> 295,639 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 295,639 (Cost $295,639) -------------- TOTAL INVESTMENTS -- 0.6%...................................................................... 295,639 (Cost $295,639) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 112.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 111.8% 1,240 SPDR(R) S&P 500(R) ETF Trust....................... $ 55,993,440 $ 3.75 01/21/22 55,368,892 (Cost $48,421,113) -------------- PUT OPTIONS PURCHASED -- 1.0% 1,240 SPDR(R) S&P 500(R) ETF Trust....................... 55,993,440 356.92 01/21/22 489,446 (Cost $2,700,803) -------------- TOTAL PURCHASED OPTIONS........................................................................ 55,858,338 (Cost $51,121,916) (b) -------------- WRITTEN OPTIONS -- (13.3)% CALL OPTIONS WRITTEN -- (13.0)% (1,240) SPDR(R) S&P 500(R) ETF Trust....................... (55,993,440) 406.51 01/21/22 (6,469,240) (Premiums received $2,668,485) -------------- PUT OPTIONS WRITTEN -- (0.3)% (1,240) SPDR(R) S&P 500(R) ETF Trust....................... (55,993,440) 262.99 01/21/22 (138,350) (Premiums received $644,946) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (6,607,590) (Premiums received $3,313,431) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (35,775) -------------- NET ASSETS -- 100.0%........................................................................... $ 49,510,612 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $48,104,124. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $7,455,150 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $6,012,887. The net unrealized appreciation was $1,442,263. The amounts presented are inclusive of derivative contracts. Page 40 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JANUARY (DJAN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 295,639 $ 295,639 $ -- $ -- Call Options Purchased............................... 55,368,892 -- 55,368,892 -- Put Options Purchased................................ 489,446 -- 489,446 -- -------------- -------------- -------------- -------------- Total................................................ $ 56,153,977 $ 295,639 $ 55,858,338 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (6,469,240) $ -- $ (6,469,240) $ -- Put Options Written.................................. (138,350) -- (138,350) -- -------------- -------------- -------------- -------------- Total................................................ $ (6,607,590) $ -- $ (6,607,590) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 41 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY (FFEB) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 1,712,690 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 1,712,690 (Cost $1,712,690) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 1,712,690 (Cost $1,712,690) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 105.0% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 103.2% 5,973 SPDR(R) S&P 500(R) ETF Trust....................... $ 269,716,788 $ 3.90 02/18/22 266,743,192 (Cost $228,823,427) -------------- PUT OPTIONS PURCHASED -- 1.8% 5,973 SPDR(R) S&P 500(R) ETF Trust....................... 269,716,788 390.03 02/18/22 4,744,899 (Cost $22,442,191) -------------- TOTAL PURCHASED OPTIONS........................................................................ 271,488,091 (Cost $251,265,618) (b) -------------- WRITTEN OPTIONS -- (5.6)% CALL OPTIONS WRITTEN -- (4.5)% (5,973) SPDR(R) S&P 500(R) ETF Trust....................... (269,716,788) 451.85 02/18/22 (11,759,462) (Premiums received $3,312,185) -------------- PUT OPTIONS WRITTEN -- (1.1)% (5,973) SPDR(R) S&P 500(R) ETF Trust........................ (269,716,788) 351.03 02/18/22 (2,802,873) (Premiums received $14,107,361) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (14,562,335) (Premiums received $17,419,546) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (185,496) -------------- NET ASSETS -- 100.0%........................................................................... $ 258,452,950 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $235,558,837. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $49,224,180 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $26,144,571. The net unrealized appreciation was $23,079,609. The amounts presented are inclusive of derivative contracts. Page 42 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY (FFEB) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,712,690 $ 1,712,690 $ -- $ -- Call Options Purchased............................... 266,743,192 -- 266,743,192 -- Put Options Purchased................................ 4,744,899 -- 4,744,899 -- -------------- -------------- -------------- -------------- Total................................................ $ 273,200,781 $ 1,712,690 $ 271,488,091 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (11,759,462) $ -- $ (11,759,462) $ -- Put Options Written.................................. (2,802,873) -- (2,802,873) -- -------------- -------------- -------------- -------------- Total................................................ $ (14,562,335) $ -- $ (14,562,335) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 43 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - FEBRUARY (DFEB) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 1,944,693 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 1,944,693 (Cost $1,944,693) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 1,944,693 (Cost $1,944,693) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 109.1% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 107.6% 6,844 SPDR(R) S&P 500(R) ETF Trust....................... $ 309,047,664 $ 3.89 02/18/22 304,202,112 (Cost $259,821,077) -------------- PUT OPTIONS PURCHASED -- 1.5% 6,844 SPDR(R) S&P 500(R) ETF Trust....................... 309,047,664 370.53 02/18/22 4,167,996 (Cost $20,895,704) -------------- TOTAL PURCHASED OPTIONS........................................................................ 308,370,108 (Cost $280,716,781) (b) -------------- WRITTEN OPTIONS -- (9.7)% CALL OPTIONS WRITTEN -- (9.4)% (6,844) SPDR(R) S&P 500(R) ETF Trust....................... (309,047,664) 424.55 02/18/22 (26,499,968) (Premiums received $9,059,437) -------------- PUT OPTIONS WRITTEN -- (0.3)% (6,844) SPDR(R) S&P 500(R) ETF Trust....................... (309,047,664) 273.02 02/18/22 (971,848) (Premiums received $7,715,597) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (27,471,816) (Premiums received $16,775,034) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (209,086) -------------- NET ASSETS -- 100.0%........................................................................... $ 282,633,899 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $266,268,885. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $50,742,339 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $34,168,239. The net unrealized appreciation was $16,574,100. The amounts presented are inclusive of derivative contracts. Page 44 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - FEBRUARY (DFEB) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,944,693 $ 1,944,693 $ -- $ -- Call Options Purchased............................... 304,202,112 -- 304,202,112 -- Put Options Purchased................................ 4,167,996 -- 4,167,996 -- -------------- -------------- -------------- -------------- Total................................................ $ 310,314,801 $ 1,944,693 $ 308,370,108 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (26,499,968) $ -- $ (26,499,968) $ -- Put Options Written.................................. (971,848) -- (971,848) -- -------------- -------------- -------------- -------------- Total................................................ $ (27,471,816) $ -- $ (27,471,816) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 45 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 615,119 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 615,119 (Cost $615,119) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 615,119 (Cost $615,119) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 106.7% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 104.6% 1,938 SPDR(R) S&P 500(R) ETF Trust....................... $ 87,512,328 $ 3.89 03/18/22 86,385,893 (Cost $76,562,745) -------------- PUT OPTIONS PURCHASED -- 2.1% 1,938 SPDR(R) S&P 500(R) ETF Trust....................... 87,512,328 389.48 03/18/22 1,755,284 (Cost $5,070,263) -------------- TOTAL PURCHASED OPTIONS........................................................................ 88,141,177 (Cost $81,633,008) (b) -------------- WRITTEN OPTIONS -- (7.3)% CALL OPTIONS WRITTEN -- (6.1)% (1,938) SPDR(R) S&P 500(R) ETF Trust....................... (87,512,328) 444.79 03/18/22 (5,082,632) (Premiums received $1,856,247) -------------- PUT OPTIONS WRITTEN -- (1.2)% (1,938) SPDR(R) S&P 500(R) ETF Trust....................... (87,512,328) 350.53 03/18/22 (1,006,517) (Premiums received $3,079,309) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (6,089,149) (Premiums received $4,935,556) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (57,765) -------------- NET ASSETS -- 100.0%........................................................................... $ 82,609,382 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $77,320,149. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $11,892,151 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $6,545,153. The net unrealized appreciation was $5,346,998. The amounts presented are inclusive of derivative contracts. Page 46 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 615,119 $ 615,119 $ -- $ -- Call Options Purchased............................... 86,385,893 -- 86,385,893 -- Put Options Purchased................................ 1,755,284 -- 1,755,284 -- -------------- -------------- -------------- -------------- Total................................................ $ 88,756,296 $ 615,119 $ 88,141,177 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (5,082,632) $ -- $ (5,082,632) $ -- Put Options Written.................................. (1,006,517) -- (1,006,517) -- -------------- -------------- -------------- -------------- Total................................................ $ (6,089,149) $ -- $ (6,089,149) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 47 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MARCH (DMAR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 491,884 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 491,884 (Cost $491,884) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 491,884 (Cost $491,884) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 109.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 107.7% 1,596 SPDR(R) S&P 500(R) ETF Trust....................... $ 72,068,976 $ 3.88 03/18/22 71,142,919 (Cost $64,894,360) -------------- PUT OPTIONS PURCHASED -- 1.7% 1,596 SPDR(R) S&P 500(R) ETF Trust....................... 72,068,976 370.01 03/18/22 1,091,535 (Cost $3,541,552) -------------- TOTAL PURCHASED OPTIONS........................................................................ 72,234,454 (Cost $68,435,912) (b) -------------- WRITTEN OPTIONS -- (10.0)% CALL OPTIONS WRITTEN -- (9.6)% (1,596) SPDR(R) S&P 500(R) ETF Trust....................... (72,068,976) 425.70 03/18/22 (6,345,213) (Premiums received $2,455,106) -------------- PUT OPTIONS WRITTEN -- (0.4)% (1,596) SPDR(R) S&P 500(R) ETF Trust....................... (72,068,976) 272.64 03/18/22 (280,909) (Premiums received $712,324) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (6,626,122) (Premiums received $3,167,430) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (47,245) -------------- NET ASSETS -- 100.0%........................................................................... $ 66,052,971 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $65,760,366. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $6,679,972 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $6,340,122. The net unrealized appreciation was $339,850. The amounts presented are inclusive of derivative contracts. Page 48 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MARCH (DMAR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 491,884 $ 491,884 $ -- $ -- Call Options Purchased............................... 71,142,919 -- 71,142,919 -- Put Options Purchased................................ 1,091,535 -- 1,091,535 -- -------------- -------------- -------------- -------------- Total................................................ $ 72,726,338 $ 491,884 $ 72,234,454 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (6,345,213) $ -- $ (6,345,213) $ -- Put Options Written.................................. (280,909) -- (280,909) -- -------------- -------------- -------------- -------------- Total................................................ $ (6,626,122) $ -- $ (6,626,122) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 49 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 104.6% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 101.1% 3,060 SPDR(R) S&P 500(R) ETF Trust....................... $ 138,177,360 $ 4.17 04/14/22 $ 136,263,913 (Cost $124,961,055) -------------- PUT OPTIONS PURCHASED -- 3.5% 3,060 SPDR(R) S&P 500(R) ETF Trust....................... 138,177,360 417.26 04/14/22 4,713,609 (Cost $9,461,985) -------------- TOTAL PURCHASED OPTIONS........................................................................ 140,977,522 (Cost $134,423,040) (a) -------------- WRITTEN OPTIONS -- (5.4)% CALL OPTIONS WRITTEN -- (3.4)% (3,060) SPDR(R) S&P 500(R) ETF Trust....................... (138,177,360) 467.33 04/14/22 (4,616,068) (Premiums received $2,101,321) -------------- PUT OPTIONS WRITTEN -- (2.0)% (3,060) SPDR(R) S&P 500(R) ETF Trust....................... (138,177,360) 375.53 04/14/22 (2,629,688) (Premiums received $5,575,935) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (7,245,756) (Premiums received $7,677,256) (a) -------------- NET OTHER ASSETS AND LIABILITIES -- 0.8%....................................................... 1,019,544 -------------- NET ASSETS -- 100.0%........................................................................... $ 134,751,310 ============== </TABLE> ----------------------------- (a) Aggregate cost for federal income tax purposes is $126,765,148. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $14,239,423 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $7,272,805. The net unrealized appreciation was $6,966,618. The amounts presented are inclusive of derivative contracts. Page 50 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Call Options Purchased............................... $ 136,263,913 $ -- $ 136,263,913 $ -- Put Options Purchased................................ 4,713,609 -- 4,713,609 -- -------------- -------------- -------------- -------------- Total................................................ $ 140,977,522 $ -- $ 140,977,522 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (4,616,068) $ -- $ (4,616,068) $ -- Put Options Written.................................. (2,629,688) -- (2,629,688) -- -------------- -------------- -------------- -------------- Total................................................ $ (7,245,756) $ -- $ (7,245,756) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 51 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - APRIL (DAPR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.8% <S> <C> <C> 771,222 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 771,222 (Cost $771,222) -------------- TOTAL INVESTMENTS -- 0.8%...................................................................... 771,222 (Cost $771,222) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 105.9% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 103.2% 2,160 SPDR(R) S&P 500(R) ETF Trust....................... $ 97,536,960 $ 4.16 04/14/22 96,188,450 (Cost $88,683,865) -------------- PUT OPTIONS PURCHASED -- 2.7% 2,160 SPDR(R) S&P 500(R) ETF Trust....................... 97,536,960 396.40 04/14/22 2,475,583 (Cost $5,453,247) -------------- TOTAL PURCHASED OPTIONS........................................................................ 98,664,033 (Cost $94,137,112) (b) -------------- WRITTEN OPTIONS -- (6.6)% CALL OPTIONS WRITTEN -- (5.9)% (2,160) SPDR(R) S&P 500(R) ETF Trust....................... (97,536,960) 448.55 04/14/22 (5,535,261) (Premiums received $2,577,499) -------------- PUT OPTIONS WRITTEN -- (0.7)% (2,160) SPDR(R) S&P 500(R) ETF Trust....................... (97,536,960) 292.08 04/14/22 (607,604) (Premiums received $1,227,786) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (6,142,865) (Premiums received $3,805,285) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (66,828) -------------- NET ASSETS -- 100.0%........................................................................... $ 93,225,562 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $91,103,401. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $8,124,590 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $5,935,601. The net unrealized appreciation was $2,188,989. The amounts presented are inclusive of derivative contracts. Page 52 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - APRIL (DAPR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 771,222 $ 771,222 $ -- $ -- Call Options Purchased............................... 96,188,450 -- 96,188,450 -- Put Options Purchased................................ 2,475,583 -- 2,475,583 -- -------------- -------------- -------------- -------------- Total................................................ $ 99,435,255 $ 771,222 $ 98,664,033 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (5,535,261) $ -- $ (5,535,261) $ -- Put Options Written.................................. (607,604) -- (607,604) -- -------------- -------------- -------------- -------------- Total................................................ $ (6,142,865) $ -- $ (6,142,865) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 53 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER - MAY (FMAY) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 2.6% <S> <C> <C> 2,854,296 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 2,854,296 (Cost $2,854,296) -------------- TOTAL INVESTMENTS -- 2.6%...................................................................... 2,854,296 (Cost $2,854,296) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 105.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 101.6% 2,552 SPDR(R) S&P 500(R) ETF Trust....................... $ 115,238,112 $ 4.15 05/20/22 113,700,063 (Cost $104,396,235) -------------- PUT OPTIONS PURCHASED -- 3.8% 2,552 SPDR(R) S&P 500(R) ETF Trust....................... 115,238,112 414.94 05/20/22 4,311,852 (Cost $7,930,181) -------------- TOTAL PURCHASED OPTIONS........................................................................ 118,011,915 (Cost $112,326,416) (b) -------------- WRITTEN OPTIONS -- (6.3)% CALL OPTIONS WRITTEN -- (4.1)% (2,552) SPDR(R) S&P 500(R) ETF Trust....................... (115,238,112) 466.81 05/20/22 (4,550,950) (Premiums received $1,935,228) -------------- PUT OPTIONS WRITTEN -- (2.2)% (2,552) SPDR(R) S&P 500(R) ETF Trust....................... (115,238,112) 373.45 05/20/22 (2,498,953) (Premiums received $4,694,079) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (7,049,903) (Premiums received $6,629,307) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (1.7)%..................................................... (1,940,462) -------------- NET ASSETS -- 100.0%........................................................................... $ 111,875,846 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $108,556,103. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $11,498,787 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $6,238,582. The net unrealized appreciation was $5,260,205. The amounts presented are inclusive of derivative contracts. Page 54 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER - MAY (FMAY) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,854,296 $ 2,854,296 $ -- $ -- Call Options Purchased............................... 113,700,063 -- 113,700,063 -- Put Options Purchased................................ 4,311,852 -- 4,311,852 -- -------------- -------------- -------------- -------------- Total................................................ $ 120,866,211 $ 2,854,296 $ 118,011,915 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (4,550,950) $ -- $ (4,550,950) $ -- Put Options Written.................................. (2,498,953) -- (2,498,953) -- -------------- -------------- -------------- -------------- Total................................................ $ (7,049,903) $ -- $ (7,049,903) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 55 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MAY (DMAY) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 569,198 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 569,198 (Cost $569,198) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 569,198 (Cost $569,198) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 106.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 103.8% 1,477 SPDR(R) S&P 500(R) ETF Trust....................... $ 66,695,412 $ 4.14 05/20/22 65,806,724 (Cost $60,341,426) -------------- PUT OPTIONS PURCHASED -- 3.0% 1,477 SPDR(R) S&P 500(R) ETF Trust....................... 66,695,412 394.19 05/20/22 1,894,808 (Cost $3,588,443) -------------- TOTAL PURCHASED OPTIONS........................................................................ 67,701,532 (Cost $63,929,869) (b) -------------- WRITTEN OPTIONS -- (7.6)% CALL OPTIONS WRITTEN -- (6.8)% (1,477) SPDR(R) S&P 500(R) ETF Trust....................... (66,695,412) 446.48 05/20/22 (4,354,969) (Premiums received $2,045,906) -------------- PUT OPTIONS WRITTEN -- (0.8)% (1,477) SPDR(R) S&P 500(R) ETF Trust....................... (66,695,412) 290.46 05/20/22 (498,982) (Premiums received $909,682) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (4,853,951) (Premiums received $2,955,588) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (46,164) -------------- NET ASSETS -- 100.0%........................................................................... $ 63,370,615 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $61,546,399. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $5,874,539 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $4,004,159. The net unrealized appreciation was $1,870,380. The amounts presented are inclusive of derivative contracts. Page 56 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MAY (DMAY) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 569,198 $ 569,198 $ -- $ -- Call Options Purchased............................... 65,806,724 -- 65,806,724 -- Put Options Purchased................................ 1,894,808 -- 1,894,808 -- -------------- -------------- -------------- -------------- Total................................................ $ 68,270,730 $ 569,198 $ 67,701,532 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (4,354,969) $ -- $ (4,354,969) $ -- Put Options Written.................................. (498,982) -- (498,982) -- -------------- -------------- -------------- -------------- Total................................................ $ (4,853,951) $ -- $ (4,853,951) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 57 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE (FJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 1,069,034 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 1,069,034 (Cost $1,069,034) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 1,069,034 (Cost $1,069,034) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 106.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 102.1% 2,601 SPDR(R) S&P 500(R) ETF Trust....................... $ 117,450,756 $ 4.15 06/17/22 115,445,510 (Cost $106,655,154) -------------- PUT OPTIONS PURCHASED -- 4.4% 2,601 SPDR(R) S&P 500(R) ETF Trust....................... 117,450,756 414.92 06/17/22 4,925,028 (Cost $7,843,906) -------------- TOTAL PURCHASED OPTIONS........................................................................ 120,370,538 (Cost $114,499,060) (b) -------------- WRITTEN OPTIONS -- (7.3)% CALL OPTIONS WRITTEN -- (4.7)% (2,601) SPDR(R) S&P 500(R) ETF Trust....................... (117,450,756) 463.47 06/17/22 (5,380,881) (Premiums received $2,212,113) -------------- PUT OPTIONS WRITTEN -- (2.6)% (2,601) SPDR(R) S&P 500(R) ETF Trust....................... (117,450,756) 373.43 06/17/22 (2,904,334) (Premiums received $4,733,383) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (8,285,215) (Premiums received $6,945,496) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (79,592) -------------- NET ASSETS -- 100.0%........................................................................... $ 113,074,765 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $108,626,818. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $10,618,510 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $6,090,971. The net unrealized appreciation was $4,527,539. The amounts presented are inclusive of derivative contracts. Page 58 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE (FJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,069,034 $ 1,069,034 $ -- $ -- Call Options Purchased............................... 115,445,510 -- 115,445,510 -- Put Options Purchased................................ 4,925,028 -- 4,925,028 -- -------------- -------------- -------------- -------------- Total................................................ $ 121,439,572 $ 1,069,034 $ 120,370,538 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (5,380,881) $ -- $ (5,380,881) $ -- Put Options Written.................................. (2,904,334) -- (2,904,334) -- -------------- -------------- -------------- -------------- Total................................................ $ (8,285,215) $ -- $ (8,285,215) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 59 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JUNE (DJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 425,466 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 425,466 (Cost $425,466) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 425,466 (Cost $425,466) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 107.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 104.1% 1,078 SPDR(R) S&P 500(R) ETF Trust....................... $ 48,678,168 $ 4.14 06/17/22 47,848,159 (Cost $44,473,039) -------------- PUT OPTIONS PURCHASED -- 3.4% 1,078 SPDR(R) S&P 500(R) ETF Trust....................... 48,678,168 394.17 06/17/22 1,564,903 (Cost $2,450,550) -------------- TOTAL PURCHASED OPTIONS........................................................................ 49,413,062 (Cost $46,923,589) (b) -------------- WRITTEN OPTIONS -- (8.3)% CALL OPTIONS WRITTEN -- (7.4)% (1,078) SPDR(R) S&P 500(R) ETF Trust....................... (48,678,168) 444.21 06/17/22 (3,431,904) (Premiums received $1,769,811) -------------- PUT OPTIONS WRITTEN -- (0.9)% (1,078) SPDR(R) S&P 500(R) ETF Trust....................... (48,678,168) 290.44 06/17/22 (422,855) (Premiums received $586,072) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (3,854,759) (Premiums received $2,355,883) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (32,841) -------------- NET ASSETS -- 100.0%........................................................................... $ 45,950,928 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $45,002,423. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $3,533,195 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $2,551,849. The net unrealized appreciation was $981,346. The amounts presented are inclusive of derivative contracts. Page 60 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JUNE (DJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 425,466 $ 425,466 $ -- $ -- Call Options Purchased............................... 47,848,159 -- 47,848,159 -- Put Options Purchased................................ 1,564,903 -- 1,564,903 -- -------------- -------------- -------------- -------------- Total................................................ $ 49,838,528 $ 425,466 $ 49,413,062 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (3,431,904) $ -- $ (3,431,904) $ -- Put Options Written.................................. (422,855) -- (422,855) -- -------------- -------------- -------------- -------------- Total................................................ $ (3,854,759) $ -- $ (3,854,759) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 61 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.0% <S> <C> <C> 1,287,837 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 1,287,837 (Cost $1,287,837) -------------- TOTAL INVESTMENTS -- 1.0%...................................................................... 1,287,837 (Cost $1,287,837) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 105.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 99.9% 2,803 SPDR(R) S&P 500(R) ETF Trust....................... $ 126,572,268 $ 4.31 07/15/22 124,574,123 (Cost $119,515,993) -------------- PUT OPTIONS PURCHASED -- 5.5% 2,803 SPDR(R) S&P 500(R) ETF Trust....................... 126,572,268 431.34 07/15/22 6,903,547 (Cost $8,812,129) -------------- TOTAL PURCHASED OPTIONS........................................................................ 131,477,670 (Cost $128,328,122) (b) -------------- WRITTEN OPTIONS -- (6.4)% CALL OPTIONS WRITTEN -- (3.1)% (2,803) SPDR(R) S&P 500(R) ETF Trust....................... (126,572,268) 481.81 07/15/22 (3,903,953) (Premiums received $3,039,643) -------------- PUT OPTIONS WRITTEN -- (3.3)% (2,803) SPDR(R) S&P 500(R) ETF Trust....................... (126,572,268) 388.21 07/15/22 (4,060,745) (Premiums received $4,706,285) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (7,964,698) (Premiums received $7,745,928) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.0)%..................................................... (78,581) -------------- NET ASSETS -- 100.0%........................................................................... $ 124,722,228 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $121,870,031. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $5,703,670 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $2,772,892. The net unrealized appreciation was $2,930,778. The amounts presented are inclusive of derivative contracts. Page 62 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,287,837 $ 1,287,837 $ -- $ -- Call Options Purchased............................... 124,574,123 -- 124,574,123 -- Put Options Purchased................................ 6,903,547 -- 6,903,547 -- -------------- -------------- -------------- -------------- Total................................................ $ 132,765,507 $ 1,287,837 $ 131,477,670 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (3,903,953) $ -- $ (3,903,953) $ -- Put Options Written.................................. (4,060,745) -- (4,060,745) -- -------------- -------------- -------------- -------------- Total................................................ $ (7,964,698) $ -- $ (7,964,698) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 63 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JULY (DJUL) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.1% <S> <C> <C> 572,972 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 572,972 (Cost $572,972) -------------- TOTAL INVESTMENTS -- 1.1%...................................................................... 572,972 (Cost $572,972) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 105.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 101.1% 1,245 SPDR(R) S&P 500(R) ETF Trust....................... $ 56,219,220 $ 4.30 07/15/22 55,332,954 (Cost $52,837,771) -------------- PUT OPTIONS PURCHASED -- 4.3% 1,245 SPDR(R) S&P 500(R) ETF Trust....................... 56,219,220 409.77 07/15/22 2,347,582 (Cost $3,122,057) -------------- TOTAL PURCHASED OPTIONS........................................................................ 57,680,536 (Cost $55,959,828) (b) -------------- WRITTEN OPTIONS -- (6.4)% CALL OPTIONS WRITTEN -- (5.2)% (1,245) SPDR(R) S&P 500(R) ETF Trust....................... (56,219,220) 462.83 07/15/22 (2,848,698) (Premiums received $1,869,855) -------------- PUT OPTIONS WRITTEN -- (1.2)% (1,245) SPDR(R) S&P 500(R) ETF Trust....................... (56,219,220) 301.94 07/15/22 (632,923) (Premiums received $786,188) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (3,481,621) (Premiums received $2,656,043) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (37,170) -------------- NET ASSETS -- 100.0%........................................................................... $ 54,734,717 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $53,887,575. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $2,637,671 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $1,753,359. The net unrealized appreciation was $884,312. The amounts presented are inclusive of derivative contracts. Page 64 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JULY (DJUL) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 572,972 $ 572,972 $ -- $ -- Call Options Purchased............................... 55,332,954 -- 55,332,954 -- Put Options Purchased................................ 2,347,582 -- 2,347,582 -- -------------- -------------- -------------- -------------- Total................................................ $ 58,253,508 $ 572,972 $ 57,680,536 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (2,848,698) $ -- $ (2,848,698) $ -- Put Options Written.................................. (632,923) -- (632,923) -- -------------- -------------- -------------- -------------- Total................................................ $ (3,481,621) $ -- $ (3,481,621) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 65 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST (FAUG) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.1% <S> <C> <C> 1,672,022 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 1,672,022 (Cost $1,672,022) -------------- TOTAL INVESTMENTS -- 1.1%...................................................................... 1,672,022 (Cost $1,672,022) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 105.3% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 98.4% 3,469 SPDR(R) S&P 500(R) ETF Trust....................... $ 156,646,164 $ 4.43 08/19/22 153,149,412 (Cost $150,402,784) -------------- PUT OPTIONS PURCHASED -- 6.9% 3,469 SPDR(R) S&P 500(R) ETF Trust....................... 156,646,164 443.36 08/19/22 10,746,962 (Cost $13,806,884) -------------- TOTAL PURCHASED OPTIONS........................................................................ 163,896,374 (Cost $164,209,668) (b) -------------- WRITTEN OPTIONS -- (6.4)% CALL OPTIONS WRITTEN -- (2.1)% (3,469) SPDR(R) S&P 500(R) ETF Trust....................... (156,646,164) 494.97 08/19/22 (3,326,771) (Premiums received $3,560,757) -------------- PUT OPTIONS WRITTEN -- (4.3)% (3,469) SPDR(R) S&P 500(R) ETF Trust....................... (156,646,164) 399.02 08/19/22 (6,598,038) (Premiums received $8,242,352) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (9,924,809) (Premiums received $11,803,109) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.0)%..................................................... (1,936) -------------- NET ASSETS -- 100.0%........................................................................... $ 155,641,651 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $154,078,581. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $4,700,804 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $3,135,798. The net unrealized appreciation was $1,565,006. The amounts presented are inclusive of derivative contracts. Page 66 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST (FAUG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,672,022 $ 1,672,022 $ -- $ -- Call Options Purchased............................... 153,149,412 -- 153,149,412 -- Put Options Purchased................................ 10,746,962 -- 10,746,962 -- -------------- -------------- -------------- -------------- Total................................................ $ 165,568,396 $ 1,672,022 $ 163,896,374 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (3,326,771) $ -- $ (3,326,771) $ -- Put Options Written.................................. (6,598,038) -- (6,598,038) -- -------------- -------------- -------------- -------------- Total................................................ $ (9,924,809) $ -- $ (9,924,809) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 67 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - AUGUST (DAUG) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.1% <S> <C> <C> 984,044 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 984,044 (Cost $984,044) -------------- TOTAL INVESTMENTS -- 1.1%...................................................................... 984,044 (Cost $984,044) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 104.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 99.3% 2,018 SPDR(R) S&P 500(R) ETF Trust....................... $ 91,124,808 $ 4.42 08/19/22 89,699,105 (Cost $87,303,226) -------------- PUT OPTIONS PURCHASED -- 5.2% 2,018 SPDR(R) S&P 500(R) ETF Trust....................... 91,124,808 421.19 08/19/22 4,710,322 (Cost $5,967,522) -------------- TOTAL PURCHASED OPTIONS........................................................................ 94,409,427 (Cost $93,270,748) (b) -------------- WRITTEN OPTIONS -- (5.5)% CALL OPTIONS WRITTEN -- (4.1)% (2,018) SPDR(R) S&P 500(R) ETF Trust....................... (91,124,808) 476.04 08/19/22 (3,676,066) (Premiums received $3,046,480) -------------- PUT OPTIONS WRITTEN -- (1.4)% (2,018) SPDR(R) S&P 500(R) ETF Trust....................... (91,124,808) 310.35 08/19/22 (1,287,599) (Premiums received $1,656,488) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (4,963,665) (Premiums received $4,702,968) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (59,811) -------------- NET ASSETS -- 100.0%........................................................................... $ 90,369,995 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $89,551,824. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $2,764,769 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $1,886,787. The net unrealized appreciation was $877,982. The amounts presented are inclusive of derivative contracts. Page 68 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - AUGUST (DAUG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 984,044 $ 984,044 $ -- $ -- Call Options Purchased............................... 89,699,105 -- 89,699,105 -- Put Options Purchased................................ 4,710,322 -- 4,710,322 -- -------------- -------------- -------------- -------------- Total................................................ $ 95,393,471 $ 984,044 $ 94,409,427 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (3,676,066) $ -- $ (3,676,066) $ -- Put Options Written.................................. (1,287,599) -- (1,287,599) -- -------------- -------------- -------------- -------------- Total................................................ $ (4,963,665) $ -- $ (4,963,665) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 69 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - SEPTEMBER (FSEP) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.4% <S> <C> <C> 154,011 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 154,011 (Cost $154,011) -------------- TOTAL INVESTMENTS -- 0.4%...................................................................... 154,011 (Cost $154,011) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 116.7% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 116.7% 1,080 SPDR(R) S&P 500(R) ETF Trust....................... $ 48,768,480 $ 3.31 09/17/21 48,227,024 (Cost $44,593,089) -------------- PUT OPTIONS PURCHASED -- 0.0% 1,080 SPDR(R) S&P 500(R) ETF Trust....................... 48,768,480 330.65 09/17/21 6,574 (Cost $1,624,888) -------------- TOTAL PURCHASED OPTIONS........................................................................ 48,233,598 (Cost $46,217,977) (b) -------------- WRITTEN OPTIONS -- (17.0)% CALL OPTIONS WRITTEN -- (17.0)% (1,080) SPDR(R) S&P 500(R) ETF Trust....................... (48,768,480) 385.21 09/17/21 (7,009,980) (Premiums received $2,955,417) -------------- PUT OPTIONS WRITTEN -- (0.0)% (1,080) SPDR(R) S&P 500(R) ETF Trust....................... (48,768,480) 297.59 09/17/21 (3,222) (Premiums received $177,353) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (7,013,202) (Premiums received $3,132,770) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (30,311) -------------- NET ASSETS -- 100.0%........................................................................... $ 41,344,096 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $43,239,218. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $3,808,066 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $5,672,877. The net unrealized depreciation was $1,864,811. The amounts presented are inclusive of derivative contracts. Page 70 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - SEPTEMBER (FSEP) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 154,011 $ 154,011 $ -- $ -- Call Options Purchased............................... 48,227,024 -- 48,227,024 -- Put Options Purchased................................ 6,574 -- 6,574 -- -------------- -------------- -------------- -------------- Total................................................ $ 48,387,609 $ 154,011 $ 48,233,598 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (7,009,980) $ -- $ (7,009,980) $ -- Put Options Written.................................. (3,222) -- (3,222) -- -------------- -------------- -------------- -------------- Total................................................ $ (7,013,202) $ -- $ (7,013,202) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 71 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - SEPTEMBER (DSEP) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.4% <S> <C> <C> 95,244 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 95,244 (Cost $95,244) -------------- TOTAL INVESTMENTS -- 0.4%...................................................................... 95,244 (Cost $95,244) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 124.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 124.4% 720 SPDR(R) S&P 500(R) ETF Trust....................... $ 32,512,320 $ 3.30 09/17/21 32,152,069 (Cost $28,709,797) -------------- PUT OPTIONS PURCHASED -- 0.0% 720 SPDR(R) S&P 500(R) ETF Trust....................... 32,512,320 314.12 09/17/21 3,046 (Cost $1,163,843) -------------- TOTAL PURCHASED OPTIONS........................................................................ 32,155,115 (Cost $29,873,640) (b) -------------- WRITTEN OPTIONS -- (24.7)% CALL OPTIONS WRITTEN -- (24.7)% (720) SPDR(R) S&P 500(R) ETF Trust....................... (32,512,320) 361.24 09/17/21 (6,390,679) (Premiums received $2,660,904) -------------- PUT OPTIONS WRITTEN -- (0.0)% (720) SPDR(R) S&P 500(R) ETF Trust....................... (32,512,320) 231.46 09/17/21 (574) (Premiums received $76,338) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (6,391,253) (Premiums received $2,737,242) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (18,196) -------------- NET ASSETS -- 100.0%........................................................................... $ 25,840,910 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $27,231,642. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $3,518,036 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $4,890,572. The net unrealized depreciation was $1,372,536. The amounts presented are inclusive of derivative contracts. Page 72 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - SEPTEMBER (DSEP) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 95,244 $ 95,244 $ -- $ -- Call Options Purchased............................... 32,152,069 -- 32,152,069 -- Put Options Purchased................................ 3,046 -- 3,046 -- -------------- -------------- -------------- -------------- Total................................................ $ 32,250,359 $ 95,244 $ 32,155,115 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (6,390,679) $ -- $ (6,390,679) $ -- Put Options Written.................................. (574) -- (574) -- -------------- -------------- -------------- -------------- Total................................................ $ (6,391,253) $ -- $ (6,391,253) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 73 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.4% <S> <C> <C> 300,535 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 300,535 (Cost $300,535) -------------- TOTAL INVESTMENTS -- 0.4%...................................................................... 300,535 (Cost $300,535) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 112.0% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 111.9% 1,763 SPDR(R) S&P 500(R) ETF Trust....................... $ 79,610,028 $ 3.47 10/15/21 78,879,558 (Cost $63,548,266) -------------- PUT OPTIONS PURCHASED -- 0.1% 1,763 SPDR(R) S&P 500(R) ETF Trust....................... 79,610,028 347.29 10/15/21 85,483 (Cost $4,681,394) -------------- TOTAL PURCHASED OPTIONS........................................................................ 78,965,041 (Cost $68,229,660) (b) -------------- WRITTEN OPTIONS -- (12.3)% CALL OPTIONS WRITTEN -- (12.2)% (1,763) SPDR(R) S&P 500(R) ETF Trust....................... (79,610,028) 403.62 10/15/21 (8,639,954) (Premiums received $1,891,203) -------------- PUT OPTIONS WRITTEN -- (0.1)% (1,763) SPDR(R) S&P 500(R) ETF Trust....................... (79,610,028) 312.56 10/15/21 (44,265) (Premiums received $2,735,465) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (8,684,219) (Premiums received $4,626,668) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (51,946) -------------- NET ASSETS -- 100.0%........................................................................... $ 70,529,411 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $63,903,527. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $18,022,492 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $11,344,662. The net unrealized appreciation was $6,677,830. The amounts presented are inclusive of derivative contracts. Page 74 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 300,535 $ 300,535 $ -- $ -- Call Options Purchased............................... 78,879,558 -- 78,879,558 -- Put Options Purchased................................ 85,483 -- 85,483 -- -------------- -------------- -------------- -------------- Total................................................ $ 79,265,576 $ 300,535 $ 78,965,041 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (8,639,954) $ -- $ (8,639,954) $ -- Put Options Written.................................. (44,265) -- (44,265) -- -------------- -------------- -------------- -------------- Total................................................ $ (8,684,219) $ -- $ (8,684,219) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 75 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - OCTOBER (DOCT) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.4% <S> <C> <C> 168,311 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 168,311 (Cost $168,311) -------------- TOTAL INVESTMENTS -- 0.4%...................................................................... 168,311 (Cost $168,311) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 118.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 118.7% 1,075 SPDR(R) S&P 500(R) ETF Trust....................... $ 48,542,700 $ 3.46 10/15/21 48,098,367 (Cost $37,754,277) -------------- PUT OPTIONS PURCHASED -- 0.1% 1,075 SPDR(R) S&P 500(R) ETF Trust....................... 48,542,700 329.93 10/15/21 37,264 (Cost $2,521,613) -------------- TOTAL PURCHASED OPTIONS........................................................................ 48,135,631 (Cost $40,275,890) (b) -------------- WRITTEN OPTIONS -- (19.1)% CALL OPTIONS WRITTEN -- (19.1)% (1,075) SPDR(R) S&P 500(R) ETF Trust....................... (48,542,700) 379.73 10/15/21 (7,756,611) (Premiums received $2,168,202) -------------- PUT OPTIONS WRITTEN -- (0.0)% (1,075) SPDR(R) S&P 500(R) ETF Trust....................... (48,542,700) 243.10 10/15/21 (7,937) (Premiums received $695,552) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (7,764,548) (Premiums received $2,863,754) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%.................................................... (28,710) -------------- NET ASSETS -- 100.0%.......................................................................... $ 40,510,684 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $37,580,447. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $11,031,893 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $8,072,946. The net unrealized appreciation was $2,958,947. The amounts presented are inclusive of derivative contracts. Page 76 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - OCTOBER (DOCT) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 168,311 $ 168,311 $ -- $ -- Call Options Purchased............................... 48,098,367 -- 48,098,367 -- Put Options Purchased................................ 37,264 -- 37,264 -- -------------- -------------- -------------- -------------- Total................................................ $ 48,303,942 $ 168,311 $ 48,135,631 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (7,756,611) $ -- $ (7,756,611) $ -- Put Options Written.................................. (7,937) -- (7,937) -- -------------- -------------- -------------- -------------- Total................................................ $ (7,764,548) $ -- $ (7,764,548) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 77 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER (FNOV) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.8% <S> <C> <C> 2,623,885 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 2,623,885 (Cost $2,623,885) -------------- TOTAL INVESTMENTS -- 1.8%...................................................................... 2,623,885 (Cost $2,623,885) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 112.6% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 112.2% 3,600 SPDR(R) S&P 500(R) ETF Trust....................... $ 162,561,600 $ 3.55 11/19/21 161,122,043 (Cost $127,863,142) -------------- PUT OPTIONS PURCHASED -- 0.4% 3,600 SPDR(R) S&P 500(R) ETF Trust....................... 162,561,600 355.33 1/19/21 563,256 (Cost $11,035,267) -------------- TOTAL PURCHASED OPTIONS........................................................................ 161,685,299 (Cost $138,898,409) (b) -------------- WRITTEN OPTIONS -- (13.0)% CALL OPTIONS WRITTEN -- (12.8)% (3,600) SPDR(R) S&P 500(R) ETF Trust....................... (162,561,600) 404.08 11/19/21 (18,362,173) (Premiums received $2,632,649) -------------- PUT OPTIONS WRITTEN -- (0.2)% (3,600) SPDR(R) S&P 500(R) ETF Trust....................... (162,561,600) 319.80 11/19/21 (311,382) (Premiums received $6,317,295) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (18,673,555) (Premiums received $8,949,944) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (1.4)%..................................................... (2,019,966) -------------- NET ASSETS -- 100.0%........................................................................... $ 143,615,663 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $132,731,545. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $39,105,619 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $26,201,535. The net unrealized appreciation was $12,904,084. The amounts presented are inclusive of derivative contracts. Page 78 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER (FNOV) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,623,885 $ 2,623,885 $ -- $ -- Call Options Purchased............................... 161,122,043 -- 161,122,043 -- Put Options Purchased................................ 563,256 -- 563,256 -- -------------- -------------- -------------- -------------- Total................................................ $ 164,309,184 $ 2,623,885 $ 161,685,299 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (18,362,173) $ -- $ (18,362,173) $ -- Put Options Written.................................. (311,382) -- (311,382) -- -------------- -------------- -------------- -------------- Total................................................ $ (18,673,555) $ -- $ (18,673,555) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 79 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - NOVEMBER (DNOV) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.5% <S> <C> <C> 456,878 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 456,878 (Cost $456,878) -------------- TOTAL INVESTMENTS -- 0.5%...................................................................... 456,878 (Cost $456,878) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 118.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 118.1% 2,399 SPDR(R) S&P 500(R) ETF Trust....................... $ 108,329,244 $ 3.54 11/19/21 107,372,337 (Cost $85,419,835) -------------- PUT OPTIONS PURCHASED -- 0.3% 2,399 SPDR(R) S&P 500(R) ETF Trust....................... 108,329,244 337.56 11/19/21 277,671 (Cost $5,951,360) -------------- TOTAL PURCHASED OPTIONS........................................................................ 107,650,008 (Cost $91,371,195) (b) -------------- WRITTEN OPTIONS -- (18.8)% CALL OPTIONS WRITTEN -- (18.7)% (2,399) SPDR(R) S&P 500(R) ETF Trust....................... (108,329,244) 382.87 11/19/21 (17,004,055) (Premiums received $3,256,382) -------------- PUT OPTIONS WRITTEN -- (0.1)% (2,399) SPDR(R) S&P 500(R) ETF Trust....................... (108,329,244) 248.73 11/19/21 (67,659) (Premiums received $1,395,230) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (17,071,714) (Premiums received $4,651,612) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (67,613) -------------- NET ASSETS -- 100.0%........................................................................... $ 90,967,559 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $87,247,630. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $23,219,289 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $19,431,747. The net unrealized appreciation was $3,787,542. The amounts presented are inclusive of derivative contracts. Page 80 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - NOVEMBER (DNOV) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 456,878 $ 456,878 $ -- $ -- Call Options Purchased............................... 107,372,337 -- 107,372,337 -- Put Options Purchased................................ 277,671 -- 277,671 -- -------------- -------------- -------------- -------------- Total................................................ $ 108,106,886 $ 456,878 $ 107,650,008 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (17,004,055) $ -- $ (17,004,055) $ -- Put Options Written.................................. (67,659) -- (67,659) -- -------------- -------------- -------------- -------------- Total................................................ $ (17,071,714) $ -- $ (17,071,714) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 81 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.5% <S> <C> <C> 374,673 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 374,673 (Cost $374,673) -------------- TOTAL INVESTMENTS -- 0.5%...................................................................... 374,673 (Cost $374,673) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 108.9% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 108.1% 1,722 SPDR(R) S&P 500(R) ETF Trust....................... $ 77,758,632 $ 3.69 12/17/21 76,649,834 (Cost $64,800,503) -------------- PUT OPTIONS PURCHASED -- 0.8% 1,722 SPDR(R) S&P 500(R) ETF Trust....................... 77,758,632 369.18 12/17/21 578,782 (Cost $4,347,326) -------------- TOTAL PURCHASED OPTIONS........................................................................ 77,228,616 (Cost $69,147,829) (b) -------------- WRITTEN OPTIONS -- (9.3)% CALL OPTIONS WRITTEN -- (8.9)% (1,722) SPDR(R) S&P 500(R) ETF Trust....................... (77,758,632) 420.87 12/17/21 (6,288,177) (Premiums received $2,092,453) -------------- PUT OPTIONS WRITTEN -- (0.4)% (1,722) SPDR(R) S&P 500(R) ETF Trust....................... (77,758,632) 332.26 12/17/21 (322,417) (Premiums received $2,976,220) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (6,610,594) (Premiums received $5,068,673) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (49,660) -------------- NET ASSETS -- 100.0%........................................................................... $ 70,943,035 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $65,250,855. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $13,796,031 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $8,054,191. The net unrealized appreciation was $5,741,840. The amounts presented are inclusive of derivative contracts. Page 82 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 374,673 $ 374,673 $ -- $ -- Call Options Purchased............................... 76,649,834 -- 76,649,834 -- Put Options Purchased................................ 578,782 -- 578,782 -- -------------- -------------- -------------- -------------- Total................................................ $ 77,603,289 $ 374,673 $ 77,228,616 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (6,288,177) $ -- $ (6,288,177) $ -- Put Options Written.................................. (322,417) -- (322,417) -- -------------- -------------- -------------- -------------- Total................................................ $ (6,610,594) $ -- $ (6,610,594) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 83 <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - DECEMBER (DDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.6% <S> <C> <C> 331,253 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 331,253 (Cost $331,253) -------------- TOTAL INVESTMENTS -- 0.6%...................................................................... 331,253 (Cost $331,253) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 113.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 113.2% 1,517 SPDR(R) S&P 500(R) ETF Trust....................... $ 68,501,652 $ 3.68 12/17/21 67,432,167 (Cost $56,627,373) -------------- PUT OPTIONS PURCHASED -- 0.6% 1,517 SPDR(R) S&P 500(R) ETF Trust....................... 68,501,652 350.72 12/17/21 358,012 (Cost $3,216,954) -------------- TOTAL PURCHASED OPTIONS........................................................................ 67,790,179 (Cost $59,844,327) (b) -------------- WRITTEN OPTIONS -- (14.3)% CALL OPTIONS WRITTEN -- (14.2)% (1,517) SPDR(R) S&P 500(R) ETF Trust....................... (68,501,652) 398.71 12/17/21 (8,443,622) (Premiums received $2,830,231) -------------- PUT OPTIONS WRITTEN -- (0.1)% (1,517) SPDR(R) S&P 500(R) ETF Trust....................... (68,501,652) 258.43 12/17/21 (78,884) (Premiums received $908,474) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (8,522,506) (Premiums received $3,738,705) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (53,419) -------------- NET ASSETS -- 100.0%........................................................................... $ 59,545,507 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $56,436,875. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $11,634,384 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $8,472,333. The net unrealized appreciation was $3,162,051. The amounts presented are inclusive of derivative contracts. Page 84 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - DECEMBER (DDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 331,253 $ 331,253 $ -- $ -- Call Options Purchased............................... 67,432,167 -- 67,432,167 -- Put Options Purchased................................ 358,012 -- 358,012 -- -------------- -------------- -------------- -------------- Total................................................ $ 68,121,432 $ 331,253 $ 67,790,179 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (8,443,622) $ -- $ (8,443,622) $ -- Put Options Written.................................. (78,884) -- (78,884) -- -------------- -------------- -------------- -------------- Total................................................ $ (8,522,506) $ -- $ (8,522,506) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 85 <PAGE> FT CBOE VEST FUND OF BUFFER ETFS (BUFR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE -------------- --------------------------------- -------------- EXCHANGE-TRADED FUNDS -- 100.0% CAPITAL MARKETS -- 100.0% 752,957 FT Cboe Vest U.S. Equity Buffer ETF - January (a) (b) $ 25,142,439 680,850 FT Cboe Vest U.S. Equity Buffer ETF - February (a) (b) 25,402,513 779,899 FT Cboe Vest U.S. Equity Buffer ETF - March (a) (b) 25,206,024 798,404 FT Cboe Vest U.S. Equity Buffer ETF - April (a) (b) 25,234,357 678,065 FT Cboe Vest U.S. Equity Buffer ETF - May (a) (b) 25,232,697 680,941 FT Cboe Vest U.S. Equity Buffer ETF - June (a) (b) 25,188,007 710,605 FT Cboe Vest U.S. Equity Buffer ETF - July (a) (b) 25,254,902 671,296 FT Cboe Vest U.S. Equity Buffer ETF - August (a) (b) 25,175,010 721,527 FT Cboe Vest U.S. Equity Buffer ETF - September (a) (b) 24,842,175 724,890 FT Cboe Vest U.S. Equity Buffer ETF - October (a) (b) 24,921,718 655,012 FT Cboe Vest U.S. Equity Buffer ETF - November (a) (b) 25,053,554 740,753 FT Cboe Vest U.S. Equity Buffer ETF - December (a) (b) 24,997,377 -------------- TOTAL EXCHANGE-TRADED FUNDS -- 100.0% 301,650,773 (Cost $293,607,600) -------------- MONEY MARKET FUNDS -- 0.0% 160,876 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (c) 160,876 (Cost $160,876) -------------- TOTAL INVESTMENTS -- 100.0% 301,811,649 (Cost $293,768,476) (d) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (49,202) -------------- NET ASSETS -- 100.0% $ 301,762,447 ============== (a) Investment in an affiliated fund. (b) Non-income producing security. (c) Rate shown reflects yield as of August 31, 2021. (d) Aggregate cost for federal income tax purposes is $293,769,923. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $8,042,008 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $282. The net unrealized appreciation was $8,041,726. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS ------------------------------------------- Exchange-Traded Funds* $ 301,650,773 $ -- $ -- Money Market Funds 160,876 -- -- ------------------------------------------- Total Investments $ 301,811,649 $ -- $ -- =========================================== * See Portfolio of Investments for industry breakout. Page 86 See Notes to Financial Statements <PAGE> FT CBOE VEST FUND OF DEEP BUFFER ETFS (BUFD) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE -------------- --------------------------------- -------------- EXCHANGE-TRADED FUNDS -- 99.9% CAPITAL MARKETS -- 99.9% 420,388 FT Cboe Vest U.S. Equity Deep Buffer ETF - January (a) (b) $ 13,402,138 387,555 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (a) (b) 13,421,030 428,762 FT Cboe Vest U.S. Equity Deep Buffer ETF - March (a) (b) 13,452,408 434,206 FT Cboe Vest U.S. Equity Deep Buffer ETF - April (a) (b) 13,464,511 394,276 FT Cboe Vest U.S. Equity Deep Buffer ETF - May (a) (b) 13,465,196 394,415 FT Cboe Vest U.S. Equity Deep Buffer ETF - June (a) (b) 13,396,029 405,935 FT Cboe Vest U.S. Equity Deep Buffer ETF - July (a) (b) 13,441,726 387,204 FT Cboe Vest U.S. Equity Deep Buffer ETF - August (a) (b) 13,434,043 412,331 FT Cboe Vest U.S. Equity Deep Buffer ETF - September (a) (b) 13,351,278 413,354 FT Cboe Vest U.S. Equity Deep Buffer ETF - October (a) (b) 13,394,736 383,972 FT Cboe Vest U.S. Equity Deep Buffer ETF - November (a) (b) 13,392,943 416,711 FT Cboe Vest U.S. Equity Deep Buffer ETF - December (a) (b) 13,422,261 -------------- TOTAL EXCHANGE-TRADED FUNDS -- 99.9% 161,038,299 (Cost $158,772,529) -------------- MONEY MARKET FUNDS -- 0.1% 96,620 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (c) 96,620 (Cost $96,620) -------------- TOTAL INVESTMENTS -- 100.0% 161,134,919 (Cost $158,869,149) (d) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (25,943) -------------- NET ASSETS -- 100.0% $ 161,108,976 ============== (a) Investment in an affiliated fund. (b) Non-income producing security. (c) Rate shown reflects yield as of August 31, 2021. (d) Aggregate cost for federal income tax purposes is $158,876,352. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $2,258,851 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $284. The net unrealized appreciation was $2,258,567. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS ------------------------------------------- Exchange-Traded Funds* $ 161,038,299 $ -- $ -- Money Market Funds 96,620 -- -- ------------------------------------------- Total Investments $ 161,134,919 $ -- $ -- =========================================== * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 87 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - JANUARY JANUARY FEBRUARY FEBRUARY (FJAN) (DJAN) (FFEB) (DFEB) ---------------- ----------------- ----------------- ----------------- ASSETS: <S> <C> <C> <C> <C> Investments, at value - Unaffiliated............ $ 760,729 $ 295,639 $ 1,712,690 $ 1,944,693 Investments, at value - Affiliated.............. -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total investments, at value.................. 760,729 295,639 1,712,690 1,944,693 Options contracts purchased, at value........... 136,708,800 55,858,338 271,488,091 308,370,108 Cash............................................ 4 41 -- 6,893 Receivables: Investment securities sold................... 3,597,293 -- -- 1,892,232 Capital shares sold.......................... 596 -- -- 313 Dividends.................................... 18 11 49 55 ---------------- ----------------- ----------------- ----------------- Total Assets................................. 141,067,440 56,154,029 273,200,830 312,214,294 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 10,551,840 6,607,590 14,562,335 27,471,816 Due to custodian................................ -- -- 163 -- Payables: Capital shares purchased..................... 3,337,136 -- -- 1,733,950 Investment securities purchased.............. 277,969 -- -- 168,740 Investment advisory fees..................... 89,256 35,827 185,382 205,889 ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 14,256,201 6,643,417 14,747,880 29,580,395 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 126,811,239 $ 49,510,612 $ 258,452,950 $ 282,633,899 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 117,263,320 $ 45,381,116 $ 251,181,508 $ 308,088,163 Par value....................................... 38,000 15,500 69,000 81,500 Accumulated distributable earnings (loss)....... 9,509,919 4,113,996 7,202,442 (25,535,764) ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 126,811,239 $ 49,510,612 $ 258,452,950 $ 282,633,899 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 33.37 $ 31.94 $ 37.46 $ 34.68 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)............................. 3,800,002 1,550,002 6,900,002 8,150,002 ================ ================= ================= ================= Investments, at cost - Unaffiliated............. $ 760,729 $ 295,639 $ 1,712,690 $ 1,944,693 ================ ================= ================= ================= Investments, at cost - Affiliated............... $ -- $ -- $ -- $ -- ================ ================= ================= ================= Total investments, at cost...................... $ 760,729 $ 295,639 $ 1,712,690 $ 1,944,693 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 125,166,521 $ 51,121,916 $ 251,265,618 $ 280,716,781 ================ ================= ================= ================= Premiums received on options contracts written.. $ 8,811,546 $ 3,313,431 $ 17,419,546 $ 16,775,034 ================ ================= ================= ================= </TABLE> Page 88 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - MARCH MARCH APRIL APRIL MAY MAY (FMAR) (DMAR) (FAPR) (DAPR) (FMAY) (DMAY) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ 615,119 $ 491,884 $ -- $ 771,222 $ 2,854,296 $ 569,198 -- -- -- -- -- -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 615,119 491,884 -- 771,222 2,854,296 569,198 88,141,177 72,234,454 140,977,522 98,664,033 118,011,915 67,701,532 -- 8 -- 11 -- -- -- -- -- -- -- -- -- -- 3,159,833 -- 313 -- 16 13 28 20 28 16 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 88,756,312 72,726,359 144,137,383 99,435,286 120,866,552 68,270,746 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 6,089,149 6,626,122 7,245,756 6,142,865 7,049,903 4,853,951 -- -- 2,046,356 -- 132 335 -- -- -- -- 1,860,413 -- -- -- -- -- -- -- 57,781 47,266 93,961 66,859 80,258 45,845 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 6,146,930 6,673,388 9,386,073 6,209,724 8,990,706 4,900,131 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 82,609,382 $ 66,052,971 $ 134,751,310 $ 93,225,562 $ 111,875,846 $ 63,370,615 ================= ================= ================= ================= ================= ================= $ 77,482,535 $ 63,058,197 $ 128,045,616 $ 89,398,132 $ 121,182,359 $ 64,380,657 25,500 21,000 42,500 30,000 30,000 18,500 5,101,347 2,973,774 6,663,194 3,797,430 (9,336,513) (1,028,542) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 82,609,382 $ 66,052,971 $ 134,751,310 $ 93,225,562 $ 111,875,846 $ 63,370,615 ================= ================= ================= ================= ================= ================= $ 32.40 $ 31.45 $ 31.71 $ 31.08 $ 37.29 $ 34.25 ================= ================= ================= ================= ================= ================= 2,550,002 2,100,002 4,250,002 3,000,002 3,000,002 1,850,002 ================= ================= ================= ================= ================= ================= $ 615,119 $ 491,884 $ -- $ 771,222 $ 2,854,296 $ 569,198 ================= ================= ================= ================= ================= ================= $ -- $ -- $ -- $ -- $ -- $ -- ================= ================= ================= ================= ================= ================= $ 615,119 $ 491,884 $ -- $ 771,222 $ 2,854,296 $ 569,198 ================= ================= ================= ================= ================= ================= $ 81,633,008 $ 68,435,912 $ 134,423,040 $ 94,137,112 $ 112,326,416 $ 63,929,869 ================= ================= ================= ================= ================= ================= $ 4,935,556 $ 3,167,430 $ 7,677,256 $ 3,805,285 $ 6,629,307 $ 2,955,588 ================= ================= ================= ================= ================= ================= </TABLE> See Notes to Financial Statements Page 89 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - JUNE JUNE JULY JULY (FJUN) (DJUN) (FJUL) (DJUL) ---------------- ----------------- ----------------- ----------------- ASSETS: <S> <C> <C> <C> <C> Investments, at value - Unaffiliated............ $ 1,069,034 $ 425,466 $ 1,287,837 $ 572,972 Investments, at value - Affiliated.............. -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total investments, at value.................. 1,069,034 425,466 1,287,837 572,972 Options contracts purchased, at value........... 120,370,538 49,413,062 131,477,670 57,680,536 Cash............................................ 145 155 -- -- Receivables: Investment securities sold................... -- -- -- -- Capital shares sold.......................... -- -- -- -- Dividends.................................... 27 11 29 18 ---------------- ----------------- ----------------- ----------------- Total Assets................................. 121,439,744 49,838,694 132,765,536 58,253,526 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 8,285,215 3,854,759 7,964,698 3,481,621 Due to custodian................................ -- -- 1,263 658 Payables: Capital shares purchased..................... -- -- -- -- Investment securities purchased.............. -- -- -- -- Investment advisory fees..................... 79,764 33,007 77,347 36,530 ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 8,364,979 3,887,766 8,043,308 3,518,809 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 113,074,765 $ 45,950,928 $ 124,722,228 $ 54,734,717 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 120,916,200 $ 47,597,525 $ 123,429,058 $ 55,916,929 Par value....................................... 30,500 13,500 35,000 16,500 Accumulated distributable earnings (loss)....... (7,871,935) (1,660,097) 1,258,170 (1,198,712) ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 113,074,765 $ 45,950,928 $ 124,722,228 $ 54,734,717 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 37.07 $ 34.04 $ 35.63 $ 33.17 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)............................. 3,050,002 1,350,002 3,500,002 1,650,002 ================ ================= ================= ================= Investments, at cost - Unaffiliated............. $ 1,069,034 $ 425,466 $ 1,287,837 $ 572,972 ================ ================= ================= ================= Investments, at cost - Affiliated............... $ -- $ -- $ -- $ -- ================ ================= ================= ================= Total investments, at cost...................... $ 1,069,034 $ 425,466 $ 1,287,837 $ 572,972 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 114,499,060 $ 46,923,589 $ 128,328,122 $ 55,959,828 ================ ================= ================= ================= Premiums received on options contracts written.. $ 6,945,496 $ 2,355,883 $ 7,745,928 $ 2,656,043 ================ ================= ================= ================= </TABLE> Page 90 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - AUGUST AUGUST SEPTEMBER SEPTEMBER OCTOBER OCTOBER (FAUG) (DAUG) (FSEP) (DSEP) (FOCT) (DOCT) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ 1,672,022 $ 984,044 $ 154,011 $ 95,244 $ 300,535 $ 168,311 -- -- -- -- -- -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,672,022 984,044 154,011 95,244 300,535 168,311 163,896,374 94,409,427 48,233,598 32,155,115 78,965,041 48,135,631 -- -- 452 447 5 23 357,172 -- -- -- -- -- 5,626,503 -- -- -- -- -- 20 14 5 2 9 7 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 171,552,091 95,393,485 48,388,066 32,250,808 79,265,590 48,303,972 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 9,924,809 4,963,665 7,013,202 6,391,253 8,684,219 7,764,548 1,334 2,243 -- -- -- -- -- -- -- -- -- -- 5,906,201 -- -- -- -- -- 78,096 57,582 30,768 18,645 51,960 28,740 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 15,910,440 5,023,490 7,043,970 6,409,898 8,736,179 7,793,288 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 155,641,651 $ 90,369,995 $ 41,344,096 $ 25,840,910 $ 70,529,411 $ 40,510,684 ================= ================= ================= ================= ================= ================= $ 170,169,891 $ 104,620,267 $ 38,140,080 $ 23,689,467 $ 62,433,270 $ 37,509,053 41,500 26,000 12,000 8,000 20,500 12,500 (14,569,740) (14,276,272) 3,192,016 2,143,443 8,075,641 2,989,131 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 155,641,651 $ 90,369,995 $ 41,344,096 $ 25,840,910 $ 70,529,411 $ 40,510,684 ================= ================= ================= ================= ================= ================= $ 37.50 $ 34.76 $ 34.45 $ 32.30 $ 34.40 $ 32.41 ================= ================= ================= ================= ================= ================= 4,150,002 2,600,002 1,200,002 800,002 2,050,002 1,250,002 ================= ================= ================= ================= ================= ================= $ 1,672,022 $ 984,044 $ 154,011 $ 95,244 $ 300,535 $ 168,311 ================= ================= ================= ================= ================= ================= $ -- $ -- $ -- $ -- $ -- $ -- ================= ================= ================= ================= ================= ================= $ 1,672,022 $ 984,044 $ 154,011 $ 95,244 $ 300,535 $ 168,311 ================= ================= ================= ================= ================= ================= $ 164,209,668 $ 93,270,748 $ 46,217,977 $ 29,873,640 $ 68,229,660 $ 40,275,890 ================= ================= ================= ================= ================= ================= $ 11,803,109 $ 4,702,968 $ 3,132,770 $ 2,737,242 $ 4,626,668 $ 2,863,754 ================= ================= ================= ================= ================= ================= </TABLE> See Notes to Financial Statements Page 91 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - NOVEMBER NOVEMBER DECEMBER DECEMBER (FNOV) (DNOV) (FDEC) (DDEC) ---------------- ----------------- ----------------- ----------------- ASSETS: <S> <C> <C> <C> <C> Investments, at value - Unaffiliated............ $ 2,623,885 $ 456,878 $ 374,673 $ 331,253 Investments, at value - Affiliated.............. -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total investments, at value.................. 2,623,885 456,878 374,673 331,253 Options contracts purchased, at value........... 161,685,299 107,650,008 77,228,616 67,790,179 Cash............................................ -- -- 5 -- Receivables: Investment securities sold................... -- -- -- 1,832,010 Capital shares sold.......................... 358 -- -- 305 Dividends.................................... 69 13 11 10 ---------------- ----------------- ----------------- ----------------- Total Assets................................. 164,309,611 108,106,899 77,603,305 69,953,757 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 18,673,555 17,071,714 6,610,594 8,522,506 Due to custodian................................ 186 323 -- 950 Payables: Capital shares purchased..................... 1,912,354 -- -- 1,609,337 Investment securities purchased.............. -- -- -- 230,486 Investment advisory fees..................... 107,853 67,303 49,676 44,971 ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 20,693,948 17,139,340 6,660,270 10,408,250 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 143,615,663 $ 90,967,559 $ 70,943,035 $ 59,545,507 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 130,501,410 $ 93,565,913 $ 64,173,856 $ 56,159,869 Par value....................................... 37,500 26,000 21,000 18,500 Accumulated distributable earnings (loss)....... 13,076,753 (2,624,354) 6,748,179 3,367,138 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 143,615,663 $ 90,967,559 $ 70,943,035 $ 59,545,507 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 38.30 $ 34.99 $ 33.78 $ 32.19 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share) 3,750,002 2,600,002 2,100,002 1,850,002 ================ ================= ================= ================= Investments, at cost - Unaffiliated............. $ 2,623,885 $ 456,878 $ 374,673 $ 331,253 ================ ================= ================= ================= Investments, at cost - Affiliated............... $ -- $ -- $ -- $ -- ================ ================= ================= ================= Total investments, at cost...................... $ 2,623,885 $ 456,878 $ 374,673 $ 331,253 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 138,898,409 $ 91,371,195 $ 69,147,829 $ 59,844,327 ================ ================= ================= ================= Premiums received on options contracts written.. $ 8,949,944 $ 4,651,612 $ 5,068,673 $ 3,738,705 ================ ================= ================= ================= </TABLE> Page 92 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FUND OF FUND OF BUFFER ETFS DEEP BUFFER ETFS (BUFR) (BUFD) ----------------- ----------------- <S> <C> $ 160,876 $ 96,620 301,650,773 161,038,299 ----------------- ----------------- 301,811,649 161,134,919 -- -- -- -- -- -- -- -- -- -- ----------------- ----------------- 301,811,649 161,134,919 ----------------- ----------------- -- -- -- -- -- -- -- -- 49,202 25,943 ----------------- ----------------- 49,202 25,943 ----------------- ----------------- $ 301,762,447 $ 161,108,976 ================= ================= $ 293,820,212 $ 158,773,409 129,500 77,000 7,812,735 2,258,567 ----------------- ----------------- $ 301,762,447 $ 161,108,976 ================= ================= $ 23.30 $ 20.92 ================= ================= 12,950,002 7,700,002 ================= ================= $ 160,876 $ 96,620 ================= ================= $ 293,607,600 $ 158,772,529 ================= ================= $ 293,768,476 $ 158,869,149 ================= ================= $ -- $ -- ================= ================= $ -- $ -- ================= ================= </TABLE> See Notes to Financial Statements Page 93 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - JANUARY JANUARY FEBRUARY FEBRUARY (FJAN) (a) (DJAN) (a) (FFEB) (DFEB) ---------------- ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> <C> Dividends (d)................................... $ 171 $ 157 $ 254 $ 1,108 ---------------- ----------------- ----------------- ----------------- Total investment income...................... 171 157 254 1,108 ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 517,619 337,344 2,051,337 3,283,073 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 517,619 337,344 2,051,337 3,283,073 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (517,448) (337,187) (2,051,083) (3,281,965) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated..................... -- -- -- -- In-kind redemptions - Affiliated............. -- -- -- -- Purchased options contracts.................. 119,420 1,173,658 (7,155,942) (3,385,759) Written options contracts.................... 101,827 (1,156,674) (8,315,006) (33,647,827) In-kind redemptions - Purchased options contracts................................. -- 2,615,057 43,658,311 95,066,182 In-kind redemptions - Written options contracts................................. -- 371,863 11,493,831 22,744,549 ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ 221,247 3,003,904 39,681,194 80,777,145 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Investments - Affiliated..................... -- -- -- -- Purchased options contracts.................. 11,542,279 4,736,422 5,787,852 (35,768,308) Written options contracts.................... (1,740,294) (3,294,159) 1,452,318 (1,466,254) ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... 9,801,985 1,442,263 7,240,170 (37,234,562) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. 10,023,232 4,446,167 46,921,364 43,542,583 ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 9,505,784 $ 4,108,980 $ 44,870,281 $ 40,260,618 ================ ================= ================= ================= </TABLE> (a) Inception date is January 15, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is March 19, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (c) Inception date is April 16, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (d) Negative dividend amount represents charges by broker on excess cash held in the account. Page 94 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - MARCH MARCH APRIL APRIL MAY MAY (FMAR) (b) (DMAR) (b) (FAPR) (c) (DAPR) (c) (FMAY) (DMAY) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ 85 $ 78 $ (301) $ 108 $ 41 $ (263) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 85 78 (301) 108 41 (263) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 248,293 214,731 333,879 294,064 603,282 242,767 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 248,293 214,731 333,879 294,064 603,282 242,767 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (248,208) (214,653) (334,180) (293,956) (603,241) (243,030) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- -- -- -- -- -- -- (6,025) (4,186) 20,166 783,015 (3,091,702) 1,534,494 (5,348) 7,344 (16,682) (227,001) (11,749,235) (4,337,535) -- 2,708,604 -- 1,272,752 18,357,075 3,842,633 -- 128,543 -- 64,422 3,303,486 119,864 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (11,373) 2,840,305 3,484 1,893,188 6,819,624 1,159,456 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- 6,508,169 3,798,542 6,554,482 4,526,921 1,051,073 2,228,178 (1,153,593) (3,458,692) 431,500 (2,337,580) 1,489,751 (855,180) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 5,354,576 339,850 6,985,982 2,189,341 2,540,824 1,372,998 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 5,343,203 3,180,155 6,989,466 4,082,529 9,360,448 2,532,454 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 5,094,995 $ 2,965,502 $ 6,655,286 $ 3,788,573 $ 8,757,207 $ 2,289,424 ================= ================= ================= ================= ================= ================= </TABLE> See Notes to Financial Statements Page 95 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS (CONTINUED) FOR THE PERIOD ENDED AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - JUNE JUNE JULY JULY (FJUN) (DJUN) (FJUL) (DJUL) ---------------- ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> <C> Dividends (d)................................... $ 292 $ 214 $ (1,155) $ (605) ---------------- ----------------- ----------------- ----------------- Total investment income...................... 292 214 (1,155) (605) ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 536,029 199,946 350,039 172,064 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 536,029 199,946 350,039 172,064 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (535,737) (199,732) (351,194) (172,669) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated..................... -- -- -- -- In-kind redemptions - Affiliated............. -- -- -- -- Purchased options contracts.................. (5,511,905) (38,278) 2,728,156 1,158,551 Written options contracts.................... (6,502,878) (2,480,803) (4,361,899) (3,129,188) In-kind redemptions - Purchased options contracts................................. 17,223,216 4,849,251 5,042,955 2,845,660 In-kind redemptions - Written options contracts................................. 2,996,172 (448,696) 1,010,342 332,159 ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ 8,204,605 1,881,474 4,419,554 1,207,182 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Investments - Affiliated..................... -- -- -- -- Purchased options contracts.................. 1,892,918 634,386 1,613,933 1,053,464 Written options contracts.................... (688,036) (440,149) 389,836 (373,086) ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... 1,204,882 194,237 2,003,769 680,378 ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. 9,409,487 2,075,711 6,423,323 1,887,560 ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 8,873,750 $ 1,875,979 $ 6,072,129 $ 1,714,891 ================ ================= ================= ================= </TABLE> (d) Negative dividend amount represents charges by broker on excess cash held in the account. (e) Inception date is September 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (f) Inception date is October 16, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 96 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - AUGUST AUGUST SEPTEMBER SEPTEMBER OCTOBER OCTOBER (FAUG) (DAUG) (FSEP) (e) (DSEP) (e) (FOCT) (f) (DOCT) (f) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ (2,756) $ (1,865) $ 499 $ 511 $ 132 $ 98 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (2,756) (1,865) 499 511 132 98 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 794,751 965,418 198,442 200,785 426,506 257,129 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 794,751 965,418 198,442 200,785 426,506 257,129 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (797,507) (967,283) (197,943) (200,274) (426,374) (257,031) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- -- -- -- -- -- -- (4,908,707) 10,656,439 286,014 1,724,791 804,359 686,298 (10,357,289) (14,891,124) (78,352) (862,553) (166,539) (401,944) 25,015,698 14,892,368 4,414,842 2,689,239 942,650 -- 4,090,237 (89,104) 631,124 161,423 237,828 -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 13,839,939 10,568,579 5,253,628 3,712,900 1,818,298 284,354 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- (891,390) (1,382,735) 2,015,621 2,281,475 10,735,381 7,859,741 2,075,585 1,213,639 (3,880,432) (3,654,011) (4,057,551) (4,900,794) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,184,195 (169,096) (1,864,811) (1,372,536) 6,677,830 2,958,947 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 15,024,134 10,399,483 3,388,817 2,340,364 8,496,128 3,243,301 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 14,226,627 $ 9,432,200 $ 3,190,874 $ 2,140,090 $ 8,069,754 $ 2,986,270 ================= ================= ================= ================= ================= ================= </TABLE> See Notes to Financial Statements Page 97 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS (CONTINUED) FOR THE PERIOD ENDED AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - NOVEMBER NOVEMBER DECEMBER DECEMBER (FNOV) (DNOV) (FDEC) (g) (DDEC) (g) ---------------- ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> <C> Dividends (d)................................... $ 366 $ (69) $ 143 $ (840) ---------------- ----------------- ----------------- ----------------- Total investment income...................... 366 (69) 143 (840) ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 1,453,239 920,664 362,481 327,494 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 1,453,239 920,664 362,481 327,494 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (1,452,873) (920,733) (362,338) (328,334) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated..................... -- -- -- -- In-kind redemptions - Affiliated............. -- -- -- -- Purchased options contracts.................. (75,172) 26,225 658,927 980,610 Written options contracts.................... (2,344,401) (6,081,606) (91,440) (449,835) In-kind redemptions - Purchased options contracts................................. 23,581,145 26,226,361 -- -- In-kind redemptions - Written options contracts................................. 5,673,088 4,336,344 -- -- ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ 26,834,660 24,507,324 567,487 530,775 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Investments - Affiliated..................... -- -- -- -- Purchased options contracts.................. 10,279,695 (4,882,295) 8,080,787 7,945,852 Written options contracts.................... (10,136,007) (9,482,076) (1,541,921) (4,783,801) ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... 143,688 (14,364,371) 6,538,866 3,162,051 ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. 26,978,348 10,142,953 7,106,353 3,692,826 ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 25,525,475 $ 9,222,220 $ 6,744,015 $ 3,364,492 ================ ================= ================= ================= </TABLE> (d) Negative dividend amount represents charges by broker on excess cash held in the account. (g) Inception date is December 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (h) Inception date is January 20, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 98 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FUND OF FUND OF BUFFER ETFS DEEP BUFFER ETFS (BUFR) (BUFD) (h) ----------------- ----------------- <S> <C> $ 2 $ -- ----------------- ----------------- 2 -- ----------------- ----------------- 250,044 90,593 ----------------- ----------------- 250,044 90,593 ----------------- ----------------- (250,042) (90,593) ----------------- ----------------- (3,528) (7,210) 8,724,457 824,444 -- -- -- -- -- -- -- -- ----------------- ----------------- 8,720,929 817,234 ----------------- ----------------- 7,988,398 2,265,770 -- -- -- -- ----------------- ----------------- 7,988,398 2,265,770 ----------------- ----------------- 16,709,327 3,083,004 ----------------- ----------------- $ 16,459,285 $ 2,992,411 ================= ================= </TABLE> See Notes to Financial Statements Page 99 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - JANUARY JANUARY FEBRUARY (FJAN) (DJAN) (FFEB) --------------- ----------------- --------------------------------- PERIOD ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/2021 (a) 8/31/2021 (a) 8/31/21 8/31/20 (b) --------------- ----------------- --------------- -------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (517,448) $ (337,187) $ (2,051,083) $ (526,567) Net realized gain (loss)........................ 221,247 3,003,904 39,681,194 (4,157,790) Net change in unrealized appreciation (depreciation)............................... 9,801,985 1,442,263 7,240,170 15,839,514 --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from operations.............................. 9,505,784 4,108,980 44,870,281 11,155,157 --------------- ----------------- --------------- -------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 133,165,845 134,581,825 373,472,561 216,560,571 Cost of shares redeemed......................... (15,860,390) (89,180,193) (370,815,309) (16,790,311) --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 117,305,455 45,401,632 2,657,252 199,770,260 --------------- ----------------- --------------- -------------- Total increase (decrease) in net assets......... 126,811,239 49,510,612 47,527,533 210,925,417 NET ASSETS: Beginning of period............................. -- -- 210,925,417 -- --------------- ----------------- --------------- -------------- End of period................................... $ 126,811,239 $ 49,510,612 $ 258,452,950 $ 210,925,417 =============== ================= =============== ============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... -- -- 6,700,002 -- Shares sold..................................... 4,300,002 4,400,002 11,200,000 7,350,002 Shares redeemed................................. (500,000) (2,850,000) (11,000,000) (650,000) --------------- ----------------- --------------- -------------- Shares outstanding, end of period............... 3,800,002 1,550,002 6,900,002 6,700,002 =============== ================= =============== ============== </TABLE> (a) Inception date is January 15, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is February 21, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (c) Inception date is March 19, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (d) Inception date is April 16, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 100 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY DEEP BUFFER ETF - BUFFER ETF- DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - FEBRUARY MARCH MARCH APRIL APRIL (DFEB) (FMAR) (DMAR) (FAPR) (DAPR) --------------------------------- --------------- ----------------- --------------- ----------------- YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED 8/31/2021 8/31/2020 (b) 8/31/2021 (c) 8/31/2021 (c) 8/31/2021 (d) 8/31/2021 (d) --------------- -------------- --------------- ----------------- --------------- ----------------- <S> <C> <C> <C> <C> <C> $ (3,281,965) $ (1,896,397) $ (248,208) $ (214,653) $ (334,180) $ (293,956) 80,777,145 (13,250,436) (11,373) 2,840,305 3,484 1,893,188 (37,234,562) 54,191,107 5,354,576 339,850 6,985,982 2,189,341 --------------- -------------- --------------- ----------------- --------------- ----------------- 40,260,618 39,044,274 5,094,995 2,965,502 6,655,286 3,788,573 --------------- -------------- --------------- ----------------- --------------- ----------------- 471,709,089 596,427,291 85,226,492 91,038,951 141,902,180 146,182,323 (763,611,447) (101,195,926) (7,712,105) (27,951,482) (13,806,156) (56,745,334) --------------- -------------- --------------- ----------------- --------------- ----------------- (291,902,358) 495,231,365 77,514,387 63,087,469 128,096,024 89,436,989 --------------- -------------- --------------- ----------------- --------------- ----------------- (251,641,740) 534,275,639 82,609,382 66,052,971 134,751,310 93,225,562 534,275,639 -- -- -- -- -- --------------- -------------- --------------- ----------------- --------------- ----------------- $ 282,633,899 $ 534,275,639 $ 82,609,382 $ 66,052,971 $ 134,751,310 $ 93,225,562 =============== ============== =============== ================= =============== ================= 17,100,002 -- -- -- -- -- 14,700,000 20,550,002 2,800,002 3,000,002 4,700,002 4,850,002 (23,650,000) (3,450,000) (250,000) (900,000) (450,000) (1,850,000) --------------- -------------- --------------- ----------------- --------------- ----------------- 8,150,002 17,100,002 2,550,002 2,100,002 4,250,002 3,000,002 =============== ============== =============== ================= =============== ================= </TABLE> See Notes to Financial Statements Page 101 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - MAY MAY (FMAY) (DMAY) ------------------------------------ --------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/21 8/31/20 (e) 8/31/21 8/31/20 (e) --------------- ----------------- --------------- -------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (603,241) $ (77,759) $ (243,030) $ (25,922) Net realized gain (loss)........................ 6,819,624 (25,003) 1,159,456 116,130 Net change in unrealized appreciation (depreciation)............................... 2,540,824 2,724,079 1,372,998 500,302 --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from operations.............................. 8,757,207 2,621,317 2,289,424 590,510 --------------- ----------------- --------------- -------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 182,819,078 39,122,756 77,943,486 15,326,498 Cost of shares redeemed......................... (118,187,369) (3,257,143) (28,116,886) (4,662,417) --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 64,631,709 35,865,613 49,826,600 10,664,081 --------------- ----------------- --------------- -------------- Total increase (decrease) in net assets......... 73,388,916 38,486,930 52,116,024 11,254,591 NET ASSETS: Beginning of period............................. 38,486,930 -- 11,254,591 -- --------------- ----------------- --------------- -------------- End of period................................... $ 111,875,846 $ 38,486,930 $ 63,370,615 $ 11,254,591 =============== ================= =============== ============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 1,150,002 -- 350,002 -- Shares sold..................................... 5,200,000 1,250,002 2,350,000 500,002 Shares redeemed................................. (3,350,000) (100,000) (850,000) (150,000) --------------- ----------------- --------------- -------------- Shares outstanding, end of period............... 3,000,002 1,150,002 1,850,002 350,002 =============== ================= =============== ============== </TABLE> (e) Inception date is May 15, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (f) Inception date is June 19, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (g) Inception date is July 17, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 102 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF- JUNE JUNE JULY (FJUN) (DJUN) (FJUL) --------------------------------- ------------------------------------ ------------------------------------ YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/2021 8/31/2020 (f) 8/31/2021 8/31/2020 (f) 8/31/2021 8/31/2020 (g) --------------- -------------- --------------- ----------------- --------------- ----------------- <S> <C> <C> <C> <C> <C> $ (535,737) $ (68,187) $ (199,732) $ (27,075) $ (351,194) $ (19,771) 8,204,605 -- 1,881,474 -- 4,419,554 -- 1,204,882 3,326,877 194,237 796,360 2,003,769 927,009 --------------- -------------- --------------- ----------------- --------------- ----------------- 8,873,750 3,258,690 1,875,979 769,285 6,072,129 907,238 --------------- -------------- --------------- ----------------- --------------- ----------------- 137,956,049 45,586,017 57,855,267 19,781,395 140,264,490 32,287,201 (82,599,741) -- (34,330,998) -- (54,808,830) -- --------------- -------------- --------------- ----------------- --------------- ----------------- 55,356,308 45,586,017 23,524,269 19,781,395 85,455,660 32,287,201 --------------- -------------- --------------- ----------------- --------------- ----------------- 64,230,058 48,844,707 25,400,248 20,550,680 91,527,789 33,194,439 48,844,707 -- 20,550,680 -- 33,194,439 -- --------------- -------------- --------------- ----------------- --------------- ----------------- $ 113,074,765 $ 48,844,707 $ 45,950,928 $ 20,550,680 $ 124,722,228 $ 33,194,439 =============== ============== =============== ================= =============== ================= 1,500,002 -- 650,002 -- 1,050,002 -- 3,900,000 1,500,002 1,750,000 650,002 4,100,000 1,050,002 (2,350,000) -- (1,050,000) -- (1,650,000) -- --------------- -------------- --------------- ----------------- --------------- ----------------- 3,050,002 1,500,002 1,350,002 650,002 3,500,002 1,050,002 =============== ============== =============== ================= =============== ================= </TABLE> See Notes to Financial Statements Page 103 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY DEEP BUFFER ETF - BUFFER ETF - JULY AUGUST (DJUL) (FAUG) ------------------------------------ --------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/21 8/31/20 (g) 8/31/21 8/31/20 (h) --------------- ----------------- --------------- -------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (172,669) $ (8,896) $ (797,507) $ (93,207) Net realized gain (loss)........................ 1,207,182 -- 13,839,939 2,863,477 Net change in unrealized appreciation (depreciation)............................... 680,378 214,752 1,184,195 380,811 --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from operations.............................. 1,714,891 205,856 14,226,627 3,151,081 --------------- ----------------- --------------- -------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 64,560,989 12,178,388 255,932,223 72,344,580 Cost of shares redeemed......................... (23,925,407) -- (150,763,677) (39,249,183) --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 40,635,582 12,178,388 105,168,546 33,095,397 --------------- ----------------- --------------- -------------- Total increase (decrease) in net assets......... 42,350,473 12,384,244 119,395,173 36,246,478 NET ASSETS: Beginning of period............................. 12,384,244 -- 36,246,478 -- --------------- ----------------- --------------- -------------- End of period................................... $ 54,734,717 $ 12,384,244 $ 155,641,651 $ 36,246,478 =============== ================= =============== ============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 400,002 -- 1,100,002 -- Shares sold..................................... 2,000,000 400,002 7,200,000 2,350,002 Shares redeemed................................. (750,000) -- (4,150,000) (1,250,000) --------------- ----------------- --------------- -------------- Shares outstanding, end of period............... 1,650,002 400,002 4,150,002 1,100,002 =============== ================= =============== ============== </TABLE> (g) Inception date is July 17, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (h) Inception date is November 6, 2019, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (i) Inception date is September 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (j) Inception date is October 16, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 104 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY U.S. EQUITY DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - AUGUST SEPTEMBER SEPTEMBER OCTOBER OCTOBER (DAUG) (FSEP) (DSEP) (FOCT) (DOCT) --------------------------------- --------------- ----------------- --------------- ----------------- YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED 8/31/2021 8/31/2020 (h) 8/31/2021 (i) 8/31/2021 (i) 8/31/2021 (j) 8/31/2021 (j) --------------- -------------- --------------- ----------------- --------------- ----------------- <S> <C> <C> <C> <C> <C> $ (967,283) $ (806,973) $ (197,943) $ (200,274) $ (426,374) $ (257,031) 10,568,579 31,520,418 5,253,628 3,712,900 1,818,298 284,354 (169,096) 1,047,078 (1,864,811) (1,372,536) 6,677,830 2,958,947 --------------- -------------- --------------- ----------------- --------------- ----------------- 9,432,200 31,760,523 3,190,874 2,140,090 8,069,754 2,986,270 --------------- -------------- --------------- ----------------- --------------- ----------------- 110,399,422 390,554,446 70,091,179 61,367,325 80,609,489 55,024,234 (162,893,118) (288,883,478) (31,937,957) (37,666,505) (18,149,832) (17,499,820) --------------- -------------- --------------- ----------------- --------------- ----------------- (52,493,696) 101,670,968 38,153,222 23,700,820 62,459,657 37,524,414 --------------- -------------- --------------- ----------------- --------------- ----------------- (43,061,496) 133,431,491 41,344,096 25,840,910 70,529,411 40,510,684 133,431,491 -- -- -- -- -- --------------- -------------- --------------- ----------------- --------------- ----------------- $ 90,369,995 $ 133,431,491 $ 41,344,096 $ 25,840,910 $ 70,529,411 $ 40,510,684 =============== ============== =============== ================= =============== ================= 4,150,002 -- -- -- -- -- 3,300,000 13,350,002 2,150,002 2,000,002 2,600,002 1,800,002 (4,850,000) (9,200,000) (950,000) (1,200,000) (550,000) (550,000) --------------- -------------- --------------- ----------------- --------------- ----------------- 2,600,002 4,150,002 1,200,002 800,002 2,050,002 1,250,002 =============== ============== =============== ================= =============== ================= </TABLE> See Notes to Financial Statements Page 105 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - NOVEMBER NOVEMBER (FNOV) (DNOV) ------------------------------------ --------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/21 8/31/20 (k) 8/31/21 8/31/20 (k) --------------- ----------------- --------------- -------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (1,452,873) $ (438,557) $ (920,733) $ (475,040) Net realized gain (loss)........................ 26,834,660 (3,456,276) 24,507,324 (4,406,583) Net change in unrealized appreciation (depreciation)............................... 143,688 12,919,591 (14,364,371) 18,223,082 --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from operations.............................. 25,525,475 9,024,758 9,222,220 13,341,459 --------------- ----------------- --------------- -------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 268,015,815 138,591,713 110,679,599 154,588,117 Cost of shares redeemed......................... (288,058,581) (9,483,517) (174,946,705) (21,917,131) --------------- ----------------- --------------- -------------- Net increase (decrease) in net assets resulting from shareholder transactions................ (20,042,766) 129,108,196 (64,267,106) 132,670,986 --------------- ----------------- --------------- -------------- Total increase (decrease) in net assets......... 5,482,709 138,132,954 (55,044,886) 146,012,445 NET ASSETS: Beginning of period............................. 138,132,954 -- 146,012,445 -- --------------- ----------------- --------------- -------------- End of period................................... $ 143,615,663 $ 138,132,954 $ 90,967,559 $ 146,012,445 =============== ================= =============== ============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 4,200,002 -- 4,550,002 -- Shares sold..................................... 7,800,000 4,550,002 3,400,000 5,300,002 Shares redeemed................................. (8,250,000) (350,000) (5,350,000) (750,000) --------------- ----------------- --------------- -------------- Shares outstanding, end of period............... 3,750,002 4,200,002 2,600,002 4,550,002 =============== ================= =============== ============== </TABLE> (k) Inception date is November 15, 2019, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (l) Inception date is December 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (m) Inception date is August 10, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (n) Inception date is January 20, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 106 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY FT CBOE VEST FT CBOE VEST BUFFER ETF - DEEP BUFFER ETF - FUND OF FUND OF DECEMBER DECEMBER BUFFER ETFS DEEP BUFFER ETFS (FDEC) (DDEC) (BUFR) (BUFD) --------------- ----------------- --------------------------------- ---------------- PERIOD ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED 8/31/2021 (l) 8/31/2021 (l) 8/31/2021 8/31/2020 (m) 8/31/2021 (n) --------------- ----------------- ------------- ---------------- ---------------- <S> <C> <C> <C> <C> $ (362,338) $ (328,334) $ (250,042) $ (398) $ (90,593) 567,487 530,775 8,720,929 -- 817,234 6,538,866 3,162,051 7,988,398 54,775 2,265,770 --------------- ----------------- ------------- ---------------- ---------------- 6,744,015 3,364,492 16,459,285 54,377 2,992,411 --------------- ----------------- ------------- ---------------- ---------------- 112,246,925 101,213,467 417,166,735 6,069,512 216,796,683 (48,047,905) (45,032,452) (137,987,462) -- (58,680,118) --------------- ----------------- ------------- ---------------- ---------------- 64,199,020 56,181,015 279,179,273 6,069,512 158,116,565 --------------- ----------------- ------------- ---------------- ---------------- 70,943,035 59,545,507 295,638,558 6,123,889 161,108,976 -- -- 6,123,889 -- -- --------------- ----------------- ------------- ---------------- ---------------- $ 70,943,035 $ 59,545,507 $ 301,762,447 $ 6,123,889 $ 161,108,976 =============== ================= ============= ================ ================ -- -- 300,002 -- -- 3,600,002 3,300,002 18,750,000 300,002 10,550,002 (1,500,000) (1,450,000) (6,100,000) -- (2,850,000) --------------- ----------------- ------------- ---------------- ---------------- 2,100,002 1,850,002 12,950,002 300,002 7,700,002 =============== ================= ============= ================ ================ </TABLE> See Notes to Financial Statements Page 107 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 30.06 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.14) Net realized and unrealized gain (loss)........................ 3.45 -------- Total from investment operations............................... 3.31 -------- Net asset value, end of period................................. $ 33.37 ======== TOTAL RETURN (b)............................................... 11.01% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $126,811 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JANUARY (DJAN) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 30.06 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.22) Net realized and unrealized gain (loss)........................ 2.10 -------- Total from investment operations............................... 1.88 -------- Net asset value, end of period................................. $ 31.94 ======== TOTAL RETURN (b)............................................... 6.25% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 49,511 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is January 15, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 108 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY (FFEB) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.48 $ 30.68 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.30) (0.08) Net realized and unrealized gain (loss)........................ 6.28 0.88 -------- -------- Total from investment operations............................... 5.98 0.80 -------- -------- Net asset value, end of period................................. $ 37.46 $ 31.48 ======== ======== TOTAL RETURN (b)............................................... 19.00% 2.61% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $258,453 $210,925 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - FEBRUARY (DFEB) YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.24 $ 30.68 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.52) (0.11) Net realized and unrealized gain (loss)........................ 3.96 0.67 -------- -------- Total from investment operations............................... 3.44 0.56 -------- -------- Net asset value, end of period................................. $ 34.68 $ 31.24 ======== ======== TOTAL RETURN (b)............................................... 11.01% 1.83% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $282,634 $534,276 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% </TABLE> (a) Inception date is February 21, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 109 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 29.60 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.10) Net realized and unrealized gain (loss)........................ 2.90 -------- Total from investment operations............................... 2.80 -------- Net asset value, end of period................................. $ 32.40 ======== TOTAL RETURN (b)............................................... 9.46% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 82,609 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MARCH (DMAR) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 29.60 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.10) Net realized and unrealized gain (loss)........................ 1.95 -------- Total from investment operations............................... 1.85 -------- Net asset value, end of period................................. $ 31.45 ======== TOTAL RETURN (b)............................................... 6.25% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 66,053 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is March 19, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 110 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 30.04 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) Net realized and unrealized gain (loss)........................ 1.75 -------- Total from investment operations............................... 1.67 -------- Net asset value, end of period................................. $ 31.71 ======== TOTAL RETURN (b)............................................... 5.56% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $134,751 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - APRIL (DAPR) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 30.04 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.10) Net realized and unrealized gain (loss)........................ 1.14 -------- Total from investment operations............................... 1.04 -------- Net asset value, end of period................................. $ 31.08 ======== TOTAL RETURN (b)............................................... 3.46% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 93,226 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is April 16, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 111 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - MAY (FMAY) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 33.47 $ 30.34 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.16) (0.07) Net realized and unrealized gain (loss)........................ 3.98 3.20 -------- -------- Total from investment operations............................... 3.82 3.13 -------- -------- Net asset value, end of period................................. $ 37.29 $ 33.47 ======== ======== TOTAL RETURN (b)............................................... 11.41% 10.32% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $111,876 $ 38,487 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MAY (DMAY) YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.16 $ 30.35 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (0.07) Net realized and unrealized gain (loss)........................ 2.17 1.88 -------- -------- Total from investment operations............................... 2.09 1.81 -------- -------- Net asset value, end of period................................. $ 34.25 $ 32.16 ======== ======== TOTAL RETURN (b)............................................... 6.50% 5.96% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 63,371 $ 11,255 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% </TABLE> (a) Inception date is May 15, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 112 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE (FJUN) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.56 $ 30.25 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.15) (0.05) Net realized and unrealized gain (loss)........................ 4.66 2.36 -------- -------- Total from investment operations............................... 4.51 2.31 -------- -------- Net asset value, end of period................................. $ 37.07 $ 32.56 ======== ======== TOTAL RETURN (b)............................................... 13.85% 7.64% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $113,075 $ 48,845 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JUNE (DJUN) YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.62 $ 30.25 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.13) (0.04) Net realized and unrealized gain (loss)........................ 2.55 1.41 -------- -------- Total from investment operations............................... 2.42 1.37 -------- -------- Net asset value, end of period................................. $ 34.04 $ 31.62 ======== ======== TOTAL RETURN (b)............................................... 7.65% 4.53% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 45,951 $ 20,551 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% </TABLE> (a) Inception date is June 19, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 113 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.61 $ 30.24 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.09) (0.02) Net realized and unrealized gain (loss)........................ 4.11 1.39 -------- -------- Total from investment operations............................... 4.02 1.37 -------- -------- Net asset value, end of period................................. $ 35.63 $ 31.61 ======== ======== TOTAL RETURN (b)............................................... 12.72% 4.53% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $124,722 $ 33,194 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JULY (DJUL) YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 30.96 $ 30.24 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.09) (0.02) Net realized and unrealized gain (loss)........................ 2.30 0.74 -------- -------- Total from investment operations............................... 2.21 0.72 -------- -------- Net asset value, end of period................................. $ 33.17 $ 30.96 ======== ======== TOTAL RETURN (b)............................................... 7.14% 2.38% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 54,735 $ 12,384 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% </TABLE> (a) Inception date is July 17, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 114 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST (FAUG) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.95 $ 30.10 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.13) (0.08) Net realized and unrealized gain (loss)........................ 4.68 2.93 -------- -------- Total from investment operations............................... 4.55 2.85 -------- -------- Net asset value, end of period................................. $ 37.50 $ 32.95 ======== ======== TOTAL RETURN (b)............................................... 13.81% 9.47% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $155,642 $ 36,246 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.83)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - AUGUST (DAUG) YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.15 $ 30.10 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.49) (0.19) Net realized and unrealized gain (loss)........................ 3.10 2.24 -------- -------- Total from investment operations............................... 2.61 2.05 -------- -------- Net asset value, end of period................................. $ 34.76 $ 32.15 ======== ======== TOTAL RETURN (b)............................................... 8.12% 6.81% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 90,370 $133,431 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% </TABLE> (a) Inception date is November 6, 2019, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 115 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - SEPTEMBER (FSEP) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 29.76 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.16) Net realized and unrealized gain (loss)........................ 4.85 -------- Total from investment operations............................... 4.69 -------- Net asset value, end of period................................. $ 34.45 ======== TOTAL RETURN (b)............................................... 15.76% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 41,344 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - SEPTEMBER (DSEP) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 29.76 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.25) Net realized and unrealized gain (loss)........................ 2.79 -------- Total from investment operations............................... 2.54 -------- Net asset value, end of period................................. $ 32.30 ======== TOTAL RETURN (b)............................................... 8.53% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 25,841 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is September 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 116 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 29.87 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.21) Net realized and unrealized gain (loss)........................ 4.74 -------- Total from investment operations............................... 4.53 -------- Net asset value, end of period................................. $ 34.40 ======== TOTAL RETURN (b)............................................... 15.17% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 70,529 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - OCTOBER (DOCT) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 29.87 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.21) Net realized and unrealized gain (loss)........................ 2.75 -------- Total from investment operations............................... 2.54 -------- Net asset value, end of period................................. $ 32.41 ======== TOTAL RETURN (b)............................................... 8.50% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 40,511 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is October 16, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 117 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER (FNOV) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.89 $ 30.56 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.40) (0.10) Net realized and unrealized gain (loss)........................ 5.81 2.43 -------- -------- Total from investment operations............................... 5.41 2.33 -------- -------- Net asset value, end of period................................. $ 38.30 $ 32.89 ======== ======== TOTAL RETURN (b)............................................... 16.45% 7.62% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $143,616 $138,133 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - NOVEMBER (DNOV) YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.09 $ 30.55 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.43) (0.10) Net realized and unrealized gain (loss)........................ 3.33 1.64 -------- -------- Total from investment operations............................... 2.90 1.54 -------- -------- Net asset value, end of period................................. $ 34.99 $ 32.09 ======== ======== TOTAL RETURN (b)............................................... 9.04% 5.04% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 90,968 $146,012 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% </TABLE> (a) Inception date is November 15, 2019, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 118 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 30.27 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.17) Net realized and unrealized gain (loss)........................ 3.68 -------- Total from investment operations............................... 3.51 -------- Net asset value, end of period................................. $ 33.78 ======== TOTAL RETURN (b)............................................... 11.60% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 70,943 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - DECEMBER (DDEC) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 30.27 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.18) Net realized and unrealized gain (loss)........................ 2.10 -------- Total from investment operations............................... 1.92 -------- Net asset value, end of period................................. $ 32.19 ======== TOTAL RETURN (b)............................................... 6.34% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 59,546 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is December 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 119 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST FUND OF BUFFER ETFS (BUFR) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/21 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 20.41 $ 20.05 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.02) -- Net realized and unrealized gain (loss)........................ 2.91 0.36 -------- -------- Total from investment operations............................... 2.89 0.36 -------- -------- Net asset value, end of period................................. $ 23.30 $ 20.41 ======== ======== TOTAL RETURN (b)............................................... 14.16% 1.80% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $301,762 $ 6,124 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (c).............. 0.20% 0.20% (d) Ratio of net investment income (loss) to average net assets.... (0.20)% (0.20)% (d) Portfolio turnover rate (e).................................... 1% 0% FT CBOE VEST FUND OF DEEP BUFFER ETFS (BUFD) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.07 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.01) Net realized and unrealized gain (loss)........................ 0.86 -------- Total from investment operations............................... 0.85 -------- Net asset value, end of period................................. $ 20.92 ======== TOTAL RETURN (b)............................................... 4.24% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $161,109 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (c).............. 0.20% (d) Ratio of net investment income (loss) to average net assets.... (0.20)% (d) Portfolio turnover rate (e).................................... 6% </TABLE> (a) Inception dates for BUFR and BUFD are August 10, 2020 and January 20, 2021, respectively, which are consistent with the respective Fund's commencement of investment operations and are the dates the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. (d) Annualized. (e) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. Page 120 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 1. ORGANIZATION First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management investment company organized as a Massachusetts business trust on February 22, 2016, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of forty-nine funds that are offering shares. This report covers the twenty-six funds (each a "Fund" and collectively, "the Funds") listed below. The shares of each Fund are listed and traded on the Cboe BZX Exchange, Inc. ("Cboe BZX"). FT Cboe Vest U.S. Equity Buffer ETF - January - (ticker "FJAN")(1) FT CboeVest U.S. Equity Deep Buffer ETF - January - (ticker "DJAN")(1) FT Cboe Vest U.S. Equity Buffer ETF - February - (ticker "FFEB") FT Cboe Vest U.S. Equity Deep Buffer ETF - February - (ticker "DFEB") FT Cboe Vest U.S. Equity Buffer ETF - March - (ticker "FMAR")(2) FT Cboe Vest U.S. Equity Deep Buffer ETF - March - (ticker "DMAR")(2) FT Cboe Vest U.S. Equity Buffer ETF - April - (ticker "FAPR")(3) FT Cboe Vest U.S. Equity Deep Buffer ETF - April - (ticker "DAPR")(3) FT Cboe Vest U.S. Equity Buffer ETF - May - (ticker "FMAY") FT Cboe Vest U.S. Equity Deep Buffer ETF - May - (ticker "DMAY") FT Cboe Vest U.S. Equity Buffer ETF - June - (ticker "FJUN") FT Cboe Vest U.S. Equity Deep Buffer ETF - June - (ticker "DJUN") FT Cboe Vest U.S. Equity Buffer ETF - July - (ticker "FJUL") FT Cboe Vest U.S. Equity Deep Buffer ETF - July - (ticker "DJUL") FT Cboe Vest U.S. Equity Buffer ETF - August - (ticker "FAUG") FT Cboe Vest U.S. Equity Deep Buffer ETF - August - (ticker "DAUG") FT Cboe Vest U.S. Equity Buffer ETF - September - (ticker "FSEP")(4) FT Cboe Vest U.S. Equity Deep Buffer ETF - September - (ticker "DSEP")(4) FT Cboe Vest U.S. Equity Buffer ETF - October - (ticker "FOCT")(5) FT Cboe Vest U.S. Equity Deep Buffer ETF - October - (ticker "DOCT")(5) FT Cboe Vest U.S. Equity Buffer ETF - November - (ticker "FNOV") FT Cboe Vest U.S. Equity Deep Buffer ETF - November - (ticker "DNOV") FT Cboe Vest U.S. Equity Buffer ETF - December - (ticker "FDEC")(6) FT Cboe Vest U.S. Equity Deep Buffer ETF - December - (ticker "DDEC")(6) FT Cboe Vest Fund of Buffer ETFs - (ticker "BUFR") FT Cboe Vest Fund of Deep Buffer ETFs - (ticker "BUFD")(7) (1) Commenced investment operations on January 15, 2021. (2) Commenced investment operations on March 19, 2021. (3) Commenced investment operations on April 16, 2021. (4) Commenced investment operations on September 18, 2020. (5) Commenced investment operations on October 16, 2020. (6) Commenced investment operations on December 18, 2020. (7) Commenced investment operations on January 20, 2021. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value ("NAV"), only in large blocks of shares known as "Creation Units." Each Fund is an actively managed exchange-traded fund. The investment objective of FJAN is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 14.50% (before fees, expenses and taxes) and 13.64% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from January 19, 2021 to January 21, 2022. The investment objective of DJAN is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 8.20% (before fees, expenses and taxes) and 7.34% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from January 19, 2021 to January 21, 2022. Page 121 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The investment objective of FFEB is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 15.85% (before fees, expenses and taxes) and 15.00% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from February 22, 2021 to February 18, 2022. Prior to February 22, 2021, the Fund's investment objective included an upside cap of 10.75% (before fees, expenses and taxes) and 9.90% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of February 24, 2020 to February 19, 2021. The investment objective of DFEB is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 8.85% (before fees, expenses and taxes) and 8.00% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from February 22, 2021 to February 18, 2022. Prior to February 22, 2021, the Fund's investment objective included an upside cap of 7.50% (before fees, expenses and taxes) and 6.65% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of February 24, 2020 to February 19, 2021. The investment objective of FMAR is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 14.20% (before fees, expenses and taxes) and 13.35% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from March 22, 2021 to March 18, 2022. The investment objective of DMAR is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 9.30% (before fees, expenses and taxes) and 8.45% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from March 22, 2021 to March 18, 2022. The investment objective of FAPR is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 12.00% (before fees, expenses and taxes) and 11.15% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from April 19, 2021 to April 14, 2022. The investment objective of DAPR is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 7.50% (before fees, expenses and taxes) and 6.65% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from April 19, 2021 to April 14, 2022. The investment objective of FMAY is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 12.50% (before fees, expenses and taxes) and 11.65% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from May 24, 2021 to May 20, 2022. Prior to May 24, 2021, the Fund's investment objective included an upside cap of 17.07% (before fees, expenses and taxes) and 16.21% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of May 18, 2020 to May 21, 2021. The investment objective of DMAY is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 7.60% (before fees, expenses and taxes) and 6.75% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from May 24, 2021 to May 20, 2022. Prior to May 24, 2021, the Fund's investment objective included an upside cap of 9.95% (before fees, expenses and taxes) and 9.09% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of May 18, 2020 to May 21, 2021. Page 122 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The investment objective of FJUN is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 11.70% (before fees, expenses and taxes) and 10.85% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from June 21, 2021 to June 17, 2022. Prior to June 21, 2021, the Fund's investment objective included an upside cap of 17.72% (before fees, expenses and taxes) and 16.87% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of June 22, 2020 to June 18, 2021. The investment objective of DJUN is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 7.06% (before fees, expenses and taxes) and 6.21% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from June 21,2021 to June 17, 2022. Prior to June 21, 2021, the Fund's investment objective included an upside cap of 10.28% (before fees, expenses and taxes) and 9.43% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of June 22, 2020 to June 18, 2021. The investment objective of FJUL is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 11.70% (before fees, expenses and taxes) and 10.85% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from July 19, 2021 to July 15, 2022. Prior to July 19, 2021, the Fund's investment objective included an upside cap of 14.95% (before fees, expenses and taxes) and 14.10% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of July 20, 2020 to July 16, 2021. The investment objective of DJUL is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 7.30% (before fees, expenses and taxes) and 6.45% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from July 19, 2021 to July 15, 2022. Prior to July 19, 2021, the Fund's investment objective included an upside cap of 8.40% (before fees, expenses and taxes) and 7.55% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of July 20, 2020 to July 16, 2021. The investment objective of FAUG is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 11.64% (before fees, expenses and taxes) and 10.79% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from August 23, 2021 to August 19, 2022. Prior to August 23, 2021, the Fund's investment objective included an upside cap of 14.71% (before fees, expenses and taxes) and 13.86% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not including the Fund's management fee) and an Outcome Period of August 24, 2020 to August 20, 2021. The investment objective of DAUG is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 7.37% (before fees, expenses and taxes) and 6.52% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from August 23, 2021 to August 19, 2022. Prior to August 23, 2021, the Fund's investment objective included an upside cap of 8.63% (before fees, expenses and taxes) and 7.78% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not including the Fund's management fee) and an Outcome Period of August 24, 2020 to August 20, 2021. The investment objective of FSEP is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 12.20% (before fees, expenses and taxes) and 11.35% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from September 20, 2021 to September 16, 2022. The investment objective of DSEP is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 7.43% (before fees, expenses and taxes) and 6.58% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from September 20, 2021 to September 16, 2022. Page 123 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The investment objective of FOCT is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 16.22% (before fees, expenses and taxes) and 15.37% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from October 19, 2020 to October 15, 2021. The investment objective of DOCT is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 9.34% (before fees, expenses and taxes) and 8.49% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from October 19, 2020 to October 15, 2021. The investment objective of FNOV is to seek to provide investors with returns (before fees, expenses and taxes) that match the price of the Underlying ETF, up to a predetermined upside cap of 13.72% (before fees, expenses and taxes) and 12.87% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from November 23, 2020 to November 19, 2021. Prior to November 23, 2020, the Fund's investment objective included an upside cap of 12.36% (before fees, expenses and taxes) and 11.50% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of November 18, 2019 to November 20, 2020. The investment objective of DNOV is to seek to provide investors with returns (before fees, expenses and taxes) that match the price of the Underlying ETF, up to a predetermined upside cap of 7.75% (before fees, expenses and taxes) and 6.90% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from November 23, 2020 to November 19, 2021. Prior to November 23, 2020, the Fund's investment objective included an upside cap of 8.12% (before fees, expenses and taxes) and 7.26% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee) and an Outcome Period of November 18, 2019 to November 20, 2020. The investment objective of FDEC is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 14.00% (before fees, expenses and taxes) and 13.15% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from December 21, 2020 to December 17, 2021. The investment objective of DDEC is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying ETF, up to a predetermined upside cap of 8.00% (before fees, expenses and taxes) and 7.15% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from December 21, 2020 to December 17, 2021. Under normal market conditions, each Fund, except BUFR and BUFD, will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. The investment objective of BUFR is to seek to provide investors with capital appreciation. BUFR seeks to achieve its investment objective by providing investors with US large cap equity market exposure while limiting downside risk through a laddered portfolio of twelve FT Cboe Vest U.S. Equity Buffer ETFs ("FT ETFs"). Under normal market conditions, BUFR will invest substantially all of its assets in the FT ETFs, which seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPDR(R) S&P 500(R) ETF Trust ("SPY"), up to a predetermined upside cap, while providing a buffer against the first 10% (before fees, expenses and taxes) of SPY losses, over a defined one-year period. The buffer is only provided by the FT ETFs. BUFR itself does not provide any buffer against losses. BUFR simply seeks to provide diversified exposure to all the FT ETFs in a single investment. In order to understand BUFR's strategy and risks, it is important to understand the strategies and risks of the FT ETFs. The investment objective of BUFD is to seek to provide investors with capital appreciation. BUFD seeks to achieve its investment objective by providing investors with US large cap equity market exposure while limiting downside risk through a laddered portfolio of twelve FT Cboe Vest U.S. Equity Deep Buffer ETFs ("FT DB ETFs"). Under normal market conditions, BUFD will invest substantially all of its assets in the FT DB ETFs, which seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the SPY, up to a predetermined upside cap, while providing a deep buffer against Page 124 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 losses between -5% and -30% (before fees, expenses and taxes) of SPY, over a defined one-year period. The buffer is only provided by the FT DB ETFs. BUFD itself does not provide any buffer against losses. BUFD simply seeks to provide diversified exposure to all the FT DB ETFs in a single investment. In order to understand BUFD's strategy and risks, it is important to understand the strategies and risks of the FT DB ETFs. 2. SIGNIFICANT ACCOUNTING POLICIES The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. PORTFOLIO VALUATION Each Fund's NAV is determined daily as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund's NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding. Each Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds' investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"), in accordance with valuation procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the 1940 Act. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund's investments are valued as follows: Exchange-traded options contracts (other than FLEX Option contracts) are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded options contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Over-the-counter options contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. FLEX Option contracts are normally valued using a model-based price provided by a third-party pricing vendor. On days when a trade in a FLEX Option contract occurs, the trade price will be used to value such FLEX Option contracts in lieu of the model price. Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the principal market for such securities. Shares of open-end funds are valued at fair value which is based on NAV per share. Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Trust's Board of Trustees or its delegate, the Advisor's Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following: 1) the type of security; 2) the size of the holding; 3) the initial cost of the security; 4) transactions in comparable securities; Page 125 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 5) price quotes from dealers and/or third-party pricing services; 6) relationships among various securities; 7) information obtained by contacting the issuer, analysts, or the appropriate stock exchange; 8) an analysis of the issuer's financial statements; and 9) the existence of merger proposals or tender offers that might affect the value of the security. The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows: o Level 1 - Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. o Level 2 - Level 2 inputs are observable inputs, either directly or indirectly, and include the following: o Quoted prices for similar investments in active markets. o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. o Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the investment. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund's investments as of August 31, 2021, is included with each Fund's Portfolio of Investments. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Negative dividend amount represents charges by broker on excess cash held in the account. C. FLEX OPTIONS 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. FLEX Options are guaranteed for settlement by the Options Clearing Corporation. Each Fund, with the exception of BUFR and BUFD, purchases and sells, call and put FLEX Options based on the performance of the Underlying ETF. The FLEX Options that each Fund holds that reference the Underlying ETF will give each Fund the right to receive or deliver shares of the Underlying ETF on the option expiration date at a strike price, depending on whether the option is a put or call option and whether each Fund purchases or sells the option. The FLEX Options held by each Fund are European style options, which are exercisable at the strike price only on the FLEX Option expiration date. All options held by each Fund at fiscal year end are FLEX Options. D. AFFILIATED TRANSACTIONS BUFR and BUFD invest in securities of affiliated funds. Each Fund's investment performance and risks are directly related to the investment performance and risks of the affiliated funds. Dividend income, if any, realized gains and losses, and change in appreciation (depreciation) from affiliated funds are presented on the Statements of Operations. Page 126 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Amounts related to these investments in BUFR at August 31, 2021 and for the fiscal year then ended are as follows: <TABLE> <CAPTION> CHANGE IN UNREALIZED REALIZED SHARES AT VALUE AT APPRECIATION GAIN VALUE AT DIVIDEND SECURITY NAME 8/31/2021 8/31/2020 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2021 INCOME ---------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 752,957 $ -- $ 25,202,788 $ (653,970) $ 576,942 $ 16,679 $ 25,142,439 $ -- FT Cboe Vest U.S. Equity Buffer ETF - February 680,850 1,537,359 54,281,517 (34,284,445) 1,042,395 2,825,687 25,402,513 -- FT Cboe Vest U.S. Equity Buffer ETF - March 779,899 -- 25,262,868 (744,612) 668,455 19,313 25,206,024 -- FT Cboe Vest U.S. Equity Buffer ETF - April 798,404 -- 25,244,152 (862,407) 826,505 26,107 25,234,357 -- FT Cboe Vest U.S. Equity Buffer ETF - May 678,065 1,516,012 53,952,234 (32,404,301) 1,012,515 1,156,237 25,232,697 -- FT Cboe Vest U.S. Equity Buffer ETF - June 680,941 -- 25,343,907 (1,034,812) 844,565 34,347 25,188,007 -- FT Cboe Vest U.S. Equity Buffer ETF - July 710,605 -- 25,118,957 (504,472) 628,018 12,399 25,254,902 -- FT Cboe Vest U.S. Equity Buffer ETF - August 671,296 1,542,042 53,775,841 (32,927,875) 632,533 2,152,469 25,175,010 -- FT Cboe Vest U.S. Equity Buffer ETF - September 721,527 -- 25,179,581 (570,849) 226,715 6,728 24,842,175 -- FT Cboe Vest U.S. Equity Buffer ETF - October 724,890 -- 25,178,773 (664,733) 397,071 10,607 24,921,718 -- FT Cboe Vest U.S. Equity Buffer ETF - November 655,012 1,528,468 54,043,532 (33,583,852) 618,562 2,446,844 25,053,554 -- FT Cboe Vest U.S. Equity Buffer ETF - December 740,753 -- 25,119,934 (650,191) 514,122 13,512 24,997,377 -- ---------------------------------------------------------------------------------------------- $6,123,881 $417,704,084 $(138,886,519) $ 7,988,398 $8,720,929 $301,650,773 $ -- ============================================================================================== </TABLE> Page 127 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Amounts related to these investments in BUFD at August 31, 2021 and for the fiscal period then ended are as follows: <TABLE> <CAPTION> CHANGE IN UNREALIZED REALIZED SHARES AT VALUE AT APPRECIATION GAIN VALUE AT DIVIDEND SECURITY NAME 8/31/2021 1/20/2021 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2021 INCOME ---------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Deep Buffer ETF - January 420,388 $ -- $ 13,438,769 $ (203,965) $ 166,235 $ 1,099 $ 13,402,138 $ -- FT Cboe Vest U.S. Equity Deep Buffer ETF - February 387,555 -- 28,355,239 (15,489,451) 243,513 311,729 13,421,030 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March 428,762 -- 13,474,296 (239,243) 215,065 2,290 13,452,408 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - April 434,206 -- 13,478,396 (287,407) 269,810 3,712 13,464,511 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - May 394,276 -- 28,006,152 (14,913,889) 280,708 92,225 13,465,196 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - June 394,415 -- 13,466,576 (315,474) 241,283 3,644 13,396,029 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - July 405,935 -- 13,393,487 (142,087) 190,083 243 13,441,726 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - August 387,204 -- 28,145,956 (15,094,472) 187,825 194,734 13,434,043 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - September 412,331 -- 13,376,043 (107,767) 82,766 236 13,351,278 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - October 413,354 -- 13,450,742 (164,197) 107,377 814 13,394,736 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - November 383,972 -- 28,229,224 (15,175,786) 134,135 205,370 13,392,943 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - December 416,711 -- 13,443,568 (169,415) 146,970 1,138 13,422,261 -- ---------------------------------------------------------------------------------------------- $ -- $220,258,448 $ (62,303,153) $ 2,265,770 $ 817,234 $161,038,299 $ -- ============================================================================================== </TABLE> E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income of each Fund, if any, are declared and paid annually, with the exception of BUFR and BUFD which declare and pay quarterly, or as the Board of Trustees may determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually. Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on significantly modified portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future. During their applicable taxable periods, none of the Funds paid a distribution in 2020 or 2021. Page 128 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 As of August 31, 2021, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Ordinary Other Appreciation Income Gain (Loss) (Depreciation) ------------- ------------- -------------- <S> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January $ (510,282) $ 249,190 $ 9,771,011 FT Cboe Vest U.S. Equity Deep Buffer ETF - January (332,171) 3,003,904 1,442,263 FT Cboe Vest U.S. Equity Buffer ETF - February (1,393,329) (14,483,838) 23,079,609 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (1,853,064) (40,256,800) 16,574,100 FT Cboe Vest U.S. Equity Buffer ETF - March (241,856) (3,795) 5,346,998 FT Cboe Vest U.S. Equity Deep Buffer ETF - March (206,381) 2,840,305 339,850 FT Cboe Vest U.S. Equity Buffer ETF - April (326,272) 22,848 6,966,618 FT Cboe Vest U.S. Equity Deep Buffer ETF - April (22,689) 1,631,130 2,188,989 FT Cboe Vest U.S. Equity Buffer ETF - May (445,329) (14,151,389) 5,260,205 FT Cboe Vest U.S. Equity Deep Buffer ETF - May (205,557) (2,693,365) 1,870,380 FT Cboe Vest U.S. Equity Buffer ETF - June (386,105) (12,013,369) 4,527,539 FT Cboe Vest U.S. Equity Deep Buffer ETF - June (131,613) (2,509,830) 981,346 FT Cboe Vest U.S. Equity Buffer ETF - July (245,863) (1,426,745) 2,930,778 FT Cboe Vest U.S. Equity Deep Buffer ETF - July (124,647) (1,958,377) 884,312 FT Cboe Vest U.S. Equity Buffer ETF - August (550,353) (15,584,393) 1,565,006 FT Cboe Vest U.S. Equity Deep Buffer ETF - August (559,990) (14,594,264) 877,982 FT Cboe Vest U.S. Equity Buffer ETF - September (187,082) 5,243,909 (1,864,811) FT Cboe Vest U.S. Equity Deep Buffer ETF - September 465,043 3,050,936 (1,372,536) FT Cboe Vest U.S. Equity Buffer ETF - October (209,041) 1,606,852 6,677,830 FT Cboe Vest U.S. Equity Deep Buffer ETF - October (226,847) 257,031 2,958,947 FT Cboe Vest U.S. Equity Buffer ETF - November (1,143,785) 1,316,454 12,904,084 FT Cboe Vest U.S. Equity Deep Buffer ETF - November (1,388,289) (5,023,607) 3,787,542 FT Cboe Vest U.S. Equity Buffer ETF - December (358,174) 1,364,513 5,741,840 FT Cboe Vest U.S. Equity Deep Buffer ETF - December (123,247) 328,334 3,162,051 FT Cboe Vest Fund of Buffer ETFs (228,991) -- 8,041,726 FT Cboe Vest Fund of Deep Buffer ETFs -- -- 2,258,567 </TABLE> F. INCOME TAXES Each Fund intends to qualify or continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund's taxable income exceeds the distributions from such taxable income for the calendar year. The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For FFEB, DFEB, FMAY, DMAY, FJUN, DJUN, FJUL, DJUL, FAUG, DAUG, FNOV, DNOV, and BUFR, the taxable years ended 2020 and 2021 remain open to federal and state audit. For FJAN, DJAN, FMAR, DMAR, FAPR, DAPR, FSEP, DSEP, FOCT, DOCT, FDEC, DDEC, and BUFD, the taxable year ended 2021 remains open to federal and state audit. As of August 31, 2021, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds' financial statements for uncertain tax positions. Page 129 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At each Fund's applicable taxable year end, for federal income tax purposes, the Funds had a capital loss carryforward available that is shown in the table below, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to the Funds' shareholders. <TABLE> <CAPTION> Non-Expiring Taxable Capital Loss Year End Carryforwards ------------------ ------------------ <S> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 31-Jan-21 $ -- FT Cboe Vest U.S. Equity Deep Buffer ETF - January 31-Jan-21 -- FT Cboe Vest U.S. Equity Buffer ETF - February 28-Feb-21 19,939,269 FT Cboe Vest U.S. Equity Deep Buffer ETF - February 28-Feb-21 43,356,380 FT Cboe Vest U.S. Equity Buffer ETF - March 31-Mar-21 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March 31-Mar-21 -- FT Cboe Vest U.S. Equity Buffer ETF - April 30-Apr-21 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - April 30-Apr-21 -- FT Cboe Vest U.S. Equity Buffer ETF - May 31-May-21 14,532,034 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 31-May-21 2,795,698 FT Cboe Vest U.S. Equity Buffer ETF - June 30-Jun-21 12,023,874 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 30-Jun-21 2,509,830 FT Cboe Vest U.S. Equity Buffer ETF - July 31-Jul-21 1,426,745 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 31-Jul-21 1,962,468 FT Cboe Vest U.S. Equity Buffer ETF - August 31-Aug-21 15,584,393 FT Cboe Vest U.S. Equity Deep Buffer ETF - August 31-Aug-21 14,594,264 FT Cboe Vest U.S. Equity Buffer ETF - September 30-Sep-20 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - September 30-Sep-20 -- FT Cboe Vest U.S. Equity Buffer ETF - October 31-Oct-20 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - October 31-Oct-20 -- FT Cboe Vest U.S. Equity Buffer ETF - November 30-Nov-20 6,618,155 FT Cboe Vest U.S. Equity Deep Buffer ETF - November 30-Nov-20 8,177,376 FT Cboe Vest U.S. Equity Buffer ETF - December 31-Dec-20 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - December 31-Dec-20 -- FT Cboe Vest Fund of Buffer ETFs 31-Aug-21 -- FT Cboe Vest Fund of Deep Buffer ETFs 31-Aug-21 -- </TABLE> Page 130 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Certain losses realized during the current taxable year may be deferred and treated as occurring on the first day of the following taxable year for federal income tax purposes. At each Fund's applicable taxable year end, the following Funds listed below incurred and elected to defer net late year ordinary or capital losses as follows: <TABLE> <CAPTION> Qualified Late Year Losses Taxable ------------------------------------------------ Year End Ordinary Losses Capital Losses -------------------- -------------------- -------------------- <S> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 31-Jan-21 $ -- $ -- FT Cboe Vest U.S. Equity Deep Buffer ETF - January 31-Jan-21 -- -- FT Cboe Vest U.S. Equity Buffer ETF - February 28-Feb-21 273,656 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - February 28-Feb-21 510,834 -- FT Cboe Vest U.S. Equity Buffer ETF - March 31-Mar-21 -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March 31-Mar-21 -- -- FT Cboe Vest U.S. Equity Buffer ETF - April 30-Apr-21 -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - April 30-Apr-21 -- -- FT Cboe Vest U.S. Equity Buffer ETF - May 31-May-21 225,273 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - May 31-May-21 76,604 -- FT Cboe Vest U.S. Equity Buffer ETF - June 30-Jun-21 233,399 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - June 30-Jun-21 70,458 -- FT Cboe Vest U.S. Equity Buffer ETF - July 31-Jul-21 167,281 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - July 31-Jul-21 87,476 -- FT Cboe Vest U.S. Equity Buffer ETF - August 31-Aug-21 550,353 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - August 31-Aug-21 559,990 -- FT Cboe Vest U.S. Equity Buffer ETF - September 30-Sep-20 -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - September 30-Sep-20 -- -- FT Cboe Vest U.S. Equity Buffer ETF - October 31-Oct-20 -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - October 31-Oct-20 -- -- FT Cboe Vest U.S. Equity Buffer ETF - November 30-Nov-20 700,626 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - November 30-Nov-20 753,193 -- FT Cboe Vest U.S. Equity Buffer ETF - December 31-Dec-20 -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - December 31-Dec-20 -- -- FT Cboe Vest Fund of Buffer ETFs 31-Aug-21 228,991 -- FT Cboe Vest Fund of Deep Buffer ETFs 31-Aug-21 -- -- </TABLE> Page 131 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For each Fund's applicable taxable period the adjustments were as follows: <TABLE> <CAPTION> Accumulated Accumulated Net Realized Taxable Net Investment Gain (Loss) Paid-In Year End Income (Loss) on Investments Capital -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 31-Jan-21 $ 7,166 $ (3,031) $ (4,135) FT Cboe Vest U.S. Equity Deep Buffer ETF - January 31-Jan-21 5,016 -- (5,016) FT Cboe Vest U.S. Equity Buffer ETF - February 28-Feb-21 1,177,236 (50,007,317) 48,830,081 FT Cboe Vest U.S. Equity Deep Buffer ETF - February 28-Feb-21 3,318,559 (108,165,954) 104,847,395 FT Cboe Vest U.S. Equity Buffer ETF - March 31-Mar-21 6,352 -- (6,352) FT Cboe Vest U.S. Equity Deep Buffer ETF - March 31-Mar-21 8,272 -- (8,272) FT Cboe Vest U.S. Equity Buffer ETF - April 30-Apr-21 7,908 -- (7,908) FT Cboe Vest U.S. Equity Deep Buffer ETF - April 30-Apr-21 8,857 -- (8,857) FT Cboe Vest U.S. Equity Buffer ETF - May 31-May-21 229,999 (20,950,708) 20,720,709 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 31-May-21 59,605 (3,971,871) 3,912,266 FT Cboe Vest U.S. Equity Buffer ETF - June 30-Jun-21 214,735 (20,222,194) 20,007,459 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 30-Jun-21 94,245 (4,400,555) 4,306,310 FT Cboe Vest U.S. Equity Buffer ETF - July 31-Jul-21 122,173 (5,846,299) 5,724,126 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 31-Jul-21 55,512 (3,176,377) 3,120,865 FT Cboe Vest U.S. Equity Buffer ETF - August 31-Aug-21 332,987 (28,605,953) 28,272,966 FT Cboe Vest U.S. Equity Deep Buffer ETF - August 31-Aug-21 1,210,417 (13,347,580) 12,137,163 FT Cboe Vest U.S. Equity Buffer ETF - September 30-Sep-20 1,142 -- (1,142) FT Cboe Vest U.S. Equity Deep Buffer ETF - September 30-Sep-20 3,353 -- (3,353) FT Cboe Vest U.S. Equity Buffer ETF - October 31-Oct-20 5,887 -- (5,887) FT Cboe Vest U.S. Equity Deep Buffer ETF - October 31-Oct-20 2,861 -- (2,861) FT Cboe Vest U.S. Equity Buffer ETF - November 30-Nov-20 13,632 (21,488,679) 21,475,047 FT Cboe Vest U.S. Equity Deep Buffer ETF - November 30-Nov-20 6,559 (25,195,517) 25,188,958 FT Cboe Vest U.S. Equity Buffer ETF - December 31-Dec-20 4,164 -- (4,164) FT Cboe Vest U.S. Equity Deep Buffer ETF - December 31-Dec-20 2,646 -- (2,646) FT Cboe Vest Fund of Buffer ETFs 31-Aug-21 21,051 (8,722,376) 8,701,325 FT Cboe Vest Fund of Deep Buffer ETFs 31-Aug-21 90,593 (824,437) 733,844 </TABLE> G. EXPENSES Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3). 3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the ongoing monitoring of the securities in each Fund's portfolio, managing the Funds' business affairs and providing certain administrative services necessary for the management of the Funds. First Trust is paid an annual unitary management fee of 0.85% of each Fund's average daily net assets with the exception of BUFR and BUFD which each pay an annual unitary management fee of 0.20%. In addition, BUFR and BUFD incur pro rata share of fees and expenses attributable to investments in other investment companies ("acquired fund fees and expenses"). The total of the unitary management fee and acquired fund fees and expenses represents each Fund's total annual operating expenses. First Trust is responsible for each Fund's expenses, including the cost of transfer agency, sub-advisory, custody, fund administration, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. Page 132 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Cboe Vest Financial LLC ("Cboe Vest"), an affiliate of First Trust, serves as the Funds' sub-advisor and manages each Fund's portfolio subject to First Trust's supervision. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Funds, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of the Funds (other than BUFR and BUFD), the Advisor and Cboe Vest, First Trust will supervise Cboe Vest and its management of the investment of each Fund's assets and will pay Cboe Vest for its services as the Funds' sub-advisor a sub-advisory fee equal to 50% of any remaining monthly unitary management fee paid to the Advisor after the average Fund's expenses accrued during the most recent twelve months (or shorter period during the first eleven months of the Investment Sub-Advisory Agreement) are subtracted from the unitary management fee for that month. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Funds, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of BUFR and BUFD, the Advisor and Cboe Vest, First Trust will supervise Cboe Vest and its management of the investment of each Fund's assets and will pay Cboe Vest for its services as the Funds' sub-advisor a sub-advisory fee equal to 50% of the monthly unitary management fee paid to the Advisor, less Cboe Vest's 50% share of each of BUFR and BUFD's expenses for that month. The Trust has multiple service agreements with The Bank of New York Mellon ("BNYM"). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund's assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund's securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company. Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or is an index fund. Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. 4. PURCHASES AND SALES OF SECURITIES For the fiscal period ended August 31, 2021, the Funds, except BUFR and BUFD, had no purchases or sales of investments, excluding short-term investments and in-kind transactions. Each Fund, except BUFR and BUFD, holds options for a target outcome period of approximately one year based on the expiration date of the options, which occurs on the third Friday of the month corresponding to the month in each Fund name. For securities transactions purposes, the options are considered short-term investments. For the fiscal period ended August 31, 2021, the cost of purchases and proceeds from sales of investments for BUFR and BUFD, excluding short-term investments and in-kind transactions, were as follows: <TABLE> <CAPTION> Purchases Sales -------------- -------------- <S> <C> <C> FT Cboe Vest Fund of Buffer ETFs $ 130,199,042 $ 1,126,376 FT Cboe Vest Fund of Deep Buffer ETFs 60,035,480 3,920,305 </TABLE> Page 133 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 For the fiscal period ended August 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows: <TABLE> <CAPTION> Purchases Sales -------------- -------------- <S> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January $ 81,585,134 $ -- FT Cboe Vest U.S. Equity Deep Buffer ETF - January 39,247,155 26,295,600 FT Cboe Vest U.S. Equity Buffer ETF - February 57,537,488 223,740,290 FT Cboe Vest U.S. Equity Deep Buffer ETF - February 27,250,626 416,933,545 FT Cboe Vest U.S. Equity Buffer ETF - March 30,661,284 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March 19,596,228 24,690,028 FT Cboe Vest U.S. Equity Buffer ETF - April 61,332,111 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - April 43,235,322 18,270,052 FT Cboe Vest U.S. Equity Buffer ETF - May 47,362,282 84,756,725 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 16,525,474 21,326,436 FT Cboe Vest U.S. Equity Buffer ETF - June 45,466,336 66,902,243 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 26,243,069 25,980,592 FT Cboe Vest U.S. Equity Buffer ETF - July 71,836,443 28,593,759 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 33,801,360 15,853,545 FT Cboe Vest U.S. Equity Buffer ETF - August 75,699,819 102,994,952 FT Cboe Vest U.S. Equity Deep Buffer ETF - August 29,647,179 67,688,916 FT Cboe Vest U.S. Equity Buffer ETF - September 33,629,692 23,498,010 FT Cboe Vest U.S. Equity Deep Buffer ETF - September 33,077,451 17,276,638 FT Cboe Vest U.S. Equity Buffer ETF - October 37,912,660 3,386,313 FT Cboe Vest U.S. Equity Deep Buffer ETF - October 15,234,480 -- FT Cboe Vest U.S. Equity Buffer ETF - November 48,470,952 187,020,685 FT Cboe Vest U.S. Equity Deep Buffer ETF - November 6,593,116 111,746,343 FT Cboe Vest U.S. Equity Buffer ETF - December 54,657,602 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - December 24,557,971 -- FT Cboe Vest Fund of Buffer ETFs 287,505,042 137,760,143 FT Cboe Vest Fund of Deep Buffer ETFs 160,222,968 58,382,848 </TABLE> 5. DERIVATIVE TRANSACTIONS The following table presents the types of derivatives held by each Fund at August 31, 2021, the primary underlying risk exposure and the location of these instruments as presented on the Statements of Assets and Liabilities. <TABLE> <CAPTION> ASSET DERIVATIVES LIABILITY DERIVATIVES ----------------------------------------- ----------------------------------------- DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE ------------------ ------------------ -------------------------- ------------ -------------------------- ------------ <S> <C> <C> <C> <C> <C> FJAN Options contracts Options contracts Options Equity Risk purchased, at value $136,708,800 written, at value $ 10,551,840 DJAN Options contracts Options contracts Options Equity Risk purchased, at value 55,858,338 written, at value 6,607,590 FFEB Options contracts Options contracts Options Equity Risk purchased, at value 271,488,091 written, at value 14,562,335 DFEB Options contracts Options contracts Options Equity Risk purchased, at value 308,370,108 written, at value 27,471,816 </TABLE> Page 134 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 <TABLE> <CAPTION> ASSET DERIVATIVES LIABILITY DERIVATIVES ----------------------------------------- ----------------------------------------- DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE ------------------ ------------------ -------------------------- ------------ -------------------------- ------------ <S> <C> <C> <C> <C> <C> FMAR Options contracts Options contracts Options Equity Risk purchased, at value $ 88,141,177 written, at value $ 6,089,149 DMAR Options contracts Options contracts Options Equity Risk purchased, at value 72,234,454 written, at value 6,626,122 FAPR Options contracts Options contracts Options Equity Risk purchased, at value 140,977,522 written, at value 7,245,756 DAPR Options contracts Options contracts Options Equity Risk purchased, at value 98,664,033 written, at value 6,142,865 FMAY Options contracts Options contracts Options Equity Risk purchased, at value 118,011,915 written, at value 7,049,903 DMAY Options contracts Options contracts Options Equity Risk purchased, at value 67,701,532 written, at value 4,853,951 FJUN Options contracts Options contracts Options Equity Risk purchased, at value 120,370,538 written, at value 8,285,215 DJUN Options contracts Options contracts Options Equity Risk purchased, at value 49,413,062 written, at value 3,854,759 FJUL Options contracts Options contracts Options Equity Risk purchased, at value 131,477,670 written, at value 7,964,698 DJUL Options contracts Options contracts Options Equity Risk purchased, at value 57,680,536 written, at value 3,481,621 FAUG Options contracts Options contracts Options Equity Risk purchased, at value 163,89,374 written, at value 9,924,809 DAUG Options contracts Options contracts Options Equity Risk purchased, at value 94,409,427 written, at value 4,963,665 FSEP Options contracts Options contracts Options Equity Risk purchased, at value 48,233,598 written, at value 7,013,202 DSEP Options contracts Options contracts Options Equity Risk purchased, at value 32,155,115 written, at value 6,391,253 </TABLE> Page 135 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 <TABLE> <CAPTION> ASSET DERIVATIVES LIABILITY DERIVATIVES ----------------------------------------- ----------------------------------------- DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE ------------------ ------------------ -------------------------- ------------ -------------------------- ------------ <S> <C> <C> <C> <C> <C> FOCT Options contracts Options contracts Options Equity Risk purchased, at value $ 78,965,041 written, at value $ 8,684,219 DOCT Options contracts Options contracts Options Equity Risk purchased, at value 48,135,631 written, at value 7,764,548 FNOV Options contracts Options contracts Options Equity Risk purchased, at value 61,685,299 written, at value 18,673,555 DNOV Options contracts Options contracts Options Equity Risk purchased, at value 07,650,008 written, at value 17,071,714 FDEC Options contracts Options contracts Options Equity Risk purchased, at value 77,228,616 written, at value 6,610,594 DDEC Options contracts Options contracts Options Equity Risk purchased, at value 67,790,179 written, at value 8,522,506 </TABLE> The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal period ended August 31, 2021, on each Fund's derivative instruments, as well as the primary underlying risk exposure associated with the instruments. <TABLE> <CAPTION> EQUITY RISK ----------------------------------------------------------------------------- STATEMENTS OF OPERATIONS LOCATION FJAN DJAN FFEB DFEB FMAR DMAR ------------------------------------- ----------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> Net realized gain (loss) on: Purchased options contracts $ 119,420 $ 3,788,715 $36,502,369 $ 91,680,423 $ (6,025) $ 2,704,418 Written options contracts 101,827 (784,811) 3,178,825 (10,903,278) (5,348) 135,887 Net change in unrealized appreciation (depreciation) on: Purchased options contracts 11,542,279 4,736,422 5,787,852 (35,768,308) 6,508,169 3,798,542 Written options contracts (1,740,294) (3,294,159) 1,452,318 (1,466,254) (1,153,593) (3,458,692) </TABLE> <TABLE> <CAPTION> EQUITY RISK ----------------------------------------------------------------------------- STATEMENTS OF OPERATIONS LOCATION FAPR DAPR FMAY DMAY FJUN DJUN ------------------------------------- ----------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> Net realized gain (loss) on: Purchased options contracts $ 20,166 $ 2,055,767 $15,265,373 $ 5,377,127 $11,711,311 $ 4,810,973 Written options contracts (16,682) (162,579) (8,445,749) (4,217,671) (3,506,706) (2,929,499) Net change in unrealized appreciation (depreciation) on: Purchased options contracts 6,554,482 4,526,921 1,051,073 2,228,178 1,892,918 634,386 Written options contracts 431,500 (2,337,580) 1,489,751 (855,180) (688,036) (440,149) </TABLE> Page 136 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 <TABLE> <CAPTION> EQUITY RISK ----------------------------------------------------------------------------- STATEMENTS OF OPERATIONS LOCATION FJUL DJUL FAUG DAUG FSEP DSEP ------------------------------------- ----------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> Net realized gain (loss) on: Purchased options contracts $ 7,771,111 $ 4,004,211 $20,106,991 $ 25,548,807 $ 4,700,856 $ 4,414,030 Written options contracts (3,351,557) (2,797,029) (6,267,052) (14,980,228) 552,772 (701,130) Net change in unrealized appreciation (depreciation) on: Purchased options contracts 1,613,933 1,053,464 (891,390) (1,382,735) 2,015,621 2,281,475 Written options contracts 389,836 (373,086) 2,075,585 1,213,639 (3,880,432) (3,654,011) </TABLE> <TABLE> <CAPTION> EQUITY RISK ----------------------------------------------------------------------------- STATEMENTS OF OPERATIONS LOCATION FOCT DOCT FNOV DNOV FDEC DDEC ------------------------------------- ----------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> Net realized gain (loss) on: Purchased options contracts $ 1,747,009 $ 686,298 $23,505,973 $ 26,252,586 $ 658,927 $ 980,610 Written options contracts 71,289 (401,944) 3,328,687 (1,745,262) (91,440) (449,835) Net change in unrealized appreciation (depreciation) on: Purchased options contracts 10,735,381 7,859,741 10,279,695 (4,882,295) 8,080,787 7,945,852 Written options contracts (4,057,551) (4,900,794) (10,136,007) (9,482,076) (1,541,921) (4,783,801) </TABLE> The Funds do not have the right to offset financial assets and financial liabilities related to options contracts on the Statements of Assets and Liabilities. The following table presents the premiums for purchased options contracts opened, premiums for purchased options contracts closed, exercised and expired, premiums for written options contracts opened, and premiums for written options contracts closed, exercised and expired, for the fiscal period ended August 31, 2021, on each Fund's options contracts. <TABLE> <CAPTION> PREMIUMS FOR PREMIUMS FOR PREMIUMS FOR PURCHASED WRITTEN OPTIONS PURCHASED OPTIONS CONTRACTS PREMIUMS FOR CONTRACTS CLOSED, OPTIONS CONTRACTS CLOSED, EXERCISED WRITTEN OPTIONS EXERCISED AND OPENED AND EXPIRED CONTRACTS OPENED EXPIRED ---------------------------------------------------------------------------- <S> <C> <C> <C> <C> FJAN $ 141,854,127 $ 16,687,606 $ 9,995,593 $ 1,184,047 DJAN 143,489,847 92,367,931 10,222,589 6,909,158 FFEB 568,457,036 525,431,297 31,973,303 29,248,234 DFEB 833,851,845 1,053,387,657 46,358,660 53,472,941 FMAR 88,119,879 6,486,871 5,306,580 371,024 DMAR 95,617,262 27,181,350 5,467,761 2,300,331 FAPR 148,774,799 14,351,759 8,357,853 680,597 DAPR 151,153,841 57,016,729 6,480,850 2,675,565 FMAY 285,828,590 212,383,575 32,088,790 28,916,244 DMAY 121,307,869 68,998,245 12,837,985 10,845,622 FJUN 223,172,948 157,635,397 21,158,783 18,141,970 DJUN 85,103,836 59,045,982 7,957,384 6,909,834 FJUL 199,648,676 105,824,396 14,445,602 9,294,289 DJUL 96,312,521 53,251,927 7,993,239 6,196,316 FAUG 392,645,172 266,794,276 34,122,379 25,227,069 DAUG 200,312,420 246,607,616 17,582,031 21,549,925 FSEP 76,662,415 30,444,438 7,092,870 3,960,100 DSEP 67,147,213 37,273,573 6,337,378 3,600,136 FOCT 85,946,500 17,716,840 6,139,267 1,512,599 DOCT 59,183,467 18,907,577 4,665,137 1,801,383 FNOV 364,332,440 357,657,744 18,901,313 17,640,853 DNOV 225,952,227 269,597,501 12,023,950 15,209,083 FDEC 119,430,676 50,282,847 8,277,631 3,208,958 DDEC 107,097,443 47,253,116 6,898,596 3,159,891 </TABLE> Page 137 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 6. CREATIONS, REDEMPTIONS AND TRANSACTION FEES Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as "Authorized Participants" have contractual arrangements with a Fund or one of the Fund's service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as "Creation Units." Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation ("NSCC") the "basket" of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund's shares. An Authorized Participant that wishes to effectuate a creation of a Fund's shares deposits with the Fund the "basket" of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund's shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund's shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund's shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund's shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund's shares at or close to the NAV per share of the Fund. Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket. Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed. 7. DISTRIBUTION PLAN The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services. No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before December 31, 2022 for FFEB, DFEB, FMAY, DMAY, FJUN, DJUN, FJUL, DJUL, FAUG, DAUG, FSEP, DSEP, FOCT, DOCT, FNOV, DNOV, FDEC, DDEC, and BUFR, January 10, 2023 for FJAN and DJAN, January 15, 2023 for BUFD, March 8, 2023 for FMAR and DMAR, and April 15, 2023 for DAPR and FAPR. 8. INDEMNIFICATION The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Page 138 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 9. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were the following subsequent events: On September 20, 2021, FT Cboe Vest International Equity Buffer ETF - September and FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, each an additional series of the Trust, began trading under the symbols "YSEP" and "QSPT," respectively, on Cboe BZX. On September 21, 2021, First Trust SkyBridge Crypto Industry and Digital Economy ETF, an additional series of the Trust, began trading under the symbol "CRPT" on NYSE Arca, Inc. On October 14, 2021, First Trust Multi-Manager Small Cap Opportunities ETF, an additional series of the Trust, began trading under the symbol "MMSC" on NYSE Arca, Inc. Page 139 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED FUND VIII: OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS We have audited the accompanying statements of assets and liabilities of FT Cboe Vest U.S. Equity Buffer ETF - January, FT Cboe Vest U.S. Equity Deep Buffer ETF - January, FT Cboe Vest U.S. Equity Buffer ETF - February, FT Cboe Vest U.S. Equity Deep Buffer ETF - February, FT Cboe Vest U.S. Equity Buffer ETF - March, FT Cboe Vest U.S. Equity Deep Buffer ETF - March, FT Cboe Vest U.S. Equity Buffer ETF - April, FT Cboe Vest U.S. Equity Deep Buffer ETF - April, FT Cboe Vest U.S. Equity Buffer ETF - May, FT Cboe Vest U.S. Equity Deep Buffer ETF - May, FT Cboe Vest U.S. Equity Buffer ETF - June, FT Cboe Vest U.S. Equity Deep Buffer ETF - June, FT Cboe Vest U.S. Equity Buffer ETF - July, FT Cboe Vest U.S. Equity Deep Buffer ETF - July, FT Cboe Vest U.S. Equity Buffer ETF - August, FT Cboe Vest U.S. Equity Deep Buffer ETF - August, FT Cboe Vest U.S. Equity Buffer ETF - September, FT Cboe Vest U.S. Equity Deep Buffer ETF - September, FT Cboe Vest U.S. Equity Buffer ETF - October, FT Cboe Vest U.S. Equity Deep Buffer ETF - October, FT Cboe Vest U.S. Equity Buffer ETF - November, FT Cboe Vest U.S. Equity Deep Buffer ETF - November, FT Cboe Vest U.S. Equity Buffer ETF - December, FT Cboe Vest U.S. Equity Deep Buffer ETF - December, FT Cboe Vest Fund of Buffer ETFs, and FT Cboe Vest Fund of Deep Buffer ETFs (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2021, and the related statements of operations, the changes in net assets, and the financial highlights for the periods indicated in the table below, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of August 31, 2021, and the results of their operations, the changes in their net assets, and the financial highlights for the periods listed in the table below, in conformity with accounting principles generally accepted in the United States of America. <TABLE> <CAPTION> INDIVIDUAL FUNDS STATEMENTS OF STATEMENTS OF FINANCIAL INCLUDED IN THE TRUST OPERATIONS CHANGES IN NET ASSETS HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer For the period from January 15, 2021 (commencement of operations) ETF - January through August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - January FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2021, and for the period from ETF - February August 31, 2021 February 21, 2020 (commencement of operations) through August 31, 2020 FT Cboe Vest U.S. Equity Deep Buffer ETF - February FT Cboe Vest U.S. Equity Buffer For the period from March 19, 2021 (commencement of operations) ETF - March through August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - March FT Cboe Vest U.S. Equity Buffer For the period from April 16, 2021 (commencement of operations) ETF - April through August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - April FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2021, and for the period from ETF - May August 31, 2021 May 15, 2020 (commencement of operations) through August 31, 2020 FT Cboe Vest U.S. Equity Deep Buffer ETF - May FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2021, and for the period from ETF - June August 31, 2021 June 19, 2020 (commencement of operations) through August 31, 2020 FT Cboe Vest U.S. Equity Deep Buffer ETF - June FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2021, and for the period from ETF - July August 31, 2021 July 17, 2020 (commencement of operations) through August 31, 2020 FT Cboe Vest U.S. Equity Deep Buffer ETF - July </TABLE> Page 140 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED) -------------------------------------------------------------------------------- <TABLE> <CAPTION> INDIVIDUAL FUNDS STATEMENTS OF STATEMENTS OF FINANCIAL INCLUDED IN THE TRUST OPERATIONS CHANGES IN NET ASSETS HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2021, and for the period from ETF - August August 31, 2021 November 6, 2019 (commencement of operations) through August 31, 2020 FT Cboe Vest U.S. Equity Deep Buffer ETF - August FT Cboe Vest U.S. Equity Buffer For the period from September 18, 2020 (commencement of operations) through ETF - September August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - September FT Cboe Vest U.S. Equity Buffer For the period from October 16, 2020 (commencement of operations) through ETF - October August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - October FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2021, and for the period from ETF - November August 31, 2021 November 15, 2019 (commencement of operations) through August 31, 2020 FT Cboe Vest U.S. Equity Deep Buffer ETF - November FT Cboe Vest U.S. Equity Buffer For the period from December 18, 2020 (commencement of operations) through ETF - December August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - December FT Cboe Vest Fund of Buffer For the year ended For the year ended August 31, 2021, and for the period from ETFs August 31, 2021 August 10, 2020 (commencement of operations) through August 31, 2020 FT Cboe Vest Fund of Deep Buffer For the period from January 20, 2021 (commencement of operations) through ETFs August 31, 2021 </TABLE> BASIS FOR OPINION These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits Page 141 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED) -------------------------------------------------------------------------------- also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 25, 2021 We have served as the auditor of one or more First Trust investment companies since 2001. Page 142 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov. PORTFOLIO HOLDINGS Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC's website at www.sec.gov. Each Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above. FEDERAL TAX INFORMATION There were no distributions made by each Fund during their applicable taxable period; therefore, no analysis for the corporate dividends received deduction and qualified dividend income were completed. RISK CONSIDERATIONS RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND. CONCENTRATION RISK. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund's investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund's corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified. CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments. CYBER SECURITY RISK. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund's third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches. DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor's investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund's share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless. Page 143 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) DERIVATIVES RISK. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund. EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the value of the fund's shares will fluctuate with changes in the value of the 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 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 capital rises and borrowing costs increase. 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. ETF RISK. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange 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). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF's shares, or decisions by an ETF's authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF's shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads. FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund's fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities. INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund's net asset value could be negatively impacted and the fund's market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund's shares. INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund's costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders. INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund's investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests. LIBOR RISK. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund. Page 144 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) MANAGEMENT RISK. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund's investment portfolio, the fund's portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective. MARKET RISK. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. 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; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries. OPERATIONAL RISK. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund's ability to meet its investment objective. Although the funds and the funds' investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets. DISCLAIMER The funds are not sponsored, endorsed, sold or promoted by SPDR(R) S&P 500(R) ETF Trust, PDR, or Standard & Poor's(R) (together with their affiliates hereinafter referred to as the "Corporations"). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the funds or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by the funds or the FLEX Options, shareholders or any other person or entity from use of the SPDR(R) S&P 500(R) ETF Trust. The Corporations have no liability in connection with the management, administration, marketing or trading of the funds or the FLEX Options. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT AND INVESTMENT SUB-ADVISORY AGREEMENT FOR FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MARCH FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - APRIL Independent Trustees, unanimously approved the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor") on behalf of the following four series of the Trust (each a "Fund" and collectively, the "Funds"): Page 145 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) FT Cboe Vest U.S. Equity Buffer ETF - March (FMAR) FT Cboe Vest U.S. Equity Deep Buffer ETF - March (DMAR) FT Cboe Vest U.S. Equity Buffer ETF - April (FAPR) FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR) The Board approved the Agreements for each Fund for an initial two-year term at a meeting held on June 8, 2020. The Board determined for each Fund that the Agreements are in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its reasonable business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreements for each Fund, the Independent Trustees received a separate report from each of the Advisor and the Sub-Advisor in advance of the Board meeting responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor and the Sub-Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the proposed sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the estimated expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to each Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates, First Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC ("FTCP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor and the Sub-Advisor. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor are reasonable business arrangements from each Fund's perspective. In evaluating whether to approve the Agreements for each Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor will be responsible for the overall management and administration of each Fund and reviewed all of the services to be provided by the Advisor to the Funds, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board considered that each Fund will be an actively-managed ETF and will employ an advisor/sub-advisor management structure and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor will oversee the Sub-Advisor's day-to-day management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board noted that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. With respect to the Sub-Advisory Agreement, in addition to the written materials provided by the Sub-Advisor, at the June 8, 2020 meeting, the Board also received a presentation from representatives of the Sub-Advisor discussing the services that the Sub-Advisor will provide to the Funds, and the Trustees were able to ask questions about the proposed investment strategy for the Funds. The Board noted the background and experience of the Sub-Advisor's portfolio management team and the Sub-Advisor's investment style. The Board also noted that the Sub-Advisor manages eight other defined-outcome ETFs with strategies similar to those of the Funds in the First Trust Fund Complex. Because the Funds had yet to commence investment operations, the Board could not consider the historical investment performance of the Funds. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to each Fund by the Advisor and the Sub-Advisor under the Agreements are expected to be satisfactory. The Board considered the proposed unitary fee rate payable by each Fund under the Advisory Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, each Fund would pay the Advisor a unitary fee equal to an annual rate of 0.85% of its average daily net assets. The Board considered that, from the unitary fee for each Fund, the Advisor would pay the Sub-Advisor a sub-advisory fee equal to 50% of the Fund's unitary fee remaining after the Fund's expenses are paid. The Board noted that the Advisor would be responsible for each Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory or unitary fee Page 146 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETF) and non-fund clients, as applicable. Because each Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for each Fund was above the median total (net) expense ratio of the peer funds in its Expense Group. With respect to the Expense Groups, the Board discussed with representatives of the Advisor how the Expense Groups were assembled and how each Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other clients, the Board considered that the Funds are part of the FT Cboe Vest U.S. Equity Target Outcome ETF product line in the First Trust Fund Complex and noted that eight ETFs in the product line, identical to the Funds except with respect to the target outcome periods, had been launched since November 2019, each of which also pays a unitary fee equal to an annual rate of 0.85% of its average daily net assets and is sub-advised by the Sub-Advisor. In light of the information considered and the nature, extent and quality of the services expected to be provided to each Fund under the Agreements, the Board determined that, for each Fund, the proposed unitary fee, including the sub-advisory fee to be paid by the Advisor to the Sub-Advisor from the unitary fee, was fair and reasonable. The Board noted that the proposed unitary fee for each Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor and the Sub-Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for each Fund under the Advisory Agreement. The Board considered the Advisor's estimate of the asset level for each Fund at which the Advisor expects the Advisory Agreement for the Fund to be profitable to the Advisor and the Advisor's estimate of the profitability of the Advisory Agreement for each Fund if its assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for each Fund was not unreasonable. The Board reviewed financial information provided by the Sub-Advisor, but did not review any potential profitability of the Sub-Advisory Agreement for each Fund to the Sub-Advisor. The Board considered that the Sub-Advisor would be paid by the Advisor from each Fund's unitary fee and its understanding that the sub-advisory fee rate for each Fund was the product of an arm's length negotiation. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Funds. The Board noted that FTCP has a controlling ownership interest in the Sub-Advisor's parent company and considered potential fall-out benefits to the Advisor from such ownership interest. The Board also considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP. The Board also considered the potential fall-out benefits to the Sub-Advisor from FTCP's controlling ownership interest in the Sub-Advisor's parent company. The Board noted the Sub-Advisor's statements that it does not foresee any fall-out benefits from its relationship with the Funds and that, as a policy, it does not enter into soft-dollar arrangements for the procurement of research services in connection with client securities transactions. The Board concluded that the character and amount of potential fall-out benefits to the Advisor and the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements are fair and reasonable and that the approval of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board's analysis. BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT AND INVESTMENT SUB-ADVISORY AGREEMENT FOR FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - AUGUST FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - NOVEMBER FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - FEBRUARY FT CBOE VEST U.S. EQUITY BUFFER ETF - MAY FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MAY FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JUNE The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor") on behalf of the following ten series of the Trust (each a "Fund" and collectively, the "Funds"): Page 147 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) FT Cboe Vest U.S. Equity Buffer ETF - August (FAUG) FT Cboe Vest U.S. Equity Deep Buffer ETF - August (DAUG) FT Cboe Vest U.S. Equity Buffer ETF - November (FNOV) FT Cboe Vest U.S. Equity Deep Buffer ETF - November (DNOV) FT Cboe Vest U.S. Equity Buffer ETF - February (FFEB) FT Cboe Vest U.S. Equity Deep Buffer ETF - February (DFEB) FT Cboe Vest U.S. Equity Buffer ETF - May (FMAY) FT Cboe Vest U.S. Equity Deep Buffer ETF - May (DMAY) FT Cboe Vest U.S. Equity Buffer ETF - June (FJUN) FT Cboe Vest U.S. Equity Deep Buffer ETF - June (DJUN) The Board approved the continuation of the Agreements for each Fund for a one-year period ending June 30, 2022 at a meeting held on June 6-7, 2021. The Board determined for each Fund that the continuation of the Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 26, 2021 and June 6-7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and the Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor and the Sub-Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for each Fund, including, for each of FAUG, DAUG, FNOV and DNOV, comparisons of each Fund's performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the "Performance Universe"), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates, First Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC ("FTCP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6-7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor continue to be reasonable business arrangements from each Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor and the Sub-Advisor manage the Fund and knowing the Fund's unitary fee. In reviewing the Agreements for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board noted that the Advisor oversees the Sub-Advisor's day-to-day management of each Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreement, the Page 148 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) Board noted that each Fund is an actively-managed ETF and the Sub-Advisor actively manages the Fund's investments. In addition to the written materials provided by the Sub-Advisor, at the June 6-7, 2021 meeting, the Board also received a presentation from representatives of the Sub-Advisor, who discussed the services that the Sub-Advisor provides to each Fund, including the Sub-Advisor's day-to-day management of the Funds' investments. In considering the Sub-Advisor's management of the Funds, the Board noted the background and experience of the Sub-Advisor's portfolio management team. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor and the Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Sub-Advisor, under the oversight of the Advisor, has managed each Fund consistent with its investment objective, policies and restrictions. The Board considered the unitary fee rate payable by each Fund under the Advisory Agreement for the services provided. The Board noted that the sub-advisory fee for each Fund is paid by the Advisor from the Fund's unitary fee. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the unitary fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for each Fund was above the median total (net) expense ratio of the peer funds in its Expense Group. With respect to the Expense Groups, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating peer groups for actively-managed ETFs and different business models that may affect the pricing of services among ETF sponsors. The Board also noted that not all peer funds employ an advisor/sub-advisor management structure. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rates overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex. The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor and the Sub-Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund's performance. The Board received and reviewed information comparing the performance of each of FAUG, DAUG, FNOV and DNOV for the one-year period ended December 31, 2020 to the performance of the funds in the Fund's respective Performance Universe and a benchmark index. The Board noted that the Funds are target outcome ETFs that seek to provide investors with returns (before fees and expenses) over a defined period of time (typically one year) that match the price return of the SPDR S&P 500 ETF Trust ("SPY"), up to a predetermined cap, while providing a buffer against certain losses on the price return of SPY. The Board considered information provided by the Sub-Advisor on each of FAUG's, DAUG's, FNOV's and DNOV's performance during its respective target outcome period that ended in 2020 and noted that each Fund delivered on its target outcome objective. Because each of FFEB, DFEB, FMAY, DMAY, FJUN and DJUN commenced operations in 2020 and therefore has a limited performance history, comparative performance information for the Fund was not considered. In addition, the initial target outcome period for each of FFEB, DFEB, FMAY, DMAY, FJUN and DJUN ended after December 31, 2020. On the basis of all the information provided on the unitary fee and performance, as applicable, of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund (out of which the Sub-Advisor is compensated) continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor to each Fund under the Agreements. The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds and noted the Advisor's statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Funds. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each of FAUG, DAUG, FNOV and DNOV for the twelve months ended December 31, 2020 and to each of FFEB, DFEB, FMAY, DMAY, FJUN and DJUN for the period from inception through December 31, 2020 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the twelve months ended December 31, 2020. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for each Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its Page 149 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) relationship with the Funds. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP. The Board also noted that FTCP has a controlling ownership interest in the Sub-Advisor's parent company and considered potential fall-out benefits to the Advisor from such ownership interest. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. The Board considered the Sub-Advisor's statement that it believes that the sub-advisory fee for each Fund is appropriate. The Board noted the Sub-Advisor's statements that it continues to invest in infrastructure, technology and personnel, and that it anticipates that its expenses relating to providing services to the Funds will remain approximately the same for the next twelve months. The Board did not review the profitability of the Sub-Advisor with respect to each Fund. The Board noted that the Advisor pays the Sub-Advisor for each Fund from its unitary fee and its understanding that each Fund's sub-advisory fee rate was the product of an arm's length negotiation. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered the potential fall-out benefits to the Sub-Advisor from being associated with the Advisor and the Funds, and noted the Sub-Advisor's statements that it is the Sub-Advisor's policy currently not to enter into soft-dollar arrangements for the procurement of research services in connection with client securities transactions and that, as a result, there are no foreseen fall-out benefits from its relationship with the Funds. The Board also considered the potential fall-out benefits to the Sub-Advisor from FTCP's controlling ownership interest in the Sub-Advisor's parent company. The Board concluded that the character and amount of potential fall-out benefits to the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board's analysis. LIQUIDITY RISK MANAGEMENT PROGRAM In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program (the "Program") reasonably designed to assess and manage the funds' liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust Liquidity Committee (the "Liquidity Committee"). Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund's portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment minimum for certain funds, monitors the funds' holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund's net assets and establishes policies and procedures regarding redemptions in kind. At the April 26, 2021 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 20, 2020 through the Liquidity Committee's annual meeting held on March 16, 2021 and assessed the Program's adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums. As stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund's investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4. Page 150 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The Trust's statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891. <TABLE> <CAPTION> NUMBER OF OTHER PORTFOLIOS IN TRUSTEESHIPS OR TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> Richard E. Erickson, Trustee o Indefinite Term Physician, Officer, Wheaton Orthopedics; 210 None (1951) Limited Partner, Gundersen Real Estate o Since Inception Limited Partnership (June 1992 to December 2016) Thomas R. Kadlec, Trustee o Indefinite Term President, ADM Investors Services, Inc. 210 Director of ADM (1957) (Futures Commission Merchant) Investor Services, o Since Inception Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises (Financial 210 Director of Trust (1956) and Management Consulting) Company of o Since Inception Illinois Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (August 2018 to Present), 210 None (1954) Managing Director and Chief Operating o Since Inception Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First Trust 210 None Chairman of the Board Advisors L.P. and First Trust (1955) o Since Inception Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) </TABLE> ----------------------------- (1) Mr. Bowen is deemed an "interested person" of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust. Page 151 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS AND YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS(2) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer (1966) Executive Officer (January 2016 to Present), Controller (January 2011 o Since Inception to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to Present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President (July 2016 to Present), Vice (1972) Officer and Chief President (April 2012 to July 2016), First Trust Accounting Officer o Since Inception Advisors L.P. and First Trust Portfolios L.P. W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P. and (1960) Legal Officer First Trust Portfolios L.P.; Secretary and General o Since Inception Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and (1970) First Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. (1966) and Assistant Secretary and First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1966) and First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1970) and First Trust Portfolios L.P. o Since Inception </TABLE> ----------------------------- (2) The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. Page 152 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PRIVACY POLICY First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information. SOURCES OF INFORMATION We collect nonpublic personal information about you from the following sources: o Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; o Information about your transactions with us, our affiliates or others; o Information we receive from your inquiries by mail, e-mail or telephone; and o Information we collect on our website through the use of "cookies". For example, we may identify the pages on our website that your browser requests or visits. INFORMATION COLLECTED The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information. DISCLOSURE OF INFORMATION We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons: o In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. o We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust. USE OF WEBSITE ANALYTICS We currently use third party analytics tools, Google Analytics and AddThis to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis. CONFIDENTIALITY AND SECURITY With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information. POLICY UPDATES AND INQUIRIES As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors). March 2021 Page 153 <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. FIRST TRUST First Trust Exchange-Traded Fund VIII INVESTMENT ADVISOR First Trust Advisors L.P. 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 INVESTMENT SUB-ADVISOR Cboe Vest Financial LLC 1765 Greensboro Station Pl, 9th Floor McLean, VA 22102 ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 111 S. Wacker Drive Chicago, IL 60606 LEGAL COUNSEL Chapman and Cutler LLP 111 W. Monroe Street Chicago, IL 60603 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- FT Cboe Vest International Equity Buffer ETF - March (YMAR) FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR) FT Cboe Vest International Equity Buffer ETF - June (YJUN) FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN) FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN) FT Cboe Vest International Equity Buffer ETF - December (YDEC) FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC) ---------------------------- Annual Report For the Period Ended August 31, 2021 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 Shareholder Letter........................................................... 2 Fund Performance Overview FT Cboe Vest International Equity Buffer ETF - March (YMAR)............... 3 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)...................... 4 FT Cboe Vest International Equity Buffer ETF - June (YJUN)................ 5 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)....................... 6 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)...... 7 FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 8 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 9 Notes to Fund Performance Overview........................................... 10 Portfolio Commentary......................................................... 11 Understanding Your Fund Expenses............................................. 14 Portfolio of Investments FT Cboe Vest International Equity Buffer ETF - March (YMAR)............... 16 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)...................... 18 FT Cboe Vest International Equity Buffer ETF - June (YJUN)................ 20 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)....................... 22 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)...... 24 FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 26 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 28 Statements of Assets and Liabilities......................................... 30 Statements of Operations..................................................... 32 Statements of Changes in Net Assets.......................................... 34 Financial Highlights......................................................... 36 Notes to Financial Statements................................................ 40 Report of Independent Registered Public Accounting Firm...................... 48 Additional Information....................................................... 50 Board of Trustees and Officers............................................... 60 Privacy Policy............................................................... 62 <PAGE> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. ("First Trust" or the "Advisor") and/or Cboe VestSM Financial LLC ("Cboe Vest" or the "Sub-Advisor") and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as "anticipate," "estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or other words that convey uncertainty of future events or outcomes. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (each such series is referred to as a "Fund" and collectively, as the "Funds") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof. PERFORMANCE AND RISK DISCLOSURE There is no assurance that any Fund described in this report will achieve its investment objective. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund's shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in a Fund. See "Risk Considerations" in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds. Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost. The Advisor may also periodically provide additional information on Fund performance on each Fund's webpage at www.ftportfolios.com. HOW TO READ THIS REPORT This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund's performance and investment approach. By reading the portfolio commentary from the portfolio management team of the Funds, you may obtain an understanding of how the market environment affected each Fund's performance. The statistical information that follows may help you understand each Fund's performance compared to that of a relevant market benchmark. It is important to keep in mind that the opinions expressed by personnel of the Advisor and/or Sub-Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in the prospectus, statement of additional information, and other Fund regulatory filings. Page 1 <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2021 Dear Shareholders: First Trust is pleased to provide you with the annual report for certain series of the First Trust Exchange-Traded Fund VIII (the "Funds"), which contains detailed information about the Funds for the period ended August 31, 2021. Please note that all of the Funds were incepted after September 1, 2020, the start of the reporting period, so information in this letter and the report prior to those inception dates will not apply to all of the Funds. The coronavirus ("COVID-19") pandemic has proven to be as stubborn as advertised. We were warned by the scientific community early on that we would have to coexist with this virus from here on out, and that appears to be the case some 19 months after its onset. While the three main vaccines have proven to be effective at keeping those people who have gotten all the required shots out of the hospital, the U.S., unfortunately, had only achieved a 54% fully vaccinated rate as of September 9, 2021, according to the Centers for Disease Control and Prevention. If you add in the people ages 18 and older who have received just one of the two-dose vaccines, it jumps to 75.3%. The U.S. and global economies continue to underperform due to the pandemic. The U.S. alone had a record high 10.9 million job openings at the end of July 2021, according to the latest Job Openings and Labor Turnover Survey from the Department of Labor. It appears that many people do not seem to want to work right now. An estimated 7.5 million unemployment recipients in the U.S. were scheduled to lose their benefits on September 6, 2021. Perhaps that will be enough to incentivize people to go back to work. The Federal Reserve (the "Fed") continues to play a major role in the U.S. economy. It has kept short-term interest rates artificially low for the better part of the past 13 years. The Federal Funds target rate (upper bound), while held at 0.25% for roughly nine of those 13 years, reached as high as 2.50% in the same 13-year period, but only for a few months and that was just prior to the COVID-19 pandemic, according to data from the Fed. For comparative purposes, the target rate averaged 2.56% for the 30-year period ended September 21, 2021. It currently stands at 0.25%. In addition to keeping rates low, the Fed has been buying assets, specifically Treasuries and mortgage-backed securities. It has been buying a combined $120 billion of these securities every month. This has helped keep bond yields artificially low as well. As of February 26, 2020, the value of the assets on the Fed's balance sheet totaled $4.16 trillion, according to its own data. As of September 15, 2021, the assets were valued at $8.45 trillion. Keep in mind, the balance sheet stood at $1 trillion on September 17, 2008. That was during the 2007-2008 Financial Crisis. Due to the reopening of the U.S. economy and a bigger-than-expected rise in inflation this year, the Fed has signaled that it could begin to taper its bond buying program by the end of 2021. With respect to the Federal Funds rate, the Fed continues to say it intends to leave short-term rates where they are until 2023. In other words, the Fed is poised to maintain its accommodative stance towards monetary policy. They are not looking to get tight - just less loose. We will monitor this scenario closely in the months ahead to see if the Fed's actions impact the direction of interest rates and bond yields. Overall, I am pleased to report that the securities markets have performed well in this tumultuous climate. It appears, in our opinion, that the extremely low interest rates offered on savings vehicles has motivated many investors to assume more risk to potentially generate higher returns. The S&P 500(R) Index (the "Index") posted a total return of 31.17% for the 12-month period ended August 31, 2021, according to Bloomberg. For comparative purposes, from 1926 through 2020 (95 years), the Index returned an average of 10.28% per year on a total return basis, according to Morningstar/Ibbotson Associates. Should interest rates and bond yields eventually trend higher, investors should be prepared for a bit of turbulence as stocks and bonds may be subjected to some potential short-term profit taking, in my opinion. Having said that, I encourage investors to stay the course. I remain optimistic due in large part to the trillions of dollars in government stimulus money already circulating in the economy as well as the potential for trillions of additional dollars from President Joe Biden's infrastructure and "human infrastructure" bills still weaving their way through Congress. It's hard to bet against growth in the current climate. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months. Sincerely, /s/ James A. Bowen James A. Bowen Chairman of the Board of Trustees Chief Executive Officer of First Trust Advisors L.P. Page 2 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) The investment objective of the FT Cboe Vest International Equity Buffer ETF - March (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a predetermined upside cap of 14.18% (before fees, expenses and taxes) and 13.29% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from March 22, 2021 to March 18, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "YMAR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (3/19/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 5.59% Market Price 5.44% INDEX PERFORMANCE MSCI EAFE Index 5.60% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 10.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2021 FT Cboe Vest International MSCI EAFE Equity Buffer ETF - March Index <S> <C> <C> 3/19/21 $10,000 $10,000 8/31/21 10,559 10,560 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 3 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a predetermined upside cap of 15.51% (before fees, expenses and taxes) and 14.61% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from March 22, 2021 to March 18, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "QMAR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (3/19/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 10.88% Market Price 10.83% INDEX PERFORMANCE Nasdaq 100 Stock Index 21.10% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 10.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2021 FT Cboe Vest Nasdaq-100(R) Nasdaq 100 Buffer ETF - March Stock Index <S> <C> <C> 3/19/21 $10,000 $10,000 8/31/21 11,088 12,110 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 4 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) The investment objective of the FT Cboe Vest International Equity Buffer ETF - June (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a predetermined upside cap of 11.81% (before fees, expenses and taxes) and 10.91% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from June 21, 2021 to June 17, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "YJUN." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (6/18/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 2.46% Market Price 1.85% INDEX PERFORMANCE MSCI EAFE Index 2.07% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 10.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 18, 2021 - AUGUST 31, 2021 FT Cboe Vest International MSCI EAFE Equity Buffer ETF - June Index <S> <C> <C> 6/16/21 $10,000 $10,000 8/31/21 10,246 10,207 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 5 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a predetermined upside cap of 13.00% (before fees, expenses and taxes) and 12.10% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from June 21, 2021 to June 17, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "QJUN." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (6/18/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 5.49% Market Price 5.39% INDEX PERFORMANCE Nasdaq 100 Stock Index 10.91% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 10.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 18, 2021 - AUGUST 31, 2021 FT Cboe Vest Growth-100(R) Nasdaq 100 Buffer ETF - June Stock Index <S> <C> <C> 6/18/21 $10,000 $10,000 8/31/21 10,549 11,091 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 6 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) The investment objective of the FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (the "Fund") is to seek to provide investors with returns of approximately twice any positive return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 6.16% (before fees, expenses and taxes) and 5.37% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer (before fees, expenses and taxes) against the first 15% of Underlying ETF losses, over the period from July 13, 2021 to June 17, 2022 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "XJUN." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (7/12/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 1.31% Market Price 1.08% INDEX PERFORMANCE S&P 500(R) Index - Price Return 3.15% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 10.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 12, 2021 - AUGUST 31, 2021 FT Cboe Vest U.S. Equity S&P 500(R) Index - Enhance & Moderate Buffer Price Return ETF - June <S> <C> <C> 7/12/21 $10,000 $10,000 8/31/21 10,131 10,315 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 7 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) The investment objective of the FT Cboe Vest International Equity Buffer ETF - December (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a predetermined upside cap of 13.79% (before fees, expenses and taxes) and 12.89% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from December 21, 2020 to December 17, 2021 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "YDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (12/18/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 8.92% Market Price 8.77% INDEX PERFORMANCE MSCI EAFE Index 10.55% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 10.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2021 FT Cboe Vest International MSCI EAFE Equity Buffer ETF - December Index <S> <C> <C> 12/18/20 $10,000 $10,000 2/28/21 10,184 10,175 8/31/21 10,892 11,055 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 8 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (the "Fund") is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a predetermined upside cap of 17.04% (before fees, expenses and taxes) and 16.14% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from December 21, 2020 to December 17, 2021 (the "Outcome Period"). Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance of the Underlying ETF. Subsequent Outcome Periods will begin on the day the prior Outcome Period ends and will end on the approximate one-year anniversary of that new Outcome Period. On the first day of each new Outcome Period, the Fund resets by investing in a new set of FLEX Options that will provide a new cap for the new Outcome Period. This means that the cap will change for each Outcome Period based upon prevailing market conditions at the beginning of each Outcome Period. The Fund will be perpetually offered and not terminate after the initial or any subsequent Outcome Period. An investor that purchases Fund shares other than on the first day of an Outcome Period and/or sells Fund shares prior to the end of an Outcome Period may experience results that are very different from the target outcomes sought by the Fund for that Outcome Period. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc., under the ticker symbol "QDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (12/18/20) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 13.71% Market Price 13.51% INDEX PERFORMANCE Nasdaq 100 Stock Index 22.33% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 10.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2021 FT Cboe Vest Nasdaq-100(R) Nasdaq 100 Buffer ETF - December Stock Index <S> <C> <C> 12/18/20 $10,000 $10,000 2/28/21 10,111 10,134 8/31/21 11,371 12,233 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 9 <PAGE> -------------------------------------------------------------------------------- NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- Total returns for the periods since inception are calculated from the inception date of each Fund. "Cumulative Total Returns" represent the total change in value of an investment over the periods indicated. Each Fund's per share net asset value ("NAV") is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return ("Market Price") is determined by using the midpoint of the national best bid and offer price ("NBBO") as of the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund's NAV is calculated. Since shares of each Fund did not trade in the secondary market until after the Fund's inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund's past performance is no guarantee of future performance. Page 10 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to FT Cboe Vest International Equity Buffer ETF - March ("YMAR"), FT Cboe Vest Nasdaq-100(R) Buffer ETF - March ("QMAR"), FT Cboe Vest International Equity Buffer ETF - June ("YJUN"), FT Cboe Vest Nasdaq-100(R) Buffer ETF - June ("QJUN"), FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June ("XJUN"), FT Cboe Vest International Equity Buffer ETF - December ("YDEC"), and FT Cboe Vest Nasdaq-100(R) Buffer ETF - December ("QDEC") (each a "Fund" and collectively, the "Funds"). First Trust is responsible for the ongoing monitoring of each Fund's investment portfolio, managing each Fund's business affairs and providing certain administrative services necessary for the management of each Fund. SUB-ADVISOR Cboe VestSM Financial LLC ("Cboe Vest" or the "Sub-Advisor") serves as the sub-advisor to the Funds. In this capacity, Cboe Vest is responsible for the selection and ongoing monitoring of the securities in each Fund's investment portfolio. Cboe Vest, with principal offices at 1765 Greensboro Station Pl., 9th Floor, McLean, Virginia 22102, was founded in 2012. Cboe Vest had approximately $3.9 billion under management or committed to management as of August 31, 2021. PORTFOLIO MANAGEMENT TEAM KARAN SOOD, MANAGING DIRECTOR OF CBOE VEST HOWARD RUBIN, MANAGING DIRECTOR OF CBOE VEST COMMENTARY MARKET RECAP Each of the monthly FT Cboe Vest Funds has an investment objective that seeks to provide investors with returns (before fees, expenses, and taxes) that match those of a specified reference ETF, either the SPDR(R) S&P 500(R) ETF Trust, the Invesco QQQ Trust Series 1 ETF, or the iShares MSCI EAFE ETF (the "Underlying ETF" or "Reference ETF"), up to a predetermined upside cap (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against a specific level (before fees, expenses and taxes) of losses in the Reference ETF, over a specified time period. During the twelve-month period ended August 31, 2021, stock markets continued to soar extending the massive rally from the March 2020 lows brought on by the coronavirus ("COVID-19") pandemic. Governments across the globe continue to support their economies with extensive fiscal and monetary programs. These efforts, combined with extraordinarily strong corporate earnings, have fueled equity markets across the globe. Markets moved persistently higher during the period, with intermittent pull backs being both small and infrequent. The S&P 500(R) Index, the well-known measure of U.S. large-cap stocks, ended the same period up 31.2%. Mid- and small-cap stocks, as measured by the S&P MidCap 400(R) Index and the Russell 2000(R) Small Cap Index, rose even more, gaining 44.8% and 47.1%, respectively. The Nasdaq 100 Index, a tech-heavy market measure, gained 29.6% during the same period. International markets fared well, too, albeit not to the same extent as the U.S. markets, with broad foreign market indices such as MSCI EAFE and MSCI Emerging Markets gaining 26.8% and 21.5%, respectively, during the same period. Within the S&P 500(R) Index, the market continued to see significant variation in returns across the various sectors of the economy for the 12-month period ended August 31, 2021. While the variation was not as dramatic as in the prior twelve months, sector performances still saw an approximately 42 percentage point differential from top to bottom: the top performing sector was the Financials sector, up 56.5%, while the worst performing sector was the Consumer Staples sector, up 14.4%, during the same period. U.S. economic data printed in the period all pointed to a rapidly recovering economy. Gross domestic product ("GDP") growth in the most recent four quarterly reports (the third quarter of 2020 through the second quarter of 2021) came in at seasonally adjusted annualized rates of +33.8%, +4.5%, +6.3%, and 6.6%, sequentially. This recent growth has brought the U.S. GDP back to 0.8% above the level it was at in the fourth quarter of 2019, just prior to the pandemic. A current Bloomberg survey of economists shows a consensus projection of 4.4% GDP growth over the coming four quarters. The U.S. unemployment rate, which had been sitting at a 50-year low of 3.5% in February of 2020, shot up to 14.7% just two months later, at the height of the pandemic frenzy. This rate had fallen to 8.4% in August of 2020, as the 12-month period ended August 31, 2021 began. Throughout the same period, unemployment continued to move sharply lower, ending the period at 5.2%, well below the 50-year average of 6.3%. Page 11 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) U.S. inflation levels accelerated dramatically over the 12-month period ended August 31, 2021, as the Federal Reserve (the "Fed") kept short-term interest rates near zero throughout the period. The most recent (July 2021) Consumer Price Index report shows year-over-year inflation running at a 5.4% rate, up from just 1.0% from the report twelve months earlier. One particular component of the economy that is clearly overheating, in our view, is the housing market. Housing prices in the U.S. increased by 18.6% over the last twelve months, according to the most recent (June 2021) S&P Case-Shiller U.S. National Home Price Index. The Fed has made comments that they see this increase in inflation as transitory and expect it to cool off as the economy stabilizes after the sharp growth of the last year. That said, the Fed has said they will continue to monitor signs of persistent inflation and will be prepared to taper back on their easy money policies as needed. MARKET AND FUND OUTLOOK Over the 12-month period ended August 31, 2021, implied volatilities in U.S. equity markets fell sharply. We expect to see implied volatilities continue to decline over the coming year. Buffer strategies, such as those used in the FT Cboe Vest Funds, generally benefit from declining implied volatilities. The CBOE S&P 500 1-Year Volatility Index, which is derived from option prices, estimates the market's expectation of S&P 500 volatility for the next twelve months. This index, which peaked during the period at about 41% on September 3, 2020, was down, though still at an elevated level of 25%, as of August 31, 2021. For comparison purposes, the historical volatility of the S&P 500 since its inception in 1937 has been about 15.7%. From short-term Treasuries to High Yield Bonds, fixed income investments continue to linger at or around all-time lows in nominal yield. Combined with the elevated inflation levels seen in the last half year, almost all fixed income investments currently have negative real yields (i.e., nominal yield less inflation.) This bodes quite poorly for future fixed income returns. For this reason, many market analysts are claiming the traditional "60/40 stock/bond allocation" strategy is dead. Investors are looking to reallocate away from fixed income. The FT Cboe Vest Funds are an alternative that these investors should consider. The FT Cboe Vest Funds are designed to protect investors against varying levels of downside movements in their Reference ETF (e.g., SPY, QQQ, or EFA), while limiting the investor's participation in larger upside moves in the Reference ETF. In the current negative real yield environment, such Funds, in appropriate allocations, can be suitable alternatives to fixed investments. PERFORMANCE ANALYSIS The following table provides information pertaining to recent caps and performance for the period ended August 31, 2021 for each FT Cboe Vest Fund, as well as an attribution analysis that estimates the impact of various factors on each Fund's performance. Each Fund's cap is reset at the Fund's annual reset date. The table shows the caps that were in effect both at the beginning of the period and after the annual reset date if it occurred within the period. Both of these caps are shown pre and post expenses. Funds that were launched within the period do not yet have new caps, as they have not yet reached their first annual reset date. Each Fund's performance may be impacted by a number of factors. These factors include changes in each of: the level of the Reference ETF, the Reference ETF's dividends, interest rates, implied volatility, and time to option expiration. Generally, changes in the level of the Reference ETF is the primary factor, but the other factors can also contribute significantly to Fund performance. Additionally, expenses will impact Fund performance. The impact from these factors for the period are shown in the table under "Estimated Performance Attribution." Page 12 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> <S> <C> <C> <C> <C> <C> <C> <C> FUND TICKER YMAR QMAR YJUN QJUN XJUN YDEC QDEC Annual Expense Ratio 0.90% 0.90% 0.90% 0.90% 0.85% 0.90% 0.90% Reporting Period Start Date (close of Seed Date) 3/19/21 3/19/21 6/18/21 6/18/21 7/12/21 12/18/20 12/18/20 Reporting Period End Date (close of Period) 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 14.18% 15.51% 11.81% 13.00% 6.16% 13.79% 17.04% Cap Prior to Annual Reset (post-expenses) 13.29% 14.61% 10.91% 12.10% 5.37% 12.89% 16.14% Reset Date (prior to 8/31/21) None None None None None None None New Cap on Annual Reset Date (pre-expenses) None None None None None None None New Cap on Annual Reset Date (post-expenses) None None None None None None None PERFORMANCE (LATER OF 8/31/20 OR SEED DATE, TO 8/31/21): Fund Performance (using NAVs) 5.59% 10.88% 2.46% 5.49% 1.31% 8.92% 13.71% Fund Performance (using Market Price) 5.44% 10.83% 1.85% 5.39% 1.08% 8.77% 13.51% Reference Asset Price Return 5.51% 21.34% 2.70% 10.89% 3.31% 10.97% 22.54% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset 3.35% 9.40% 1.54% 4.98% 2.68% 6.06% 11.27% b) Changes in other Variables* 2.65% 1.89% 1.10% 0.69% -1.25% 3.49% 3.07% c) Expenses (pro-rated annual expense ratio) -0.41% -0.41% -0.18% -0.18% -0.12% -0.63% -0.63% Attribution TOTAL 5.59% 10.88% 2.46% 5.49% 1.31% 8.92% 13.71% </TABLE> * Includes changes in a) Reference Asset's dividends, b) interest rates, c) implied volatility, and d) time to option expiration. Page 13 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2021 (UNAUDITED) As a shareholder of FT Cboe Vest International Equity Buffer ETF - March, FT Cboe Vest Nasdaq-100(R) Buffer ETF - March, FT Cboe Vest International Equity Buffer ETF - June, FT Cboe Vest Nasdaq-100(R) Buffer ETF - June, FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June, FT Cboe Vest International Equity Buffer ETF - December and FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (each a "Fund" and collectively, the "Funds"), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period (or since inception) and held through the six-month (or shorter) period ended August 31, 2021. ACTUAL EXPENSES The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this six-month (or shorter) period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE MARCH 19, 2021 (a) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO MARCH 19, 2021 (a) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (b) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) Actual $1,000.00 $1,055.90 0.90% $4.21 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) Actual $1,000.00 $1,108.80 0.90% $4.32 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 </TABLE> <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE JUNE 18, 2021 (a) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO JUNE 18, 2021 (a) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (c) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) Actual $1,000.00 $1,024.60 0.90% $1.87 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) Actual $1,000.00 $1,054.90 0.90% $1.90 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 </TABLE> Page 14 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES (CONTINUED) AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE JULY 12, 2021 (a) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO JULY 12, 2021 (a) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (d) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) Actual $1,000.00 $1,013.10 0.85% $1.20 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD PERIOD (e) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) Actual $1,000.00 $1,069.50 0.90% $4.69 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) Actual $1,000.00 $1,124.60 0.90% $4.82 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 </TABLE> (a) Inception date. (b) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 19, 2021 through August 31, 2021), multiplied by 166/365. Hypothetical expenses are assumed for the most recent six-month period. (c) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (June 18, 2021 through August 31, 2021), multiplied by 75/365. Hypothetical expenses are assumed for the most recent six-month period. (d) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (July 12, 2021 through August 31, 2021), multiplied by 51/365. Hypothetical expenses are assumed for the most recent six-month period. (e) Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 1, 2021 through August 31, 2021), multiplied by 184/365 (to reflect the six-month period). Page 15 <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 109,935 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 109,935 (Cost $109,935) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 109,935 (Cost $109,935) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 101.6% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 98.5% 1,572 iShares MSCI EAFE ETF.............................. $ 12,676,608 $ 0.76 03/18/22 12,496,813 (Cost $12,213,836) -------------- PUT OPTIONS PURCHASED -- 3.1% 1,572 iShares MSCI EAFE ETF.............................. 12,676,608 76.43 03/18/22 388,863 (Cost $614,239) -------------- TOTAL PURCHASED OPTIONS........................................................................ 12,885,676 (Cost $12,828,075) (b) -------------- WRITTEN OPTIONS -- (2.4)% CALL OPTIONS WRITTEN -- (0.9)% (1,572) iShares MSCI EAFE ETF.............................. (12,676,608) 87.27 03/18/22 (113,288) (Premiums received $178,449) -------------- PUT OPTIONS WRITTEN -- (1.5)% (1,572) iShares MSCI EAFE ETF.............................. (12,676,608) 68.79 03/18/22 (188,372) (Premiums received $316,230) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (301,660) (Premiums received $494,679) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (7,386) -------------- NET ASSETS -- 100.0%........................................................................... $ 12,686,565 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $12,443,331. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $500,576 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $249,956. The net unrealized appreciation was $250,620. The amounts presented are inclusive of derivative contracts. Page 16 See Notes to Financial Statements <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 109,935 $ 109,935 $ -- $ -- Call Options Purchased............................... 12,496,813 -- 12,496,813 -- Put Options Purchased................................ 388,863 -- 388,863 -- -------------- -------------- -------------- -------------- Total................................................ $ 12,995,611 $ 109,935 $ 12,885,676 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (113,288) $ -- $ (113,288) $ -- Put Options Written.................................. (188,372) -- (188,372) -- -------------- -------------- -------------- -------------- Total................................................ $ (301,660) $ -- $ (301,660) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 17 <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 137,389 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 137,389 (Cost $137,389) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 137,389 (Cost $137,389) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 110.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 108.5% 544 Invesco QQQ Trust(SM), Series 1.................... $ 20,669,280 $ 3.13 03/18/22 20,488,301 (Cost $17,879,996) -------------- PUT OPTIONS PURCHASED -- 2.0% 544 Invesco QQQ Trust(SM), Series 1.................... 20,669,280 313.14 03/18/22 380,748 (Cost $1,239,763) -------------- TOTAL PURCHASED OPTIONS........................................................................ 20,869,049 (Cost $19,119,759) (b) -------------- WRITTEN OPTIONS -- (11.1)% CALL OPTIONS WRITTEN -- (10.0)% (544) Invesco QQQ Trust(SM), Series 1.................... (20,669,280) 361.71 03/18/22 (1,889,093) (Premiums received $890,236) -------------- PUT OPTIONS WRITTEN -- (1.1)% (544) Invesco QQQ Trust(SM), Series 1.................... (20,669,280) 281.83 03/18/22 (220,315) (Premiums received $752,715) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (2,109,408) (Premiums received $1,642,951) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (12,375) -------------- NET ASSETS -- 100.0%........................................................................... $ 18,884,655 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $17,627,597. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $3,134,005 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $1,864,572. The net unrealized appreciation was $1,269,433. The amounts presented are inclusive of derivative contracts. Page 18 See Notes to Financial Statements <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 137,389 $ 137,389 $ -- $ -- Call Options Purchased............................... 20,488,301 -- 20,488,301 -- Put Options Purchased................................ 380,748 -- 380,748 -- -------------- -------------- -------------- -------------- Total................................................ $ 21,006,438 $ 137,389 $ 20,869,049 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (1,889,093) $ -- $ (1,889,093) $ -- Put Options Written.................................. (220,315) -- (220,315) -- -------------- -------------- -------------- -------------- Total................................................ $ (2,109,408) $ -- $ (2,109,408) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 19 <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.1% <S> <C> <C> 146,326 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 146,326 (Cost $146,326) -------------- TOTAL INVESTMENTS -- 1.1%...................................................................... 146,326 (Cost $146,326) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 103.2% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 97.9% 1,651 iShares MSCI EAFE ETF.............................. $ 13,313,664 $ 0.79 06/17/22 13,002,341 (Cost $12,651,059) -------------- PUT OPTIONS PURCHASED -- 5.3% 1,651 iShares MSCI EAFE ETF.............................. 13,313,664 78.52 06/17/22 702,922 (Cost $903,413) -------------- TOTAL PURCHASED OPTIONS........................................................................ 13,705,263 (Cost $13,554,472) (b) -------------- WRITTEN OPTIONS -- (4.2)% CALL OPTIONS WRITTEN -- (1.4)% (1,651) iShares MSCI EAFE ETF.............................. (13,313,664) 87.79 06/17/22 (183,279) (Premiums received $177,589) -------------- PUT OPTIONS WRITTEN -- (2.8)% (1,651) iShares MSCI EAFE ETF.............................. (13,313,664) 70.67 06/17/22 (374,847) (Premiums received $479,153) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (558,126) (Premiums received $656,742) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (8,882) -------------- NET ASSETS -- 100.0%........................................................................... $ 13,284,581 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $13,044,056. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $465,065 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $215,658. The net unrealized appreciation was $249,407. The amounts presented are inclusive of derivative contracts. Page 20 See Notes to Financial Statements <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 146,326 $ 146,326 $ -- $ -- Call Options Purchased............................... 13,002,341 -- 13,002,341 -- Put Options Purchased................................ 702,922 -- 702,922 -- -------------- -------------- -------------- -------------- Total................................................ $ 13,851,589 $ 146,326 $ 13,705,263 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (183,279) $ -- $ (183,279) $ -- Put Options Written.................................. (374,847) -- (374,847) -- -------------- -------------- -------------- -------------- Total................................................ $ (558,126) $ -- $ (558,126) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 21 <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.0% <S> <C> <C> 318,806 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 318,806 (Cost $318,806) -------------- TOTAL INVESTMENTS -- 1.0%...................................................................... 318,806 (Cost $318,806) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 108.7% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 104.1% 928 Invesco QQQ Trust(SM), Series 1.................... $ 35,259,360 $ 3.43 06/17/22 34,911,687 (Cost $32,640,532) -------------- PUT OPTIONS PURCHASED -- 4.6% 928 Invesco QQQ Trust(SM), Series 1.................... 35,259,360 342.63 06/17/22 1,527,463 (Cost $2,289,720) -------------- TOTAL PURCHASED OPTIONS........................................................................ 36,439,150 (Cost $34,930,252) (b) -------------- WRITTEN OPTIONS -- (9.6)% CALL OPTIONS WRITTEN -- (6.9)% (928) Invesco QQQ Trust(SM), Series 1.................... (35,259,360) 387.17 06/17/22 (2,295,830) (Premiums received $1,427,181) -------------- PUT OPTIONS WRITTEN -- (2.7)% (928) Invesco QQQ Trust(SM), Series 1.................... (35,259,360) 308.37 06/17/22 (905,096) (Premiums received $1,338,826) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (3,200,926) (Premiums received $2,766,007) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (24,066) -------------- NET ASSETS -- 100.0%........................................................................... $ 33,532,964 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $32,483,051. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $2,704,885 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $1,630,906. The net unrealized appreciation was $1,073,979. The amounts presented are inclusive of derivative contracts. Page 22 See Notes to Financial Statements <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 318,806 $ 318,806 $ -- $ -- Call Options Purchased............................... 34,911,687 -- 34,911,687 -- Put Options Purchased................................ 1,527,463 -- 1,527,463 -- -------------- -------------- -------------- -------------- Total................................................ $ 36,757,956 $ 318,806 $ 36,439,150 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (2,295,830) $ -- $ (2,295,830) $ -- Put Options Written.................................. (905,096) -- (905,096) -- -------------- -------------- -------------- -------------- Total................................................ $ (3,200,926) $ -- $ (3,200,926) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 23 <PAGE> FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.0% <S> <C> <C> 61,666 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 61,666 (Cost $61,666) -------------- TOTAL INVESTMENTS -- 1.0%...................................................................... 61,666 (Cost $61,666) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 114.1% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 108.4% 136 SPDR(R) S&P 500(R) ETF Trust....................... $ 6,141,216 $ 4.37 06/17/22 6,033,377 136 SPDR(R) S&P 500(R) ETF Trust....................... 6,141,216 437.08 06/17/22 496,031 -------------- TOTAL CALL OPTIONS PURCHASED................................................................... 6,529,408 (Cost $6,242,517) -------------- PUT OPTIONS PURCHASED -- 5.7% 136 SPDR(R) S&P 500(R) ETF Trust....................... 6,141,216 437.08 06/17/22 343,621 (Cost $406,239) -------------- TOTAL PURCHASED OPTIONS........................................................................ 6,873,029 (Cost $6,648,756) (b) -------------- WRITTEN OPTIONS -- (15.0)% CALL OPTIONS WRITTEN -- (12.6)% (272) SPDR(R) S&P 500(R) ETF Trust....................... (12,282,432) 450.54 06/17/22 (759,876) (Premiums received $569,346) -------------- PUT OPTIONS WRITTEN -- (2.4)% (136) SPDR(R) S&P 500(R) ETF Trust....................... (6,141,216) 371.52 06/17/22 (148,252) (Premiums received $184,476) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (908,128) (Premiums received $753,822) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (3,764) -------------- NET ASSETS -- 100.0%........................................................................... $ 6,022,803 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $5,956,600. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $323,115 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $253,148. The net unrealized appreciation was $69,967. The amounts presented are inclusive of derivative contracts. Page 24 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 61,666 $ 61,666 $ -- $ -- Call Options Purchased............................... 6,529,408 -- 6,529,408 -- Put Options Purchased................................ 343,621 -- 343,621 -- -------------- -------------- -------------- -------------- Total................................................ $ 6,934,695 $ 61,666 $ 6,873,029 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (759,876) $ -- $ (759,876) $ -- Put Options Written.................................. (148,252) -- (148,252) -- -------------- -------------- -------------- -------------- Total................................................ $ (908,128) $ -- $ (908,128) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 25 <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.6% <S> <C> <C> 75,015 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 75,015 (Cost $75,015) -------------- TOTAL INVESTMENTS -- 0.6%...................................................................... 75,015 (Cost $75,015) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 101.3% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 100.1% 1,518 iShares MSCI EAFE ETF.............................. $ 12,241,152 $ 0.73 12/17/21 12,033,834 (Cost $11,131,079) -------------- PUT OPTIONS PURCHASED -- 1.2% 1,518 iShares MSCI EAFE ETF.............................. 12,241,152 72.67 12/17/21 139,859 (Cost $662,628) -------------- TOTAL PURCHASED OPTIONS........................................................................ 12,173,693 (Cost $11,793,707) (b) -------------- WRITTEN OPTIONS -- (1.8)% CALL OPTIONS WRITTEN -- (1.3)% (1,518) iShares MSCI EAFE ETF.............................. (12,241,152) 82.69 12/17/21 (162,103) (Premiums received $186,059) -------------- PUT OPTIONS WRITTEN -- (0.5)% (1,518) iShares MSCI EAFE ETF.............................. (12,241,152) 65.40 12/17/21 (62,522) (Premiums received $364,910) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (224,625) (Premiums received $550,969) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (7,590) -------------- NET ASSETS -- 100.0%........................................................................... $ 12,016,493 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $11,317,753. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $1,233,376 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $527,046. The net unrealized appreciation was $706,330. The amounts presented are inclusive of derivative contracts. Page 26 See Notes to Financial Statements <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 75,015 $ 75,015 $ -- $ -- Call Options Purchased............................... 12,033,834 -- 12,033,834 -- Put Options Purchased................................ 139,859 -- 139,859 -- -------------- -------------- -------------- -------------- Total................................................ $ 12,248,708 $ 75,015 $ 12,173,693 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (162,103) $ -- $ (162,103) $ -- Put Options Written.................................. (62,522) -- (62,522) -- -------------- -------------- -------------- -------------- Total................................................ $ (224,625) $ -- $ (224,625) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 27 <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.5% <S> <C> <C> 388,422 Dreyfus Government Cash Management Fund, Institutional Shares - 0.03% (a)...................... $ 388,422 (Cost $388,422) -------------- TOTAL INVESTMENTS -- 0.5%...................................................................... 388,422 (Cost $388,422) (b) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 107.7% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 106.9% 2,240 Invesco QQQ Trust(SM), Series 1.................... $ 85,108,800 $ 3.10 12/17/21 84,380,507 (Cost $69,957,049) -------------- PUT OPTIONS PURCHASED -- 0.8% 2,240 Invesco QQQ Trust(SM), Series 1.................... 85,108,800 310.06 12/17/21 671,110 (Cost $6,582,952) -------------- TOTAL PURCHASED OPTIONS........................................................................ 85,051,617 (Cost $76,540,001) (b) -------------- WRITTEN OPTIONS -- (8.1)% CALL OPTIONS WRITTEN -- (7.7)% (2,240) Invesco QQQ Trust(SM), Series 1.................... (85,108,800) 362.89 12/17/21 (6,094,884) (Premiums received $2,646,406) -------------- PUT OPTIONS WRITTEN -- (0.4)% (2,240) Invesco QQQ Trust(SM), Series 1.................... (85,108,800) 279.05 12/17/21 (342,397) (Premiums received $4,142,219) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (6,437,281) (Premiums received $6,788,625) (b) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (50,381) -------------- NET ASSETS -- 100.0%........................................................................... $ 78,952,377 ============== </TABLE> ----------------------------- (a) Rate shown reflects yield as of August 31, 2021. (b) Aggregate cost for federal income tax purposes is $70,324,532. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $18,056,526 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $9,378,300. The net unrealized appreciation was $8,678,226. The amounts presented are inclusive of derivative contracts. Page 28 See Notes to Financial Statements <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): <TABLE> <CAPTION> ASSETS TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 388,422 $ 388,422 $ -- $ -- Call Options Purchased............................... 84,380,507 -- 84,380,507 -- Put Options Purchased................................ 671,110 -- 671,110 -- -------------- -------------- -------------- -------------- Total................................................ $ 85,440,039 $ 388,422 $ 85,051,617 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2021 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (6,094,884) $ -- $ (6,094,884) $ -- Put Options Written.................................. (342,397) -- (342,397) -- -------------- -------------- -------------- -------------- Total................................................ $ (6,437,281) $ -- $ (6,437,281) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 29 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST INTERNATIONAL EQUITY NASDAQ-100(R) INTERNATIONAL EQUITY NASDAQ-100(R) BUFFER ETF - BUFFER ETF - BUFFER ETF - BUFFER ETF - MARCH MARCH JUNE JUNE (YMAR) (QMAR) (YJUN) (QJUN) ---------------- ----------------- ----------------- ----------------- ASSETS: <S> <C> <C> <C> <C> Investments, at value........................... $ 109,935 $ 137,389 $ 146,326 $ 318,806 Options contracts purchased, at value........... 12,885,676 20,869,049 13,705,263 36,439,150 Cash............................................ 16 -- 27 -- Receivables: Dividends.................................... 2 5 3 8 Capital shares sold.......................... -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total Assets................................. 12,995,629 21,006,443 13,851,619 36,757,964 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 301,660 2,109,408 558,126 3,200,926 Payables: Investment advisory fees..................... 7,404 12,380 8,912 24,074 Capital shares purchased..................... -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 309,064 2,121,788 567,038 3,225,000 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 12,686,565 $ 18,884,655 $ 13,284,581 $ 33,532,964 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 12,454,243 $ 17,654,479 $ 13,041,208 $ 32,481,530 Par value....................................... 6,000 8,500 6,500 16,000 Accumulated distributable earnings (loss)....... 226,322 1,221,676 236,873 1,035,434 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 12,686,565 $ 18,884,655 $ 13,284,581 $ 33,532,964 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 21.14 $ 22.22 $ 20.44 $ 20.96 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)............................. 600,002 850,002 650,002 1,600,002 ================ ================= ================= ================= Investments, at cost............................ $ 109,935 $ 137,389 $ 146,326 $ 318,806 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 12,828,075 $ 19,119,759 $ 13,554,472 $ 34,930,252 ================ ================= ================= ================= Premiums received on options contracts written.. $ 494,679 $ 1,642,951 $ 656,742 $ 2,766,007 ================ ================= ================= ================= </TABLE> Page 30 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST U.S. EQUITY FT CBOE VEST FT CBOE VEST ENHANCE & MODERATE INTERNATIONAL EQUITY NASDAQ-100(R) BUFFER ETF - BUFFER ETF - BUFFER ETF - JUNE DECEMBER DECEMBER (XJUN) (YDEC) (QDEC) ------------------ ----------------- ----------------- <S> <C> <C> $ 61,666 $ 75,015 $ 388,422 6,873,029 12,173,693 85,051,617 -- -- -- 1 2 260 -- -- 2,254,929 ------------------ ----------------- ----------------- 6,934,696 12,248,710 87,695,228 ------------------ ----------------- ----------------- 908,128 224,625 6,437,281 3,765 7,592 59,698 -- -- 2,245,872 ------------------ ----------------- ----------------- 911,893 232,217 8,742,851 ------------------ ----------------- ----------------- $ 6,022,803 $ 12,016,493 $ 78,952,377 ================== ================= ================= $ 5,956,020 $ 11,355,898 $ 69,684,179 2,000 5,500 35,000 64,783 655,095 9,233,198 ------------------ ----------------- ----------------- $ 6,022,803 $ 12,016,493 $ 78,952,377 ================== ================= ================= $ 30.11 $ 21.85 $ 22.56 ================== ================= ================= 200,002 550,002 3,500,002 ================== ================= ================= $ 61,666 $ 75,015 $ 388,422 ================== ================= ================= $ 6,648,756 $ 11,793,707 $ 76,540,001 ================== ================= ================= $ 753,822 $ 550,969 $ 6,788,625 ================== ================= ================= </TABLE> See Notes to Financial Statements Page 31 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2021 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST INTERNATIONAL EQUITY NASDAQ-100(R) INTERNATIONAL EQUITY NASDAQ-100(R) BUFFER ETF - BUFFER ETF - BUFFER ETF - BUFFER ETF - MARCH MARCH JUNE JUNE (YMAR) (a) (QMAR) (a) (YJUN) (b) (QJUN) (b) ---------------- ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> <C> Dividends....................................... $ 25 $ 22 $ 31 $ 13 ---------------- ----------------- ----------------- ----------------- Total investment income...................... 25 22 31 13 ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 25,042 52,962 13,065 40,300 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 25,042 52,962 13,065 40,300 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (25,017) (52,940) (13,034) (40,287) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Purchased options contracts.................. -- 2,058 -- -- Written options contracts.................... -- (11,640) -- -- In-kind redemptions - Purchased options contracts................................. -- -- -- -- In-kind redemptions - Written options contracts................................. -- -- -- -- ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ -- (9,582) -- -- ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Purchased options contracts.................. 57,601 1,749,290 150,791 1,508,898 Written options contracts.................... 193,019 (466,457) 98,616 (434,919) ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... 250,620 1,282,833 249,407 1,073,979 ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. 250,620 1,273,251 249,407 1,073,979 ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 225,603 $ 1,220,311 $ 236,373 $ 1,033,692 ================ ================= ================= ================= </TABLE> (a) Inception date is March 19, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is June 18, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (c) Inception date is July 12, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (d) Inception date is December 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 32 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST U.S. EQUITY FT CBOE VEST FT CBOE VEST ENHANCE & MODERATE INTERNATIONAL EQUITY NASDAQ-100(R) BUFFER ETF - BUFFER ETF - BUFFER ETF - JUNE DECEMBER DECEMBER (XJUN) (c) (YDEC) (d) (QDEC) (d) ------------------ ----------------- ----------------- <S> <C> <C> $ 1 $ 17 $ 130 ------------------ ----------------- ----------------- 1 17 130 ------------------ ----------------- ----------------- 5,185 52,222 442,737 ------------------ ----------------- ----------------- 5,185 52,222 442,737 ------------------ ----------------- ----------------- (5,184) (52,205) (442,607) ------------------ ----------------- ----------------- -- -- 422,830 -- -- (23,932) -- -- 280,798 -- -- 129,890 ------------------ ----------------- ----------------- -- -- 809,586 ------------------ ----------------- ----------------- 224,273 379,986 8,511,616 (154,306) 326,344 351,344 ------------------ ----------------- ----------------- 69,967 706,330 8,862,960 ------------------ ----------------- ----------------- 69,967 706,330 9,672,546 ------------------ ----------------- ----------------- $ 64,783 $ 654,125 $ 9,229,939 ================== ================= ================= </TABLE> See Notes to Financial Statements Page 33 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST INTERNATIONAL EQUITY NASDAQ-100(R) INTERNATIONAL EQUITY NASDAQ-100(R) BUFFER ETF - BUFFER ETF - BUFFER ETF - BUFFER ETF - MARCH MARCH JUNE JUNE (YMAR) (QMAR) (YJUN) (QJUN) ---------------- ----------------- ----------------- ----------------- PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED 8/31/2021 (a) 8/31/2021 (a) 8/31/2021 (b) 8/31/2021 (b) ---------------- ----------------- ----------------- ----------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (25,017) $ (52,940) $ (13,034) $ (40,287) Net realized gain (loss)........................ -- (9,582) -- -- Net change in unrealized appreciation (depreciation)............................... 250,620 1,282,833 249,407 1,073,979 ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations.............................. 225,603 1,220,311 236,373 1,033,692 ---------------- ----------------- ----------------- ----------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 12,460,962 22,902,662 13,048,208 32,499,272 Cost of shares redeemed......................... -- (5,238,318) -- -- ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 12,460,962 17,664,344 13,048,208 32,499,272 ---------------- ----------------- ----------------- ----------------- Total increase (decrease) in net assets......... 12,686,565 18,884,655 13,284,581 33,532,964 NET ASSETS: Beginning of period............................. -- -- -- -- ---------------- ----------------- ----------------- ----------------- End of period................................... $ 12,686,565 $ 18,884,655 $ 13,284,581 $ 33,532,964 ================ ================= ================= ================= CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... -- -- -- -- Shares sold..................................... 600,002 1,100,002 650,002 1,600,002 Shares redeemed................................. -- (250,000) -- -- ---------------- ----------------- ----------------- ----------------- Shares outstanding, end of period............... 600,002 850,002 650,002 1,600,002 ================ ================= ================= ================= </TABLE> (a) Inception date is March 19, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is June 18, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (c) Inception date is July 12, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (d) Inception date is December 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 34 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST U.S. EQUITY FT CBOE VEST FT CBOE VEST ENHANCE & MODERATE INTERNATIONAL EQUITY NASDAQ-100(R) BUFFER ETF - BUFFER ETF - BUFFER ETF - JUNE DECEMBER DECEMBER (XJUN) (YDEC) (QDEC) ------------------ ----------------- ----------------- PERIOD ENDED PERIOD ENDED PERIOD ENDED 8/31/2021 (c) 8/31/2021 (d) 8/31/2021 (d) ------------------ ----------------- ----------------- <S> <C> <C> $ (5,184) $ (52,205) $ (442,607) -- -- 809,586 69,967 706,330 8,862,960 ------------------ ----------------- ----------------- 64,783 654,125 9,229,939 ------------------ ----------------- ----------------- 5,958,020 11,362,368 89,195,903 -- -- (19,473,465) ------------------ ----------------- ----------------- 5,958,020 11,362,368 69,722,438 ------------------ ----------------- ----------------- 6,022,803 12,016,493 78,952,377 -- -- -- ------------------ ----------------- ----------------- $ 6,022,803 $ 12,016,493 $ 78,952,377 ================== ================= ================= -- -- -- 200,002 550,002 4,400,002 -- -- (900,000) ------------------ ----------------- ----------------- 200,002 550,002 3,500,002 ================== ================= ================= </TABLE> See Notes to Financial Statements Page 35 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.02 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.04) Net realized and unrealized gain (loss)........................ 1.16 -------- Total from investment operations............................... 1.12 -------- Net asset value, end of period................................. $ 21.14 ======== TOTAL RETURN (b)............................................... 5.59% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 12,687 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.04 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.06) Net realized and unrealized gain (loss)........................ 2.24 -------- Total from investment operations............................... 2.18 -------- Net asset value, end of period................................. $ 22.22 ======== TOTAL RETURN (b)............................................... 10.88% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 18,885 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is March 19, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 36 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 19.95 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.02) Net realized and unrealized gain (loss)........................ 0.51 -------- Total from investment operations............................... 0.49 -------- Net asset value, end of period................................. $ 20.44 ======== TOTAL RETURN (b)............................................... 2.46% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 13,285 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 19.87 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.03) Net realized and unrealized gain (loss)........................ 1.12 -------- Total from investment operations............................... 1.09 -------- Net asset value, end of period................................. $ 20.96 ======== TOTAL RETURN (b)............................................... 5.49% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 33,533 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is June 18, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 37 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 29.72 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.03) Net realized and unrealized gain (loss)........................ 0.42 -------- Total from investment operations............................... 0.39 -------- Net asset value, end of period................................. $ 30.11 ======== TOTAL RETURN (b)............................................... 1.31% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 6,023 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is July 12, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. Page 38 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- Net asset value, beginning of period........................... $ 20.06 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.09) Net realized and unrealized gain (loss)........................ 1.88 -------- Total from investment operations............................... 1.79 -------- Net asset value, end of period................................. $ 21.85 ======== TOTAL RETURN (b)............................................... 8.92% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 12,016 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (c) Portfolio turnover rate (d).................................... 0% FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 19.84 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.13) Net realized and unrealized gain (loss)........................ 2.85 -------- Total from investment operations............................... 2.72 -------- Net asset value, end of period................................. $ 22.56 ======== TOTAL RETURN (b)............................................... 13.71% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 78,952 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is December 18, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions, derivatives and in-kind transactions. See Notes to Financial Statements Page 39 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 1. ORGANIZATION First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management investment company organized as a Massachusetts business trust on February 22, 2016, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of forty-nine funds that are offering shares. This report covers the seven funds (each a "Fund" and collectively, "the Funds") listed below. The shares of each Fund are listed and traded on the Cboe BZX Exchange, Inc. ("Cboe BZX"). FT Cboe Vest International Equity Buffer ETF - March - (ticker "YMAR")(1) FT Cboe Vest Nasdaq-100(R) Buffer ETF - March - (ticker "QMAR")(1)(2) FT Cboe Vest International Equity Buffer ETF - June - (ticker "YJUN")(3) FT Cboe Vest Nasdaq-100(R) Buffer ETF - June - (ticker "QJUN")(3)(4) FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June - (ticker "XJUN")(5) FT Cboe Vest International Equity Buffer ETF - December - (ticker "YDEC")(6) FT Cboe Vest Nasdaq-100(R) Buffer ETF - December - (ticker "QDEC")(6)(7) (1) Commenced investment operations on March 19, 2021. (2) Effective on August 27, 2021, FT Cboe Vest Growth-100 Buffer ETF - March changed its name to FT Cboe Vest Nasdaq-100(R) Buffer ETF - March. The Fund's ticker symbol was not changed. (3) Commenced investment operations on June 18, 2021. (4) Effective on August 27, 2021, FT Cboe Vest Growth-100 Buffer ETF - June changed its name to FT Cboe Vest Nasdaq-100(R) Buffer ETF - June. The Fund's ticker symbol was not changed. (5) Commenced investment operations on July 12, 2021. (6) Commenced investment operations on December 18, 2020. (7) Effective on August 27, 2021, FT Cboe Vest Growth-100 Buffer ETF - December changed its name to FT Cboe Vest Nasdaq-100(R) Buffer ETF - December. The Fund's ticker symbol was not changed. Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value ("NAV"), only in large blocks of shares known as "Creation Units." Each Fund is an actively managed exchange-traded fund. The investment objective of YMAR is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the iShares MSCI EAFE ETF (the "Underlying MSCI ETF"), up to a predetermined upside cap of 14.18% (before fees, expenses and taxes), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying MSCI ETF losses, over the period from March 22, 2021 to March 18, 2022. The investment objective of QMAR is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Invesco QQQ TrustSM, Series 1 (the "Underlying Invesco ETF"), up to a predetermined upside cap of 15.51% (before fees, expenses and taxes), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying Invesco ETF losses, over the period from March 22, 2021 to March 18, 2022. The investment objective of YJUN is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying MSCI ETF, up to a predetermined upside cap of 11.81% (before fees, expenses and taxes), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying MSCI ETF losses, over the period from June 21, 2021 to June 17, 2022. The investment objective of QJUN is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying Invesco ETF, up to a predetermined upside cap of 13.00% (before fees, expenses and taxes), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying Invesco ETF losses, over the period from June 21, 2021 to June 17, 2022. The investment objective of XJUN is to seek to provide investors with returns (before fees, expenses and taxes) of approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying SPDR ETF"), up to a predetermined upside cap of 6.16% (before fees, expenses and taxes), while providing a buffer against the first 15% (before fees, expenses and taxes) of Underlying SPDR ETF losses, over the period from July 13, 2021 to June 17, 2022. Page 40 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The investment objective of YDEC is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying MSCI ETF, up to a predetermined upside cap of 13.79% (before fees, expenses and taxes) and 12.89% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying MSCI ETF losses, over the period from December 21, 2020 to December 17, 2021. The investment objective of QDEC is to seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Underlying Invesco ETF, up to a predetermined upside cap of 17.04% (before fees, expenses and taxes) and 16.14% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against the first 10% (before fees, expenses and taxes) of Underlying Invesco ETF losses, over the period from December 21, 2020 to December 17, 2021. Under normal market conditions, each Fund will invest substantially all of its assets in FLexible EXchange(R) Options ("FLEX Options") that reference the price performance that match those of a specified reference ETF, either the SPDR(R) S&P 500(R) ETF Trust, the Invesco QQQ TrustSM Series 1 ETF, or the iShares MSCI EAFE ETF (the "Underlying ETF"). 2. SIGNIFICANT ACCOUNTING POLICIES The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. PORTFOLIO VALUATION Each Fund's NAV is determined daily as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund's NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding. Each Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds' investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"), in accordance with valuation procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the 1940 Act. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund's investments are valued as follows: Exchange-traded options contracts (other than FLEX Option contracts) are valued at the closing price in the market where such contracts are principally traded. If no closing price is available, exchange-traded options contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Over-the-counter options contracts are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. FLEX Option contracts are normally valued using a model-based price provided by a third-party pricing vendor. On days when a trade in a FLEX Option contract occurs, the trade price will be used to value such FLEX Option contracts in lieu of the model price. Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the principal market for such securities. Shares of open-end funds are valued at fair value which is based on NAV per share. Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Trust's Board of Trustees or its delegate, the Advisor's Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing Page 41 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following: 1) the type of security; 2) the size of the holding; 3) the initial cost of the security; 4) transactions in comparable securities; 5) price quotes from dealers and/or third-party pricing services; 6) relationships among various securities; 7) information obtained by contacting the issuer, analysts, or the appropriate stock exchange; 8) an analysis of the issuer's financial statements; and 9) the existence of merger proposals or tender offers that might affect the value of the security. The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows: o Level 1 - Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. o Level 2 - Level 2 inputs are observable inputs, either directly or indirectly, and include the following: o Quoted prices for similar investments in active markets. o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. o Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the investment. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund's investments as of August 31, 2021, is included with each Fund's Portfolio of Investments. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. C. FLEX OPTIONS 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. FLEX Options are guaranteed for settlement by the Options Clearing Corporation. Each Fund purchases and sells call and put FLEX Options based on the performance of the Underlying ETF. The FLEX Options that each Fund holds that reference the Underlying ETF will give each Fund the right to receive or deliver shares of the Underlying ETF on the option expiration date at a strike price, depending on whether the option is a put or call option and whether each Fund purchases or sells the option. The FLEX Options held by each Fund are European style options, which are exercisable at the strike price only on the FLEX Option expiration date. All options held by each Fund at fiscal year end are FLEX Options. D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income of each Fund, if any, are declared and paid annually, or as the Board of Trustees may determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually. Page 42 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on significantly modified portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future. During their applicable taxable periods ended, none of the Funds paid a distribution in 2020 or 2021. As of August 31, 2021, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Ordinary Other Appreciation Income Gain (Loss) (Depreciation) ------------- ------------- -------------- <S> <C> <C> <C> FT Cboe Vest International Equity Buffer ETF - March $ (24,298) $ -- $ 250,620 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (51,575) 3,818 1,269,433 FT Cboe Vest International Equity Buffer ETF - June (12,534) -- 249,407 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (38,545) -- 1,073,979 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (5,184) -- 69,967 FT Cboe Vest International Equity Buffer ETF - December (51,235) -- 706,330 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (298,323) 853,295 8,678,226 </TABLE> E. INCOME TAXES Each Fund intends to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund's taxable income exceeds the distributions from such taxable income for the calendar year. The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable year ended 2021 remains open to federal and state audit. As of August 31, 2021, management has evaluated the application of these standards to the Funds and has determined that no provision for income tax is required in the Funds' financial statements for uncertain tax positions. Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At each Fund's applicable taxable year end, the Funds had no capital loss carryforwards for federal income tax purposes. Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. At each Fund's applicable taxable year end, the Funds had no net late year ordinary or capital losses. In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For each Fund's applicable taxable period the adjustments were as follows: Page 43 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 <TABLE> <CAPTION> Accumulated Accumulated Net Realized Taxable Net Investment Gain (Loss) Paid-in Year End Income (Loss) on Investments Capital -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> FT Cboe Vest International Equity Buffer ETF - March 31-Mar-21 $ 719 $ -- $ (719) FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-21 1,365 -- (1,365) FT Cboe Vest International Equity Buffer ETF - June 30-Jun-21 500 -- (500) FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-21 1,742 -- (1,742) FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 30-Jun-22 -- -- -- FT Cboe Vest International Equity Buffer ETF - December 31-Dec-20 970 -- (970) FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-20 3,259 -- (3,259) </TABLE> F. EXPENSES Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3). 3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the ongoing monitoring of the securities in each Fund's portfolio, managing the Funds' business affairs and providing certain administrative services necessary for the management of the Funds. First Trust is paid an annual unitary management fee of 0.90% of each Fund's average daily net assets with the exception of XJUN which pays an annual unitary management fee of 0.85%. First Trust and Cboe Vest Financial LLC ("Cboe Vest"), an affiliate of First Trust, are responsible for each Fund's expenses, including the cost of transfer agency, sub-advisory, custody, fund administration, legal, audit and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. Cboe Vest serves as the Funds' sub-advisor and manages each Fund's portfolio subject to First Trust's supervision. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Funds, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of the Funds, the Advisor and Cboe Vest, First Trust will supervise Cboe Vest and its management of the investment of each Fund's assets and will pay Cboe Vest for its services as the Funds' sub-advisor a sub-advisory fee equal to 50% of any remaining monthly unitary management fee paid to the Advisor, after the average Fund's expenses accrued during the most recent twelve months are subtracted from the unitary management fee for that month. The Trust has multiple service agreements with The Bank of New York Mellon ("BNYM"). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund's assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund's securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company. Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or is an index fund. Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. Page 44 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 4. PURCHASES AND SALES OF SECURITIES For the fiscal period ended August 31, 2021, the Funds had no purchases or sales of investments, excluding short-term investments and in-kind transactions. Each Fund holds options for a target outcome period of approximately one year based on the expiration date of the options, which occurs on the third Friday of the month corresponding to the month in each Fund name. For securities transactions purposes, the options are considered short-term investments. For the fiscal period ended August 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows: <TABLE> <CAPTION> Purchases Sales -------------- -------------- <S> <C> <C> FT Cboe Vest International Equity Buffer ETF - March $ 4,155,816 $ -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 8,222,751 -- FT Cboe Vest International Equity Buffer ETF - June 9,915,025 -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 16,132,687 -- FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June -- -- FT Cboe Vest International Equity Buffer ETF - December 5,106,186 -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 30,179,402 2,182,886 </TABLE> 5. DERIVATIVE TRANSACTIONS The following table presents the types of derivatives held by each Fund at August 31, 2021, the primary underlying risk exposure and the location of these instruments as presented on the Statements of Assets and Liabilities. <TABLE> <CAPTION> ASSET DERIVATIVES LIABILITY DERIVATIVES ----------------------------------------- ----------------------------------------- DERIVATIVES STATEMENTS OF ASSETS AND STATEMENTS OF ASSETS AND INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE ------------------ ------------------ -------------------------- ------------ -------------------------- ------------ <S> <C> <C> <C> <C> <C> YMAR Options contracts Options contracts Options Equity Risk purchased, at value $ 12,885,676 written, at value $ 301,660 QMAR Options contracts Options contracts Options Equity Risk purchased, at value 20,869,049 written, at value 2,109,408 YJUN Options contracts Options contracts Options Equity Risk purchased, at value 13,705,263 written, at value 558,126 QJUN Options contracts Options contracts Options Equity Risk purchased, at value 36,439,150 written, at value 3,200,926 XJUN Options contracts Options contracts Options Equity Risk purchased, at value 6,873,029 written, at value 908,128 YDEC Options contracts Options contracts Options Equity Risk purchased, at value 12,173,693 written, at value 224,625 QDEC Options contracts Options contracts Options Equity Risk purchased, at value 85,051,617 written, at value 6,437,281 </TABLE> Page 45 <PAGE> -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal period ended August 31, 2021, on each Fund's derivative instruments, as well as the primary underlying risk exposure associated with the instruments. <TABLE> <CAPTION> EQUITY RISK ------------------------------------------------------------- STATEMENTS OF OPERATIONS LOCATION YMAR QMAR YJUN QJUN XJUN ------------------------------------- ------------------------------------------------------------- <S> <C> <C> <C> <C> <C> Net realized gain (loss) on: Purchased options contracts $ -- $ 2,058 $ -- $ -- $ -- Written options contracts -- (11,640) -- -- -- Net change in unrealized appreciation (depreciation) on: Purchased options contracts 57,601 1,749,290 150,791 1,508,898 224,273 Written options contracts 193,019 (466,457) 98,616 (434,919) (154,306) </TABLE> <TABLE> <CAPTION> EQUITY RISK ----------------------- STATEMENTS OF OPERATIONS LOCATION YDEC QDEC ------------------------------------- ----------------------- <S> <C> <C> Net realized gain (loss) on: Purchased options contracts $ -- $ 703,628 Written options contracts -- 105,958 Net change in unrealized appreciation (depreciation) on: Purchased options contracts 379,986 8,511,616 Written options contracts 326,344 351,344 </TABLE> The Funds do not have the right to offset financial assets and financial liabilities related to options contracts on the Statements of Assets and Liabilities. The following table presents the premiums for purchased options contracts opened, premiums for purchased options contracts closed, exercised and expired, premiums for written options contracts opened, and premiums for written options contracts closed, exercised and expired, for the fiscal period ended August 31, 2021, on each Fund's options contracts. <TABLE> <CAPTION> PREMIUMS FOR PREMIUMS FOR PREMIUMS FOR PURCHASED WRITTEN OPTIONS PURCHASED OPTIONS CONTRACTS PREMIUMS FOR CONTRACTS CLOSED, OPTIONS CONTRACTS CLOSED, EXERCISED WRITTEN OPTIONS EXERCISED AND OPENED AND EXPIRED CONTRACTS OPENED EXPIRED ---------------------------------------------------------------------------- <S> <C> <C> <C> <C> YMAR $ 12,828,075 $ -- $ 494,679 $ -- QMAR 24,755,072 5,635,313 2,080,503 437,552 YJUN 13,554,472 -- 656,742 -- QJUN 34,930,252 -- 2,766,007 -- XJUN 6,648,756 -- 753,822 -- YDEC 11,793,707 -- 550,969 -- QDEC 96,561,953 20,021,952 8,269,438 1,480,813 </TABLE> 6. CREATIONS, REDEMPTIONS AND TRANSACTION FEES Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as "Authorized Participants" have contractual arrangements with a Fund or one of the Fund's service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as "Creation Units." Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation ("NSCC") the "basket" of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund's shares. An Authorized Participant that wishes to effectuate a creation of a Fund's shares deposits with the Fund the "basket" of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund's shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund's shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Page 46 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Authorized Participant redeems a Creation Unit of a Fund's shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund's shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund's shares at or close to the NAV per share of the Fund. Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket. Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed. 7. DISTRIBUTION PLAN The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services. No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before December 31, 2022 for YDEC and QDEC, March 8, 2023 for YMAR and QMAR, June 1, 2023 for YJUN and QJUN, and June 28, 2023 for XJUN. 8. INDEMNIFICATION The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 9. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were the following subsequent events: On September 20, 2021, FT Cboe Vest International Equity Buffer ETF - September and FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, each an additional series of the Trust, began trading under the symbols "YSEP" and "QSPT," respectively, on Cboe BZX. On September 21, 2021, First Trust SkyBridge Crypto Industry and Digital Economy ETF, an additional series of the Trust, began trading under the symbol "CRPT" on NYSE Arca, Inc. On October 14, 2021, First Trust Multi-Manager Small Cap Opportunities ETF, an additional series of the Trust, began trading under the symbol "MMSC" on NYSE Arca, Inc. Page 47 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED FUND VIII: OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS We have audited the accompanying statements of assets and liabilities of FT Cboe Vest International Equity Buffer ETF - March, FT Cboe Vest Nasdaq-100(R) Buffer ETF - March, FT Cboe Vest International Equity Buffer ETF - June, FT Cboe Vest Nasdaq-100(R) Buffer ETF - June, FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June, FT Cboe Vest International Equity Buffer ETF - December, and FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2021, and the related statements of operations, the changes in net assets, and the financial highlights for the periods indicated in the table below, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of August 31, 2021, and the results of their operations, the changes in their net assets, and the financial highlights for the periods listed in the table below, in conformity with accounting principles generally accepted in the United States of America. <TABLE> <CAPTION> INDIVIDUAL FUNDS STATEMENTS OF STATEMENTS OF FINANCIAL INCLUDED IN THE TRUST OPERATIONS CHANGES IN NET ASSETS HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> FT Cboe Vest International Equity For the period from March 19, 2021 (commencement of operations) through Buffer ETF - March August 31, 2021 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March FT Cboe Vest International Equity For the period from June 18, 2021 (commencement of operations) through Buffer ETF - June August 31, 2021 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June FT Cboe Vest U.S. Equity Enhance For the period from July 12, 2021 (commencement of operations) through & Moderate Buffer ETF - June August 31, 2021 FT Cboe Vest International Equity For the period from December 18, 2020 (commencement of operations) through Buffer ETF - December August 31, 2021 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December </TABLE> BASIS FOR OPINION These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our Page 48 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED) -------------------------------------------------------------------------------- audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 25, 2021 We have served as the auditor of one or more First Trust investment companies since 2001. Page 49 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov. PORTFOLIO HOLDINGS Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC's website at www.sec.gov. Each Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above. FEDERAL TAX INFORMATION There were no distributions made by each Fund during their applicable taxable period; therefore, no analysis for the corporate dividends received deduction and qualified dividend income were completed. RISK CONSIDERATIONS RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND. CONCENTRATION RISK. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund's investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund's corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified. CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments. CYBER SECURITY RISK. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund's third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches. DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor's investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund's share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless. Page 50 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) DERIVATIVES RISK. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund. EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the value of the fund's shares will fluctuate with changes in the value of the 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 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 capital rises and borrowing costs increase. 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. ETF RISK. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange 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). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF's shares, or decisions by an ETF's authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF's shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads. FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund's fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities. INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund's net asset value could be negatively impacted and the fund's market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund's shares. INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund's costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders. INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund's investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests. LIBOR RISK. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund. Page 51 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) MANAGEMENT RISK. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund's investment portfolio, the fund's portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective. MARKET RISK. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. 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; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries. OPERATIONAL RISK. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund's ability to meet its investment objective. Although the funds and the funds' investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets. DISCLAIMER The funds are not sponsored, endorsed, sold or promoted by Invesco QQQ Trust(SM), Series 1, Invesco, or Nasdaq, Inc., (together with their affiliates hereinafter referred to as the "Corporations"). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the funds or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by the funds or the FLEX Options, shareholders or any other person or entity from use of the Invesco QQQ Trust(SM). The Corporations have no liability in connection with the management, administration, marketing or trading of the funds or the FLEX Options. MSCI EAFE ETF, BFA, or MSCI Inc., (together with their affiliates hereinafter referred to as the "Corporations") have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to funds or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by the funds or the FLEX Options, shareholders or any other person or entity from use of iShares MSCI EAFE ETF. The Corporations have no liability in connection with the management, administration, marketing or trading of the funds or the FLEX Options. The funds are not sponsored, endorsed, sold or promoted by SPDR(R) S&P 500(R) ETF Trust, PDR, or Standard & Poor's(R) (together with their affiliates hereinafter referred to as the "Corporations"). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the funds or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by the funds or the FLEX Options, shareholders or any other person or entity from use of the SPDR(R) S&P 500(R) ETF Trust. The Corporations have no liability in connection with the management, administration, marketing or trading of the funds or the FLEX Options. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE Page 52 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT AND INVESTMENT SUB-ADVISORY AGREEMENT FOR FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, approved the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor") on behalf of the following two series of the Trust (each a "Fund" and collectively, the "Funds"): FT Cboe Vest International Equity Buffer ETF - March (YMAR) FT Cboe Vest International Equity Buffer ETF - June (YJUN) The Board approved the Agreements for each Fund for an initial two-year term at a meeting held on December 7, 2020. The Board determined for each Fund that the Agreements are in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its reasonable business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreements for each Fund, the Independent Trustees received a separate report from each of the Advisor and the Sub-Advisor in advance of the Board meeting responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor and the Sub-Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor; the proposed sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the estimated expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to each Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates, First Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC ("FTCP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor and the Sub-Advisor. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor are reasonable business arrangements from each Fund's perspective. In evaluating whether to approve the Agreements for each Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor will be responsible for the overall management and administration of each Fund and reviewed all of the services to be provided by the Advisor to the Funds, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board considered that each Fund will be an actively-managed ETF and will employ an advisor/sub-advisor management structure and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor will oversee the Sub-Advisor's day-to-day management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board noted that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. With respect to the Sub-Advisory Agreement, in addition to the written materials provided by the Sub-Advisor, at the December 7, 2020 meeting, the Board also received a presentation from representatives of the Sub-Advisor discussing the services that the Sub-Advisor will provide to the Funds, and the Trustees were able to ask questions about the proposed investment strategy for the Funds. The Board noted the background and experience of the Sub-Advisor's portfolio management team and the Sub-Advisor's investment style. The Board also noted that the Sub-Advisor manages a number of other defined-outcome ETFs with strategies similar to those of the Funds in the First Trust Fund Complex. Because the Funds had yet to commence investment Page 53 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) operations, the Board could not consider the historical investment performance of the Funds. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to each Fund by the Advisor and the Sub-Advisor under the Agreements are expected to be satisfactory. The Board considered the proposed unitary fee rate payable by each Fund under the Advisory Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, each Fund would pay the Advisor a unitary fee equal to an annual rate of 0.90% of its average daily net assets. The Board considered that, from the unitary fee for each Fund, the Advisor would pay the Sub-Advisor a sub-advisory fee equal to 50% of the Fund's unitary fee less one-half of the Fund's expenses. The Board noted that the Advisor and the Sub-Advisor would be responsible for each Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETF) and non-fund clients, as applicable. Because each Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for each Fund was equal to the median total (net) expense ratio of the peer funds in its Expense Group. With respect to the Expense Groups, the Board discussed with representatives of the Advisor how the Expense Groups were assembled and how each Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other clients, the Board considered the Advisor's statement that the Funds will be unique to the market and the First Trust Fund Complex, but will be most similar to the ETFs in the FT Cboe Vest U.S. Equity Target Outcome ETF product line in the First Trust Fund Complex that are managed by the Advisor and sub-advised by the Sub-Advisor, as well as two other actively-managed ETFs in the First Trust Fund Complex that are managed by the Advisor and employ options-based strategies, each of which pays a unitary fee equal to an annual rate of 0.85% of its average daily net assets. In light of the information considered and the nature, extent and quality of the services expected to be provided to each Fund under the Agreements, the Board determined that, for each Fund, the proposed unitary fee, including the sub-advisory fee to be paid by the Advisor to the Sub-Advisor from the unitary fee, was fair and reasonable. The Board noted that the proposed unitary fee for each Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor and the Sub-Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for each Fund under the Advisory Agreement. The Board considered the Advisor's estimate of the asset level for each Fund at which the Advisor expects the Advisory Agreement for the Fund to be profitable to the Advisor and the Advisor's estimate of the profitability of the Advisory Agreement for each Fund if its assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for each Fund was not unreasonable. The Board reviewed financial information provided by the Sub-Advisor, but did not review any potential profitability of the Sub-Advisory Agreement for each Fund to the Sub-Advisor. The Board considered that the Sub-Advisor would be paid by the Advisor from each Fund's unitary fee and its understanding that the sub-advisory fee rate for each Fund was the product of an arm's length negotiation. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Funds. The Board noted that FTCP has a controlling ownership interest in the Sub-Advisor's parent company and considered potential fall-out benefits to the Advisor from such ownership interest. The Board also considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP. The Board also considered the potential fall-out benefits to the Sub-Advisor from FTCP's controlling ownership interest in the Sub-Advisor's parent company. The Board noted the Sub-Advisor's statements that it does not foresee any fall-out benefits from its relationship with the Funds and that, as a policy, it does not enter into soft-dollar arrangements for the procurement of research services in connection with client securities transactions. The Board concluded that the character and amount of potential fall-out benefits to the Advisor and the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Agreements are fair and reasonable and that the approval of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board's analysis. Page 54 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT AND INVESTMENT SUB-ADVISORY AGREEMENT FOR FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, approved the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor") on behalf of the following two series of the Trust (each a "Fund" and collectively, the "Funds"): FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR) FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN) The Board approved the Agreements for each Fund for an initial two-year term at a meeting held on December 7, 2020. The Board determined for each Fund that the Agreements are in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its reasonable business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreements for each Fund, the Independent Trustees received a separate report from each of the Advisor and the Sub-Advisor in advance of the Board meeting responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor and the Sub-Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor; the proposed sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the estimated expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to each Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates, First Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC ("FTCP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor and the Sub-Advisor. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor are reasonable business arrangements from each Fund's perspective. In evaluating whether to approve the Agreements for each Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor will be responsible for the overall management and administration of each Fund and reviewed all of the services to be provided by the Advisor to the Funds, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board considered that each Fund will be an actively-managed ETF and will employ an advisor/sub-advisor management structure and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor will oversee the Sub-Advisor's day-to-day management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board noted that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. With respect to the Sub-Advisory Agreement, in addition to the written materials provided by the Sub-Advisor, at the December 7, 2020 meeting, the Board also received a presentation from representatives of the Sub-Advisor discussing the services that the Sub-Advisor will provide to the Funds, and the Trustees were able to ask questions about the proposed investment strategy for the Funds. The Board noted the background and experience of the Sub-Advisor's portfolio management team and the Sub-Advisor's investment style. The Board also noted that the Sub-Advisor manages a number of other defined-outcome ETFs with strategies similar to those of the Funds in the First Trust Fund Complex. Because the Funds had yet to commence investment operations, the Board could not consider the historical investment performance of the Funds. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to each Fund by the Advisor and the Sub-Advisor under the Agreements are expected to be satisfactory. Page 55 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) The Board considered the proposed unitary fee rate payable by each Fund under the Advisory Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, each Fund would pay the Advisor a unitary fee equal to an annual rate of 0.90% of its average daily net assets. The Board considered that, from the unitary fee for each Fund, the Advisor would pay the Sub-Advisor a sub-advisory fee equal to 50% of the Fund's unitary fee less one-half of the Fund's expenses. The Board noted that the Advisor and the Sub-Advisor would be responsible for each Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETF) and non-fund clients, as applicable. Because each Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for each Fund was above the median total (net) expense ratio of the peer funds in its Expense Group. With respect to the Expense Groups, the Board discussed with representatives of the Advisor how the Expense Groups were assembled and how each Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other clients, the Board considered the Advisor's statement that the Funds will be unique to the market and the First Trust Fund Complex, but will be most similar to the ETFs in the FT Cboe Vest U.S. Equity Target Outcome ETF product line in the First Trust Fund Complex that are managed by the Advisor and sub-advised by the Sub-Advisor, as well as two other actively-managed ETFs in the First Trust Fund Complex that are managed by the Advisor and employ options-based strategies, each of which pays a unitary fee equal to an annual rate of 0.85% of its average daily net assets. In light of the information considered and the nature, extent and quality of the services expected to be provided to each Fund under the Agreements, the Board determined that, for each Fund, the proposed unitary fee, including the sub-advisory fee to be paid by the Advisor to the Sub-Advisor from the unitary fee, was fair and reasonable. The Board noted that the proposed unitary fee for each Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor and the Sub-Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for each Fund under the Advisory Agreement. The Board considered the Advisor's estimate of the asset level for each Fund at which the Advisor expects the Advisory Agreement for the Fund to be profitable to the Advisor and the Advisor's estimate of the profitability of the Advisory Agreement for each Fund if its assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for each Fund was not unreasonable. The Board reviewed financial information provided by the Sub-Advisor, but did not review any potential profitability of the Sub-Advisory Agreement for each Fund to the Sub-Advisor. The Board considered that the Sub-Advisor would be paid by the Advisor from each Fund's unitary fee and its understanding that the sub-advisory fee rate for each Fund was the product of an arm's length negotiation. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Funds. The Board noted that FTCP has a controlling ownership interest in the Sub-Advisor's parent company and considered potential fall-out benefits to the Advisor from such ownership interest. The Board also considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP. The Board also considered the potential fall-out benefits to the Sub-Advisor from FTCP's controlling ownership interest in the Sub-Advisor's parent company. The Board noted the Sub-Advisor's statements that it does not foresee any fall-out benefits from its relationship with the Funds and that, as a policy, it does not enter into soft-dollar arrangements for the procurement of research services in connection with client securities transactions. The Board concluded that the character and amount of potential fall-out benefits to the Advisor and the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Agreements are fair and reasonable and that the approval of the Agreements is in the best interests of each Fund. No single factor was determinative in the Board's analysis. BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT AND INVESTMENT SUB-ADVISORY AGREEMENT FOR FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, approved the Investment Management Agreement (the "Advisory Agreement") with First Trust Advisors L.P. (the "Advisor"), on behalf of FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (the "Fund"), and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Trust, on Page 56 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) behalf of the Fund, the Advisor and Cboe Vest Financial LLC (the "Sub-Advisor"), for an initial two-year term at a meeting held on June 7, 2021. The Board determined that the Agreements are in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreements for the Fund, the Independent Trustees received a separate report from each of the Advisor and the Sub-Advisor in advance of the Board meeting responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor and the Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by the Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor; the proposed sub-advisory fee rate as compared to fees charged to other clients of the Sub-Advisor; the estimated expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to the Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and its affiliates, First Trust Portfolios L.P. ("FTP") and First Trust Capital Partners, LLC ("FTCP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor and the Sub-Advisor. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and the Sub-Advisor are reasonable business arrangements from the Fund's perspective. In evaluating whether to approve the Agreements for the Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor will be responsible for the overall management and administration of the Fund and reviewed all of the services to be provided by the Advisor to the Fund, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board considered that the Fund will be an actively-managed ETF and will employ an advisor/sub-advisor management structure and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor will oversee the Sub-Advisor's day-to-day management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objective, policies and restrictions. The Board noted that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. With respect to the Sub-Advisory Agreement, in addition to the written materials provided by the Sub-Advisor, at the June 7, 2021 meeting, the Board also received a presentation from representatives of the Sub-Advisor discussing the services that the Sub-Advisor will provide to the Fund, and the Trustees were able to ask questions about the proposed investment strategy for the Fund. The Board noted the background and experience of the Sub-Advisor's portfolio management team and the Sub-Advisor's investment style. The Board also noted that the Sub-Advisor manages a number of other defined-outcome ETFs with strategies similar to those of the Fund in the First Trust Fund Complex. Because the Fund had yet to commence investment operations, the Board could not consider the historical investment performance of the Fund. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to the Fund by the Advisor and the Sub-Advisor under the Agreements are expected to be satisfactory. The Board considered the proposed unitary fee rate payable by the Fund under the Advisory Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal to an annual rate of 0.85% of its average daily net assets. The Board considered that, from the unitary fee for the Fund, the Advisor would pay the Sub-Advisor a sub-advisory fee equal to 50% of the Fund's unitary fee less one-half of the Fund's expenses. The Board noted that the Advisor and the Sub-Advisor would be responsible for the Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the unitary fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund (including ETF) and non-fund clients, as applicable. Because the Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board Page 57 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) discussed with representatives of the Advisor how the Expense Group was assembled and how the Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other clients, the Board considered the Advisor's statement that the Fund will be unique to the market and the First Trust Fund Complex, but will be most similar to the ETFs in the FT Cboe Vest U.S. Equity Buffer ETF and FT Cboe Vest U.S. Equity Deep Buffer ETF product lines in the First Trust Fund Complex that are managed by the Advisor and sub-advised by the Sub-Advisor, each of which pays a unitary fee equal to an annual rate of 0.85% of its average daily net assets. In light of the information considered and the nature, extent and quality of the services expected to be provided to the Fund under the Agreements, the Board determined that the proposed unitary fee, including the sub-advisory fee to be paid by the Advisor to the Sub-Advisor from the unitary fee, was fair and reasonable. The Board noted that the proposed unitary fee for the Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Fund would benefit the Advisor and the Sub-Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Fund. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for the Fund under the Advisory Agreement. The Board considered the Advisor's estimate of the asset level for the Fund at which the Advisor expects the Advisory Agreement to be profitable to the Advisor and the Advisor's estimate of the profitability of the Advisory Agreement if the Fund's assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for the Fund was not unreasonable. The Board reviewed financial information provided by the Sub-Advisor, but did not review any potential profitability of the Sub-Advisory Agreement to the Sub-Advisor. The Board considered that the Sub-Advisor would be paid by the Advisor from the Fund's unitary fee and its understanding that the sub-advisory fee rate was the product of an arm's length negotiation. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund. The Board noted that FTCP has a controlling ownership interest in the Sub-Advisor's parent company and considered potential fall-out benefits to the Advisor from such ownership interest. The Board also considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP. The Board also considered the potential fall-out benefits to the Sub-Advisor from FTCP's controlling ownership interest in the Sub-Advisor's parent company. The Board noted the Sub-Advisor's statements that it does not foresee any fall-out benefits from its relationship with the Fund and that, as a policy, it does not enter into soft-dollar arrangements for the procurement of research services in connection with client securities transactions. The Board concluded that the character and amount of potential fall-out benefits to the Advisor and the Sub-Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Agreements are fair and reasonable and that the approval of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board's analysis. LIQUIDITY RISK MANAGEMENT PROGRAM In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program (the "Program") reasonably designed to assess and manage the funds' liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust Liquidity Committee. Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund's portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment minimum for certain funds, monitors the funds' holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund's net assets and establishes policies and procedures regarding redemptions in kind. At the April 26, 2021 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 20, 2020 through the Liquidity Committee's annual meeting held on March 16, 2021 and assessed the Program's adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums. Page 58 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) As stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund's investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4. Page 59 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The Trust's statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891. <TABLE> <CAPTION> NUMBER OF OTHER PORTFOLIOS IN TRUSTEESHIPS OR TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> Richard E. Erickson, Trustee o Indefinite Term Physician, Officer, Wheaton Orthopedics; 210 None (1951) Limited Partner, Gundersen Real Estate o Since Inception Limited Partnership (June 1992 to December 2016) Thomas R. Kadlec, Trustee o Indefinite Term President, ADM Investors Services, Inc. 210 Director of ADM (1957) (Futures Commission Merchant) Investor Services, o Since Inception Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises (Financial 210 Director of Trust (1956) and Management Consulting) Company of o Since Inception Illinois Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (August 2018 to Present), 210 None (1954) Managing Director and Chief Operating o Since Inception Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First Trust 210 None Chairman of the Board Advisors L.P. and First Trust (1955) o Since Inception Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) </TABLE> ----------------------------- (1) Mr. Bowen is deemed an "interested person" of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust. Page 60 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS AND YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS(2) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer (1966) Executive Officer (January 2016 to Present), Controller (January 2011 o Since Inception to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to Present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President (July 2016 to Present), Vice (1972) Officer and Chief President (April 2012 to July 2016), First Trust Accounting Officer o Since Inception Advisors L.P. and First Trust Portfolios L.P. W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P. and (1960) Legal Officer First Trust Portfolios L.P.; Secretary and General o Since Inception Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and (1970) First Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. (1966) and Assistant Secretary and First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1966) and First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1970) and First Trust Portfolios L.P. o Since Inception </TABLE> ----------------------------- (2) The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. Page 61 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PRIVACY POLICY First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information. SOURCES OF INFORMATION We collect nonpublic personal information about you from the following sources: o Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; o Information about your transactions with us, our affiliates or others; o Information we receive from your inquiries by mail, e-mail or telephone; and o Information we collect on our website through the use of "cookies". For example, we may identify the pages on our website that your browser requests or visits. INFORMATION COLLECTED The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information. DISCLOSURE OF INFORMATION We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons: o In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. o We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust. USE OF WEBSITE ANALYTICS We currently use third party analytics tools, Google Analytics and AddThis to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis. CONFIDENTIALITY AND SECURITY With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information. POLICY UPDATES AND INQUIRIES As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors). March 2021 Page 62 <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. <PAGE> FIRST TRUST First Trust Exchange-Traded Fund VIII INVESTMENT ADVISOR First Trust Advisors L.P. 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 INVESTMENT SUB-ADVISOR Cboe Vest Financial LLC 1765 Greensboro Station Pl, 9th Floor McLean, VA 22102 ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 111 S. Wacker Drive Chicago, IL 60606 LEGAL COUNSEL Chapman and Cutler LLP 111 W. Monroe Street Chicago, IL 60603 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust Low Duration Strategic Focus ETF (LDSF) First Trust Active Factor Large Cap ETF (AFLG) First Trust Active Factor Mid Cap ETF (AFMC) First Trust Active Factor Small Cap ETF (AFSM) First Trust Innovation Leaders ETF (ILDR) First Trust Expanded Technology ETF (XPND) ---------------------------- Annual Report For the Period Ended August 31, 2021 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 Shareholder Letter........................................................... 2 Fund Performance Overview First Trust Low Duration Strategic Focus ETF (LDSF)....................... 3 First Trust Active Factor Large Cap ETF (AFLG)............................ 5 First Trust Active Factor Mid Cap ETF (AFMC).............................. 7 First Trust Active Factor Small Cap ETF (AFSM)............................ 9 First Trust Innovation Leaders ETF (ILDR)................................. 11 First Trust Expanded Technology ETF (XPND)................................ 13 Notes to Fund Performance Overview........................................... 15 Portfolio Commentary......................................................... 16 Understanding Your Fund Expenses............................................. 23 Portfolio of Investments First Trust Low Duration Strategic Focus ETF (LDSF)....................... 25 First Trust Active Factor Large Cap ETF (AFLG)............................ 26 First Trust Active Factor Mid Cap ETF (AFMC).............................. 31 First Trust Active Factor Small Cap ETF (AFSM)............................ 36 First Trust Innovation Leaders ETF (ILDR)................................. 41 First Trust Expanded Technology ETF (XPND)................................ 44 Statements of Assets and Liabilities......................................... 46 Statements of Operations..................................................... 48 Statements of Changes in Net Assets.......................................... 50 Financial Highlights......................................................... 52 Notes to Financial Statements................................................ 55 Report of Independent Registered Public Accounting Firm...................... 63 Additional Information....................................................... 65 Board of Trustees and Officers............................................... 76 Privacy Policy............................................................... 78 <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. ("First Trust" or the "Advisor") and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as "anticipate," "estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or other words that convey uncertainty of future events or outcomes. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of any series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (each such series is referred to as a "Fund" and collectively, as the "Funds") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof. PERFORMANCE AND RISK DISCLOSURE There is no assurance that any Fund described in this report will achieve its investment objectives. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund's shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in a Fund. See "Risk Considerations" in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds. Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost. The Advisor may also periodically provide additional information on Fund performance on each Fund's webpage at www.ftportfolios.com. HOW TO READ THIS REPORT This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund's performance and investment approach. By reading the portfolio commentary from the portfolio management team of the Funds, you may obtain an understanding of how the market environment affected each Fund's performance. The statistical information that follows may help you understand each Fund's performance compared to that of a relevant market benchmarks. It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings. Page 1 <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2021 Dear Shareholders: First Trust is pleased to provide you with the annual report for certain series of the First Trust Exchange-Traded Fund VIII (the "Funds"), which contains detailed information about the Funds for the twelve months ended August 31, 2021. Please note that the First Trust Innovation Leaders ETF ("ILDR") and the First Trust Expanded Technology ETF ("XPND") incepted after September 1, 2020, the start of the reporting period, so information in this letter and the report prior to those inception dates will not apply to those Funds. The coronavirus ("COVID-19") pandemic has proven to be as stubborn as advertised. We were warned by the scientific community early on that we would have to coexist with this virus from here on out, and that appears to be the case some 19 months after its onset. While the three main vaccines have proven to be effective at keeping those people who have gotten all the required shots out of the hospital, the U.S., unfortunately, had only achieved a 54% fully vaccinated rate as of September 9, 2021, according to the Centers for Disease Control and Prevention. If you add in the people ages 18 and older who have received just one of the two-dose vaccines, it jumps to 75.3%. The U.S. and global economies continue to underperform due to the pandemic. The U.S. alone had a record high 10.9 million job openings at the end of July 2021, according to the latest Job Openings and Labor Turnover Survey from the Department of Labor. It appears that many people do not seem to want to work right now. An estimated 7.5 million unemployment recipients in the U.S. were scheduled to lose their benefits on September 6, 2021. Perhaps that will be enough to incentivize people to go back to work. The Federal Reserve (the "Fed") continues to play a major role in the U.S. economy. It has kept short-term interest rates artificially low for the better part of the past 13 years. The Federal Funds target rate (upper bound), while held at 0.25% for roughly nine of those 13 years, reached as high as 2.50% in the same 13-year period, but only for a few months and that was just prior to the COVID-19 pandemic, according to data from the Fed. For comparative purposes, the target rate averaged 2.56% for the 30-year period ended September 21, 2021. It currently stands at 0.25%. In addition to keeping rates low, the Fed has been buying assets, specifically Treasuries and mortgage-backed securities. It has been buying a combined $120 billion of these securities every month. This has helped keep bond yields artificially low as well. As of February 26, 2020, the value of the assets on the Fed's balance sheet totaled $4.16 trillion, according to its own data. As of September 15, 2021, the assets were valued at $8.45 trillion. Keep in mind, the balance sheet stood at $1 trillion on September 17, 2008. That was during the 2007-2008 Financial Crisis. Due to the reopening of the U.S. economy and a bigger-than-expected rise in inflation this year, the Fed has signaled that it could begin to taper its bond buying program by the end of 2021. With respect to the Federal Funds rate, the Fed continues to say it intends to leave short-term rates where they are until 2023. In other words, the Fed is poised to maintain its accommodative stance towards monetary policy. They are not looking to get tight - just less loose. We will monitor this scenario closely in the months ahead to see if the Fed's actions impact the direction of interest rates and bond yields. Overall, I am pleased to report that the securities markets have performed well in this tumultuous climate. It appears, in our opinion, that the extremely low interest rates offered on savings vehicles has motivated many investors to assume more risk to potentially generate higher returns. The S&P 500(R) Index (the "Index") posted a total return of 31.17% for the 12-month period ended August 31, 2021, according to Bloomberg. For comparative purposes, from 1926 through 2020 (95 years), the Index returned an average of 10.28% per year on a total return basis, according to Morningstar/Ibbotson Associates. Should interest rates and bond yields eventually trend higher, investors should be prepared for a bit of turbulence as stocks and bonds may be subjected to some potential short-term profit taking, in my opinion. Having said that, I encourage investors to stay the course. I remain optimistic due in large part to the trillions of dollars in government stimulus money already circulating in the economy as well as the potential for trillions of additional dollars from President Joe Biden's infrastructure and "human infrastructure" bills still weaving their way through Congress. It's hard to bet against growth in the current climate. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months. Sincerely, /s/ James A. Bowen James A. Bowen Chairman of the Board of Trustees Chief Executive Officer of First Trust Advisors L.P. Page 2 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) The First Trust Low Duration Strategic Focus ETF (the "Fund") seeks to generate current income, with a secondary objective of preservation of capital. Under normal market conditions, the Fund seeks to achieve its investment objectives by investing at least 80% of its net assets (including investment borrowings) in a portfolio of U.S.-listed exchange-traded funds ("ETFs") that principally invest in income-generating securities that provide the Fund with an effective portfolio duration of three years or less. The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on The Nasdaq Stock Market LLC under the ticker symbol "LDSF." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (1/3/19) Inception (1/3/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 1.57% 3.08% 8.39% Market Price 1.52% 3.06% 8.33% INDEX PERFORMANCE Blended Benchmark(1) 2.26% 4.74% 13.08% Bloomberg 1-5 Year Government/Credit Index 0.33% 3.52% 9.62% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 15.) ----------------------------- (1) The Blended Benchmark consists of the following two indexes: 80% of the Bloomberg 1-5 Year Government/Credit Index which measures the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds and investment grade U.S. corporate bonds that have a maturity between one and five years; and 20% of the ICE BofA US High Yield Constrained Index which tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market but caps issuer exposure at 2%. The indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. The Blended Index returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 80-20 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. Page 3 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 3, 2019 - AUGUST 31, 2021 First Trust Low Duration Blended Bloomberg 1-5 Year Strategic Focus ETF Benchmark Government/Credit Index <S> <C> <C> <C> 1/3/19 $10,000 $10,000 $10,000 2/28/19 10,210 10,151 10,037 8/31/19 10,453 10,564 10,433 2/29/20 10,648 10,789 10,676 8/31/20 10,672 11,059 10,926 2/28/21 10,781 11,190 10,924 8/31/21 10,839 11,308 10,962 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 4 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) The First Trust Active Factor Large Cap ETF (the "Fund") seeks to provide capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by large capitalization companies. The Fund defines large capitalization companies as those that, at the time of investment, have a minimum market capitalization equal to or greater than the minimum market capitalization of a widely recognized index of large capitalization companies based upon the composition of the index at the time of investment. The Fund is actively managed primarily relying on a multi-factor quantitative methodology with active risk management to construct a portfolio of securities exhibiting exposures to one or more investing factors. The multi-factor quantitative methodology currently used by the Fund may take into account the following factors: (i) value; (ii) momentum; (iii) quality; and (iv) low volatility. The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the NYSE Arca, Inc., under the ticker symbol "AFLG." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (12/3/19) (12/3/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 28.74% 19.93% 37.33% Market Price 28.51% 19.91% 37.28% INDEX PERFORMANCE S&P 500(R) Index 31.17% 26.48% 50.57% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 26.9% Consumer Discretionary 14.5 Health Care 11.7 Industrials 11.7 Communication Services 8.7 Financials 8.6 Consumer Staples 4.9 Materials 3.9 Real Estate 3.6 Utilities 2.9 Energy 2.6 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Apple, Inc. 4.2% Microsoft Corp. 4.0 Alphabet, Inc., Class A 3.7 Amazon.com, Inc. 2.1 Berkshire Hathaway, Inc., Class B 1.5 Oracle Corp. 1.5 Target Corp. 1.3 Quanta Services, Inc. 1.1 Johnson & Johnson 1.0 Cisco Systems, Inc. 1.0 -------- Total 21.4% ======== Page 5 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 3, 2019 - AUGUST 31, 2021 First Trust Active S&P 500(R) Factor Large Cap ETF Index <S> <C> <C> 12/3/19 $10,000 $10,000 2/29/20 9,344 9,595 8/31/20 10,667 11,479 2/28/21 11,677 12,597 8/31/21 13,733 15,058 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 6 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) The First Trust Active Factor Mid Cap ETF (the "Fund") seeks to provide capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by mid capitalization companies. The Fund defines mid capitalization companies as those that, at the time of investment, have a market capitalization between the minimum and maximum market capitalization of a widely recognized index of mid capitalization companies based upon the composition of the index at the time of investment. The Fund is actively managed primarily relying on a multi-factor quantitative methodology with active risk management to construct a portfolio of securities exhibiting exposures to one or more investing factors. The multi-factor quantitative methodology currently used by the Fund may take into account the following factors: (i) value; (ii) momentum; (iii) quality; and (iv) low volatility. The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the NYSE Arca, Inc., under the ticker symbol "AFMC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (12/3/19) (12/3/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 43.52% 18.10% 33.68% Market Price 43.23% 18.07% 33.63% INDEX PERFORMANCE S&P MidCap 400(R) Index 44.77% 22.50% 42.42% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Industrials 16.9% Consumer Discretionary 16.6 Information Technology 14.7 Financials 14.0 Health Care 13.4 Real Estate 8.7 Materials 5.3 Consumer Staples 3.0 Utilities 2.9 Communication Services 2.8 Energy 1.7 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Jones Lang LaSalle, Inc. 1.6% Dick's Sporting Goods, Inc. 1.4 Arrow Electronics, Inc. 1.3 AutoNation, Inc. 1.3 AGCO Corp. 1.3 Louisiana-Pacific Corp. 1.1 SYNNEX Corp. 1.1 UGI Corp. 1.1 American Financial Group, Inc. 1.1 ManpowerGroup, Inc. 1.0 -------- Total 12.3% ======== Page 7 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 3, 2019 - AUGUST 31, 2021 First Trust Active S&P MidCap Factor Mid Cap ETF 400(R) Index <S> <C> <C> 12/3/19 $10,000 $10,000 2/29/20 9,126 9,181 8/31/20 9,314 9,838 2/28/21 11,858 12,834 8/31/21 13,367 14,242 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 8 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) The First Trust Active Factor Small Cap ETF (the "Fund") seeks to provide capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by small capitalization companies. The Fund defines small capitalization companies as those that, at the time of investment, have a market capitalization between a minimum of $250 million and the maximum market capitalization of a widely recognized index of small capitalization companies based upon the composition of the index at the time of investment. The Fund is actively managed primarily relying on a multi-factor quantitative methodology with active risk management to construct a portfolio of securities exhibiting exposures to one or more investing factors. The multi-factor quantitative methodology currently used by the Fund may take into account the following factors: (i) value; (ii) momentum; (iii) quality; and (iv) low volatility. The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the NYSE Arca, Inc., under the ticker symbol "AFSM." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (12/3/19) (12/3/19) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 45.40% 18.85% 35.17% Market Price 45.24% 18.77% 35.02% INDEX PERFORMANCE Russell 2000(R) Index 47.08% 23.72% 44.90% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Health Care 19.9% Industrials 17.0 Consumer Discretionary 14.8 Financials 14.6 Information Technology 13.6 Real Estate 6.0 Consumer Staples 4.5 Materials 3.9 Energy 2.7 Communication Services 2.3 Utilities 0.7 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- ArcBest Corp. 1.0% Smith & Wesson Brands, Inc. 1.0 Hibbett, Inc. 1.0 Boise Cascade Co. 1.0 Navient Corp. 1.0 ModivCare, Inc. 1.0 MYR Group, Inc. 0.9 Vista Outdoor, Inc. 0.9 Louisiana-Pacific Corp. 0.9 Sprout Social, Inc., Class A 0.8 -------- Total 9.5% ======== Page 9 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 3, 2019 - AUGUST 31, 2021 First Trust Active Russell 2000(R) Factor Small Cap ETF Index <S> <C> <C> 12/3/19 $10,000 $10,000 2/29/20 8,981 9,244 8/31/20 9,297 9,851 2/28/21 12,461 13,958 8/31/21 13,518 14,489 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 10 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST INNOVATION LEADERS ETF (ILDR) The First Trust Innovation Leaders ETF (the "Fund") seeks to provide capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in common stock and depository receipts issued by U.S. and non-U.S. companies that may benefit from the development or application of scientific and technological innovation. This includes, but is not limited to, companies that are poised to benefit from new products or services, scientific research, technological improvements and/or enhancements to existing products or services related to automation, advanced medicine, networks, advanced computing, enhanced mobility, energy revolution and e-commerce. The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the NYSE Arca, Inc. under the ticker symbol "ILDR." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (5/25/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 14.35% Market Price 14.50% INDEX PERFORMANCE Russell 3000(R) Growth Index 13.37% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 50.8% Health Care 19.9 Industrials 11.0 Communication Services 9.6 Consumer Discretionary 7.5 Real Estate 0.6 Financials 0.6 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Alphabet, Inc., Class C 4.1% Facebook, Inc., Class A 3.9 Microsoft Corp. 3.6 Amazon.com, Inc. 2.4 salesforce.com, Inc. 2.1 ServiceNow, Inc. 1.9 Regeneron Pharmaceuticals, Inc. 1.9 Northrop Grumman Corp. 1.7 Workday, Inc., Class A 1.7 NVIDIA Corp. 1.6 -------- Total 24.9% ======== Page 11 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST INNOVATION LEADERS ETF (ILDR) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MAY 25, 2021 - AUGUST 31, 2021 First Trust Innovation Russell 3000(R) Leaders ETF Growth Index <S> <C> <C> 5/25/21 $10,000 $10,000 2/29/20 11,435 11,337 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 12 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) The First Trust Expanded Technology ETF (the "Fund") seeks to provide long-term capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of companies identified by the Fund's investment advisor as either information technology companies or consumer discretionary and communication services companies whose operations are principally derived from and/or dependent upon technology (such companies are collectively referred to herein as "Expanded Technology Companies"). The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended. The shares of the Fund are listed and traded on the NYSE Arca, Inc. under the ticker symbol "XPND." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (6/14/21) to 8/31/21 <S> <C> FUND PERFORMANCE NAV 8.37% Market Price 8.37% INDEX PERFORMANCE S&P 500(R) Information Technology Index 10.97% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 84.7% Communication Services 13.3 Consumer Discretionary 2.0 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Adobe, Inc. 5.4% NVIDIA Corp. 5.3 Intuit, Inc. 5.1 Microsoft Corp. 4.9 Apple, Inc. 4.9 Alphabet, Inc., Class A 4.8 Facebook, Inc., Class A 4.7 Oracle Corp. 4.5 PayPal Holdings, Inc. 4.4 QUALCOMM, Inc. 4.4 -------- Total 48.4% ======== Page 13 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) (CONTINUED) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 14, 2021 - AUGUST 31, 2021 First Trust Expanded S&P 500(R) Information Technology ETF Technology Index <S> <C> <C> 6/14/21 $10,000 $10,000 2/29/20 10,837 11,097 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 14 <PAGE> -------------------------------------------------------------------------------- NOTES TO FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- Total returns for the periods since inception are calculated from the inception date of each Fund. "Average Annual Total Returns" represent the average annual change in value of an investment over the periods indicated. "Cumulative Total Returns" represent the total change in value of an investment over the periods indicated. Each Fund's per share net asset value ("NAV") is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return ("Market Price") is determined by using the midpoint of the national best bid and offer price ("NBBO") as of the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund's NAV is calculated. Since shares of each Fund did not trade in the secondary market until after the Fund's inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of each Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in each Fund at NAV and Market Price, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike each Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by each Fund. These expenses negatively impact the performance of each Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the indices. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of each Fund will vary with changes in market conditions. Shares of each Fund may be worth more or less than their original cost when they are redeemed or sold in the market. Each Fund's past performance is no guarantee of future performance. Page 15 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") serves as the investment advisor to the First Trust Low Duration Strategic Focus ETF (the "Fund"). First Trust is responsible for the ongoing monitoring of the Fund's investment portfolio, managing the Fund's business affairs and providing certain administrative services necessary for the management of the Fund. PORTFOLIO MANAGEMENT TEAM The Fund's portfolio is managed by a team of portfolio managers consisting of: DANIEL J. LINDQUIST, MANAGING DIRECTOR OF FIRST TRUST DAVID G. MCGAREL, CHIEF INVESTMENT OFFICER, CHIEF OPERATING OFFICER AND MANAGING DIRECTOR OF FIRST TRUST CHRIS A. PETERSON, SENIOR VICE PRESIDENT OF FIRST TRUST WILLIAM HOUSEY, SENIOR VICE PRESIDENT OF FIRST TRUST STEVE COLLINS, VICE PRESIDENT OF FIRST TRUST The portfolio managers are primarily and jointly responsible for the day-to-day management of the Fund. Each portfolio manager has served as a part of the portfolio management team of the Fund since 2019. COMMENTARY FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) MARKET RECAP In September 2020, the Federal Reserve (the "Fed") announced an updated policy strategy that seeks inflation that averages 2% over time, indicating that the Federal Open Market Committee ("FOMC") would remain accommodative if inflation exceeds its target. In the fourth quarter of 2020, the Food and Drug Administration authorized emergency use of the Pfizer and Moderna coronavirus ("COVID-19") vaccines and the conclusion of the U.S. presidential election eased political uncertainty while President Trump signed a major pandemic relief bill in late December. At the time, odds favored Republicans to maintain control of the Senate, the implication being that a divided government would reduce the risk of significant tax and regulatory policy that could stunt economic growth, buttressing risk assets. Vaccine distribution accelerated in the first quarter of 2021 and economists began raising estimates for economic growth. The Fed's commitment to accommodative policy, concurrent with accelerating economic activity and growth projections, resulted in strong performance of risk assets and materially tighter investment grade and high yield credit spreads while the Treasury curve steepened by 101 basis points ("bps") (2-Year versus 10-Year) through the first quarter of 2021, with the 10-Year ending at 1.75% on March 31, 2021. Following the substantial move higher in rates through the first quarter of 2021, the yield curve began to flatten as longer-term U.S. Treasury demand was supported by institutional foreign buyers given the compelling yield levels relative to very low, even negative, foreign yields and institutional investors and pension funds rebalanced following strong equity performance. The 10-Year Treasury peaked on March 31, 2021, and by August 31, 2021 reverted to 1.31%. Continued economic growth and strong underlying credit fundamentals supported investment grade and high yield corporate spread tightening in the second quarter. PERFORMANCE ANALYSIS For the fiscal year ended August 31, 2021, the Fund's total return based on the net asset value ("NAV") was 1.57%. The Bloomberg 1-5 Year Government/Credit Index, the Fund's primary benchmark ("the Benchmark"), provided a return of 0.33% over the same period, therefore, the Fund's NAV total return outperformed the Benchmark by 1.24%. Fund performance benefitted from being both short duration and overweight credit as the yield curve steepened, and credit spreads tightened. Most of the Fund's positive performance was gained in the fourth quarter of 2020, specifically in November 2020, as the Fund returned 1.09% on a NAV basis, outperforming the Benchmark by 88 bps. High yield bond credit spreads tightened 99 bps in November 2020 propelling the First Trust Tactical High Yield ETF ("HYLS") to strong relative performance within the Fund. HYLS' exposure to leisure and media drove performance within high yield as positive vaccine news drove a strong recovery in prices. In the first quarter of 2021, the Fund was approximately flat versus the Benchmark but ended the quarter with a -0.56% total return due to emerging market exposure and longer duration assets hurt by curve steepening while the allocation to high yield offset some of the weakness. In the second quarter of 2021, the Fund's allocation to longer duration assets was a benefit and aided performance as the long end of the curve flattened and the Benchmark holds shorter dated bonds. The Fund's weakest relative performance came in the third quarter of 2021, specifically July 2021, a month where credit spreads widened, impacting the Fund's overweight to credit. Also in July, the 10-Year Treasury declined from 1.47% to 1.22% and the Fund's short duration and senior loan exposure weighed on relative performance. Page 16 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) MARKET AND FUND OUTLOOK During the September 2021 FOMC meeting, the Fed maintained the target range for the Federal Funds rate at 0.00 - 0.25% and confirmed they will continue to increase their holding of Treasury securities and agency mortgage-backed securities by at least $80 billion per month and $40 billion per month, respectively. However, given recent inflation prints that have far exceeded the Fed's 2.0% target and continued progress on employment, the Fed also acknowledged that moderating the pace of these asset purchases may soon be warranted. Of the 18 Fed survey participants, nine now expect at least one interest rate hike in 2022, up from seven in June 2021, and the median expectation is for three hikes in 2023, one more than projected at the last meeting. The Fed decreased its 2021 projection for growth in real gross domestic product from 7.0% to 5.9%, however, 2022 was raised from 3.3% to 3.8%. On the inflation front, the Fed again increased its 2021 personal consumption expenditures ("PCE") projection, now at 4.2%, well in excess of their 2%, but they stand by expectations for transitory developments to moderate, projecting PCE to fall to 2.2% in 2022 and 2023. The yield curve flattened for the most part in the third quarter of 2021 despite persistently high inflation. We believe longer term yields were lower primarily due to the extraordinary quantity of negative yielding foreign debt which resulted in strong foreign demand for U.S. Treasuries. Moreover, pension fund's rebalancing into fixed income securities and state government demand for U.S. Treasuries, given their high cash balances after federal stimulus and tax receipts, also contributed to lower yields. We believe a combination of factors is likely to lead to higher interest rates. Specifically, we expect continued employment gains in the coming months following the September expiration of extended employment benefits which will support the anticipated imminent tapering of the Fed's quantitative easing program. In addition, we expect persistent inflationary pressure driven by continued supply chain disruptions, strong commodity prices, upward wage pressure, and large deficit spending. In our opinion, corporate balance sheets are in good shape, bolstered by robust revenue and earnings growth, and the consumer is strong and default rates are at cyclical lows. Though valuations across fixed income remain tight, we believe fundamentals will continue to support corporate credit. In our view, a trajectory of higher interest rates is expected to benefit investors that are short duration relative to their benchmarks. Page 17 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") serves as the investment advisor to the First Trust Active Factor Large Cap ETF ("AFLG"), the First Trust Active Factor Mid Cap ETF ("AFMC"), and the First Trust Active Factor Small Cap ETF ("AFSM") (each a "Fund" and collectively, the "Funds"). First Trust is responsible for the selection and ongoing monitoring of the securities in the Funds' portfolios, managing the Funds' business affairs and providing certain administrative services necessary for the management of the Funds. PORTFOLIO MANAGEMENT TEAM Each 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, CHIEF OPERATING OFFICER AND MANAGING DIRECTOR OF FIRST TRUST ROGER F. TESTIN, SENIOR VICE PRESIDENT OF FIRST TRUST STAN UELAND, SENIOR VICE PRESIDENT OF FIRST TRUST CHRIS A. PETERSON, SENIOR VICE PRESIDENT OF FIRST TRUST CHRIS BUSH, VICE PRESIDENT OF FIRST TRUST The Investment Committee members are primarily and jointly responsible for the day-to-day management of the Funds. Each Investment Committee member has served as a part of the portfolio management team of the Funds since 2019, except for Chris Bush, who has served as a part of the portfolio management team since 2021. COMMENTARY MARKET RECAP While the fiscal year ended August 31, 2021 experienced sporadic market corrections, the main theme of the fiscal year was a resurgent economy in the wake of the development and widespread availability of coronavirus ("COVID-19") vaccines, and the gradual reopening of society. Monetary policy was extremely dovish, and fiscal policy was stimulative as well during the period. Macroeconomic measures improved dramatically, with the annualized quarter over quarter growth rate of real gross domestic product ("GDP") improving from a severe contraction in the second quarter of 2020 to a sharp recovery in the third quarter of that year before settling in to over 6% growth in both the first and second quarters of 2021. The economy added millions of jobs during the fiscal year and manufacturing data was quite robust, as well. The U.S. equity market surged ahead, with the S&P 500(R) Index rewarding investors with a 31.17% return over the fiscal year ended August 31, 2021. Financials sector stocks were the top sector performers within the S&P 500(R) Index during the fiscal year, with Banks enjoying a strong rally on rising Treasury yields, followed by the Energy sector on rising crude prices. The Industrials sector also enjoyed solid returns, as did the Communication Services sector, which benefited from a surge in share prices for internet giant Alphabet, Inc. Consumer Staples, Consumer Discretionary and Utilities were the weakest sectors over the same period. On a size basis, mid- and small-cap stocks far outpaced the S&P 500(R) Index during the fiscal year ended August 31, 2021, with the S&P MidCap 400(R) Index earning a 44.77% return, while the S&P SmallCap 600(R) Index returned 53.97% over the same period. FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (THE "FUND" OR "AFLG") FUND PERFORMANCE The Fund returned 28.74% on a net asset value ("NAV") basis and 28.51% on a market price basis over the fiscal year ended August 31, 2021. The S&P 500(R) Index (the "Benchmark") returned 31.17% over the same period. The Fund paid total distributions of $0.2557 per share over the same period. Most of the underperformance can be attributed to defensive factors as the bull market favored a risk-on posture. The quality and low volatility factors significantly underperformed the broader market as stocks with higher market betas and more variability outperformed. Additionally, the momentum factor lagged by a wide margin as the market rotated from favoring technology stocks to economically sensitive stocks in early November 2020 because of the highly effective COVID-19 vaccines, in our opinion, only to see a rotation back to growth parts of the market in mid-May 2021 due to a rise in cases from the Delta variant. Sharp reversals in the market tend to lead to poor performance for the momentum factor. On the positive side, market performance began to broaden out from the narrow mega-cap technology rally and the value factor posted strong performance. However, the benefit from value and small size could not overcome the detraction from exposure to the quality, momentum, and low volatility factors. Sector allocation effects and stock selection were also a drag on relative performance. Page 18 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) FIRST TRUST ACTIVE FACTOR MID CAP ETF (THE "FUND" OR "AFMC") FUND PERFORMANCE The Fund returned 43.52% on a NAV basis and 43.23% on a market price basis over the fiscal year ended August 31, 2021. The S&P MidCap 400(R) Index (the "Benchmark") returned 44.77% over the same period. The Fund paid total distributions of $0.1993 per share over the same period. Most of the underperformance can be attributed to defensive factors as the bull market favored a risk-on posture. The quality and low volatility factors significantly underperformed the broader market as stocks with higher market betas and more variability outperformed. Additionally, the momentum factor lagged by a wide margin as the market rotated from technology stocks to economically sensitive stocks in early November 2020 on highly effective COVID-19 vaccines, only to see a rotation back to growth parts of the market in mid-May 2021 due to a rise in cases from the Delta variant. Sharp reversals in the market tend to lead to poor performance for the momentum factor. On the positive side, the value factor posted strong performance. However, the benefit from the value factor could not overcome exposure from the quality, momentum, and low volatility factors. Sector allocation effects were a drag on relative performance, while idiosyncratic exposures benefited relative performance. FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (THE "FUND" OR "AFSM") FUND PERFORMANCE The Fund returned 45.40% on a NAV basis and 45.24% on a market price basis over the fiscal year ended August 31, 2021. The Russell 2000(R) Index (the "Benchmark") returned 47.08% over the same period. The Fund paid total distributions of $0.0825 per share over the same period. Most of the underperformance can be attributed to defensive factors as the bull market favored a risk-on posture. The quality and low volatility factors significantly underperformed the broader market as stocks with higher market betas and more variability outperformed. Additionally, the momentum factor lagged by a wide margin as the market rotated from technology stocks to economically sensitive stocks in early November 2020 on highly effective COVID-19 vaccines, only to see a rotation back to growth parts of the market in mid-May 2021 due to a rise in cases from the Delta variant. Sharp reversals in the market tend to lead to poor performance for the momentum factor. On the positive side, the value factor posted strong performance. However, the benefit from the value factor could not overcome exposure from the quality, momentum, and low volatility factors. Sector allocation effects and single-stock selection were a benefit to relative performance. MARKET AND FUND OUTLOOK We believe market risk is more balanced in the near term due to uncertainty across several spectrums, including tapering, the path of COVID-19, U.S. relations with China, U.S. fiscal policy, and peaking growth rates. We remain constructive on equities for the long-term, especially relative to bonds, but we believe future returns are likely to be lower than the last decade with stocks trading at elevated earnings multiples. While the last year again proved to be an especially difficult environment for factor investing, we believe a more normalized environment could lead to better conditions for the Active Factor suite. The spread between value and growth stocks is especially extreme today. In addition, lower market gains would likely benefit the quality and low volatility factors. The Funds continue to offer diversified exposure across the quality, low volatility, value and momentum factors, while reducing sector and single-stock risk. We continue to target key factors that historically have offered premiums to the market return. Page 19 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to the First Trust Innovation Leaders ETF (the "Fund"). First Trust is responsible for the ongoing monitoring of the Fund's investment portfolio, managing the Fund's business affairs and providing certain administrative services necessary for the management of the Fund. PORTFOLIO MANAGEMENT TEAM The following persons serve as portfolio managers of the Fund: BOB HENSLEY, CFA, VICE PRESIDENT OF FIRST TRUST DAVID MCGAREL, CFA, CHIEF INVESTMENT OFFICER, CHIEF OPERATING OFFICER AND MANAGING DIRECTOR OF FIRST TRUST CHRIS PETERSON, CFA, SENIOR VICE PRESIDENT OF FIRST TRUST JARED WOLLEN, CFA, VICE PRESIDENT OF FIRST TRUST Each portfolio manager has served in such capacity for the Fund since 2021. COMMENTARY FIRST TRUST INNOVATION LEADERS ETF (ILDR) MARKET RECAP As markets entered 2021, participants anticipated the effects of coronavirus ("COVID-19") vaccines, and a subsequent reopening of the economy, to favor stocks that had been negatively impacted by COVID-19-related shutdowns. And broadly, the reopen trade, exemplified by airline and hotel stocks, led the markets through the winter and into spring. However, vaccine adoption was subdued and by mid-summer, the Delta variant began to affect economic activity and expectations. This resulted in digital transformation and companies that facilitated work-from-everywhere regaining favor. Macroeconomic measures improved dramatically, with the annualized quarter-over-quarter growth rate of real gross domestic product improving to over 6% growth in both the first and second quarter of 2021. Personal incomes remained high as government disbursements to support individuals and businesses continued to benefit from Congress's $900 billion-dollar COVID-19 economic relief bill passed on December 21, 2020, and funding federal agency operations through September 2021. Further, the Federal Reserve (the "Fed") maintained easy policies, which coupled with declining confidence in the strength of expanding economic activity, resulted in easing yields, and rising Treasury prices. The U.S. equity market surged ahead, but growth stocks particularly benefited. The S&P 500(R) Index rewarded investors with an 8.18% return from the Fund's inception date of May 25, 2021 through August 31, 2021 while the Russell 3000(R) Growth Index returned 13.37% over the same period. FUND PERFORMANCE The Fund returned 14.35% over the period from the Fund's inception on May 25, 2021 through August 31, 2021. The Russell 3000(R) Growth Index (the "Benchmark") returned 13.37% over the same period. The Fund's outperformance was driven entirely by sector allocation while stock selection created a small drag on performance. The top ten holdings of the Fund accounted for approximately 25% of the portfolio's weight. The Consumer Discretionary and the Industrials sectors underperformed relative to the Benchmark and created the largest aggregate relative drag on the Fund's performance. The Industrials sector had the worst total return out of the sectors to which the Fund had exposure, primarily driven by weakness in the stock selection of Uber Technologies, Inc. Conversely, the Information Technology sector outperformed the Benchmark, and the Fund was overweight in this sector which resulted in a total positive contribution to the Fund's performance. The portfolio management team has a positive view on the network and advanced computing themes which has driven an overweight to the Information Technology sector. MARKET AND FUND OUTLOOK Global responses to COVID-19 called for work-from-home provisions which required immediate digital solutions to enable employees to work remotely and conference from anywhere. Though vaccines were widely available, and the northern hemisphere turned to summer, the reopening of the economy was more halting than anticipated due to the emergence of the Delta variant. These conditions pulled digital trends forward and are driving 26% 12-month sales growth (blended 12-month trailing sales divided by the forward sales) for U.S.-listed technology stocks. The Fund is aggressively invested in themes such as advanced computing and networks which were direct beneficiaries of the above trends. Looking forward, we expect continued adoption of digital commerce, data science and analytics, cloud computing, cybersecurity, automation, and novel drug sequencing. While we believe the themes identified, and the holdings within them, are favorably positioned to long-term secular shifts, current valuation levels are high. As of August 31, 2021, the forward price-to-earnings ratio of the broad-market Russell 3000(R) Index was at 23 times. While below the 1999 highs, it is elevated relative to 2001-2019. Should economic conditions or monetary policy tighten, growth companies with elevated expectations and valuation levels may be more at risk than other parts of equity markets. Page 20 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") serves as the investment advisor to the First Trust Expanded Technology ETF (the "Fund"). First Trust is responsible for the ongoing monitoring of the Fund's investment portfolio, managing the Fund's business affairs and providing certain administrative services necessary for the management of the Fund. PORTFOLIO MANAGEMENT TEAM 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, CHIEF OPERATING OFFICER AND MANAGING DIRECTOR OF FIRST TRUST ROGER F. TESTIN, SENIOR VICE PRESIDENT OF FIRST TRUST STAN UELAND, SENIOR VICE PRESIDENT OF FIRST TRUST CHRIS A. PETERSON, SENIOR VICE PRESIDENT OF FIRST TRUST ERIK RUSSO, VICE PRESIDENT OF FIRST TRUST OMAR SEPULVEDA, VICE PRESIDENT OF FIRST TRUST The Investment Committee members are primarily and jointly responsible for the day-to-day management of the Fund. Each Investment Committee member has served as a part of the portfolio management team for the Fund since June 2021. COMMENTARY FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) MARKET RECAP While the fiscal year ended August 31, 2021 experienced sporadic market corrections, the main theme of the year was a resurgent economy in the wake of the development and widespread availability of coronavirus ("COVID-19") vaccines, and the gradual re-opening of society. Monetary policy was extremely dovish, and fiscal policy was stimulative as well during the period. Macroeconomic measures improved dramatically, with the annualized quarter over quarter growth rate of real gross domestic product ("GDP") improving from a severe contraction in the first quarter of 2020 to a sharp recovery in the third quarter of that year before settling in to over 6% growth in both the first and second quarters of 2021. The economy added millions of jobs during the fiscal year and manufacturing data was quite robust, as well. The U.S. equity market surged ahead, with the S&P 500(R) Index rewarding investors with a 31.17% return over the fiscal year ended August 31, 2021. The stocks in the Financials sector were the top sector performers within the S&P 500(R) Index during the fiscal year, with Banks enjoying a strong rally on rising Treasury yields, followed by the Energy sector on rising crude prices. The Industrials sector also enjoyed solid returns, as did the Communication Services sector, which benefited from a surge in share prices for internet giant Alphabet. Consumer Staples, Consumer Discretionary, and Utilities were the weakest sectors over the same period. On a size basis, mid- and small-cap stocks far outpaced the S&P 500(R) Index during the same period, with the S&P MidCap 400(R) Index earning a 44.77% return, while the S&P SmallCap 600(R) Index returned 53.97% over the same period. FUND PERFORMANCE From the Fund's inception date on June 14, 2021, through August 31, 2021, the Fund returned 8.37% on a net asset value ("NAV") basis and a market price basis. The S&P 500(R) Information Technology Index (the "Benchmark") returned 10.97% over the same period making it the best performing sector, outperforming the overall equity market as the S&P 500(R) Index returned 6.58%. The Fund had a $16.4 million market capitalization as of August 31, 2021 and no distributions were paid in the Fund's first two and a half months of the Fund's existence. The Fund's focus on information technology stocks and those whose operations are principally derived from and/or dependent upon technology helped it outperform the overall equity market. The Fund however, underperformed the Benchmark. Much of the underperformance can be attributed to the Fund's exposure to Communication Services' Media and Entertainment industries. The Fund's performance benefited from exposure to strong performing Information Technology industries such as Software, Semiconductors & Semiconductor Equipment, Technology Hardware, and the Communication Services' Interactive Media & Services industry, though both the Software and the Semiconductor & Semiconductor Equipment industries lagged the Benchmark's industry returns. Specific stocks that contributed to the Fund's positive performance included software companies such as Adobe, Inc. [+19.17%], Intuit, Inc. [+18.83%], Microsoft Corp. [+16.38%], semiconductor companies NVIDIA Corp. [+24.25%], QUALCOMM, Inc. [+6.83%], technology hardware company Apple, Inc. [+16.54%], and interactive media & services companies Alphabet, Inc. [+18.17%] and Facebook, Inc. [+12.65%]. Page 21 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) A factor attribution analysis showed that momentum, growth, and volatility all contributed to the Fund's performance, while the Fund's exposure to smaller size companies, due in part to the Fund's modified market capitalization weighting scheme, created a drag on the Fund's performance. Apple, Inc. and Microsoft Corp. each carried a weight of 20% or greater in the Benchmark at the time of the Fund's inception, while the Fund limits weights to a maximum of 4.5% at the time of selection at every rebalance to lower exposure to single-stock risk. MARKET AND FUND OUTLOOK We believe market risk is more balanced in the near term due to uncertainty across several spectrums, including tapering, the path of COVID-19, U.S. relations with China, U.S. fiscal policy, and peaking growth rates. We remain constructive on equities for the long-term, especially relative to bonds, but future returns are likely to be lower than the last decade with stocks trading at elevated earnings multiples. Growth outperformed value for the period from the Fund's inception on June 14, 2021 through August 31, 2021. While this contributed to the Fund's strong performance, the spread between the two styles appears to be large today and we believe a more normalized environment could be just ahead. Going forward, the Fund's largest factor exposures include quality, growth, momentum, and smaller size. While the Fund's technology focus does expose it to single-sector risk, we believe the Fund's factor exposures will be beneficial as we expect quality to benefit from more muted market gains going forward. Page 22 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2021 (UNAUDITED) As a shareholder of First Trust Low Duration Strategic Focus ETF, First Trust Active Factor Large Cap ETF, First Trust Active Factor Mid Cap ETF, First Trust Active Factor Small Cap ETF, First Trust Innovation Leaders ETF or First Trust Expanded Technology ETF (each a "Fund" and collectively, the "Funds"), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period (or since inception) and held through the six-month (or shorter) period ended August 31, 2021. ACTUAL EXPENSES The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this six-month (or shorter) period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) (b) Actual $1,000.00 $1,005.40 0.20% $1.01 Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02 FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) Actual $1,000.00 $1,176.00 0.55% $3.02 Hypothetical (5% return before expenses) $1,000.00 $1,022.43 0.55% $2.80 FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) Actual $1,000.00 $1,127.30 0.65% $3.49 Hypothetical (5% return before expenses) $1,000.00 $1,021.93 0.65% $3.31 FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) (b) Actual $1,000.00 $1,084.90 0.75% $3.94 Hypothetical (5% return before expenses) $1,000.00 $1,021.42 0.75% $3.82 </TABLE> Page 23 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES (CONTINUED) AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> ---------------------------------------------------------------------------------------------------------------------------- ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE MAY 25, 2021 (c) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO MAY 25, 2021 (c) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (d) ---------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> FIRST TRUST INNOVATION LEADERS ETF (ILDR) Actual $1,000.00 $1,143.50 0.75% $2.18 Hypothetical (5% return before expenses) $1,000.00 $1,021.42 0.75% $3.82 </TABLE> <TABLE> <CAPTION> ---------------------------------------------------------------------------------------------------------------------------- ANNUALIZED EXPENSES PAID EXPENSE RATIO DURING THE PERIOD BEGINNING ENDING BASED ON THE JUNE 14, 2021 (c) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO JUNE 14, 2021 (c) AUGUST 31, 2021 IN THE PERIOD AUGUST 31, 2021 (e) ---------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) Actual $1,000.00 $1,083.70 0.65% $1.47 Hypothetical (5% return before expenses) $1,000.00 $1,021.93 0.65% $3.31 </TABLE> (a) Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 1, 2021 through August 31, 2021), multiplied by 184/365 (to reflect the six-month period). (b) Annualized expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which the Fund invests, or the underlying securities in which the Fund invests. (c) Inception date. (d) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (May 25, 2021 through August 31, 2021), multiplied by 99/365. Hypothetical expenses are assumed for the most recent six-month period. (e) Actual expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (June 14, 2021 through August 31, 2021), multiplied by 79/365. Hypothetical expenses are assumed for the most recent six-month period. Page 24 <PAGE> FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- EXCHANGE-TRADED FUNDS -- 99.9% CAPITAL MARKETS -- 99.9% 131,585 First Trust Emerging Markets Local Currency Bond ETF (a) $ 4,515,997 307,407 First Trust Enhanced Short Maturity ETF (a) 18,425,976 1,448,343 First Trust Low Duration Opportunities ETF (a) 73,503,407 671,805 First Trust Senior Loan Fund (a) 32,186,177 189,796 First Trust Tactical High Yield ETF (a) 9,186,126 691,713 First Trust TCW Unconstrained Plus Bond ETF (a) 18,399,566 355,532 iShares 0-5 Year Investment Grade Corporate Bond ETF 18,427,224 169,290 iShares CMBS ETF 9,256,777 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 99.9% 183,901,250 (Cost $184,246,126) ------------- MONEY MARKET FUNDS -- 0.1% 197,554 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (b) 197,554 (Cost $197,554) ------------- TOTAL INVESTMENTS -- 100.0% 184,098,804 (Cost $184,443,680) (c) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (26,874) ------------- NET ASSETS -- 100.0% $ 184,071,930 ============= (a) Investment in an affiliated fund. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $184,592,542. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $825,227 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $1,318,965. The net unrealized depreciation was $493,738. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Exchange-Traded Funds* $183,901,250 $ -- $ -- Money Market Funds 197,554 -- -- --------------------------------------------- Total Investments $184,098,804 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 25 <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.8% AEROSPACE & DEFENSE -- 1.5% 63 General Dynamics Corp. $ 12,620 90 Huntington Ingalls Industries, Inc. 18,375 54 L3Harris Technologies, Inc. 12,583 9 Lockheed Martin Corp. 3,238 33 Northrop Grumman Corp. 12,134 ------------- 58,950 ------------- AIR FREIGHT & LOGISTICS -- 0.9% 170 Expeditors International of Washington, Inc. 21,189 81 United Parcel Service, Inc., Class B 15,846 ------------- 37,035 ------------- AUTO COMPONENTS -- 0.4% 397 BorgWarner, Inc. 16,944 ------------- BANKS -- 0.7% 195 Citizens Financial Group, Inc. 8,539 392 Wells Fargo & Co. 17,914 43 Zions Bancorp N.A. 2,490 ------------- 28,943 ------------- BIOTECHNOLOGY -- 0.9% 18 Amgen, Inc. 4,060 34 Biogen, Inc. (a) 11,523 161 Gilead Sciences, Inc. 11,718 21 Moderna, Inc. (a) 7,910 ------------- 35,211 ------------- BUILDING PRODUCTS -- 2.4% 332 A.O. Smith Corp. 24,143 15 Allegion PLC 2,160 36 Fortune Brands Home & Security, Inc. 3,505 350 Johnson Controls International PLC 26,180 15 Lennox International, Inc. 5,028 302 Masco Corp. 18,337 90 Trane Technologies PLC 17,865 ------------- 97,218 ------------- CAPITAL MARKETS -- 2.6% 372 Bank of New York Mellon (The) Corp. 20,542 18 BlackRock, Inc. 16,979 189 Blackstone, Inc. 23,763 374 Franklin Resources, Inc. 12,133 69 Invesco Ltd. 1,747 15 MSCI, Inc. 9,519 12 Nasdaq, Inc. 2,349 81 T. Rowe Price Group, Inc. 18,133 ------------- 105,165 ------------- CHEMICALS -- 0.8% 355 Corteva, Inc. 15,609 27 Dow, Inc. 1,698 24 DuPont de Nemours, Inc. 1,777 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CHEMICALS (CONTINUED) 12 PPG Industries, Inc. $ 1,915 30 Sherwin-Williams (The) Co. 9,110 ------------- 30,109 ------------- COMMUNICATIONS EQUIPMENT -- 2.7% 685 Cisco Systems, Inc. 40,429 132 F5 Networks, Inc. (a) 26,871 704 Juniper Networks, Inc. 20,402 45 Motorola Solutions, Inc. 10,990 30 Ubiquiti, Inc. 9,761 ------------- 108,453 ------------- CONSTRUCTION & ENGINEERING -- 1.1% 418 Quanta Services, Inc. 42,678 ------------- CONSUMER FINANCE -- 0.3% 24 Capital One Financial Corp. 3,983 150 Synchrony Financial 7,463 ------------- 11,446 ------------- CONTAINERS & PACKAGING -- 1.3% 87 Avery Dennison Corp. 19,609 353 International Paper Co. 21,212 165 Sealed Air Corp. 10,070 ------------- 50,891 ------------- DISTRIBUTORS -- 1.1% 117 Genuine Parts Co. 14,296 367 LKQ Corp. (a) 19,337 21 Pool Corp. 10,381 ------------- 44,014 ------------- DIVERSIFIED FINANCIAL SERVICES -- 1.7% 213 Berkshire Hathaway, Inc., Class B (a) 60,869 216 Equitable Holdings, Inc. 6,698 ------------- 67,567 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.7% 935 AT&T, Inc. 25,638 1,127 Lumen Technologies, Inc. 13,862 500 Verizon Communications, Inc. 27,500 ------------- 67,000 ------------- ELECTRIC UTILITIES -- 2.1% 162 Alliant Energy Corp. 9,848 324 Evergy, Inc. 22,178 248 Exelon Corp. 12,157 253 FirstEnergy Corp. 9,834 251 NRG Energy, Inc. 11,463 105 Pinnacle West Capital Corp. 8,074 325 PPL Corp. 9,539 ------------- 83,093 ------------- Page 26 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ELECTRICAL EQUIPMENT -- 0.7% 81 Eaton Corp. PLC $ 13,637 38 Emerson Electric Co. 4,009 28 Generac Holdings, Inc. (a) 12,236 ------------- 29,882 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 1.6% 111 CDW Corp. 22,268 33 Keysight Technologies, Inc. (a) 5,920 75 TE Connectivity Ltd. 11,266 24 Trimble, Inc. (a) 2,261 36 Zebra Technologies Corp., Class A (a) 21,138 ------------- 62,853 ------------- ENERGY EQUIPMENT & SERVICES -- 0.0% 72 Baker Hughes Co. 1,640 ------------- ENTERTAINMENT -- 0.1% 69 Activision Blizzard, Inc. 5,684 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 2.8% 63 Camden Property Trust 9,452 53 Equity Residential 4,456 126 Extra Space Storage, Inc. 23,551 417 Iron Mountain, Inc. 19,912 108 Mid-America Apartment Communities, Inc. 20,776 81 Public Storage 26,212 262 Weyerhaeuser Co. 9,432 ------------- 113,791 ------------- FOOD & STAPLES RETAILING -- 2.1% 45 Costco Wholesale Corp. 20,497 756 Kroger (The) Co. 34,799 184 Walmart, Inc. 27,250 ------------- 82,546 ------------- FOOD PRODUCTS -- 0.9% 45 Archer-Daniels-Midland Co. 2,700 156 General Mills, Inc. 9,018 137 J.M. Smucker (The) Co. 16,943 117 Tyson Foods, Inc., Class A 9,187 ------------- 37,848 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 2.7% 3 Align Technology, Inc. (a) 2,127 108 Danaher Corp. 35,009 147 Hologic, Inc. (a) 11,635 27 IDEXX Laboratories, Inc. (a) 18,192 9 Masimo Corp. (a) 2,444 36 ResMed, Inc. 10,459 66 West Pharmaceutical Services, Inc. 29,807 ------------- 109,673 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES -- 3.4% 18 AmerisourceBergen Corp. $ 2,200 58 Anthem, Inc. 21,757 212 Cardinal Health, Inc. 11,128 96 Centene Corp. (a) 6,046 21 Cigna Corp. 4,445 240 CVS Health Corp. 20,734 57 HCA Healthcare, Inc. 14,420 44 Henry Schein, Inc. (a) 3,326 21 Humana, Inc. 8,514 33 Laboratory Corp. of America Holdings (a) 10,011 12 McKesson Corp. 2,450 84 Quest Diagnostics, Inc. 12,838 27 UnitedHealth Group, Inc. 11,239 48 Universal Health Services, Inc., Class B 7,476 ------------- 136,584 ------------- HEALTH CARE TECHNOLOGY -- 0.4% 230 Cerner Corp. 17,560 ------------- HOTELS, RESTAURANTS & LEISURE -- 0.7% 6 Chipotle Mexican Grill, Inc. (a) 11,420 15 Domino's Pizza, Inc. 7,754 78 Yum! Brands, Inc. 10,220 ------------- 29,394 ------------- HOUSEHOLD DURABLES -- 2.5% 72 D.R. Horton, Inc. 6,885 132 Garmin Ltd. 23,025 111 Lennar Corp., Class A 11,911 57 Mohawk Industries, Inc. (a) 11,272 472 Newell Brands, Inc. 11,994 3 NVR, Inc. (a) 15,540 275 PulteGroup, Inc. 14,811 21 Whirlpool Corp. 4,652 ------------- 100,090 ------------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.2% 403 Vistra Corp. 7,693 ------------- INDUSTRIAL CONGLOMERATES -- 0.6% 116 3M Co. 22,590 ------------- INSURANCE -- 3.3% 337 Aflac, Inc. 19,101 246 Allstate (The) Corp. 33,279 33 Aon PLC, Class A 9,466 51 Chubb Ltd. 9,380 156 Cincinnati Financial Corp. 19,250 210 CNA Financial Corp. 9,314 72 Loews Corp. 4,023 15 Marsh & McLennan Cos., Inc. 2,358 101 Progressive (The) Corp. 9,730 18 Prudential Financial, Inc. 1,906 See Notes to Financial Statements Page 27 <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) INSURANCE (CONTINUED) 12 Travelers (The) Cos., Inc. $ 1,917 454 Unum Group 12,085 ------------- 131,809 ------------- INTERACTIVE MEDIA & SERVICES -- 4.3% 51 Alphabet, Inc., Class A (a) 147,591 33 Facebook, Inc., Class A (a) 12,520 84 Pinterest, Inc., Class A (a) 4,668 93 Snap, Inc., Class A (a) 7,078 ------------- 171,857 ------------- INTERNET & DIRECT MARKETING RETAIL -- 3.0% 24 Amazon.com, Inc. (a) 83,299 377 eBay, Inc. 28,931 36 Etsy, Inc. (a) 7,785 ------------- 120,015 ------------- IT SERVICES -- 4.0% 110 Accenture PLC, Class A 37,022 12 Automatic Data Processing, Inc. 2,508 251 Cognizant Technology Solutions Corp., Class A 19,154 33 EPAM Systems, Inc. (a) 20,883 75 Gartner, Inc. (a) 23,155 173 International Business Machines Corp. 24,279 62 Jack Henry & Associates, Inc. 10,935 63 Paychex, Inc. 7,212 749 Western Union (The) Co. 16,208 ------------- 161,356 ------------- LIFE SCIENCES TOOLS & SERVICES -- 1.9% 156 Agilent Technologies, Inc. 27,373 6 Mettler-Toledo International, Inc. (a) 9,317 81 PerkinElmer, Inc. 14,969 54 Waters Corp. (a) 22,357 ------------- 74,016 ------------- MACHINERY -- 2.9% 51 Caterpillar, Inc. 10,754 83 Cummins, Inc. 19,586 63 Deere & Co. 23,816 45 Dover Corp. 7,846 75 Fortive Corp. 5,540 48 Otis Worldwide Corp. 4,427 303 Pentair PLC 23,379 30 Snap-on, Inc. 6,749 96 Xylem, Inc. 13,086 ------------- 115,183 ------------- MEDIA -- 2.6% 424 Comcast Corp., Class A 25,728 306 Discovery, Inc., Class A (a) 8,825 168 DISH Network Corp., Class A (a) 7,323 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- MEDIA (CONTINUED) 494 Fox Corp., Class A $ 18,495 552 Interpublic Group of (The) Cos., Inc. 20,551 471 News Corp., Class A 10,584 76 Omnicom Group, Inc. 5,565 123 ViacomCBS, Inc., Class B 5,098 ------------- 102,169 ------------- METALS & MINING -- 1.9% 133 Arconic Corp. (a) 4,587 277 Newmont Corp. 16,063 335 Nucor Corp. 39,383 106 Southern Copper Corp. 6,634 138 Steel Dynamics, Inc. 9,314 ------------- 75,981 ------------- MULTILINE RETAIL -- 2.2% 57 Dollar General Corp. 12,706 146 Dollar Tree, Inc. (a) 13,219 189 Kohl's Corp. 10,848 211 Target Corp. 52,113 ------------- 88,886 ------------- MULTI-UTILITIES -- 0.7% 230 Consolidated Edison, Inc. 17,353 134 Public Service Enterprise Group, Inc. 8,568 ------------- 25,921 ------------- OIL, GAS & CONSUMABLE FUELS -- 2.5% 517 Cabot Oil & Gas Corp. 8,215 105 Cheniere Energy, Inc. (a) 9,183 149 Chevron Corp. 14,419 171 Devon Energy Corp. 5,053 150 EOG Resources, Inc. 10,128 628 Exxon Mobil Corp. 34,239 532 Kinder Morgan, Inc. 8,656 39 ONEOK, Inc. 2,048 373 Williams (The) Cos., Inc. 9,209 ------------- 101,150 ------------- PERSONAL PRODUCTS -- 0.5% 57 Estee Lauder (The) Cos., Inc., Class A 19,408 ------------- PHARMACEUTICALS -- 2.4% 70 Bristol-Myers Squibb Co. 4,680 84 Eli Lilly and Co. 21,696 242 Johnson & Johnson 41,897 161 Merck & Co., Inc. 12,283 336 Pfizer, Inc. 15,480 ------------- 96,036 ------------- PROFESSIONAL SERVICES -- 1.0% 194 Booz Allen Hamilton Holding Corp. 15,891 75 Leidos Holdings, Inc. 7,358 69 Nielsen Holdings PLC 1,481 Page 28 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) PROFESSIONAL SERVICES (CONTINUED) 165 Robert Half International, Inc. $ 17,061 ------------- 41,791 ------------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.7% 308 CBRE Group, Inc., Class A (a) 29,660 ------------- ROAD & RAIL -- 0.3% 45 Old Dominion Freight Line, Inc. 12,992 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 3.5% 225 Applied Materials, Inc. 30,404 546 Intel Corp. 29,517 30 KLA Corp. 10,199 6 Lam Research Corp. 3,629 42 Qorvo, Inc. (a) 7,897 81 QUALCOMM, Inc. 11,882 45 Skyworks Solutions, Inc. 8,255 63 Teradyne, Inc. 7,651 170 Texas Instruments, Inc. 32,455 ------------- 141,889 ------------- SOFTWARE -- 8.2% 30 Adobe, Inc. (a) 19,911 72 Cadence Design Systems, Inc. (a) 11,771 69 Citrix Systems, Inc. 7,098 30 Fortinet, Inc. (a) 9,454 21 HubSpot, Inc. (a) 14,374 27 Intuit, Inc. 15,285 525 Microsoft Corp. 158,487 658 Oracle Corp. 58,647 226 SS&C Technologies Holdings, Inc. 17,099 45 Synopsys, Inc. (a) 14,951 ------------- 327,077 ------------- SPECIALTY RETAIL -- 3.9% 39 Advance Auto Parts, Inc. 7,911 18 AutoZone, Inc. (a) 27,885 144 Bath & Body Works, Inc. 9,717 115 Best Buy Co., Inc. 13,399 57 Gap (The), Inc. 1,524 29 Home Depot (The), Inc. 9,459 186 Lowe's Cos., Inc. 37,924 30 O'Reilly Automotive, Inc. (a) 17,822 150 Tractor Supply Co. 29,137 37 Victoria's Secret & Co. (a) 2,453 ------------- 157,231 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 6.9% 1,100 Apple, Inc. 167,013 90 Dell Technologies, Inc., Class C (a) 8,772 1,043 HP, Inc. 31,019 284 NetApp, Inc. 25,256 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS (CONTINUED) 348 Seagate Technology Holdings PLC $ 30,481 590 Xerox Holdings Corp. 13,281 ------------- 275,822 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 0.6% 75 NIKE, Inc., Class B 12,355 36 Ralph Lauren Corp. 4,181 84 Tapestry, Inc. (a) 3,387 84 Under Armour, Inc., Class A (a) 1,944 ------------- 21,867 ------------- TOBACCO -- 1.4% 503 Altria Group, Inc. 25,266 315 Philip Morris International, Inc. 32,445 ------------- 57,711 ------------- TRADING COMPANIES & DISTRIBUTORS -- 0.2% 36 Fastenal Co. 2,011 12 W.W. Grainger, Inc. 5,204 ------------- 7,215 ------------- TOTAL COMMON STOCKS -- 99.8% 3,999,587 (Cost $3,726,029) ------------- MONEY MARKET FUNDS -- 0.1% 3,399 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (b) 3,399 (Cost $3,399) ------------- TOTAL INVESTMENTS -- 99.9% 4,002,986 (Cost $3,729,428) (c) NET OTHER ASSETS AND LIABILITIES -- 0.1% 4,469 ------------- NET ASSETS -- 100.0% $ 4,007,455 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $3,744,593. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $344,946 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $86,553. The net unrealized appreciation was $258,393. See Notes to Financial Statements Page 29 <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $ 3,999,587 $ -- $ -- Money Market Funds 3,399 -- -- --------------------------------------------- Total Investments $ 4,002,986 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. Page 30 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.8% AEROSPACE & DEFENSE -- 0.4% 28 Huntington Ingalls Industries, Inc. $ 5,717 ------------- BANKS -- 2.7% 168 Associated Banc-Corp. 3,464 270 F.N.B. Corp. 3,154 5 First Citizens BancShares, Inc., Class A 4,489 76 Hancock Whitney Corp. 3,493 128 Popular, Inc. 9,720 396 Umpqua Holdings Corp. 7,710 59 Zions Bancorp N.A. 3,416 ------------- 35,446 ------------- BEVERAGES -- 0.2% 52 Molson Coors Beverage Co., Class B 2,472 ------------- BIOTECHNOLOGY -- 1.5% 23 Blueprint Medicines Corp. (a) 2,145 47 Emergent BioSolutions, Inc. (a) 2,965 46 Exelixis, Inc. (a) 882 114 Halozyme Therapeutics, Inc. (a) 4,787 41 United Therapeutics Corp. (a) 8,810 ------------- 19,589 ------------- BUILDING PRODUCTS -- 2.2% 19 A.O. Smith Corp. 1,382 52 Advanced Drainage Systems, Inc. 5,936 21 Carlisle Cos., Inc. 4,425 15 Lennox International, Inc. 5,028 89 Owens Corning 8,504 43 UFP Industries, Inc. 3,228 ------------- 28,503 ------------- CAPITAL MARKETS -- 3.5% 45 Affiliated Managers Group, Inc. 7,655 49 Evercore, Inc., Class A 6,842 110 Franklin Resources, Inc. 3,568 35 Houlihan Lokey, Inc. 3,157 171 Janus Henderson Group PLC 7,415 352 Jefferies Financial Group, Inc. 13,010 17 Morningstar, Inc. 4,556 ------------- 46,203 ------------- CHEMICALS -- 1.2% 284 Element Solutions, Inc. 6,455 73 Olin Corp. 3,638 62 Sensient Technologies Corp. 5,385 ------------- 15,478 ------------- COMMERCIAL SERVICES & SUPPLIES -- 1.1% 352 CoreCivic, Inc. (a) 3,422 18 Deluxe Corp. 690 117 Herman Miller, Inc. 4,918 133 HNI Corp. 5,039 ------------- 14,069 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT -- 2.4% 191 Ciena Corp. (a) $ 10,912 171 EchoStar Corp., Class A (a) 4,617 14 F5 Networks, Inc. (a) 2,850 130 Juniper Networks, Inc. 3,767 40 Lumentum Holdings, Inc. (a) 3,466 191 NetScout Systems, Inc. (a) 5,237 ------------- 30,849 ------------- CONSTRUCTION & ENGINEERING -- 3.0% 32 Dycom Industries, Inc. (a) 2,411 82 EMCOR Group, Inc. 9,963 85 MasTec, Inc. (a) 7,772 120 Quanta Services, Inc. 12,252 27 Valmont Industries, Inc. 6,719 ------------- 39,117 ------------- CONSUMER FINANCE -- 1.6% 313 Navient Corp. 7,265 39 OneMain Holdings, Inc. 2,255 15 PROG Holdings, Inc. 710 549 SLM Corp. 10,294 ------------- 20,524 ------------- CONTAINERS & PACKAGING -- 0.6% 44 Greif, Inc., Class A 2,786 15 Packaging Corp. of America 2,276 38 Sealed Air Corp. 2,319 ------------- 7,381 ------------- DISTRIBUTORS -- 0.5% 13 Pool Corp. 6,426 ------------- DIVERSIFIED CONSUMER SERVICES -- 1.7% 175 Adtalem Global Education, Inc. (a) 6,475 14 Graham Holdings Co., Class B 8,635 164 H&R Block, Inc. 4,207 29 Strategic Education, Inc. 2,270 14 Terminix Global Holdings, Inc. (a) 583 ------------- 22,170 ------------- DIVERSIFIED FINANCIAL SERVICES -- 0.5% 97 Equitable Holdings, Inc. 3,008 46 Voya Financial, Inc. 2,989 ------------- 5,997 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.4% 402 Lumen Technologies, Inc. 4,945 ------------- ELECTRIC UTILITIES -- 0.9% 110 Hawaiian Electric Industries, Inc. 4,796 74 NRG Energy, Inc. 3,380 61 Portland General Electric Co. 3,132 ------------- 11,308 ------------- See Notes to Financial Statements Page 31 <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ELECTRICAL EQUIPMENT -- 1.2% 44 Acuity Brands, Inc. $ 8,119 58 GrafTech International Ltd. 642 115 nVent Electric PLC 3,952 24 Regal Beloit Corp. 3,586 ------------- 16,299 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 4.7% 144 Arrow Electronics, Inc. (a) 17,456 97 Avnet, Inc. 3,925 113 SYNNEX Corp. 14,359 78 Trimble, Inc. (a) 7,349 286 Vishay Intertechnology, Inc. 6,283 20 Zebra Technologies Corp., Class A (a) 11,743 ------------- 61,115 ------------- ENERGY EQUIPMENT & SERVICES -- 0.4% 83 Helmerich & Payne, Inc. 2,234 331 Patterson-UTI Energy, Inc. 2,569 ------------- 4,803 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 7.1% 144 American Homes 4 Rent, Class A 6,039 135 Brixmor Property Group, Inc. 3,166 69 Camden Property Trust 10,353 9 CoreSite Realty Corp. 1,335 190 Cousins Properties, Inc. 7,326 152 CubeSmart 8,132 78 First Industrial Realty Trust, Inc. 4,367 648 GEO Group (The), Inc. 5,022 157 Highwoods Properties, Inc. 7,173 152 Iron Mountain, Inc. 7,258 58 Kilroy Realty Corp. 3,808 81 Life Storage, Inc. 10,080 70 National Storage Affiliates Trust 4,008 129 PotlatchDeltic Corp. 6,702 339 Sabra Health Care REIT, Inc. 5,424 145 Urban Edge Properties 2,746 ------------- 92,939 ------------- FOOD & STAPLES RETAILING -- 1.3% 105 Albertsons Cos., Inc., Class A 3,188 119 BJ's Wholesale Club Holdings, Inc. (a) 6,743 265 Sprouts Farmers Market, Inc. (a) 6,598 ------------- 16,529 ------------- FOOD PRODUCTS -- 0.9% 76 Darling Ingredients, Inc. (a) 5,662 26 Flowers Foods, Inc. 627 38 Ingredion, Inc. 3,339 52 TreeHouse Foods, Inc. (a) 1,948 ------------- 11,576 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- GAS UTILITIES -- 1.1% 308 UGI Corp. $ 14,263 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 3.5% 2 ABIOMED, Inc. (a) 728 39 DENTSPLY SIRONA, Inc. 2,406 119 Envista Holdings Corp. (a) 5,092 40 Globus Medical, Inc., Class A (a) 3,264 33 Haemonetics Corp. (a) 2,071 45 Hill-Rom Holdings, Inc. 6,551 32 ICU Medical, Inc. (a) 6,379 7 Masimo Corp. (a) 1,901 10 Penumbra, Inc. (a) 2,749 6 Quidel Corp. (a) 774 10 Shockwave Medical, Inc. (a) 2,142 44 STAAR Surgical Co. (a) 6,797 12 West Pharmaceutical Services, Inc. 5,419 ------------- 46,273 ------------- HEALTH CARE PROVIDERS & SERVICES -- 4.3% 9 Amedisys, Inc. (a) 1,651 80 AMN Healthcare Services, Inc. (a) 9,082 5 Chemed Corp. 2,383 24 DaVita, Inc. (a) 3,138 45 Henry Schein, Inc. (a) 3,402 23 LHC Group, Inc. (a) 4,295 49 Molina Healthcare, Inc. (a) 13,170 37 Patterson Cos., Inc. 1,134 155 Premier, Inc., Class A 5,763 52 Progyny, Inc. (a) 2,905 50 Tenet Healthcare Corp. (a) 3,768 36 Universal Health Services, Inc., Class B 5,607 ------------- 56,298 ------------- HEALTH CARE TECHNOLOGY -- 0.6% 13 Inspire Medical Systems, Inc. (a) 2,906 29 Omnicell, Inc. (a) 4,503 ------------- 7,409 ------------- HOTELS, RESTAURANTS & LEISURE -- 0.2% 16 Papa John's International, Inc. 2,040 ------------- HOUSEHOLD DURABLES -- 2.4% 57 KB Home 2,453 44 Meritage Homes Corp. (a) 4,908 20 Mohawk Industries, Inc. (a) 3,955 117 Newell Brands, Inc. 2,973 108 PulteGroup, Inc. 5,817 37 Toll Brothers, Inc. 2,370 238 Tri Pointe Homes, Inc. (a) 5,657 15 Whirlpool Corp. 3,323 ------------- 31,456 ------------- Page 32 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.2% 122 Vistra Corp. $ 2,329 ------------- INSURANCE -- 5.1% 100 American Financial Group, Inc. 13,794 11 Assurant, Inc. 1,871 133 CNA Financial Corp. 5,898 369 CNO Financial Group, Inc. 9,026 67 Fidelity National Financial, Inc. 3,272 39 First American Financial Corp. 2,751 16 Hanover Insurance Group (The), Inc. 2,261 174 Mercury General Corp. 10,389 507 Old Republic International Corp. 13,182 169 Unum Group 4,499 ------------- 66,943 ------------- INTERNET & DIRECT MARKETING RETAIL -- 0.4% 15 Etsy, Inc. (a) 3,244 185 Qurate Retail, Inc., Series A 2,040 ------------- 5,284 ------------- IT SERVICES -- 1.2% 20 Concentrix Corp. (a) 3,468 23 Genpact Ltd. 1,193 49 Maximus, Inc. 4,268 61 TTEC Holdings, Inc. 6,433 47 Western Union (The) Co. 1,017 ------------- 16,379 ------------- LEISURE PRODUCTS -- 2.4% 107 Brunswick Corp. 10,365 364 Mattel, Inc. (a) 7,771 31 Polaris, Inc. 3,713 91 YETI Holdings, Inc. (a) 9,040 ------------- 30,889 ------------- LIFE SCIENCES TOOLS & SERVICES -- 2.2% 10 Bio-Rad Laboratories, Inc., Class A (a) 8,048 9 Bio-Techne Corp. 4,492 47 Bruker Corp. 4,150 17 Charles River Laboratories International, Inc. (a) 7,546 22 Medpace Holdings, Inc. (a) 4,012 ------------- 28,248 ------------- MACHINERY -- 4.2% 121 AGCO Corp. 16,652 8 Crane Co. 814 8 Lincoln Electric Holdings, Inc. 1,117 105 Oshkosh Corp. 12,031 28 Snap-on, Inc. 6,298 138 Terex Corp. 7,045 62 Toro (The) Co. 6,816 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- MACHINERY (CONTINUED) 24 Watts Water Technologies, Inc., Class A $ 4,118 ------------- 54,891 ------------- MEDIA -- 2.4% 148 AMC Networks, Inc., Class A (a) 7,034 183 Interpublic Group of (The) Cos., Inc. 6,813 101 John Wiley & Sons, Inc., Class A 5,868 33 New York Times (The) Co., Class A 1,676 148 News Corp., Class A 3,326 20 Nexstar Media Group, Inc., Class A 2,995 186 TEGNA, Inc. 3,296 ------------- 31,008 ------------- METALS & MINING -- 2.4% 62 Alcoa Corp. (a) 2,751 376 Commercial Metals Co. 12,265 71 Reliance Steel & Aluminum Co. 10,653 98 Worthington Industries, Inc. 5,679 ------------- 31,348 ------------- MULTILINE RETAIL -- 0.6% 19 Dillard's, Inc., Class A 3,619 73 Kohl's Corp. 4,190 ------------- 7,809 ------------- MULTI-UTILITIES -- 0.7% 293 MDU Resources Group, Inc. 9,426 ------------- OIL, GAS & CONSUMABLE FUELS -- 1.3% 304 Antero Midstream Corp. 2,921 65 Cimarex Energy Co. 4,174 90 Targa Resources Corp. 3,953 1 Texas Pacific Land Corp. 1,360 141 World Fuel Services Corp. 4,563 ------------- 16,971 ------------- PAPER & FOREST PRODUCTS -- 1.1% 236 Louisiana-Pacific Corp. 14,972 ------------- PERSONAL PRODUCTS -- 0.7% 71 Edgewell Personal Care Co. 3,003 124 Nu Skin Enterprises, Inc., Class A 6,277 ------------- 9,280 ------------- PHARMACEUTICALS -- 1.3% 47 Jazz Pharmaceuticals PLC (a) 6,190 183 Prestige Consumer Healthcare, Inc. (a) 10,503 ------------- 16,693 ------------- PROFESSIONAL SERVICES -- 2.8% 27 ASGN, Inc. (a) 3,029 19 CACI International, Inc., Class A (a) 4,893 23 Exponent, Inc. 2,689 7 FTI Consulting, Inc. (a) 978 111 ManpowerGroup, Inc. 13,478 See Notes to Financial Statements Page 33 <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) PROFESSIONAL SERVICES (CONTINUED) 55 Robert Half International, Inc. $ 5,687 69 TriNet Group, Inc. (a) 6,353 ------------- 37,107 ------------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 1.6% 86 Jones Lang LaSalle, Inc. (a) 20,849 ------------- ROAD & RAIL -- 1.3% 78 Knight-Swift Transportation Holdings, Inc. 4,051 6 Landstar System, Inc. 1,008 43 Ryder System, Inc. 3,418 9 Saia, Inc. (a) 2,161 227 Schneider National, Inc., Class B 5,117 40 Werner Enterprises, Inc. 1,886 ------------- 17,641 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.9% 47 Cirrus Logic, Inc. (a) 3,933 127 Lattice Semiconductor Corp. (a) 7,889 ------------- 11,822 ------------- SOFTWARE -- 4.3% 20 Altair Engineering, Inc., Class A (a) 1,480 16 CDK Global, Inc. 666 61 CommVault Systems, Inc. (a) 4,939 26 Digital Turbine, Inc. (a) 1,520 22 Dolby Laboratories, Inc., Class A 2,180 20 Dropbox, Inc., Class A (a) 634 54 InterDigital, Inc. 3,894 96 J2 Global, Inc. (a) 13,219 62 Manhattan Associates, Inc. (a) 10,105 17 Paylocity Holding Corp. (a) 4,576 28 Rapid7, Inc. (a) 3,403 17 Sprout Social, Inc., Class A (a) 2,067 96 Teradata Corp. (a) 5,250 21 Workiva, Inc. (a) 2,946 ------------- 56,879 ------------- SPECIALTY RETAIL -- 5.5% 101 Aaron's (The) Co., Inc. 2,678 200 American Eagle Outfitters, Inc. 6,104 157 AutoNation, Inc. (a) 17,127 79 Bath & Body Works, Inc. 5,331 133 Dick's Sporting Goods, Inc. 18,728 126 Foot Locker, Inc. 7,143 49 Murphy USA, Inc. 7,609 8 Penske Automotive Group, Inc. 719 12 Victoria's Secret & Co. (a) 796 32 Williams-Sonoma, Inc. 5,974 ------------- 72,209 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 1.1% 57 3D Systems Corp. (a) 1,735 85 NetApp, Inc. 7,559 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS (CONTINUED) 256 Xerox Holdings Corp. $ 5,763 ------------- 15,057 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 2.9% 67 Carter's, Inc. 6,859 62 Crocs, Inc. (a) 8,855 24 Deckers Outdoor Corp. (a) 10,043 69 Hanesbrands, Inc. 1,289 233 Levi Strauss & Co., Class A 6,107 58 Tapestry, Inc. (a) 2,338 90 Under Armour, Inc., Class A (a) 2,083 ------------- 37,574 ------------- THRIFTS & MORTGAGE FINANCE -- 0.6% 201 MGIC Investment Corp. 3,069 61 New York Community Bancorp, Inc. 764 18 PennyMac Financial Services, Inc. 1,198 98 Radian Group, Inc. 2,316 ------------- 7,347 ------------- TRADING COMPANIES & DISTRIBUTORS -- 0.5% 36 MSC Industrial Direct Co., Inc., Class A 3,032 15 Watsco, Inc. 4,176 ------------- 7,208 ------------- TOTAL COMMON STOCKS -- 99.8% 1,303,357 (Cost $1,177,157) ------------- MONEY MARKET FUNDS -- 0.2% 2,233 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (b) 2,233 (Cost $2,233) ------------- TOTAL INVESTMENTS -- 100.0% 1,305,590 (Cost $1,179,390) (c) NET OTHER ASSETS AND LIABILITIES -- 0.0% 466 ------------- NET ASSETS -- 100.0% $ 1,306,056 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $1,185,325. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $153,315 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $33,050. The net unrealized appreciation was $120,265. Page 34 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $ 1,303,357 $ -- $ -- Money Market Funds 2,233 -- -- --------------------------------------------- Total Investments $ 1,305,590 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 35 <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.8% AIR FREIGHT & LOGISTICS -- 0.3% 94 Hub Group, Inc., Class A (a) $ 6,599 ------------- AUTO COMPONENTS -- 1.2% 88 Gentherm, Inc. (a) 7,552 146 Standard Motor Products, Inc. 6,262 226 XPEL, Inc. (a) (b) 17,172 ------------- 30,986 ------------- BANKS -- 5.5% 314 Associated Banc-Corp. 6,475 266 Berkshire Hills Bancorp, Inc. 6,818 154 Eagle Bancorp, Inc. 8,886 472 F.N.B. Corp. 5,513 254 Hancock Whitney Corp. 11,674 364 Hilltop Holdings, Inc. 12,183 990 Hope Bancorp, Inc. 13,652 148 PacWest Bancorp 6,297 172 Popular, Inc. 13,062 210 ServisFirst Bancshares, Inc. 15,418 270 Simmons First National Corp., Class A 7,844 114 Synovus Financial Corp. 4,913 174 Triumph Bancorp, Inc. (a) 14,306 78 UMB Financial Corp. 7,143 408 WesBanco, Inc. 13,872 ------------- 148,056 ------------- BEVERAGES -- 0.6% 188 Celsius Holdings, Inc. (a) 15,371 ------------- BIOTECHNOLOGY -- 4.6% 146 Alkermes PLC (a) 4,564 170 Anika Therapeutics, Inc. (a) 7,332 560 Avid Bioservices, Inc. (a) 13,574 142 Blueprint Medicines Corp. (a) 13,244 294 Coherus Biosciences, Inc. (a) 4,698 182 Eagle Pharmaceuticals, Inc. (a) 9,713 120 Emergent BioSolutions, Inc. (a) 7,570 110 Enanta Pharmaceuticals, Inc. (a) 6,292 234 Halozyme Therapeutics, Inc. (a) 9,826 192 Ironwood Pharmaceuticals, Inc. (a) 2,515 96 Myriad Genetics, Inc. (a) 3,435 64 Natera, Inc. (a) 7,580 86 Sage Therapeutics, Inc. (a) 3,974 748 Vanda Pharmaceuticals, Inc. (a) 12,522 278 Vericel Corp. (a) 15,059 ------------- 121,898 ------------- BUILDING PRODUCTS -- 1.2% 22 Advanced Drainage Systems, Inc. 2,511 378 Apogee Enterprises, Inc. 16,247 100 CSW Industrials, Inc. 13,279 16 UFP Industries, Inc. 1,201 ------------- 33,238 ------------- CAPITAL MARKETS -- 2.3% 134 Artisan Partners Asset Management, Inc., Class A 6,963 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CAPITAL MARKETS (CONTINUED) 98 B. Riley Financial, Inc. $ 6,423 354 Brightsphere Investment Group, Inc. 9,625 208 Donnelley Financial Solutions, Inc. (a) 6,937 28 Evercore, Inc., Class A 3,910 162 Hercules Capital, Inc. 2,738 118 Houlihan Lokey, Inc. 10,644 156 Moelis & Co., Class A 9,664 12 Virtus Investment Partners, Inc. 3,752 ------------- 60,656 ------------- CHEMICALS -- 0.4% 192 AdvanSix, Inc. (a) 7,008 56 Sensient Technologies Corp. 4,864 ------------- 11,872 ------------- COMMERCIAL SERVICES & SUPPLIES -- 0.8% 112 ABM Industries, Inc. 5,546 764 CoreCivic, Inc. (a) 7,426 38 Deluxe Corp. 1,458 28 HNI Corp. 1,061 412 Steelcase, Inc., Class A 5,805 ------------- 21,296 ------------- COMMUNICATIONS EQUIPMENT -- 2.1% 294 ADTRAN, Inc. 6,074 278 Calix, Inc. (a) 12,955 216 Cambium Networks Corp. (a) 8,094 226 EchoStar Corp., Class A (a) 6,102 284 NETGEAR, Inc. (a) 10,147 482 NetScout Systems, Inc. (a) 13,216 ------------- 56,588 ------------- CONSTRUCTION & ENGINEERING -- 3.2% 196 Comfort Systems USA, Inc. 14,892 16 Dycom Industries, Inc. (a) 1,205 146 EMCOR Group, Inc. 17,739 170 MasTec, Inc. (a) 15,545 234 MYR Group, Inc. (a) 24,338 218 Primoris Services Corp. 5,603 302 Sterling Construction Co., Inc. (a) 6,964 ------------- 86,286 ------------- CONSUMER FINANCE -- 1.2% 1,118 Navient Corp. 25,949 88 Nelnet, Inc., Class A 7,117 ------------- 33,066 ------------- CONTAINERS & PACKAGING -- 0.3% 286 Ranpak Holdings Corp. (a) 8,780 ------------- DIVERSIFIED CONSUMER SERVICES -- 1.4% 186 Adtalem Global Education, Inc. (a) 6,882 26 Graham Holdings Co., Class B 16,037 Page 36 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) DIVERSIFIED CONSUMER SERVICES (CONTINUED) 52 H&R Block, Inc. $ 1,334 314 Houghton Mifflin Harcourt Co. (a) 4,229 72 Laureate Education, Inc., Class A (a) 1,147 662 Perdoceo Education Corp. (a) 7,269 ------------- 36,898 ------------- DIVERSIFIED FINANCIAL SERVICES -- 0.5% 452 Cannae Holdings, Inc. (a) 14,428 ------------- ELECTRIC UTILITIES -- 0.4% 198 Hawaiian Electric Industries, Inc. 8,633 22 Portland General Electric Co. 1,130 ------------- 9,763 ------------- ELECTRICAL EQUIPMENT -- 1.7% 50 Acuity Brands, Inc. 9,227 112 Atkore, Inc. (a) 10,390 84 Encore Wire Corp. 7,141 40 Generac Holdings, Inc. (a) 17,479 96 GrafTech International Ltd. 1,063 ------------- 45,300 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 2.6% 18 Badger Meter, Inc. 1,928 438 Benchmark Electronics, Inc. 11,839 36 CTS Corp. 1,263 88 Insight Enterprises, Inc. (a) 9,054 292 Methode Electronics, Inc. 13,599 26 OSI Systems, Inc. (a) 2,572 58 PC Connection, Inc. 2,808 128 Plexus Corp. (a) 11,754 64 Sanmina Corp. (a) 2,527 600 Vishay Intertechnology, Inc. 13,182 ------------- 70,526 ------------- ENERGY EQUIPMENT & SERVICES -- 0.3% 202 Helmerich & Payne, Inc. 5,438 34 Nabors Industries Ltd. (a) 2,867 ------------- 8,305 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 4.6% 538 Brandywine Realty Trust 7,467 126 First Industrial Realty Trust, Inc. 7,055 606 GEO Group (The), Inc. 4,696 92 Gladstone Land Corp. 2,167 208 Industrial Logistics Properties Trust 5,705 280 iStar, Inc. 7,406 2 Kite Realty Group Trust 41 240 National Health Investors, Inc. 14,357 294 National Storage Affiliates Trust 16,831 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- EQUITY REAL ESTATE INVESTMENT TRUSTS (CONTINUED) 396 Office Properties Income Trust $ 10,506 412 Piedmont Office Realty Trust, Inc., Class A 7,342 126 PotlatchDeltic Corp. 6,546 584 RPT Realty 7,557 424 Sabra Health Care REIT, Inc. 6,784 204 Tanger Factory Outlet Centers, Inc. 3,411 606 UMH Properties, Inc. 14,362 ------------- 122,233 ------------- FOOD & STAPLES RETAILING -- 2.3% 156 BJ's Wholesale Club Holdings, Inc. (a) 8,839 236 Ingles Markets, Inc., Class A 16,022 604 SpartanNash Co. 12,986 246 Sprouts Farmers Market, Inc. (a) 6,125 134 United Natural Foods, Inc. (a) 4,931 228 Weis Markets, Inc. 12,985 ------------- 61,888 ------------- FOOD PRODUCTS -- 0.2% 88 Darling Ingredients, Inc. (a) 6,556 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 5.8% 532 AngioDynamics, Inc. (a) 15,055 102 AtriCure, Inc. (a) 7,509 24 Avanos Medical, Inc. (a) 792 114 CryoPort, Inc. (a) 7,247 138 Cutera, Inc. (a) 6,864 18 Globus Medical, Inc., Class A (a) 1,469 24 Haemonetics Corp. (a) 1,506 46 Heska Corp. (a) 12,204 32 ICU Medical, Inc. (a) 6,379 146 Inogen, Inc. (a) 8,642 82 Lantheus Holdings, Inc. (a) 2,162 122 LeMaitre Vascular, Inc. 6,908 615 Meridian Bioscience, Inc. (a) 12,448 492 Natus Medical, Inc. (a) 13,048 46 Novocure Ltd. (a) 6,174 300 Orthofix Medical, Inc. (a) 12,720 48 Quidel Corp. (a) 6,190 64 Shockwave Medical, Inc. (a) 13,709 82 STAAR Surgical Co. (a) 12,666 ------------- 153,692 ------------- HEALTH CARE PROVIDERS & SERVICES -- 4.7% 64 Addus HomeCare Corp. (a) 5,755 6 Amedisys, Inc. (a) 1,101 172 AMN Healthcare Services, Inc. (a) 19,525 78 Apollo Medical Holdings, Inc. (a) 5,921 72 CorVel Corp. (a) 11,866 46 Fulgent Genetics, Inc. (a) 4,197 208 Joint (The) Corp. (a) 21,251 70 LHC Group, Inc. (a) 13,073 See Notes to Financial Statements Page 37 <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) HEALTH CARE PROVIDERS & SERVICES (CONTINUED) 130 ModivCare, Inc. (a) $ 25,644 175 Owens & Minor, Inc. 6,524 186 Premier, Inc., Class A 6,916 22 US Physical Therapy, Inc. 2,583 ------------- 124,356 ------------- HEALTH CARE TECHNOLOGY -- 2.1% 70 Inspire Medical Systems, Inc. (a) 15,649 630 NextGen Healthcare, Inc. (a) 9,614 110 Omnicell, Inc. (a) 17,080 28 OptimizeRx Corp. (a) 1,853 108 Phreesia, Inc. (a) 7,727 70 Vocera Communications, Inc. (a) 3,394 ------------- 55,317 ------------- HOTELS, RESTAURANTS & LEISURE -- 0.4% 76 Papa John's International, Inc. 9,692 4 RCI Hospitality Holdings, Inc. 259 ------------- 9,951 ------------- HOUSEHOLD DURABLES -- 2.6% 90 Century Communities, Inc. 6,309 342 Ethan Allen Interiors, Inc. 8,215 136 KB Home 5,852 18 Lovesac (The) Co. (a) 1,018 198 M/I Homes, Inc. (a) 12,749 132 Meritage Homes Corp. (a) 14,723 36 Sonos, Inc. (a) 1,430 146 Taylor Morrison Home Corp. (a) 4,101 602 Tri Pointe Homes, Inc. (a) 14,310 ------------- 68,707 ------------- HOUSEHOLD PRODUCTS -- 0.2% 72 Spectrum Brands Holdings, Inc. 5,620 ------------- INSURANCE -- 3.8% 106 American Equity Investment Life Holding Co. 3,359 204 Argo Group International Holdings Ltd. 10,792 280 CNO Financial Group, Inc. 6,849 406 Employers Holdings, Inc. 16,715 82 Enstar Group Ltd. (a) 18,915 60 HCI Group, Inc. 6,700 178 Horace Mann Educators Corp. 7,298 166 Mercury General Corp. 9,912 88 Safety Insurance Group, Inc. 7,155 92 Selective Insurance Group, Inc. 7,688 112 Stewart Information Services Corp. 7,050 ------------- 102,433 ------------- INTERNET & DIRECT MARKETING RETAIL -- 0.8% 208 Liquidity Services, Inc. (a) 5,075 114 Revolve Group, Inc. (a) 6,551 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- INTERNET & DIRECT MARKETING RETAIL (CONTINUED) 90 Shutterstock, Inc. $ 10,373 ------------- 21,999 ------------- IT SERVICES -- 1.7% 312 Brightcove, Inc. (a) 3,544 128 CSG Systems International, Inc. 6,171 62 ExlService Holdings, Inc. (a) 7,635 16 Maximus, Inc. 1,393 166 Perficient, Inc. (a) 19,791 66 TTEC Holdings, Inc. 6,960 ------------- 45,494 ------------- LEISURE PRODUCTS -- 2.8% 74 Acushnet Holdings Corp. 3,697 194 Clarus Corp. 5,255 482 Nautilus, Inc. (a) 5,495 1,132 Smith & Wesson Brands, Inc. 27,315 114 Sturm Ruger & Co., Inc. 8,914 560 Vista Outdoor, Inc. (a) 22,876 20 YETI Holdings, Inc. (a) 1,987 ------------- 75,539 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.5% 30 Medpace Holdings, Inc. (a) 5,471 26 Repligen Corp. (a) 7,357 ------------- 12,828 ------------- MACHINERY -- 3.1% 92 Astec Industries, Inc. 5,625 70 Franklin Electric Co., Inc. 5,949 156 Greenbrier (The) Cos., Inc. 6,880 160 Hillenbrand, Inc. 7,427 20 Kadant, Inc. 4,182 64 Lindsay Corp. 10,544 250 Manitowoc (The) Co., Inc. (a) 6,062 162 Mueller Industries, Inc. 7,227 6 REV Group, Inc. 97 166 Shyft Group (The), Inc. 7,306 138 Terex Corp. 7,045 86 Watts Water Technologies, Inc., Class A 14,755 ------------- 83,099 ------------- MARINE -- 0.3% 112 Matson, Inc. 8,867 ------------- MEDIA -- 1.9% 286 AMC Networks, Inc., Class A (a) 13,594 622 Gray Television, Inc. 14,144 102 John Wiley & Sons, Inc., Class A 5,926 192 TechTarget, Inc. (a) 16,239 68 TEGNA, Inc. 1,205 ------------- 51,108 ------------- METALS & MINING -- 2.2% 312 Alcoa Corp. (a) 13,843 536 Commercial Metals Co. 17,484 276 Schnitzer Steel Industries, Inc., Class A 13,058 Page 38 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) METALS & MINING (CONTINUED) 620 TimkenSteel Corp. (a) $ 8,482 120 Worthington Industries, Inc. 6,954 ------------- 59,821 ------------- MULTILINE RETAIL -- 0.5% 184 Big Lots, Inc. 8,953 24 Dillard's, Inc., Class A 4,571 ------------- 13,524 ------------- MULTI-UTILITIES -- 0.3% 184 Avista Corp. 7,700 18 NorthWestern Corp. 1,145 ------------- 8,845 ------------- OIL, GAS & CONSUMABLE FUELS -- 2.3% 124 Bonanza Creek Energy, Inc. 4,821 436 Clean Energy Fuels Corp. (a) 3,457 214 CONSOL Energy, Inc. (a) 4,886 818 Dorian LPG Ltd. 10,814 326 International Seaways, Inc. 5,607 408 Magnolia Oil & Gas Corp., Class A 6,397 250 Scorpio Tankers, Inc. 4,053 788 Teekay Tankers Ltd., Class A (a) 9,023 404 World Fuel Services Corp. 13,073 ------------- 62,131 ------------- PAPER & FOREST PRODUCTS -- 0.9% 360 Louisiana-Pacific Corp. 22,839 30 Schweitzer-Mauduit International, Inc. 1,148 ------------- 23,987 ------------- PERSONAL PRODUCTS -- 0.7% 30 Medifast, Inc. 6,837 20 Nu Skin Enterprises, Inc., Class A 1,012 66 USANA Health Sciences, Inc. (a) 6,404 440 Veru, Inc. (a) 3,925 ------------- 18,178 ------------- PHARMACEUTICALS -- 2.3% 578 Amphastar Pharmaceuticals, Inc. (a) 11,363 108 Collegium Pharmaceutical, Inc. (a) 2,217 548 Corcept Therapeutics, Inc. (a) 11,661 958 Innoviva, Inc. (a) 14,619 150 Prestige Consumer Healthcare, Inc. (a) 8,609 450 Supernus Pharmaceuticals, Inc. (a) 12,389 ------------- 60,858 ------------- PROFESSIONAL SERVICES -- 1.7% 194 Heidrick & Struggles International, Inc. 8,385 50 Kforce, Inc. 2,921 222 Korn Ferry 15,693 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- PROFESSIONAL SERVICES (CONTINUED) 70 ManTech International Corp., Class A $ 5,542 298 Upwork, Inc. (a) 13,323 ------------- 45,864 ------------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 1.4% 182 eXp World Holdings, Inc. 8,345 140 Realogy Holdings Corp. (a) 2,457 264 RMR Group (The), Inc., Class A 12,234 282 St Joe (The) Co. 13,048 ------------- 36,084 ------------- ROAD & RAIL -- 2.0% 414 ArcBest Corp. 27,626 36 Heartland Express, Inc. 604 398 Marten Transport Ltd. 6,205 66 Ryder System, Inc. 5,246 34 Saia, Inc. (a) 8,165 260 Schneider National, Inc., Class B 5,860 ------------- 53,706 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.5% 16 Alpha & Omega Semiconductor Ltd. (a) 465 346 Amkor Technology, Inc. 9,505 198 Axcelis Technologies, Inc. (a) 9,843 18 Cirrus Logic, Inc. (a) 1,506 114 Kulicke & Soffa Industries, Inc. 8,002 304 Lattice Semiconductor Corp. (a) 18,884 614 Photronics, Inc. (a) 9,253 48 Synaptics, Inc. (a) 9,109 ------------- 66,567 ------------- SOFTWARE -- 4.0% 118 Agilysys, Inc. (a) 6,706 18 Alarm.com Holdings, Inc. (a) 1,518 42 Altair Engineering, Inc., Class A (a) 3,107 118 CommVault Systems, Inc. (a) 9,554 66 Digital Turbine, Inc. (a) 3,858 172 Ebix, Inc. 4,950 144 InterDigital, Inc. 10,384 110 J2 Global, Inc. (a) 15,147 78 Mitek Systems, Inc. (a) 1,745 178 Sprout Social, Inc., Class A (a) 21,645 14 SPS Commerce, Inc. (a) 1,897 134 Workiva, Inc. (a) 18,796 334 Xperi Holding Corp. 7,138 ------------- 106,445 ------------- SPECIALTY RETAIL -- 4.0% 96 Aaron's (The) Co., Inc. 2,546 56 Buckle (The), Inc. 2,169 170 Citi Trends, Inc. (a) 14,644 44 Group 1 Automotive, Inc. 7,279 312 Haverty Furniture Cos., Inc. 11,117 274 Hibbett, Inc. 26,219 See Notes to Financial Statements Page 39 <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) SPECIALTY RETAIL (CONTINUED) 444 Lumber Liquidators Holdings, Inc. (a) $ 9,262 284 MarineMax, Inc. (a) 13,808 84 ODP (The) Corp. (a) 3,962 28 Sleep Number Corp. (a) 2,590 314 Zumiez, Inc. (a) 12,620 ------------- 106,216 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 0.7% 438 Avid Technology, Inc. (a) 11,305 180 Super Micro Computer, Inc. (a) 6,577 ------------- 17,882 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.2% 94 Crocs, Inc. (a) 13,425 16 Deckers Outdoor Corp. (a) 6,696 110 Fossil Group, Inc. (a) 1,474 140 G-III Apparel Group Ltd. (a) 4,330 46 Kontoor Brands, Inc. 2,482 92 Movado Group, Inc. 3,325 ------------- 31,732 ------------- THRIFTS & MORTGAGE FINANCE -- 1.2% 150 HomeStreet, Inc. 6,128 6 Kearny Financial Corp. 76 952 MGIC Investment Corp. 14,537 484 Northwest Bancshares, Inc. 6,302 194 Radian Group, Inc. 4,584 ------------- 31,627 ------------- TOBACCO -- 0.5% 228 Universal Corp. 11,537 88 Vector Group Ltd. 1,322 ------------- 12,859 ------------- TRADING COMPANIES & DISTRIBUTORS -- 2.6% 450 Boise Cascade Co. 26,032 288 Rush Enterprises, Inc., Class A 12,701 48 SiteOne Landscape Supply, Inc. (a) 9,605 152 Veritiv Corp. (a) 13,630 68 WESCO International, Inc. (a) 7,957 ------------- 69,925 ------------- WIRELESS TELECOMMUNICATION SERVICES -- 0.4% 114 Gogo, Inc. (a) 1,533 180 Telephone and Data Systems, Inc. 3,658 170 United States Cellular Corp. (a) 5,431 ------------- 10,622 ------------- TOTAL COMMON STOCKS -- 99.8% 2,666,472 (Cost $2,531,298) ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- MONEY MARKET FUNDS -- 0.2% 4,977 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (c) $ 4,977 (Cost $4,977) ------------- TOTAL INVESTMENTS -- 100.0% 2,671,449 (Cost $2,536,275) (d) NET OTHER ASSETS AND LIABILITIES -- 0.0% 381 ------------- NET ASSETS -- 100.0% $ 2,671,830 ============= (a) Non-income producing security. (b) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933, as amended. (c) Rate shown reflects yield as of August 31, 2021. (d) Aggregate cost for federal income tax purposes is $2,552,295. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $196,356 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $77,202. The net unrealized appreciation was $119,154. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $ 2,666,472 $ -- $ -- Money Market Funds 4,977 -- -- --------------------------------------------- Total Investments $ 2,671,449 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. Page 40 See Notes to Financial Statements <PAGE> FIRST TRUST INNOVATION LEADERS ETF (ILDR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.7% AEROSPACE & DEFENSE -- 3.7% 347 AeroVironment, Inc. (a) $ 35,519 93 Lockheed Martin Corp. 33,461 160 Northrop Grumman Corp. 58,832 ------------- 127,812 ------------- AUTOMOBILES -- 1.0% 46 Tesla, Inc. (a) 33,843 ------------- BIOTECHNOLOGY -- 12.5% 234 Alnylam Pharmaceuticals, Inc. (a) 47,135 598 Apellis Pharmaceuticals, Inc. (a) 39,378 1,087 Arcus Biosciences, Inc. (a) 31,708 406 BioAtla, Inc. (a) 16,683 226 Intellia Therapeutics, Inc. (a) 36,280 730 Myovant Sciences Ltd. (a) 17,768 96 Regeneron Pharmaceuticals, Inc. (a) 64,646 604 REGENXBIO, Inc. (a) 19,509 421 Rocket Pharmaceuticals, Inc. (a) 14,402 230 SpringWorks Therapeutics, Inc. (a) 17,273 879 TG Therapeutics, Inc. (a) 23,795 319 Ultragenyx Pharmaceutical, Inc. (a) 30,716 244 Vertex Pharmaceuticals, Inc. (a) 48,871 685 Y-mAbs Therapeutics, Inc. (a) 21,084 ------------- 429,248 ------------- CAPITAL MARKETS -- 0.6% 78 Coinbase Global, Inc., Class A (a) 20,202 ------------- COMMUNICATIONS EQUIPMENT -- 4.1% 63 Arista Networks, Inc. (a) 23,280 628 Ciena Corp. (a) 35,878 205 F5 Networks, Inc. (a) 41,732 3,369 Telefonaktiebolaget LM Ericsson, Class B 39,939 ------------- 140,829 ------------- CONSTRUCTION & ENGINEERING -- 0.6% 228 MasTec, Inc. (a) 20,848 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.9% 1,720 Radius Global Infrastructure, Inc., Class A (a) 30,754 ------------- ELECTRICAL EQUIPMENT -- 2.6% 123 Acuity Brands, Inc. 22,697 1,162 Bloom Energy Corp., Class A (a) 24,890 240 Schneider Electric SE 42,876 ------------- 90,463 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 4.8% 208 Keysight Technologies, Inc. (a) 37,311 244 TE Connectivity Ltd. 36,654 441 Trimble, Inc. (a) 41,551 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (CONTINUED) 772 Vontier Corp. $ 28,077 36 Zebra Technologies Corp., Class A (a) 21,138 ------------- 164,731 ------------- ENTERTAINMENT -- 0.7% 45 Netflix, Inc. (a) 25,614 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 0.6% 24 Equinix, Inc. 20,243 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 4.2% 57 Align Technology, Inc. (a) 40,413 51 Dexcom, Inc. (a) 27,000 522 Globus Medical, Inc., Class A (a) 42,595 17 Intuitive Surgical, Inc. (a) 17,911 347 Outset Medical, Inc. (a) 17,104 ------------- 145,023 ------------- HEALTH CARE PROVIDERS & SERVICES -- 1.3% 353 Castle Biosciences, Inc. (a) 27,086 153 Guardant Health, Inc. (a) 19,472 ------------- 46,558 ------------- HEALTH CARE TECHNOLOGY -- 0.3% 198 Schrodinger, Inc. (a) 11,819 ------------- HOTELS, RESTAURANTS & LEISURE -- 0.5% 105 Airbnb, Inc., Class A (a) 16,274 ------------- HOUSEHOLD DURABLES -- 0.9% 300 Sony Group Corp. 30,978 ------------- INDUSTRIAL CONGLOMERATES -- 1.8% 108 Honeywell International, Inc. 25,046 222 Siemens AG 36,918 ------------- 61,964 ------------- INTERACTIVE MEDIA & SERVICES -- 7.9% 48 Alphabet, Inc., Class C (a) 139,644 351 Facebook, Inc., Class A (a) 133,162 ------------- 272,806 ------------- INTERNET & DIRECT MARKETING RETAIL -- 3.8% 24 Amazon.com, Inc. (a) 83,299 214 Etsy, Inc. (a) 46,280 ------------- 129,579 ------------- IT SERVICES -- 7.7% 9 Adyen N.V. (a) (b) (c) 29,059 90 MongoDB, Inc. (a) 35,264 406 Pagseguro Digital Ltd., Class A (a) 24,145 193 PayPal Holdings, Inc. (a) 55,711 160 Square, Inc., Class A (a) 42,891 See Notes to Financial Statements Page 41 <PAGE> FIRST TRUST INNOVATION LEADERS ETF (ILDR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) IT SERVICES (CONTINUED) 1,570 Switch, Inc., Class A $ 38,952 105 Twilio, Inc., Class A (a) 37,481 ------------- 263,503 ------------- LEISURE PRODUCTS -- 1.3% 183 Peloton Interactive, Inc., Class A (a) 18,335 231 Polaris, Inc. 27,664 ------------- 45,999 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.6% 356 NanoString Technologies, Inc. (a) 20,719 ------------- MACHINERY -- 0.6% 100 FANUC Corp. 21,806 ------------- PHARMACEUTICALS -- 0.9% 291 Reata Pharmaceuticals, Inc., Class A (a) 30,994 ------------- ROAD & RAIL -- 1.6% 1,396 Uber Technologies, Inc. (a) 54,639 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 7.3% 700 Allegro MicroSystems, Inc. (a) 21,035 93 Lam Research Corp. 56,248 253 NVIDIA Corp. 56,634 202 NXP Semiconductors N.V. 43,456 691 Rambus, Inc. (a) 16,446 154 Skyworks Solutions, Inc. 28,253 240 Teradyne, Inc. 29,146 ------------- 251,218 ------------- SOFTWARE -- 26.9% 84 Adobe, Inc. (a) 55,751 132 Autodesk, Inc. (a) 40,932 386 C3.ai, Inc., Class A (a) 19,895 126 Crowdstrike Holdings, Inc., Class A (a) 35,406 138 CyberArk Software Ltd. (a) 23,176 231 Datadog, Inc., Class A (a) 31,832 308 Domo, Inc., Class B (a) 27,566 766 Dynatrace, Inc. (a) 52,647 225 Elastic N.V. (a) 35,899 153 Five9, Inc. (a) 24,209 111 Fortinet, Inc. (a) 34,981 413 Microsoft Corp. 124,676 761 ON24, Inc. (a) 17,206 132 RingCentral, Inc., Class A (a) 33,298 268 salesforce.com, Inc. (a) 71,092 102 ServiceNow, Inc. (a) 65,651 299 Smartsheet, Inc., Class A (a) 23,791 296 Sprout Social, Inc., Class A (a) 35,994 631 Telos Corp. (a) 20,823 475 Tenable Holdings, Inc. (a) 21,076 426 Trade Desk (The), Inc., Class A (a) 34,101 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- SOFTWARE (CONTINUED) 208 Workday, Inc., Class A (a) $ 56,817 282 Workiva, Inc. (a) 39,556 ------------- 926,375 ------------- TOTAL COMMON STOCKS -- 99.7% 3,434,841 (Cost $3,113,558) ------------- MONEY MARKET FUNDS -- 0.3% 9,138 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (d) 9,138 (Cost $9,138) ------------- TOTAL INVESTMENTS -- 100.0% 3,443,979 (Cost $3,122,696) (e) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (806) ------------- NET ASSETS -- 100.0% $ 3,443,173 ============= (a) Non-income producing security. (b) This security is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act") and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security is not restricted on the foreign exchange where it trades freely without any additional registration. As such, it does not require the additional disclosure required of restricted securities. (c) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (d) Rate shown reflects yield as of August 31, 2021. (e) Aggregate cost for federal income tax purposes is $3,122,744. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $411,492 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $90,257. The net unrealized appreciation was $321,235. Page 42 See Notes to Financial Statements <PAGE> FIRST TRUST INNOVATION LEADERS ETF (ILDR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $ 3,434,841 $ -- $ -- Money Market Funds 9,138 -- -- --------------------------------------------- Total Investments $ 3,443,979 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. % OF TOTAL CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS ---------------------------------------------------------- United States Dollar 94.1% Euro 3.2 Japanese Yen 1.5 Swedish Krona 1.2 -------- Total 100.0% ======== See Notes to Financial Statements Page 43 <PAGE> FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.9% COMMUNICATIONS EQUIPMENT -- 0.9% 405 Arista Networks, Inc. (a) $ 149,660 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 3.8% 210 CDW Corp. 42,128 4,695 Corning, Inc. 187,753 1,005 Keysight Technologies, Inc. (a) 180,277 465 Trimble, Inc. (a) 43,812 285 Zebra Technologies Corp., Class A (a) 167,344 ------------- 621,314 ------------- ENTERTAINMENT -- 2.2% 4,290 Activision Blizzard, Inc. 353,367 ------------- INTERACTIVE MEDIA & SERVICES -- 9.4% 270 Alphabet, Inc., Class A (a) 781,366 2,010 Facebook, Inc., Class A (a) 762,554 ------------- 1,543,920 ------------- INTERNET & DIRECT MARKETING RETAIL -- 2.0% 3,765 eBay, Inc. 288,926 195 Etsy, Inc. (a) 42,171 ------------- 331,097 ------------- IT SERVICES -- 14.0% 2,340 Automatic Data Processing, Inc. 489,154 300 EPAM Systems, Inc. (a) 189,843 150 Gartner, Inc. (a) 46,311 1,800 Mastercard, Inc., Class A 623,214 1,980 Paychex, Inc. 226,651 2,520 PayPal Holdings, Inc. (a) 727,423 ------------- 2,302,596 ------------- MEDIA -- 1.7% 1,035 Altice USA, Inc., Class A (a) 28,400 795 DISH Network Corp., Class A (a) 34,654 1,410 News Corp., Class A 31,683 435 Omnicom Group, Inc. 31,851 3,585 ViacomCBS, Inc., Class B 148,598 ------------- 275,186 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 29.0% 4,755 Applied Materials, Inc. 642,543 1,395 Broadcom, Inc. 693,608 255 Enphase Energy, Inc. (a) 44,301 315 Entegris, Inc. 37,844 840 KLA Corp. 285,566 780 Lam Research Corp. 471,760 90 Monolithic Power Systems, Inc. 44,544 3,900 NVIDIA Corp. 873,015 930 ON Semiconductor Corp. (a) 41,255 195 Qorvo, Inc. (a) 36,666 4,950 QUALCOMM, Inc. 726,115 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (CONTINUED) 900 Skyworks Solutions, Inc. $ 165,114 270 Teradyne, Inc. 32,789 3,465 Texas Instruments, Inc. 661,503 ------------- 4,756,623 ------------- SOFTWARE -- 31.7% 1,320 Adobe, Inc. (a) 876,084 1,200 Autodesk, Inc. (a) 372,108 1,530 Cadence Design Systems, Inc. (a) 250,124 705 Dynatrace, Inc. (a) 48,455 900 Fortinet, Inc. (a) 283,626 1,485 Intuit, Inc. 840,673 2,670 Microsoft Corp. 806,020 8,250 Oracle Corp. 735,322 270 PTC, Inc. (a) 35,548 840 Synopsys, Inc. (a) 279,082 2,550 Trade Desk (The), Inc., Class A (a) 204,128 1,620 Zoom Video Communications, Inc., Class A (a) 468,990 ------------- 5,200,160 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 5.2% 5,295 Apple, Inc. 803,940 465 NetApp, Inc. 41,352 ------------- 845,292 ------------- TOTAL COMMON STOCKS -- 99.9% 16,379,215 (Cost $15,557,719) ------------- MONEY MARKET FUNDS -- 0.1% 22,784 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (b) 22,784 (Cost $22,784) ------------- TOTAL INVESTMENTS -- 100.0% 16,401,999 (Cost $15,580,503) (c) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (2,813) ------------- NET ASSETS -- 100.0% $ 16,399,186 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $15,580,503. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $1,186,818 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $365,322. The net unrealized appreciation was $821,496. Page 44 See Notes to Financial Statements <PAGE> FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $ 16,379,215 $ -- $ -- Money Market Funds 22,784 -- -- --------------------------------------------- Total Investments $ 16,401,999 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 45 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2021 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FIRST TRUST LOW DURATION ACTIVE FACTOR ACTIVE FACTOR STRATEGIC FOCUS LARGE CAP ETF MID CAP ETF ETF (LDSF) (AFLG) (AFMC) --------------- --------------- --------------- <S> <C> <C> <C> ASSETS: Investments, at value - Affiliated............................... $ 156,217,249 $ -- $ -- Investments, at value - Unaffiliated............................. 27,881,555 4,002,986 1,305,590 --------------- --------------- --------------- Total investments, at value...................................... 184,098,804 4,002,986 1,305,590 Cash............................................................. -- -- -- Dividends receivable............................................. 4,306 6,313 1,175 --------------- --------------- --------------- Total Assets.................................................. 184,103,110 4,009,299 1,306,765 --------------- --------------- --------------- LIABILITIES: Investment advisory fees payable................................. 31,180 1,844 709 --------------- --------------- --------------- Total Liabilities............................................. 31,180 1,844 709 --------------- --------------- --------------- NET ASSETS....................................................... $ 184,071,930 $ 4,007,455 $ 1,306,056 =============== =============== =============== NET ASSETS CONSIST OF: Paid-in capital.................................................. $ 186,601,295 $ 3,985,011 $ 1,420,934 Par value........................................................ 91,000 1,500 500 Accumulated distributable earnings (loss)........................ (2,620,365) 20,944 (115,378) --------------- --------------- --------------- NET ASSETS....................................................... $ 184,071,930 $ 4,007,455 $ 1,306,056 =============== =============== =============== NET ASSET VALUE, per share....................................... $ 20.23 $ 26.72 $ 26.12 =============== =============== =============== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)........................ 9,100,002 150,002 50,002 =============== =============== =============== Investments, at cost - Affiliated................................ $ 156,811,021 $ -- $ -- =============== =============== =============== Investments, at cost - Unaffiliated.............................. $ 27,632,659 $ 3,729,428 $ 1,179,390 =============== =============== =============== Total investments, at cost....................................... $ 184,443,680 $ 3,729,428 $ 1,179,390 =============== =============== =============== </TABLE> Page 46 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FIRST TRUST ACTIVE FACTOR INNOVATION EXPANDED SMALL CAP ETF LEADERS ETF TECHNOLOGY ETF (AFSM) (ILDR) (XPND) --------------- --------------- --------------- <S> <C> <C> $ -- $ -- $ -- 2,671,449 3,443,979 16,401,999 --------------- --------------- --------------- 2,671,449 3,443,979 16,401,999 -- 33 -- 1,613 1,281 6,094 --------------- --------------- --------------- 2,673,062 3,445,293 16,408,093 --------------- --------------- --------------- 1,232 2,120 8,907 --------------- --------------- --------------- 1,232 2,120 8,907 --------------- --------------- --------------- $ 2,671,830 $ 3,443,173 $ 16,399,186 =============== =============== =============== $ 2,865,541 $ 3,115,357 $ 15,570,190 1,000 1,500 7,500 (194,711) 326,316 821,496 --------------- --------------- --------------- $ 2,671,830 $ 3,443,173 $ 16,399,186 =============== =============== =============== $ 26.72 $ 22.95 $ 21.87 =============== =============== =============== 100,002 150,002 750,002 =============== =============== =============== $ -- $ -- $ -- =============== =============== =============== $ 2,536,275 $ 3,122,696 $ 15,580,503 =============== =============== =============== $ 2,536,275 $ 3,122,696 $ 15,580,503 =============== =============== =============== </TABLE> See Notes to Financial Statements Page 47 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2021 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FIRST TRUST LOW DURATION ACTIVE FACTOR ACTIVE FACTOR STRATEGIC FOCUS LARGE CAP ETF MID CAP ETF ETF (LDSF) (AFLG) (AFMC) --------------- --------------- --------------- <S> <C> <C> <C> INVESTMENT INCOME: Dividends - Affiliated........................................... $ 2,703,166 $ -- $ -- Dividends - Unaffiliated......................................... 553,628 85,362 26,959 Foreign withholding tax.......................................... -- -- (28) --------------- --------------- --------------- Total investment income....................................... 3,256,794 85,362 26,931 --------------- --------------- --------------- EXPENSES: Investment advisory fees......................................... 318,181 28,106 12,002 --------------- --------------- --------------- Total expenses................................................ 318,181 28,106 12,002 --------------- --------------- --------------- NET INVESTMENT INCOME (LOSS)..................................... 2,938,613 57,256 14,929 --------------- --------------- --------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated...................................... 295,984 -- -- Investments - Unaffiliated.................................... (32,417) (136,023) (21,852) In-kind redemptions - Affiliated.............................. 1,153,419 -- -- In-kind redemptions - Unaffiliated............................ 70,342 1,374,831 636,223 Distribution of capital gains from investment companies - Affiliated..................................... 261,464 -- -- Distribution of capital gains from investment companies - Unaffiliated................................... 4,257 -- -- Foreign currency transactions................................. -- -- -- --------------- --------------- --------------- Net realized gain (loss)......................................... 1,753,049 1,238,808 614,371 --------------- --------------- --------------- Net change in unrealized appreciation (depreciation) on : Investments - Affiliated...................................... (2,118,583) -- -- Investments - Unaffiliated.................................... (130,233) 84,230 138,549 --------------- --------------- --------------- Net change in unrealized appreciation (depreciation)............. (2,248,816) 84,230 138,549 --------------- --------------- --------------- NET REALIZED AND UNREALIZED GAIN (LOSS).......................... (495,767) 1,323,038 752,920 --------------- --------------- --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................................... $ 2,442,846 $ 1,380,294 $ 767,849 =============== =============== =============== </TABLE> (a) Inception date is May 25, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is June 14, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 48 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FIRST TRUST ACTIVE FACTOR INNOVATION EXPANDED SMALL CAP ETF LEADERS ETF TECHNOLOGY ETF (AFSM) (ILDR) (a) (XPND) (b) --------------- --------------- --------------- <S> <C> <C> $ -- $ -- $ -- 20,127 1,996 16,570 (25) (11) -- --------------- --------------- --------------- 20,102 1,985 16,570 --------------- --------------- --------------- 14,709 5,655 17,440 --------------- --------------- --------------- 14,709 5,655 17,440 --------------- --------------- --------------- 5,393 (3,670) (870) --------------- --------------- --------------- -- -- -- (41,767) 8,728 -- -- -- -- 773,543 -- -- -- -- -- -- -- -- -- (25) -- --------------- --------------- --------------- 731,776 8,703 -- --------------- --------------- --------------- -- -- -- 89,504 321,283 821,496 --------------- --------------- --------------- 89,504 321,283 821,496 --------------- --------------- --------------- 821,280 329,986 821,496 --------------- --------------- --------------- $ 826,673 $ 326,316 $ 820,626 =============== =============== =============== </TABLE> See Notes to Financial Statements Page 49 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FIRST TRUST FIRST TRUST LOW DURATION ACTIVE FACTOR STRATEGIC FOCUS ETF LARGE CAP ETF (LDSF) (AFLG) --------------------------------- --------------------------------- Year Ended Year Ended Year Ended Period Ended 8/31/2021 8/31/2020 8/31/2021 8/31/2020 (a) --------------- --------------- --------------- --------------- <S> <C> <C> <C> <C> OPERATIONS: Net investment income (loss)............................ $ 2,938,613 $ 2,539,741 $ 57,256 $ 23,037 Net realized gain (loss)................................ 1,753,049 (2,893,988) 1,238,808 (91,727) Net change in unrealized appreciation (depreciation).... (2,248,816) 1,656,771 84,230 189,328 --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations........................................... 2,442,846 1,302,524 1,380,294 120,638 --------------- --------------- --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations................................... (3,935,676) (2,633,376) (53,635) (17,680) --------------- --------------- --------------- --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................... 106,710,761 118,598,581 8,097,356 3,045,020 Cost of shares redeemed................................. (51,846,837) (36,794,658) (7,515,991) (1,048,547) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from shareholder transactions............................. 54,863,924 81,803,923 581,365 1,996,473 --------------- --------------- --------------- --------------- Total increase (decrease) in net assets................. 53,371,094 80,473,071 1,908,024 2,099,431 NET ASSETS: Beginning of period..................................... 130,700,836 50,227,765 2,099,431 -- --------------- --------------- --------------- --------------- End of period........................................... $ 184,071,930 $ 130,700,836 $ 4,007,455 $ 2,099,431 =============== =============== =============== =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................. 6,400,002 2,450,002 100,002 -- Shares sold............................................. 5,250,000 5,800,000 350,000 150,002 Shares redeemed......................................... (2,550,000) (1,850,000) (300,000) (50,000) --------------- --------------- --------------- --------------- Shares outstanding, end of period....................... 9,100,002 6,400,002 150,002 100,002 =============== =============== =============== =============== </TABLE> (a) Inception date is December 3, 2019, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Inception date is May 25, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (c) Inception date is June 14, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 50 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FIRST TRUST FIRST TRUST ACTIVE FACTOR ACTIVE FACTOR INNOVATION EXPANDED MID CAP ETF SMALL CAP ETF LEADERS ETF TECHNOLOGY ETF (AFMC) (AFSM) (ILDR) (XPND) --------------------------------- --------------------------------- --------------- --------------- Year Ended Period Ended Year Ended Period Ended Period Ended Period Ended 8/31/2021 8/31/2020 (a) 8/31/2021 8/31/2020 (a) 8/31/2021 (b) 8/31/2021 (c) --------------- --------------- --------------- --------------- --------------- --------------- <S> <C> <C> <C> <C> <C> $ 14,929 $ 17,733 $ 5,393 $ 11,974 $ (3,670) $ (870) 614,371 (152,076) 731,776 (210,183) 8,703 -- 138,549 (12,349) 89,504 45,670 321,283 821,496 --------------- --------------- --------------- --------------- --------------- --------------- 767,849 (146,692) 826,673 (152,539) 326,316 820,626 --------------- --------------- --------------- --------------- --------------- --------------- (17,180) (14,061) (8,250) (9,970) -- -- --------------- --------------- --------------- --------------- --------------- --------------- 1,175,597 3,032,718 2,572,524 3,026,068 3,116,857 15,578,560 (2,457,585) (1,034,590) (2,563,922) (1,018,754) -- -- --------------- --------------- --------------- --------------- --------------- --------------- (1,281,988) 1,998,128 8,602 2,007,314 3,116,857 15,578,560 --------------- --------------- --------------- --------------- --------------- --------------- (531,319) 1,837,375 827,025 1,844,805 3,443,173 16,399,186 1,837,375 -- 1,844,805 -- -- -- --------------- --------------- --------------- --------------- --------------- --------------- $ 1,306,056 $ 1,837,375 $ 2,671,830 $ 1,844,805 $ 3,443,173 $ 16,399,186 =============== =============== =============== =============== =============== =============== 100,002 -- 100,002 -- -- -- 50,000 150,002 100,000 150,002 150,002 750,002 (100,000) (50,000) (100,000) (50,000) -- -- --------------- --------------- --------------- --------------- --------------- --------------- 50,002 100,002 100,002 100,002 150,002 750,002 =============== =============== =============== =============== =============== =============== </TABLE> See Notes to Financial Statements Page 51 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) <TABLE> <CAPTION> YEAR YEAR PERIOD ENDED ENDED ENDED 8/31/2021 8/31/2020 8/31/2019 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 20.42 $ 20.50 $ 20.03 ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... 0.38 0.49 0.43 Net realized and unrealized gain (loss)........................ (0.06) (0.07) 0.47 ---------- ---------- ---------- Total from investment operations............................... 0.32 0.42 0.90 ---------- ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.51) (0.50) (0.43) ---------- ---------- ---------- Net asset value, end of period................................. $ 20.23 $ 20.42 $ 20.50 ========== ========== ========== TOTAL RETURN (b)............................................... 1.57% 2.09% 4.52% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 184,072 $ 130,701 $ 50,228 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (c).............. 0.20% 0.20% 0.20% (d) Ratio of net investment income (loss) to average net assets.... 1.85% 2.36% 3.16% (d) Portfolio turnover rate (e).................................... 54% 71% 14% </TABLE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2021 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 20.99 $ 19.87 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... 0.27 0.23 Net realized and unrealized gain (loss)........................ 5.72 1.07 ---------- ---------- Total from investment operations............................... 5.99 1.30 ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.26) (0.18) ---------- ---------- Net asset value, end of period................................. $ 26.72 $ 20.99 ========== ========== TOTAL RETURN (b)............................................... 28.74% 6.67% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 4,007 $ 2,099 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.55% 0.55% (d) Ratio of net investment income (loss) to average net assets.... 1.12% 1.62% (d) Portfolio turnover rate (e).................................... 70% 55% </TABLE> (a) Inception dates for LDSF and AFLG are January 3, 2019 and December 3, 2019, respectively, which are consistent with the respective Fund's commencement of investment operations and are the dates the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. This ratio does not include these indirect fees and expenses. (d) Annualized. (e) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. Page 52 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2021 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 18.37 $ 19.88 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... 0.19 0.18 Net realized and unrealized gain (loss)........................ 7.76 (1.55) ---------- ---------- Total from investment operations............................... 7.95 (1.37) ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.20) (0.14) ---------- ---------- Net asset value, end of period................................. $ 26.12 $ 18.37 ========== ========== TOTAL RETURN (b)............................................... 43.52% (6.86)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 1,306 $ 1,837 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.65% 0.65% (c) Ratio of net investment income (loss) to average net assets.... 0.81% 1.34% (c) Portfolio turnover rate (d).................................... 80% 66% </TABLE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2021 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 18.45 $ 19.95 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... 0.05 0.12 Net realized and unrealized gain (loss)........................ 8.30 (1.52) ---------- ---------- Total from investment operations............................... 8.35 (1.40) ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.08) (0.10) ---------- ---------- Net asset value, end of period................................. $ 26.72 $ 18.45 ========== ========== TOTAL RETURN (b)............................................... 45.40% (7.03)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 2,672 $ 1,845 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (e).............. 0.75% 0.75% (c) Ratio of net investment income (loss) to average net assets.... 0.27% 0.91% (c) Portfolio turnover rate (d).................................... 86% 65% </TABLE> (a) Inception date for AFMC and AFSM is December 3, 2019, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. (e) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying securities in which the Fund invests. This ratio does not include these indirect fees and expenses. See Notes to Financial Statements Page 53 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST INNOVATION LEADERS ETF (ILDR) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.07 ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.02) Net realized and unrealized gain (loss)........................ 2.90 ---------- Total from investment operations............................... 2.88 ---------- Net asset value, end of period................................. $ 22.95 ========== TOTAL RETURN (b)............................................... 14.35% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 3,443 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.75% (c) Ratio of net investment income (loss) to average net assets.... (0.49)% (c) Portfolio turnover rate (d).................................... 9% </TABLE> FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) <TABLE> <CAPTION> PERIOD ENDED 8/31/2021 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.18 ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.00) (e) Net realized and unrealized gain (loss)........................ 1.69 ---------- Total from investment operations............................... 1.69 ---------- Net asset value, end of period................................. $ 21.87 ========== TOTAL RETURN (b)............................................... 8.37% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 16,399 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.65% (c) Ratio of net investment income (loss) to average net assets.... (0.03)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception dates for ILDR and XPND are May 25, 2021 and June 14, 2021, respectively, which are consistent with the respective Fund's commencement of investment operations and are the dates the initial creation units were established. (b) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The return presented does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (c) Annualized. (d) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. (e) Amount is less than $0.01. Page 54 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 1. ORGANIZATION First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management investment company organized as a Massachusetts business trust on February 22, 2016, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of forty-nine funds that are offering shares. This report covers the six funds (each a "Fund" and collectively, the "Funds") listed below: First Trust Low Duration Strategic Focus ETF- (The Nasdaq Stock Market LLC ("Nasdaq") ticker "LDSF") First Trust Active Factor Large Cap ETF - (NYSE Arca, Inc. ("NYSE Arca") ticker "AFLG") First Trust Active Factor Mid Cap ETF - (NYSE Arca ticker "AFMC") First Trust Active Factor Small Cap ETF - (NYSE Arca ticker "AFSM") First Trust Innovation Leaders ETF - (NYSE Arca ticker "ILDR")(1) First Trust Expanded Technology ETF - (NYSE Arca ticker "XPND")(2) (1) Commenced investment operations on May 25, 2021. (2) Commenced investment operations on June 14, 2021 Each Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value ("NAV"), only in large blocks of shares known as "Creation Units." Each Fund is an actively managed exchange-traded fund. Each Fund's investment objective seeks to provide capital appreciation, with the exception of LDSF and XPND. LDSF's primary investment objective seeks to generate current income, with a secondary objective of preservation of capital. XPND's investment objective seeks to provide long-term capital appreciation. Under normal market conditions, LDSF will invest at least 80% of its net assets (including investment borrowings) in a portfolio of U.S.-listed exchange-traded funds ("ETFs") that principally invest in income-generating securities that provide the Fund with an effective portfolio duration of three years or less. A significant portion of the ETFs in which the Fund invests may be advised by First Trust. The Fund may invest in ETFs that invest principally in corporate bonds, floating rate loans and fixed-to-floating rate loans, senior loans, mortgage-backed securities, hybrid income securities (including convertible, contingent convertible and preferred securities), government debt and other fixed income securities. The securities to which the Fund may have exposure may be issued by both U.S. and non-U.S. issuers, including both corporate and governmental issuers located in countries considered to be emerging markets. The Fund may also invest up to 40% of its net assets in ETFs that have exposure to U.S. corporate high yield securities (also known as "junk bonds") and senior loans. The Fund may invest up to 20% of its net assets in bonds issued by non-U.S. government and corporate issuers, including up to 10% of its net assets in ETFs holding debt of issuers located in countries considered to be emerging markets. The Fund may also invest up to 10% of its net assets in ETFs holding preferred securities and up to 10% of its net assets in ETFs holding convertible securities. Under normal market conditions, AFLG will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by large capitalization companies. Under normal market conditions, AFMC will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by mid capitalization companies. Under normal market conditions, AFSM will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by small capitalization companies. Under normal market conditions, ILDR will invest at least 80% of its net assets (including investment borrowings) in common stock and depository receipts issued by U.S. and non-U.S. companies that may benefit from the development or application of scientific and technological innovation. Under normal market conditions, XPND will invest at least 80% of its net assets (including investment borrowings) in the common stocks of companies identified by the Fund's investment advisor as either information technology companies or consumer discretionary and communication services companies whose operations are principally derived from and/or dependent upon technology (such companies are collectively referred to herein as "Expanded Technology Companies"). There can be no assurance that a Fund will achieve its investment objective. The Funds may not be appropriate for all investors. Page 55 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 2. SIGNIFICANT ACCOUNTING POLICIES The Funds are each considered an investment company and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. PORTFOLIO VALUATION Each Fund's NAV is determined daily as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Each Fund's NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding. Each Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Funds' investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"), in accordance with valuation procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the 1940 Act. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. Each Fund's investments are valued as follows: Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the principal market for such securities. Securities trading on foreign exchanges or over-the-counter markets that close prior to the NYSE close may be valued using a systematic fair valuation model provided by a third-party pricing service. If these foreign securities meet certain criteria in relation to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S. market after the close of the foreign markets. Securities traded in an over-the-counter market are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Shares of open-end funds are valued at fair value which is based on NAV per share. Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Trust's Board of Trustees or its delegate, the Advisor's Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following: 1) the type of security; 2) the size of the holding; 3) the initial cost of the security; 4) transactions in comparable securities; 5) price quotes from dealers and/or third-party pricing services; 6) relationships among various securities; Page 56 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 7) information obtained by contacting the issuer, analysts, or the appropriate stock exchange; 8) an analysis of the issuer's financial statements; and 9) the existence of merger proposals or tender offers that might affect the value of the security. The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows: o Level 1 - Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. o Level 2 - Level 2 inputs are observable inputs, either directly or indirectly, and include the following: o Quoted prices for similar investments in active markets. o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. o Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the investment. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value each Fund's investments as of August 31, 2021, is included with each Fund's Portfolio of Investments. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis. Withholding taxes and tax reclaims on foreign dividends have been provided for in accordance with each Fund's understanding of the applicable country's tax rules and rates. Distributions received from a Fund's investments in real estate investment trusts ("REITs") may be comprised of return of capital, capital gains and income. The actual character of the amounts received during the year is not known until after the REITs' fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. The characterization of distributions received by a Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude. C. AFFILIATED TRANSACTIONS LDSF invests in securities of affiliated funds. The Fund's investment performance and risks are directly related to the investment performance and risks of the affiliated funds. Dividend income, realized gains and losses, and change in appreciation (depreciation) from affiliated funds are presented on the Statements of Operations. Page 57 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Amounts related to these investments at August 31, 2021 and for the fiscal year then ended are as follows: <TABLE> <CAPTION> CHANGE IN UNREALIZED REALIZED SHARES AT VALUE AT APPRECIATION GAIN VALUE AT DIVIDEND SECURITY NAME 8/31/2021 8/31/2020 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2021 INCOME ----------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> First Trust Emerging Markets Local Currency Bond ETF 131,585 $ 3,325,789 $ 3,029,940 $ (2,073,892) $ 171,669 $ 62,491 $ 4,515,997 $ (88,392) First Trust Enhanced Short Maturity ETF 307,407 12,981,008 16,031,047 (10,559,751) (17,693) (8,635) 18,425,976 50,754 First Trust Low Duration Opportunities ETF 448,343 38,996,208 48,542,466 (13,183,819) (871,417) 19,969 73,503,407 967,164 First Trust Senior Loan Fund 671,805 6,685,589 37,108,836 (11,651,491) (120,191) 163,434 32,186,177 446,207 First Trust Tactical High Yield ETF 189,796 6,753,583 22,050,163 (20,142,224) 30,874 493,730 9,186,126 868,457 First Trust TCW Opportunistic Fixed Income ETF -- 35,966,995 16,631,446 (52,301,307) (1,277,924) 980,790(a) -- 391,066 First Trust TCW Unconstrained Plus Bond ETF 691,713 -- 19,041,019 (606,640) (33,901) (912) 18,399,566 67,910 ------------ ------------ -------------- -------------- ----------- ------------ ----------- $104,709,172 $162,434,917 $ (110,519,124) $ (2,118,583) $ 1,710,867 $156,217,249 $ 2,703,166 ============ ============ ============== ============== =========== ============ =========== </TABLE> (a) Includes $261,464 of capital gain distributions. D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income of each Fund, if any, are declared and paid quarterly, with the exception of LDSF which declares and pays monthly, or as the Board of Trustees may determine from time to time. Distributions of net realized gains earned by each Fund, if any, are distributed at least annually. Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Funds and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future. The tax character of distributions paid by each Fund during the fiscal period ended August 31, 2021, was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions paid from paid from paid from Ordinary Capital Return of Income Gains Capital ------------- ------------- ------------- <S> <C> <C> <C> First Trust Low Duration Strategic Focus ETF $ 3,935,676 $ -- $ -- First Trust Active Factor Large Cap ETF 53,635 -- -- First Trust Active Factor Mid Cap ETF 17,180 -- -- First Trust Active Factor Small Cap ETF 8,250 -- -- First Trust Innovation Leaders ETF -- -- -- First Trust Expanded Technology ETF -- -- -- </TABLE> Page 58 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 The tax character of distributions paid by each Fund during the fiscal period ended August 31, 2020, was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions paid from paid from paid from Ordinary Capital Return of Income Gains Capital ------------- ------------- ------------- <S> <C> <C> <C> First Trust Low Duration Strategic Focus ETF $ 2,633,376 $ -- $ -- First Trust Active Factor Large Cap ETF 17,680 -- -- First Trust Active Factor Mid Cap ETF 14,061 -- -- First Trust Active Factor Small Cap ETF 9,970 -- -- </TABLE> As of August 31, 2021, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Ordinary Other Appreciation Income Gain (Loss) (Depreciation) ------------- ------------- ------------- <S> <C> <C> <C> First Trust Low Duration Strategic Focus ETF $ -- $ (2,126,627) $ (493,738) First Trust Active Factor Large Cap ETF 8,978 (246,427) 258,393 First Trust Active Factor Mid Cap ETF 1,421 (237,064) 120,265 First Trust Active Factor Small Cap ETF -- (313,865) 119,154 First Trust Innovation Leaders ETF 5,081 -- 321,235 First Trust Expanded Technology ETF -- -- 821,496 </TABLE> E. INCOME TAXES Each Fund intends to qualify or continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, each Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of each Fund's taxable income exceeds the distributions from such taxable income for the calendar year. The Funds are subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. For LDSF, the taxable years ended 2019, 2020, and 2021 remain open to federal and state audit. For AFLG, AFMC and AFSM, the taxable years ended 2020 and 2021 remain open to federal and state audit. For ILDR and XPND, the taxable year ended 2021 remains open to federal and state audit. As of August 31, 2021, management has evaluated the application of these standards to the Funds, and has determined that no provision for income tax is required in the Funds' financial statements for uncertain tax positions. Each Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. Each Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At August 31, 2021, for federal income tax purposes, the Funds had a capital loss carryforward available that is shown in the table below, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to the Funds' shareholders. Non-Expiring Capital Loss Carryforwards --------------- First Trust Low Duration Strategic Focus ETF $ 2,126,627 First Trust Active Factor Large Cap ETF 246,427 First Trust Active Factor Mid Cap ETF 237,064 First Trust Active Factor Small Cap ETF 313,865 First Trust Innovation Leaders ETF -- First Trust Expanded Technology ETF -- Page 59 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 During the taxable year ended August 31, 2021, the following Fund utilized non-expiring capital loss carryforwards in the following amount: Capital Loss Carryforwards Utilized --------------- First Trust Low Duration Strategic Focus ETF $ 350,288 Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal period ended August 31, 2021, the Funds had no net late year ordinary or capital losses. In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Funds and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal period ended August 31, 2021, the adjustments for each Fund were as follows: <TABLE> <CAPTION> Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- ------------- <S> <C> <C> <C> First Trust Low Duration Strategic Focus ETF $ 997,063 $ (1,403,551) $ 406,488 First Trust Active Factor Large Cap ETF -- (1,316,665) 1,316,665 First Trust Active Factor Mid Cap ETF -- (613,812) 613,812 First Trust Active Factor Small Cap ETF 853 (746,803) 745,950 First Trust Innovation Leaders ETF 3,670 (3,670) -- First Trust Expanded Technology ETF 870 -- (870) </TABLE> F. EXPENSES Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3). 3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS First Trust, the investment advisor to the Funds, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for supervising the selection and ongoing monitoring of the securities in each Fund's portfolio, managing the Funds' business affairs and providing certain administrative services necessary for the management of the Funds. Pursuant to the Investment Management Agreement between the Trust and the Advisor, First Trust manages the investment of each Fund's assets and is responsible for the expenses of each Fund, including the cost of transfer agency, custody, fund administration, legal, audit, license fees and other services, but excluding fee payments under the Investment Management Agreement, interest, taxes, pro rata share of fees and expenses attributable to investments in other investment companies ("acquired fund fees and expenses"), brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses. Each Fund has agreed to pay First Trust an annual unitary management fee based on each Fund's average daily net assets at a rate set forth below: Rate -------------- First Trust Low Duration Strategic Focus ETF 0.20% First Trust Active Factor Large Cap ETF 0.55% First Trust Active Factor Mid Cap ETF 0.65% First Trust Active Factor Small Cap ETF 0.75% First Trust Innovation Leaders ETF 0.75% First Trust Expanded Technology ETF 0.65% Page 60 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 In addition, LDSF incurs acquired fund fees and expenses. The total of the unitary management fee and acquired fund fees and expenses represents the fund's total annual operating expenses. The Trust has multiple service agreements with The Bank of New York Mellon ("BNYM"). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services and transfer agency services for each Fund. As custodian, BNYM is responsible for custody of each Fund's assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of each Fund's securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for each Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company. Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or is an index fund. Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. 4. PURCHASES AND SALES OF SECURITIES For the fiscal period ended August 31, 2021, the cost of purchases and proceeds from sales of investments for each Fund, excluding short-term investments and in-kind transactions, were as follows: <TABLE> <CAPTION> Purchases Sales -------------- -------------- <S> <C> <C> First Trust Low Duration Strategic Focus ETF $ 85,016,547 $ 85,521,055 First Trust Active Factor Large Cap ETF 3,403,945 3,396,604 First Trust Active Factor Mid Cap ETF 1,404,228 1,402,868 First Trust Active Factor Small Cap ETF 1,644,775 1,644,693 First Trust Innovation Leaders ETF 348,920 231,789 First Trust Expanded Technology ETF -- -- </TABLE> For the fiscal period ended August 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales for each Fund were as follows: <TABLE> <CAPTION> Purchases Sales -------------- -------------- <S> <C> <C> First Trust Low Duration Strategic Focus ETF $ 106,640,490 $ 51,761,469 First Trust Active Factor Large Cap ETF 8,080,185 7,504,648 First Trust Active Factor Mid Cap ETF 1,172,267 2,453,198 First Trust Active Factor Small Cap ETF 2,566,497 2,557,779 First Trust Innovation Leaders ETF 2,987,781 -- First Trust Expanded Technology ETF 15,557,719 -- </TABLE> 5. CREATIONS, REDEMPTIONS AND TRANSACTION FEES Each Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as "Authorized Participants" have contractual arrangements with a Fund or one of the Fund's service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as "Creation Units." Prior to the start of trading on every business day, a Fund publishes through the National Securities Clearing Corporation ("NSCC") the "basket" of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund's shares. An Authorized Participant that wishes to effectuate a creation of a Fund's shares deposits with the Fund the "basket" of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund's shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund's shares or sell them in the secondary market. The redemption process is the reverse of the purchase process: the Authorized Participant redeems a Creation Unit of a Fund's shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in a Fund's shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of a Fund's shares at or close to the NAV per share of the Fund. Page 61 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 Each Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket. Each Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of a Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by a Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed. 6. DISTRIBUTION PLAN The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Funds are authorized to pay an amount up to 0.25% of their average daily net assets each year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the Funds, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services. No 12b-1 fees are currently paid by the Funds, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before December 31, 2022 for LDSF, AFLG, AFMC and AFSM, May 24, 2023 for ILDR, and June 8, 2023 for XPND. 7. INDEMNIFICATION The Trust, on behalf of the Funds, has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 8. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were the following subsequent events: On September 20, 2021, FT Cboe Vest International Equity Buffer ETF - September and FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, each an additional series of the Trust, began trading under the symbols "YSEP" and "QSPT," respectively, on Cboe BZX Exchange, Inc. On September 21, 2021, First Trust SkyBridge Crypto Industry and Digital Economy ETF, an additional series of the Trust, began trading under the symbol "CRPT" on NYSE Arca. On October 14, 2021, First Trust Multi-Manager Small Cap Opportunities ETF, an additional series of the Trust, began trading under the symbol "MMSC" on NYSE Arca. Page 62 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED FUND VIII: OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS We have audited the accompanying statements of assets and liabilities of First Trust Low Duration Strategic Focus ETF, First Trust Active Factor Large Cap ETF, First Trust Active Factor Mid Cap ETF, First Trust Active Factor Small Cap ETF, First Trust Innovation Leaders ETF, and First Trust Expanded Technology ETF (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2021, the related statements of operations, the statements of changes in net assets, and the financial highlights for the periods indicated in the table below, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of August 31, 2021, and the results of their operations, the changes in their net assets, and the financial highlights for the periods listed in the table below in conformity with accounting principles generally accepted in the United States of America. <TABLE> <CAPTION> ----------------------------------------------------------------------------------------------------------------------- INDIVIDUAL FUNDS STATEMENTS OF STATEMENTS OF FINANCIAL INCLUDED IN THE TRUST OPERATIONS CHANGES IN NET ASSETS HIGHLIGHTS ----------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> First Trust Low Duration Strategic For the year ended For the years ended For the years ended August Focus ETF (LDSF) August 31, 2021 August 31, 2021 and 2020 31, 2021 and 2020 and the period from January 3, 2019 (commencement of operations) through August 31, 2019 ----------------------------------------------------------------------------------------------------------------------- First Trust Active Factor Large Cap ETF For the year ended For the year ended August 31, 2021 and the period from (AFLG) August 31, 2021 December 3, 2019 (commencement of operations) through August 31, 2020 First Trust Active Factor Mid Cap ETF (AFMC) First Trust Active Factor Small Cap ETF (AFSM) ----------------------------------------------------------------------------------------------------------------------- First Trust Innovation Leaders ETF For the period from May 25, 2021 (commencement of operations) through (ILDR) August 31, 2021 ----------------------------------------------------------------------------------------------------------------------- First Trust Expanded Technology ETF For the period from June 14, 2021 (commencement of operations) through (XPND) August 31, 2021 ----------------------------------------------------------------------------------------------------------------------- </TABLE> BASIS FOR OPINION These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our Page 63 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED) -------------------------------------------------------------------------------- audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 22, 2021 We have served as the auditor of one or more First Trust investment companies since 2001. Page 64 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on each Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov. PORTFOLIO HOLDINGS Each Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC's website at www.sec.gov. Each Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for each Fund is available to investors within 60 days after the period to which it relates. Each Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above. FEDERAL TAX INFORMATION For the taxable period ended August 31, 2021, the following percentages of income dividend paid by the Funds qualify for the dividends received deduction available to corporations: Dividends Received Deduction ---------------------------- First Trust Low Duration Strategic Focus ETF 0.00% First Trust Active Factor Large Cap ETF 100.00% First Trust Active Factor Mid Cap ETF 100.00% First Trust Active Factor Small Cap ETF 100.00% First Trust Innovation Leaders ETF 0.00% First Trust Expanded Technology ETF 0.00% For the taxable period ended August 31, 2021, the following percentages of income dividend paid by the Funds are hereby designated as qualified dividend income: Qualified Dividend Income ---------------------------- First Trust Low Duration Strategic Focus ETF 0.00% First Trust Active Factor Large Cap ETF 100.00% First Trust Active Factor Mid Cap ETF 100.00% First Trust Active Factor Small Cap ETF 100.00% First Trust Innovation Leaders ETF 0.00% First Trust Expanded Technology ETF 0.00% A portion of each of the Funds' 2021 ordinary dividends (including short-term capital gains) paid to its shareholders during the fiscal period ended August 31, 2021, may be eligible for the Qualified Business Income Deduction (QBI) under Internal Revenue Code of 1986, as amended, Section 199A for the aggregate dividends each Fund received from the underlying Real Estate Investment Trusts (REITs) these Funds invest in. Distributions paid to foreign shareholders for the taxable year ended August 31, 2021, that were properly designated by LDSF as "interest-related dividends" or "short-term capital gain dividends," may not be subject to federal income tax provided that the income was earned directly by such foreign shareholders. RISK CONSIDERATIONS RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND. Page 65 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) CONCENTRATION RISK. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund's investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund's corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified. CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments. CYBER SECURITY RISK. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund's third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches. DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor's investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, the fund's share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless. DERIVATIVES RISK. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund. EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the value of the fund's shares will fluctuate with changes in the value of the 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 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 capital rises and borrowing costs increase. 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. ETF RISK. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange 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). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF's shares, or decisions by an ETF's authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF's shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads. FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund's fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, Page 66 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities. INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund's net asset value could be negatively impacted and the fund's market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund's shares. INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund's costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders. INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund's investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests. LIBOR RISK. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund. MANAGEMENT RISK. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund's investment portfolio, the fund's portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective. MARKET RISK. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. 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; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries. Page 67 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) OPERATIONAL RISK. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund's ability to meet its investment objective. Although the funds and the funds' investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE ADVISORY AGREEMENT BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT FOR FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the "Agreement") with First Trust Advisors L.P. (the "Advisor"), on behalf of the First Trust Low Duration Strategic Focus ETF (the "Fund"). The Board approved the continuation of the Agreement for a one-year period ending June 30, 2022 at a meeting held on June 6-7, 2021. The Board determined that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 26, 2021 and June 6-7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by the Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund's performance to that of one or more relevant benchmark indexes; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"); and information on the Advisor's compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6-7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from the Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor manages the Fund and knowing the Fund's unitary fee. In reviewing the Agreement, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and the Fund and reviewed all of the services provided by the Advisor to the Fund, as well as the background and experience of the persons responsible for such services. The Board noted that the Fund is an actively-managed ETF and noted that the Advisor's Investment Committee is responsible for the day-to-day management of the Fund's investments. The Board considered the background and experience of the members of the Investment Committee, including the Board's prior meetings with members of the Investment Committee. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes Page 68 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) a robust program for monitoring the Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objectives, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and the Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed the Fund consistent with its investment objectives, policies and restrictions. The Board considered the unitary fee rate payable by the Fund under the Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for the Fund's expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board noted that, because the Fund invests in underlying ETFs, including ETFs in the First Trust Fund Complex, the Fund incurs acquired fund fees and expenses, which are not payable out of the unitary fee, and that such acquired fund fees and expenses will change over time as assets are reallocated among the underlying ETFs. The Board received and reviewed information showing the advisory fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because the Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for the Fund was below the median total (net) expense ratio (excluding acquired fund fees and expenses, as applicable) of the peer funds in its Expense Group. The Board also noted that the Fund's total (net) expense ratio (including acquired fund fees and expenses) was above the median total (net) expense ratio (including acquired fund fees and expenses, as applicable) of the peer funds in the Expense Group. With respect to the Expense Group, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including that the Expense Group contained both actively-managed ETFs and open-end mutual funds, and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Fund and other non-ETF clients that limited their comparability. In considering the unitary fee rate overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex. The Board considered performance information for the Fund. The Board noted the process it has established for monitoring the Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund's performance. The Board received and reviewed information comparing the Fund's performance for the one-year period ended December 31, 2020 to the performance of the funds in the Performance Universe and to that of a blended benchmark index. Based on the information provided, the Board noted that the Fund underperformed the Performance Universe median and the blended benchmark index for the one-year period ended December 31, 2020. On the basis of all the information provided on the unitary fee for the Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for the Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to the Fund under the Agreement. The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund and noted the Advisor's statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Fund. The Board noted that any reduction in fixed costs associated with the management of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Fund. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the twelve months ended December 31, 2020 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for the Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Fund. In addition, the Board considered that Page 69 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) the Advisor, as the investment advisor to certain of the underlying ETFs in which the Fund invests, will recognize additional revenue from such underlying ETFs if investment by the Fund causes the assets of the underlying ETFs to grow. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of the Fund. No single factor was determinative in the Board's analysis. BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT FOR FIRST TRUST ACTIVE FACTOR LARGE CAP ETF FIRST TRUST ACTIVE FACTOR MID CAP ETF FIRST TRUST ACTIVE FACTOR SMALL CAP ETF The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the "Agreement") with First Trust Advisors L.P. (the "Advisor"), on behalf of the following three series of the Trust (each a "Fund" and collectively, the "Funds"): First Trust Active Factor Large Cap ETF (AFLG) First Trust Active Factor Mid Cap ETF (AFMC) First Trust Active Factor Small Cap ETF (AFSM) The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2022 at a meeting held on June 6-7, 2021. The Board determined for each Fund that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination for each Fund, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 26, 2021 and June 6-7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to each Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by each Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the expense ratio of each Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for each Fund, including comparisons of each Fund's performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the "Performance Universe"), each assembled by Broadridge; the nature of expenses incurred in providing services to each Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"); and information on the Advisor's compliance program. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6-7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor continues to be a reasonable business arrangement from each Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement. The Board considered that shareholders chose to invest or remain invested in a Fund knowing that the Advisor manages the Fund and knowing the Fund's unitary fee. In reviewing the Agreement for each Fund, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement. The Board considered that the Advisor is responsible for the overall management and administration of the Trust and each Fund and reviewed all of the services provided by the Advisor to the Funds, as well as the background and experience of the persons responsible for such services. The Board noted that each Fund is an actively-managed ETF and noted that the Advisor's Investment Committee is responsible for the day-to-day management of each Fund's investments. The Board Page 70 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) considered the background and experience of the members of the Investment Committee, including the Board's prior meetings with members of the Investment Committee. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's and each Fund's compliance with the 1940 Act, as well as each Fund's compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Funds. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Funds and the other funds in the First Trust Fund Complex. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and each Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed each Fund consistent with its investment objective, policies and restrictions. The Board considered the unitary fee rate payable by each Fund under the Agreement for the services provided. The Board considered that as part of the unitary fee the Advisor is responsible for each Fund's expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, acquired fund fees and expenses, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Groups, as well as advisory and unitary fee rates charged by the Advisor to other fund (including ETFs) and non-fund clients, as applicable. Because each Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for each of AFLG and AFMC was above the median total (net) expense ratio of the peer funds in its respective Expense Group and that the unitary fee rate for AFSM was below the median total (net) expense ratio of the peer funds in its Expense Group. With respect to the Expense Groups, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating peer groups for actively-managed ETFs and different business models that may affect the pricing of services among ETF sponsors. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Funds and other non-ETF clients that limited their comparability. In considering the unitary fee rates overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to each Fund and the other funds in the First Trust Fund Complex. The Board considered performance information for each Fund. The Board noted the process it has established for monitoring each Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Funds. The Board determined that this process continues to be effective for reviewing each Fund's performance. The Board received and reviewed information comparing each Fund's performance for the one-year period ended December 31, 2020 to the performance of the funds in its Performance Universe and to that of a benchmark index. Based on the information provided, the Board noted that each Fund underperformed its Performance Universe median and benchmark index for the one-year period ended December 31, 2020. On the basis of all the information provided on the unitary fee and performance of each Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for each Fund continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to each Fund under the Agreement. The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Funds and noted the Advisor's statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Funds. The Board noted that any reduction in fixed costs associated with the management of the Funds would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Funds. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to each Fund for the twelve months ended December 31, 2020 and the estimated profitability level for each Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for each Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Funds, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft dollars in connection with the Funds. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of each Fund. No single factor was determinative in the Board's analysis. Page 71 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT FOR FIRST TRUST INNOVATION LEADERS ETF The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, approved the Investment Management Agreement (the "Agreement") with First Trust Advisors L.P. (the "Advisor"), on behalf of First Trust Innovation Leaders ETF (the "Fund"), for an initial two-year term at a meeting held on April 26, 2021. The Board determined that the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreement for the Fund, the Independent Trustees received a report from the Advisor in advance of the Board meeting responding to a request for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by the Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor; the estimated expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to the Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"); and information on the Advisor's compliance program. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor is a reasonable business arrangement from the Fund's perspective. In evaluating whether to approve the Agreement for the Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor under the Agreement and considered that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. The Board considered that the Advisor will be responsible for the overall management and administration of the Fund and reviewed all of the services to be provided by the Advisor to the Fund, as well as the background and experience of the persons responsible for such services. The Board noted that the Fund will be an actively-managed ETF and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor's Research Group will be responsible for the day-to-day management of the Fund's investments and considered the background and experience of the members of the Research Group. The Board considered that the Advisor applies the same oversight model internally with the Research Group as it uses for overseeing external sub-advisors, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objective, policies and restrictions. At the meeting, the Trustees received a presentation from representatives of the Research Group and were able to ask questions about the team and the proposed investment strategy for the Fund. Because the Fund had yet to commence investment operations, the Board could not consider the historical investment performance of the Fund. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to the Fund by the Advisor under the Agreement are expected to be satisfactory. The Board considered the proposed unitary fee rate payable by the Fund under the Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal to an annual rate of 0.75% of its average daily net assets. The Board noted that the Advisor would be responsible for the Fund's expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other ETFs. Because the Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board discussed with representatives of the Advisor how the Expense Group was assembled and how the Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other ETFs managed by the Advisor, the Board considered the Advisor's statement that the Fund will be most comparable to three other actively-managed ETFs managed by Page 72 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) the Advisor that pay unitary fees at annual rates that range from 0.70% to 0.85% of their respective average daily net assets, due to their shared focus on targeted global exposures with robust investment processes and objectives to track a given market segment. In light of the information considered and the nature, extent and quality of the services expected to be provided to the Fund under the Agreement, the Board determined that the proposed unitary fee was fair and reasonable. The Board noted that the proposed unitary fee for the Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Fund. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for the Fund under the Agreement. The Board considered the Advisor's estimate of the asset level for the Fund at which the Advisor expects the Agreement to be profitable to the Advisor and the Advisor's estimate of the profitability of the Agreement if the Fund's assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for the Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP. The Board noted that the Advisor will not utilize soft dollars in connection with the Fund. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Agreement are fair and reasonable and that the approval of the Agreement is in the best interests of the Fund. No single factor was determinative in the Board's analysis. BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT FOR FIRST TRUST EXPANDED TECHNOLOGY ETF The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, approved the Investment Management Agreement (the "Agreement") with First Trust Advisors L.P. (the "Advisor"), on behalf of First Trust Expanded Technology ETF (the "Fund"), for an initial two-year term at a meeting held on June 7, 2021. The Board determined that the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services expected to be provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Agreement for the Fund, the Independent Trustees received a report from the Advisor in advance of the Board meeting responding to a request for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services to be provided by the Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the proposed unitary fee rate payable by the Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other exchange-traded funds ("ETFs") managed by the Advisor; the estimated expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; the nature of expenses to be incurred in providing services to the Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"); and information on the Advisor's compliance program. The Independent Trustees and their counsel also met separately to discuss the information provided by the Advisor. The Board applied its business judgment to determine whether the arrangement between the Trust and the Advisor is a reasonable business arrangement from the Fund's perspective. In evaluating whether to approve the Agreement for the Fund, the Board considered the nature, extent and quality of the services to be provided by the Advisor under the Agreement and considered that employees of the Advisor provide management services to other ETFs and to other funds in the First Trust Fund Complex with diligence and care. The Board considered that the Advisor will be responsible for the overall management and administration of the Fund and reviewed all of the services to be provided by the Advisor to the Fund, as well as the background and experience of the persons responsible for such services. The Board noted that the Fund will be an actively-managed ETF and considered that the Advisor manages other ETFs with a similar structure in the First Trust Fund Complex. The Board noted that the Advisor's Research Group will be responsible for the day-to-day management of the Fund's investments and considered the background and experience of the members of the Research Group. The Board considered that the Advisor applies the same oversight model Page 73 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) internally with the Research Group as it uses for overseeing external sub-advisors, including portfolio risk monitoring and performance review. In reviewing the services to be provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objective, policies and restrictions. At the meeting, the Trustees received a presentation from a representative of the Research Group and were able to ask questions about the group and the proposed investment strategy for the Fund. Because the Fund had yet to commence investment operations, the Board could not consider the historical investment performance of the Fund. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services to be provided to the Fund by the Advisor under the Agreement are expected to be satisfactory. The Board considered the proposed unitary fee rate payable by the Fund under the Agreement for the services to be provided. The Board noted that, under the unitary fee arrangement, the Fund would pay the Advisor a unitary fee equal to an annual rate of 0.65% of its average daily net assets. The Board noted that the Advisor would be responsible for the Fund's expenses, including the cost of transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Agreement and interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other ETFs. Because the Fund will pay a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for the Fund was below the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board discussed with representatives of the Advisor how the Expense Group was assembled and how the Fund compared and differed from the peer funds. The Board took this information into account in considering the peer data. With respect to fees charged to other ETFs managed by the Advisor, the Board considered the Advisor's statement that the Fund will be most comparable to three other actively-managed ETFs managed by the Advisor that pay unitary fees at annual rates that range from 0.55% to 0.70% of their respective average daily net assets, due to their shared focus on U.S. equity exposures with robust investment processes and objectives to track a given market segment. In light of the information considered and the nature, extent and quality of the services expected to be provided to the Fund under the Agreement, the Board determined that the proposed unitary fee was fair and reasonable. The Board noted that the proposed unitary fee for the Fund was not structured to pass on to shareholders the benefits of any economies of scale as the Fund's assets grow. The Board noted that any reduction in fixed costs associated with the management of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Fund. The Board noted that the Advisor has continued to hire personnel and build infrastructure, including technology, to improve the services to the funds in the First Trust Fund Complex. The Board took into consideration the types of costs to be borne by the Advisor in connection with its services to be performed for the Fund under the Agreement. The Board considered the Advisor's estimate of the asset level for the Fund at which the Advisor expects the Agreement to be profitable to the Advisor and the Advisor's estimate of the profitability of the Agreement if the Fund's assets reach $100 million. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's estimated profitability level for the Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP. The Board noted that the Advisor will not utilize soft dollars in connection with the Fund. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Agreement are fair and reasonable and that the approval of the Agreement is in the best interests of the Fund. No single factor was determinative in the Board's analysis. LIQUIDITY RISK MANAGEMENT PROGRAM In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Funds and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program (the "Program") reasonably designed to assess and manage the funds' liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust Liquidity Committee (the "Liquidity Committee"). Page 74 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund's portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment minimum for certain funds, monitors the funds' holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund's net assets and establishes policies and procedures regarding redemptions in kind. At the April 26, 2021 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 20, 2020 through the Liquidity Committee's annual meeting held on March 16, 2021 and assessed the Program's adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to have one, and any material changes to the Program. Note that because the Funds primarily hold assets that are highly liquid investments, the Funds have not adopted any highly liquid investment minimums. As stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund's investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4. Page 75 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The Trust's statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891. <TABLE> <CAPTION> NUMBER OF OTHER PORTFOLIOS IN TRUSTEESHIPS OR TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> Richard E. Erickson, Trustee o Indefinite Term Physician, Officer, Wheaton Orthopedics; 210 None (1951) Limited Partner, Gundersen Real Estate o Since Inception Limited Partnership (June 1992 to December 2016) Thomas R. Kadlec, Trustee o Indefinite Term President, ADM Investors Services, Inc. 210 Director of ADM (1957) (Futures Commission Merchant) Investor Services, o Since Inception Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises (Financial 210 Director of Trust (1956) and Management Consulting) Company of o Since Inception Illinois Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (August 2018 to Present), 210 None (1954) Managing Director and Chief Operating o Since Inception Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First Trust 210 None Chairman of the Board Advisors L.P. and First Trust (1955) o Since Inception Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) </TABLE> ----------------------------- (1) Mr. Bowen is deemed an "interested person" of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust. Page 76 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS AND YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS(2) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer (1966) Executive Officer (January 2016 to Present), Controller (January 2011 o Since Inception to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to Present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President (July 2016 to Present), Vice (1972) Officer and Chief President (April 2012 to July 2016), First Trust Accounting Officer o Since Inception Advisors L.P. and First Trust Portfolios L.P. W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P. and (1960) Legal Officer First Trust Portfolios L.P.; Secretary and General o Since Inception Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and (1970) First Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. (1966) and Assistant Secretary and First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1966) and First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1970) and First Trust Portfolios L.P. o Since Inception </TABLE> ----------------------------- (2) The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. Page 77 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2021 (UNAUDITED) PRIVACY POLICY First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information. SOURCES OF INFORMATION We collect nonpublic personal information about you from the following sources: o Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; o Information about your transactions with us, our affiliates or others; o Information we receive from your inquiries by mail, e-mail or telephone; and o Information we collect on our website through the use of "cookies". For example, we may identify the pages on our website that your browser requests or visits. INFORMATION COLLECTED The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information. DISCLOSURE OF INFORMATION We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons: o In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. o We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust. USE OF WEBSITE ANALYTICS We currently use third party analytics tools, Google Analytics and AddThis to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis. CONFIDENTIALITY AND SECURITY With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information. POLICY UPDATES AND INQUIRIES As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors). March 2021 Page 78 <PAGE> This page intentionally left blank. <PAGE> This page intentionally left blank. <PAGE> FIRST TRUST First Trust Exchange-Traded Fund VIII INVESTMENT ADVISOR First Trust Advisors L.P. 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 111 S. Wacker Drive Chicago, IL 60606 LEGAL COUNSEL Chapman and Cutler LLP 111 W. Monroe Street Chicago, IL 60603 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust Multi-Manager Large Growth ETF (MMLG) ---------------------------- Annual Report For the Year Ended August 31, 2021 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) ANNUAL REPORT AUGUST 31, 2021 Shareholder Letter........................................................... 1 Fund Performance Overview.................................................... 2 Portfolio Commentary......................................................... 4 Understanding Your Fund Expenses............................................. 6 Portfolio of Investments..................................................... 7 Statement of Assets and Liabilities.......................................... 10 Statement of Operations...................................................... 11 Statements of Changes in Net Assets.......................................... 12 Financial Highlights......................................................... 13 Notes to Financial Statements................................................ 14 Report of Independent Registered Public Accounting Firm...................... 19 Additional Information....................................................... 20 Board of Trustees and Officers............................................... 26 Privacy Policy............................................................... 28 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. ("First Trust" or the "Advisor") and/or Wellington Management Company LLP ("Wellington") and/or Sands Capital Management, LLC ("Sands Capital") (each, a "Sub-Advisor" and together, "Sub-Advisors") and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as "anticipate," "estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or other words that convey uncertainty of future events or outcomes. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (First Trust Multi-Manager Large Growth ETF; hereinafter referred to as the "Fund") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisors and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof. PERFORMANCE AND RISK DISCLOSURE There is no assurance that the Fund will achieve its investment objective. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund's shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in the Fund. See "Risk Considerations" in the Additional Information section of this report for a discussion of certain other risks of investing in the Fund. Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost. The Advisor may also periodically provide additional information on Fund performance on the Fund's webpage at www.ftportfolios.com. HOW TO READ THIS REPORT This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data and analysis that provide insight into the Fund's performance and investment approach. By reading the portfolio commentary from the portfolio management team of the Fund, you may obtain an understanding of how the market environment affected the Fund's performance. The statistical information that follows may help you understand the Fund's performance compared to that of relevant market benchmarks. It is important to keep in mind that the opinions expressed by personnel of the Advisor and/or Sub-Advisors are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information, and other Fund regulatory filings. <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2021 Dear Shareholders: First Trust is pleased to provide you with the annual report for the First Trust Multi-Manager Large Growth ETF (the "Fund"), which contains detailed information about the Fund for the twelve months ended August 31, 2021. The coronavirus ("COVID-19") pandemic has proven to be as stubborn as advertised. We were warned by the scientific community early on that we would have to coexist with this virus from here on out, and that appears to be the case some 19 months after its onset. While the three main vaccines have proven to be effective at keeping those people who have gotten all the required shots out of the hospital, the U.S., unfortunately, had only achieved a 54% fully vaccinated rate as of September 9, 2021, according to the Centers for Disease Control and Prevention. If you add in the people ages 18 and older who have received just one of the two-dose vaccines, it jumps to 75.3%. The U.S. and global economies continue to underperform due to the pandemic. The U.S. alone had a record high 10.9 million job openings at the end of July 2021, according to the latest Job Openings and Labor Turnover Survey from the Department of Labor. It appears that many people do not seem to want to work right now. An estimated 7.5 million unemployment recipients in the U.S. were scheduled to lose their benefits on September 6, 2021. Perhaps that will be enough to incentivize people to go back to work. The Federal Reserve (the "Fed") continues to play a major role in the U.S. economy. It has kept short-term interest rates artificially low for the better part of the past 13 years. The Federal Funds target rate (upper bound), while held at 0.25% for roughly nine of those 13 years, reached as high as 2.50% in the same 13-year period, but only for a few months and that was just prior to the COVID-19 pandemic, according to data from the Fed. For comparative purposes, the target rate averaged 2.56% for the 30-year period ended September 21, 2021. It currently stands at 0.25%. In addition to keeping rates low, the Fed has been buying assets, specifically Treasuries and mortgage-backed securities. It has been buying a combined $120 billion of these securities every month. This has helped keep bond yields artificially low as well. As of February 26, 2020, the value of the assets on the Fed's balance sheet totaled $4.16 trillion, according to its own data. As of September 15, 2021, the assets were valued at $8.45 trillion. Keep in mind, the balance sheet stood at $1 trillion on September 17, 2008. That was during the 2007-2008 Financial Crisis. Due to the reopening of the U.S. economy and a bigger-than-expected rise in inflation this year, the Fed has signaled that it could begin to taper its bond buying program by the end of 2021. With respect to the Federal Funds rate, the Fed continues to say it intends to leave short-term rates where they are until 2023. In other words, the Fed is poised to maintain its accommodative stance towards monetary policy. They are not looking to get tight - just less loose. We will monitor this scenario closely in the months ahead to see if the Fed's actions impact the direction of interest rates and bond yields. Overall, I am pleased to report that the securities markets have performed well in this tumultuous climate. It appears, in our opinion, that the extremely low interest rates offered on savings vehicles has motivated many investors to assume more risk to potentially generate higher returns. The S&P 500(R) Index (the "Index") posted a total return of 31.17% for the 12-month period ended August 31, 2021, according to Bloomberg. For comparative purposes, from 1926 through 2020 (95 years), the Index returned an average of 10.28% per year on a total return basis, according to Morningstar/Ibbotson Associates. Should interest rates and bond yields eventually trend higher, investors should be prepared for a bit of turbulence as stocks and bonds may be subjected to some potential short-term profit taking, in my opinion. Having said that, I encourage investors to stay the course. I remain optimistic due in large part to the trillions of dollars in government stimulus money already circulating in the economy as well as the potential for trillions of additional dollars from President Joe Biden's infrastructure and "human infrastructure" bills still weaving their way through Congress. It's hard to bet against growth in the current climate. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Fund again in six months. Sincerely, /s/ James A. Bowen James A. Bowen Chairman of the Board of Trustees Chief Executive Officer of First Trust Advisors L.P. Page 1 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) The First Trust Multi-Manager Large Growth ETF (the "Fund") seeks to provide long-term capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in equity securities issued by large capitalization companies. The Fund considers large capitalization companies to be those companies with market capitalizations within the market capitalization range of the companies comprising the Russell 1000(R) Growth Index (as of the index's most recent reconstitution). The Fund's portfolio is principally composed of common stocks issued by companies domiciled in the United States, common stocks issued by non-U.S. companies that are principally traded in the United States and American Depositary Receipts. The Fund utilizes a multi-manager approach to provide exposure to the large capitalization growth segment of the equity market through the blending of multiple portfolio management teams. The Fund lists and principally trades its shares on NYSE Arca, Inc. under the ticker symbol "MMLG." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (7/21/20) Inception (7/21/20) 8/31/21 to 8/31/21 to 8/31/21 <S> <C> <C> <C> FUND PERFORMANCE NAV 29.65% 37.80% 42.85% Market Price 29.49% 37.75% 42.80% INDEX PERFORMANCE Russell 1000(R) Index 32.25% 37.61% 42.64% Russell 1000(R) Growth Index 28.53% 38.72% 43.92% --------------------------------------------------------------------------------------------------------------------- </TABLE> Total returns for the period since inception are calculated from the inception date of the Fund. "Average Annual Total Returns" represent the average annual change in value of an investment over the period indicated. "Cumulative Total Returns" represent the total change in value of an investment over the period indicated. The Fund's per share net asset value ("NAV") is the value of one share of the Fund and is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of outstanding shares. The price used to calculate market return ("Market Price") is determined by using the midpoint of the national best bid and offer price ("NBBO") as of the time that the Fund's NAV is calculated. Under SEC rules, the NBBO consists of the highest displayed buy and lowest sell prices among the various exchanges trading the Fund at the time the Fund's NAV is calculated. Since shares of the Fund did not trade in the secondary market until after its inception, for the period from inception to the first day of secondary market trading in shares of the Fund, the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. NAV and market returns assume that all distributions have been reinvested in the Fund at NAV and Market Price, respectively. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. The total returns presented reflect the reinvestment of dividends on securities in the index. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund's past performance is no guarantee of future performance. Page 2 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 39.3% Communication Services 25.1 Consumer Discretionary 13.5 Health Care 11.7 Industrials 6.3 Consumer Staples 1.7 Financials 1.0 Real Estate 0.9 Materials 0.5 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Sea Ltd., ADR 6.5% Facebook, Inc., Class A 4.8 Netflix, Inc. 4.5 Amazon.com, Inc. 4.2 Microsoft Corp. 4.0 ServiceNow, Inc. 3.8 Square, Inc., Class A 3.5 Visa, Inc., Class A 3.1 Alphabet, Inc., Class A 3.0 Apple, Inc. 2.9 -------- Total 40.3% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 21, 2020 - AUGUST 31, 2021 First Trust Multi-Manager Russell 1000(R) Russell 1000(R) Large Growth ETF Index Growth Index <S> <C> <C> <C> 1/3/19 $10,000 $10,000 $10,000 8/31/20 11,018 10,785 11,198 2/28/21 12,233 12,056 11,796 8/31/21 14,285 14,264 14,392 </TABLE> Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund's past performance does not predict future performance. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS Information showing the number of days the market price of the Fund's shares was greater (at a premium) and less (at a discount) than the Fund's net asset value for the most recently completed year, and the most recently completed calendar quarters since that year (or life of the Fund, if shorter) is available at https://www.ftportfolios.com/Retail/etf/home.aspx. Page 3 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to the First Trust Multi-Manager Large Growth ETF ("MMLG" or the "Fund"). The following serve as investment sub-advisors (each, a "Sub-Advisor") to the Fund: Wellington Management Company LLP ("Wellington") and Sands Capital Management, LLC ("Sands Capital"). First Trust is responsible for the ongoing monitoring of the Fund's investment portfolio, selecting and overseeing the investment sub-advisors, managing the Fund's business affairs and providing certain administrative services necessary for the management of the Fund. PORTFOLIO MANAGEMENT TEAM THE ADVISOR'S INVESTMENT COMMITTEE, WHICH MANAGES THE FUND'S INVESTMENTS, CONSISTS OF: o Daniel J. Lindquist, Managing Director of First Trust o Jon C. Erickson, Senior Vice President of First Trust o David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust o Roger F. Testin, Senior Vice President of First Trust o Stan Ueland, Senior Vice President of First Trust o Chris A. Peterson, CFA, Senior Vice President of First Trust SUB-ADVISOR PORTFOLIO MANAGERS WELLINGTON o Douglas W. McLane, CFA, Senior Managing Director, Partner and Equity Portfolio Manager SANDS CAPITAL o Frank M. Sands, CFA, Chief Investment Officer and Chief Executive Officer o Michael A. Sramek, CFA, Senior Portfolio Manager, Research Analyst and Managing Director o Wesley A. Johnston, CFA, Portfolio Manager and Senior Research Analyst o Thomas H. Trentman, CFA, Portfolio Manager and Senior Research Analyst COMMENTARY MARKET RECAP U.S. equities, as measured by the S&P 500(R) Index and the Russell 1000(R) Growth Index (the "Benchmark"), posted outsized total returns for the 12-month period ended August 31, 2021. Returns for the period were nearly three times that of an average calendar year for the S&P 500(R) Index. From 1926-2020, the average annual total return on the S&P 500(R) Index was 10.28%, according to Morningstar/Ibbotson Associates. Growth stocks, particularly with respect to technology companies, benefited from 2020's "work from home" trade as the coronavirus ("COVID-19") pandemic-induced social distancing and lockdowns boosted shares of businesses delivering digital services. In the fourth quarter of 2020, a sharp escalation in COVID-19 infections in the U.S. and renewed government restrictions were eventually overshadowed by the development of COVID-19 vaccines. Growth stocks took a pause in early 2021 relative to value stocks (cyclicals) as the "reflation" trade took hold amid a reopening economy. In the U.S., the Consumer Price Index ("CPI") increased from a paltry 1.3% (trailing 12-month basis) in August 2020 to a robust 5.3% in August 2021. Over the past 12 months, the yield on the Benchmark 10-Year Treasury Note rose from 0.71% to 1.31%, but reached as high as 1.74% in March 2021 due, in part, to the spike in inflation. Despite the ongoing battle with the COVID-19 virus and the related economic fallout, markets have been buoyed by robust corporate earnings, accelerating stock buybacks and extremely accommodative monetary policy from the Federal Reserve (the "Fed"). PERFORMANCE ANALYSIS For the 12-month period ended August 31, 2021, the Fund returned 29.65% while the Benchmark returned 28.53%, according to Bloomberg. The outperformance of the Fund of 112 basis points was driven primarily by strong returns in the Communication Services sector especially on the back of an off-Benchmark position in Sea Ltd., a global consumer internet company, which returned 121.4% for the period and was approximately 4.8% of the Fund. Offsetting some of the gains was an underweight to Alphabet Inc., which was up approximately 78% for the period. Another contributor was the Consumer Discretionary sector where the Fund was underweight as the sector underperformed the overall benchmark. Additionally, security selection in the Consumer Discretionary sector contributed as the Fund returns in this sector outperformed the Benchmark. Page 4 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) ANNUAL REPORT AUGUST 31, 2021 (UNAUDITED) On the flip side, Information Technology was the largest detractor from performance with an underweight versus the Benchmark as the sector outperformed in addition to securities in the portfolio within the sector returning less than the Benchmark. Though on a relative basis the sector detracted from performance, Information Technology was one of the top contributors to the Fund's total returns from an absolute basis. MARKET AND FUND OUTLOOK The shifts in market leadership over the 12-month period ended August 31, 2021 illustrate how unpredictable markets can be in the short-term. Exogenous factors can have an outsized influence in short-term price movements, and these factors are impossible to correctly predict, we believe, with any repeatable process. Over longer time periods, history shows us that stock prices tend to follow compounded earnings growth, and that most value creation accrues to a select group of businesses. One of the ways in which earnings grow over time is through capital spending. With respect to the infrastructure bills circulating through Congress, the impetus for new spending is to extend the robust growth rates well into the next year while at the same time improving physical infrastructure in the U.S. Details on investments that have been leaked suggest that it will extend the robust construction cycle, but it will be important to know the extent to which corporate tax rates are raised to help fund the spending. Investors should monitor the comments from the Fed moving forward. The Fed's most recent forecast still has the first round of interest rate hikes occurring sometime in 2023. Keep in mind, projections are subject to change and could be influenced by events such as inflation trending higher. Page 5 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2021 (UNAUDITED) As a shareholder of First Trust Multi-Manager Large Growth ETF (the "Fund"), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended August 31, 2021. ACTUAL EXPENSES The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this six-month period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line in the following table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------ ANNUALIZED EXPENSE RATIO EXPENSES PAID BEGINNING ENDING BASED ON THE DURING THE ACCOUNT VALUE ACCOUNT VALUE SIX-MONTH SIX-MONTH MARCH 1, 2021 AUGUST 31, 2021 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) Actual $1,000.00 $1,167.70 0.85% $4.64 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> (a) Expenses are equal to the annualized expense ratio as indicated in the table multiplied by the average account value over the period (March 1, 2021 through August 31, 2021), multiplied by 184/365 (to reflect the six-month period). Page 6 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) PORTFOLIO OF INVESTMENTS AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 98.0% AEROSPACE & DEFENSE -- 0.4% 8,948 Raytheon Technologies Corp. $ 758,433 ------------- AIR FREIGHT & LOGISTICS -- 0.4% 2,442 FedEx Corp. 648,815 ------------- BEVERAGES -- 0.9% 3,527 Constellation Brands, Inc., Class A 744,691 8,155 Monster Beverage Corp. (a) 795,683 ------------- 1,540,374 ------------- BIOTECHNOLOGY -- 1.1% 17,108 Sarepta Therapeutics, Inc. (a) 1,336,477 3,622 Seagen, Inc. (a) 607,047 ------------- 1,943,524 ------------- BUILDING PRODUCTS -- 0.4% 6,971 Fortune Brands Home & Security, Inc. 678,766 ------------- CHEMICALS -- 0.5% 2,810 Sherwin-Williams (The) Co. 853,313 ------------- COMMERCIAL SERVICES & SUPPLIES -- 0.3% 4,707 Republic Services, Inc. 584,280 ------------- C OMMUNICATIONS EQUIPMENT -- 0.7% 4,783 Motorola Solutions, Inc. 1,168,104 ------------- CONSUMER FINANCE -- 0.6% 5,982 American Express Co. 992,773 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 1.3% 4,743 CDW Corp. 951,493 7,579 Cognex Corp. 671,651 13,918 Corning, Inc. 556,581 ------------- 2,179,725 ------------- ENTERTAINMENT -- 12.2% 13,387 Netflix, Inc. (a) 7,619,747 32,445 Sea Ltd., ADR (a) 10,976,792 3,802 Walt Disney (The) Co. (a) 689,303 43,049 Warner Music Group Corp., Class A 1,635,862 ------------- 20,921,704 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 0.9% 3,062 Alexandria Real Estate Equities, Inc. 631,905 10,332 Equity LifeStyle Properties, Inc. 878,943 ------------- 1,510,848 ------------- FOOD & STAPLES RETAILING -- 0.2% 13,261 Grocery Outlet Holding Corp. (a) 345,184 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 6.6% 5,581 Align Technology, Inc. (a) $ 3,956,929 9,877 Baxter International, Inc. 752,825 2,809 Danaher Corp. 910,565 3,350 Dexcom, Inc. (a) 1,773,557 14,245 Edwards Lifesciences Corp. (a) 1,669,229 9,140 Hologic, Inc. (a) 723,431 1,335 Teleflex, Inc. 527,939 2,101 West Pharmaceutical Services, Inc. 948,854 ------------- 11,263,329 ------------- HEALTH CARE PROVIDERS & SERVICES -- 1.1% 2,541 Laboratory Corp. of America Holdings (a) 770,889 2,900 UnitedHealth Group, Inc. 1,207,183 ------------- 1,978,072 ------------- HOTELS, RESTAURANTS & LEISURE -- 2.8% 13,308 Airbnb, Inc., Class A (a) 2,062,607 462 Booking Holdings, Inc. (a) 1,062,448 659 Chipotle Mexican Grill, Inc. (a) 1,254,294 1,692 McDonald's Corp. 401,782 ------------- 4,781,131 ------------- HOUSEHOLD PRODUCTS -- 0.6% 6,959 Procter & Gamble (The) Co. 990,892 ------------- INSURANCE -- 0.3% 3,323 Chubb Ltd. 611,166 ------------- INTERACTIVE MEDIA & SERVICES -- 11.0% 1,721 Alphabet, Inc., Class A (a) 4,980,488 533 Alphabet, Inc., Class C (a) 1,550,625 21,272 Facebook, Inc., Class A (a) 8,070,171 19,841 Match Group, Inc. (a) 2,726,947 14,876 Zillow Group, Inc., Class C (a) 1,424,675 ------------- 18,752,906 ------------- INTERNET & DIRECT MARKETING RETAIL -- 5.7% 2,038 Amazon.com, Inc. (a) 7,073,470 8,309 DoorDash, Inc., Class A (a) 1,590,343 5,734 Fiverr International Ltd. (a) 1,029,310 ------------- 9,693,123 ------------- IT SERVICES -- 14.9% 1,741 EPAM Systems, Inc. (a) 1,101,722 4,072 Fidelity National Information Services, Inc. 520,279 2,827 FleetCor Technologies, Inc. (a) 744,293 4,721 Global Payments, Inc. 767,823 7,799 GoDaddy, Inc., Class A (a) 571,745 5,228 Mastercard, Inc., Class A 1,810,090 6,069 PayPal Holdings, Inc. (a) 1,751,878 1,272 Shopify, Inc., Class A (a) 1,939,520 5,485 Snowflake, Inc., Class A (a) 1,669,360 See Notes to Financial Statements Page 7 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) IT SERVICES (CONTINUED) 21,732 Square, Inc., Class A (a) $ 5,825,697 9,954 Twilio, Inc., Class A (a) 3,553,180 22,567 Visa, Inc., Class A 5,170,100 ------------- 25,425,687 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.6% 1,912 Thermo Fisher Scientific, Inc. 1,061,064 ------------- MACHINERY -- 0.6% 2,607 Deere & Co. 985,524 ------------- MEDIA -- 1.4% 2,976 Charter Communications, Inc., Class A (a) 2,430,380 ------------- PHARMACEUTICALS -- 2.0% 5,808 Eli Lilly and Co. 1,500,148 9,177 Zoetis, Inc. 1,877,247 ------------- 3,377,395 ------------- PROFESSIONAL SERVICES -- 2.4% 2,053 CACI International, Inc., Class A (a) 528,729 22,878 CoStar Group, Inc. (a) 1,938,682 3,150 Equifax, Inc. 857,619 8,192 Leidos Holdings, Inc. 803,717 ------------- 4,128,747 ------------- ROAD & RAIL -- 1.6% 71,564 Uber Technologies, Inc. (a) 2,801,015 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.7% 9,201 Advanced Micro Devices, Inc. (a) 1,018,735 6,318 Entegris, Inc. 759,044 14,067 Marvell Technology, Inc. 860,760 2,697 NVIDIA Corp. 603,723 7,259 Texas Instruments, Inc. 1,385,816 ------------- 4,628,078 ------------- SOFTWARE -- 15.7% 3,801 Adobe, Inc. (a) 2,522,724 7,190 Atlassian Corp. PLC, Class A (a) 2,639,161 1,717 DocuSign, Inc. (a) 508,644 6,547 Intuit, Inc. 3,706,322 22,295 Microsoft Corp. 6,730,415 1,445 Paycom Software, Inc. (a) 706,461 6,847 salesforce.com, Inc. (a) 1,816,304 9,914 ServiceNow, Inc. (a) 6,381,047 7,046 SS&C Technologies Holdings, Inc. 533,100 4,538 Workday, Inc., Class A (a) 1,239,600 ------------- 26,783,778 ------------- SPECIALTY RETAIL -- 3.1% 2,076 Burlington Stores, Inc. (a) 621,741 3,946 Carvana Co. (a) 1,294,525 15,321 Floor & Decor Holdings, Inc., Class A (a) 1,889,079 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- ASPECIALTY RETAIL (CONTINUED) 20,019 TJX (The) Cos., Inc. $ 1,455,782 ------------- 5,261,127 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 3.3% 32,430 Apple, Inc. 4,923,847 8,890 NetApp, Inc. 790,588 ------------- 5,714,435 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.7% 2,129 Lululemon Athletica, Inc. (a) 851,962 8,164 NIKE, Inc., Class B 1,344,937 8,942 V.F. Corp. 683,795 ------------- 2,880,694 ------------- TOTAL COMMON STOCKS -- 98.0% 167,674,386 (Cost $152,282,989) ------------- MONEY MARKET FUNDS -- 2.0% 3,392,712 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (b) 3,392,712 (Cost $3,392,712) ------------- TOTAL INVESTMENTS -- 100.0% 171,067,098 (Cost $155,675,701) (c) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (62,261) ------------- NET ASSETS -- 100.0% $ 171,004,837 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2021. (c) Aggregate cost for federal income tax purposes is $155,980,010. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $18,270,745 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $3,183,657. The net unrealized appreciation was $15,087,088. ADR - American Depositary Receipt Page 8 See Notes to Financial Statements <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2021 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2021 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): LEVEL 2 LEVEL 3 LEVEL 1 SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS --------------------------------------------- Common Stocks* $167,674,386 $ -- $ -- Money Market Funds 3,392,712 -- -- --------------------------------------------- Total Investments $171,067,098 $ -- $ -- ============================================= * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 9 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 2021 <TABLE> <CAPTION> <S> <C> ASSETS: Investments, at value.................................................. $ 171,067,098 Dividends receivable................................................... 59,245 --------------- Total Assets........................................................ 171,126,343 --------------- LIABILITIES: Investment advisory fees payable....................................... 121,506 --------------- Total Liabilities................................................... 121,506 --------------- NET ASSETS............................................................. $ 171,004,837 =============== NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 156,178,541 Par value.............................................................. 60,500 Accumulated distributable earnings (loss).............................. 14,765,796 --------------- NET ASSETS............................................................. $ 171,004,837 =============== NET ASSET VALUE, per share............................................. $ 28.27 =============== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 6,050,002 =============== Investments, at cost................................................... $ 155,675,701 =============== </TABLE> Page 10 See Notes to Financial Statements <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2021 <TABLE> <CAPTION> <S> <C> INVESTMENT INCOME: Dividends.............................................................. $ 139,647 --------------- Total investment income............................................. 139,647 --------------- EXPENSES: Investment advisory fees............................................... 332,094 --------------- Total expenses...................................................... 332,094 --------------- NET INVESTMENT INCOME (LOSS)........................................... (192,447) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... (509,133) In-kind redemptions................................................. 1,928,235 --------------- Net realized gain (loss) on investments................................ 1,419,102 --------------- Net change in unrealized appreciation (depreciation) on investments.... 15,190,009 --------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ 16,609,111 --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ 16,416,664 =============== </TABLE> See Notes to Financial Statements Page 11 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2021 8/31/2020 (a) --------------- --------------- <S> <C> <C> OPERATIONS: Net investment income (loss)......................................................... $ (192,447) $ (491) Net realized gain (loss)............................................................. 1,419,102 632 Net change in unrealized appreciation (depreciation)................................. 15,190,009 201,388 --------------- --------------- Net increase (decrease) in net assets resulting from operations...................... 16,416,664 201,529 --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations................................................................ (6,060) -- --------------- --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................................................ 164,222,162 1,984,028 Cost of shares redeemed.............................................................. (11,813,486) -- --------------- --------------- Net increase (decrease) in net assets resulting from shareholder transactions........ 152,408,676 1,984,028 --------------- --------------- Total increase (decrease) in net assets.............................................. 168,819,280 2,185,557 NET ASSETS: Beginning of period.................................................................. 2,185,557 -- --------------- --------------- End of period........................................................................ $ 171,004,837 $ 2,185,557 =============== =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period.............................................. 100,002 -- Shares sold.......................................................................... 6,400,000 100,002 Shares redeemed...................................................................... (450,000) -- --------------- --------------- Shares outstanding, end of period.................................................... 6,050,002 100,002 =============== =============== </TABLE> (a) Inception date is July 21, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 12 See Notes to Financial Statements <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2021 8/31/2020 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 21.86 $ 19.84 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... 0.01 (0.00) (b) Net realized and unrealized gain (loss)........................ 6.46 2.02 -------- -------- Total from investment operations............................... 6.47 2.02 -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.04) -- Net realized gain.............................................. (0.02) -- -------- -------- Total distributions............................................ (0.06) -- -------- -------- Net asset value, end of period................................. $ 28.27 $ 21.86 ======== ======== TOTAL RETURN (c)............................................... 29.65% 10.18% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $171,005 $ 2,186 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% (d) Ratio of net investment income (loss) to average net assets.... (0.49)% (0.21)% (d) Portfolio turnover rate (e).................................... 21% 2% </TABLE> (a) Inception date is July 21, 2020, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Amount is less than $0.01. (c) Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return is calculated for the time period presented and is not annualized for periods of less than a year. (d) Annualized. (e) Portfolio turnover is calculated for the time period presented and is not annualized for periods of less than a year and does not include securities received or delivered from processing creations or redemptions and in-kind transactions. See Notes to Financial Statements Page 13 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 1. ORGANIZATION First Trust Exchange-Traded Fund VIII (the "Trust") is an open-end management investment company organized as a Massachusetts business trust on February 22, 2016, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of forty-nine funds that are offering shares. This report covers the First Trust Multi-Manager Large Growth ETF (the "Fund"), which trades under the ticker "MMLG" on NYSE Arca, Inc ("NYSE Arca"). The Fund represents a separate series of shares of beneficial interest in the Trust. Unlike conventional mutual funds, the Fund issues and redeems shares on a continuous basis, at net asset value ("NAV"), only in large blocks of shares known as "Creation Units." The Fund is an actively managed exchange-traded fund. The Fund seeks to provide long-term capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets (including investment borrowings) in equity securities issued by large capitalization companies. The Fund considers large capitalization companies to be those companies with market capitalizations within the market capitalization range of the companies comprising the Russell 1000(R) Growth Index (as of the index's most recent reconstitution). The Fund's portfolio is principally composed of common stocks issued by companies domiciled in the United States, common stocks issued by non-U.S. companies that are principally traded in the United States and American Depositary Receipts. The Fund utilizes a multi-manager approach to provide exposure to the large capitalization growth segment of the equity market through the blending of multiple portfolio management teams. There can be no assurance that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors. 2. SIGNIFICANT ACCOUNTING POLICIES The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. PORTFOLIO VALUATION The Fund's NAV is determined daily as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. The Fund's NAV is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding. The Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Advisor's Pricing Committee in accordance with valuation procedures adopted by the Trust's Board of Trustees, and in accordance with provisions of the 1940 Act. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. The Fund's investments are valued as follows: Common stocks and other equity securities listed on any national or foreign exchange (excluding The Nasdaq Stock Market LLC ("Nasdaq") and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the principal market for such securities. Securities traded in an over-the-counter market are fair valued at the mean of their most recent bid and asked price, if available, and otherwise at their closing bid price. Shares of open-end funds are valued at fair value which is based on NAV per share. Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Trust's Board of Trustees or its delegate, the Advisor's Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security Page 14 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of the Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following: 1) the type of security; 2) the size of the holding; 3) the initial cost of the security; 4) transactions in comparable securities; 5) price quotes from dealers and/or third-party pricing services; 6) relationships among various securities; 7) information obtained by contacting the issuer, analysts, or the appropriate stock exchange; 8) an analysis of the issuer's financial statements; and 9) the existence of merger proposals or tender offers that might affect the value of the security. The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows: o Level 1 - Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. o Level 2 - Level 2 inputs are observable inputs, either directly or indirectly, and include the following: o Quoted prices for similar investments in active markets. o Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. o Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. o Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the investment. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Fund's investments as of August 31, 2021, is included with the Fund's Portfolio of Investments. B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis. C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income, if any, are declared and paid quarterly by the Fund, or as the Board of Trustees may determine from time to time. Distributions of net realized gains earned by the Fund, if any, are distributed at least annually. Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Fund and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some time in the future. Page 15 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 The tax character of distributions paid by the Fund during the fiscal year ended August 31, 2021 was as follows: Distributions paid from: Ordinary income............................... $ 6,060 Capital gains................................. -- Return of capital............................. -- The Fund did not pay a distribution during its fiscal period ended August 31, 2020. As of August 31, 2021, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income................. $ (189,729) Accumulated capital and other gain (loss)..... (131,563) Net unrealized appreciation (depreciation).... 15,087,088 D. INCOME TAXES The Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, the Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of the Fund's taxable income exceeds the distributions from such taxable income for the calendar year. The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2020 and 2021 remain open to federal and state audit. As of August 31, 2021, management has evaluated the application of these standards to the Fund and has determined that no provision for income tax is required in the Fund's financial statements for uncertain tax positions. The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At August 31, 2021, the Fund had no capital loss carryforwards for federal income tax purposes. Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended August 31, 2021, the Fund incurred and elected to defer net late year ordinary or capital losses as follows: Qualified Late Year Losses ----------------------------------------- Ordinary Losses Capital Losses ---------------- -------------- $ 189,729 $ 131,563 In order to present paid-in capital and accumulated distributable earnings (loss) (which consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments and net unrealized appreciation (depreciation) on investments) on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital, accumulated net investment income (loss) and accumulated net realized gain (loss) on investments. These adjustments are primarily due to the difference between book and tax treatments of income and gains on various investment securities held by the Fund and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal year ended August 31, 2021, the adjustments for the Fund were as follows: Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- -------------- $6,292 $(1,852,629) $1,846,337 E. EXPENSES Expenses, other than the investment advisory fee and other excluded expenses, are paid by the Advisor (see Note 3). Page 16 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for ongoing monitoring of the securities in the Fund's portfolio, managing the Fund's business affairs and providing certain administrative services necessary for the management of the Fund. Pursuant to the Investment Management Agreement between the Trust and the Advisor, First Trust manages the Fund's portfolio based on recommendations provided by the Sub-Advisors (defined below) and is responsible for the expenses of the Fund including the cost of transfer agency, sub-advisory, custody, fund administration, legal, audit and other services and license fees (if any), but excluding fee payments under the Investment Management Agreement, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, which are paid by the Fund. The Fund has agreed to pay First Trust an annual management fee equal to 0.85% of its average daily net assets. The Fund utilizes a multi-manager structure. The Trust, on behalf of the Fund, and First Trust have retained Wellington Management Company LLP ("Wellington") and Sands Capital Management, LLC ("Sands Capital") (each, a "Sub-Advisor" and together, "Sub-Advisors"), to serve as non-discretionary investment sub-advisors to the Fund pursuant to sub-advisory agreements (the "Sub-Advisory Agreements"). In this capacity, Wellington and Sands Capital are each responsible for providing recommendations to First Trust regarding the selection and allocation of the securities in the portion of the Fund's portfolio they have been allocated by First Trust. Pursuant to the Sub-Advisory Agreements, First Trust has agreed to pay for the services and facilities provided by the Sub-Advisors through sub-advisory fees equal in the aggregate to an annual rate of 0.30% of the average daily net assets of the Fund (i.e., for each sub-advisor, 0.30% of the average daily net assets of the portion of the Fund's assets allocated to that sub-advisor). Each Sub-Advisor's fees are paid by First Trust out of First Trust's management fee. The Trust has multiple service agreements with The Bank of New York Mellon ("BNYM"). Under the service agreements, BNYM performs custodial, fund accounting, certain administrative services, and transfer agency services for the Fund. As custodian, BNYM is responsible for custody of the Fund's assets. As fund accountant and administrator, BNYM is responsible for maintaining the books and records of the Fund's securities and cash. As transfer agent, BNYM is responsible for maintaining shareholder records for the Fund. BNYM is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company. Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or is an index fund. Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen will rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. 4. PURCHASES AND SALES OF SECURITIES For the fiscal year ended August 31, 2021, the cost of purchases and proceeds from sales of investments, excluding short-term investments and in-kind transactions, were $9,176,962 and $9,367,208, respectively. For the fiscal year ended August 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales were $160,825,753 and $11,732,810, respectively. 5. CREATIONS, REDEMPTIONS AND TRANSACTION FEES The Fund generally issues and redeems its shares in primary market transactions through a creation and redemption mechanism and does not sell or redeem individual shares. Instead, financial entities known as "Authorized Participants" have contractual arrangements with the Fund or one of the Fund's service providers to purchase and redeem Fund shares directly with the Fund in large blocks of shares known as "Creation Units." Prior to the start of trading on every business day, the Fund publishes through the National Securities Clearing Corporation ("NSCC") the "basket" of securities, cash or other assets that it will accept in exchange for a Creation Unit of the Fund's shares. An Authorized Participant that wishes to effectuate a creation of the Fund's shares deposits with the Fund the "basket" of securities, cash or other assets identified by the Fund that day, and then receives the Creation Unit of the Fund's shares in return for those assets. After purchasing a Creation Unit, the Authorized Participant may continue to hold the Fund's shares or sell them in the secondary market. The redemption process is the reverse of the purchase Page 17 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 process: the Authorized Participant redeems a Creation Unit of the Fund's shares for a basket of securities, cash or other assets. The combination of the creation and redemption process with secondary market trading in the Fund's shares and underlying securities provides arbitrage opportunities that are designed to help keep the market price of the Fund's shares at or close to the NAV per share of the Fund. The Fund imposes fees in connection with the purchase of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, plus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the creation basket. The Fund also imposes fees in connection with the redemption of Creation Units. These fees may vary based upon various fact-based circumstances, including, but not limited to, the composition of the securities included in the Creation Unit or the countries in which the transactions are settled. The price received for each Creation Unit will equal the daily NAV per share of the Fund times the number of shares in a Creation Unit, minus the fees described above and, if applicable, any operational processing and brokerage costs, transfer fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the securities comprising the redemption basket. Investors who use the services of a broker or other such intermediary in addition to an Authorized Participant to effect a redemption of a Creation Unit may also be assessed an amount to cover the cost of such services. The redemption fee charged by the Fund will comply with Rule 22c-2 of the 1940 Act which limits redemption fees to no more than 2% of the value of the shares redeemed. 6. DISTRIBUTION PLAN The Board of Trustees adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Rule 12b-1 plan, the Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to reimburse First Trust Portfolios L.P. ("FTP"), the distributor of the Fund, for amounts expended to finance activities primarily intended to result in the sale of Creation Units or the provision of investor services. FTP may also use this amount to compensate securities dealers or other persons that are Authorized Participants for providing distribution assistance, including broker-dealer and shareholder support and educational and promotional services. No 12b-1 fees are currently paid by the Fund, and pursuant to a contractual arrangement, no 12b-1 fees will be paid any time before December 31, 2022. 7. INDEMNIFICATION The Trust, on behalf of the Fund, has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 8. SUBSEQUENT EVENTS Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued, and has determined that there were the following subsequent events: On September 20, 2021, FT Cboe Vest International Equity Buffer ETF - September and FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, each an additional series of the Trust, began trading under the symbols "YSEP" and "QSPT," respectively, on Cboe BZX Exchange, Inc. On September 21, 2021, First Trust SkyBridge Crypto Industry and Digital Economy ETF, an additional series of the Trust, began trading under the symbol "CRPT" on NYSE Arca. On October 14, 2021, First Trust Multi-Manager Small Cap Opportunities ETF, an additional series of the Trust, began trading under the symbol "MMSC" on NYSE Arca. Page 18 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF FIRST TRUST EXCHANGE-TRADED FUND VIII: OPINION ON THE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS We have audited the accompanying statement of assets and liabilities of First Trust Multi-Manager Large Growth ETF (the "Fund"), a series of the First Trust Exchange-Traded Fund VIII, including the portfolio of investments, as of August 31, 2021, the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for the year ended August 31, 2021 and the period from July 21, 2020 (commencement of operations) through August 31, 2020, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2021, and the results of its operations for the year then ended, and the changes in its net assets and financial highlights for the year ended August 31, 2021 and for the period from July 21, 2020 (commencement of operations) through August 31, 2020, in conformity with accounting principles generally accepted in the United States of America. BASIS FOR OPINION These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 26, 2021 We have served as the auditor of one or more First Trust investment companies since 2001. Page 19 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Trust uses to determine how to vote proxies and information on how the Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on the Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov. PORTFOLIO HOLDINGS The Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the SEC's website at www.sec.gov. The Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for the Fund is available to investors within 60 days after the period to which it relates. The Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above. FEDERAL TAX INFORMATION For the taxable year ended August 31, 2021, the following percentages of income dividend paid by the Fund qualify for the dividends received deduction available to corporations and are hereby designated as qualified dividend income: Dividends Qualified Received Dividend Deduction Income ------------ ---------- 100.00% 100.00% RISK CONSIDERATIONS RISKS ARE INHERENT IN ALL INVESTING. CERTAIN GENERAL RISKS THAT MAY BE APPLICABLE TO A FUND ARE IDENTIFIED BELOW, BUT NOT ALL OF THE MATERIAL RISKS RELEVANT TO EACH FUND ARE INCLUDED IN THIS REPORT AND NOT ALL OF THE RISKS BELOW APPLY TO EACH FUND. THE MATERIAL RISKS OF INVESTING IN EACH FUND ARE SPELLED OUT IN ITS PROSPECTUS, STATEMENT OF ADDITIONAL INFORMATION AND OTHER REGULATORY FILINGS. BEFORE INVESTING, YOU SHOULD CONSIDER EACH FUND'S INVESTMENT OBJECTIVE, RISKS, CHARGES AND EXPENSES, AND READ EACH FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION CAREFULLY. YOU CAN DOWNLOAD EACH FUND'S PROSPECTUS AT WWW.FTPORTFOLIOS.COM OR CONTACT FIRST TRUST PORTFOLIOS L.P. AT (800) 621-1675 TO REQUEST A PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION ABOUT EACH FUND. CONCENTRATION RISK. To the extent that a fund is able to invest a significant percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the fund's investments more than if the fund were more broadly diversified. A fund that tracks an index will be concentrated to the extent the fund's corresponding index is concentrated. A concentration makes a fund more susceptible to any single occurrence and may subject the fund to greater market risk than a fund that is more broadly diversified. CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments. CYBER SECURITY RISK. The funds are susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cyber security breaches of a fund's third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the fund invests, can also subject a fund to many of the same risks associated with direct cyber security breaches. DEFINED OUTCOME FUNDS RISK. To the extent a fund's investment strategy is designed to deliver returns tied to the price performance of an underlying ETF, an investor may not realize the returns the fund seeks to achieve if that investor does not hold shares for the entire target outcome period. In the event an investor purchases shares after the first day of the target outcome period or sells shares prior to the end of the target outcome period, the buffer that the fund seeks to provide against a decline in the value of the underlying ETF may not be available, the enhanced returns that the fund seeks to provide (if any) may not be available and the investor may not participate in a gain in the value of the underlying ETF up to the cap for the investor's investment period. Additionally, the fund will not participate in gains of the underlying ETF above the cap and a shareholder may lose their entire investment. If the fund seeks enhanced returns, there are certain time periods when the value of the fund may fall faster than the value of the underlying ETF, and it is very unlikely that, on any given day during which the underlying ETF share price increases in value, Page 20 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) the fund's share price will increase at the same rate as the enhanced returns sought by the fund, which is designed for an entire target outcome period. Trading flexible exchange options involves risks different from, or possibly greater than, the risks associated with investing directly in securities, such as less liquidity and correlation and valuation risks. A fund may experience substantial downside from specific flexible exchange option positions and certain positions may expire worthless. DERIVATIVES RISK. To the extent a fund uses derivative instruments such as futures contracts, options contracts and swaps, the fund may experience losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivative. These risks are heightened when a fund's portfolio managers use derivatives to enhance the fund's return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the fund. EQUITY SECURITIES RISK. To the extent a fund invests in equity securities, the value of the fund's shares will fluctuate with changes in the value of the 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 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 capital rises and borrowing costs increase. 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. ETF RISK. The shares of an ETF trade like common stock and represent an interest in a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. Shares of an ETF trade on an exchange 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). In times of market stress, decisions by market makers to reduce or step away from their role of providing a market for an ETF's shares, or decisions by an ETF's authorized participants that they are unable or unwilling to proceed with creation and/or redemption orders of an ETF's shares, could result in shares of the ETF trading at a discount to net asset value and in greater than normal intraday bid-ask spreads. FIXED INCOME SECURITIES RISK. To the extent a fund invests in fixed income securities, the fund will be subject to credit risk, income risk, interest rate risk, liquidity risk and prepayment risk. Income risk is the risk that income from a fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of a fund's fixed income securities will decline because of rising interest rates. Liquidity risk is the risk that a security cannot be purchased or sold at the time desired, or cannot be purchased or sold without adversely affecting the price. Prepayment risk is the risk that the securities will be redeemed or prepaid by the issuer, resulting in lower interest payments received by the fund. In addition to these risks, high yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and the market for high yield securities is generally smaller and less liquid than that for investment grade securities. INDEX OR MODEL CONSTITUENT RISK. Certain funds may be a constituent of one or more indices or ETF models. As a result, such a fund may be included in one or more index-tracking exchange-traded funds or mutual funds. Being a component security of such a vehicle could greatly affect the trading activity involving a fund, the size of the fund and the market volatility of the fund. Inclusion in an index could increase demand for the fund and removal from an index could result in outsized selling activity in a relatively short period of time. As a result, a fund's net asset value could be negatively impacted and the fund's market price may be significantly below its net asset value during certain periods. In addition, index rebalances may potentially result in increased trading activity in a fund's shares. INDEX PROVIDER RISK. To the extent a fund seeks to track an index, it is subject to Index Provider Risk. There is no assurance that the Index Provider will compile the Index accurately, or that the Index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated or disseminated accurately. To correct any such error, the Index Provider may carry out an unscheduled rebalance or other modification of the Index constituents or weightings, which may increase the fund's costs. The Index Provider does not provide any representation or warranty in relation to the quality, accuracy or completeness of data in the Index, and it does not guarantee that the Index will be calculated in accordance with its stated methodology. Losses or costs associated with any Index Provider errors generally will be borne by the fund and its shareholders. INVESTMENT COMPANIES RISK. To the extent a fund invests in the securities of other investment vehicles, the fund will incur additional fees and expenses that would not be present in a direct investment in those investment vehicles. Furthermore, the fund's investment performance and risks are directly related to the investment performance and risks of the investment vehicles in which the fund invests. LIBOR RISK. To the extent a fund invests in floating or variable rate obligations that use the London Interbank Offered Rate ("LIBOR") as a reference interest rate, it is subject to LIBOR Risk. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition away from LIBOR on the fund or on certain instruments in which the fund invests can be difficult to ascertain, and they may vary depending on a variety of factors, and they could result in losses to the fund. Page 21 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) MANAGEMENT RISK. To the extent that a fund is actively managed, it is subject to management risk. In managing an actively-managed fund's investment portfolio, the fund's portfolio managers will apply investment techniques and risk analyses that may not have the desired result. There can be no guarantee that a fund will meet its investment objective. MARKET RISK. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. NON-U.S. SECURITIES RISK. To the extent a fund invests in non-U.S. securities, it is subject to additional risks not associated with securities of domestic issuers. Non-U.S. 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; capital controls; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; the imposition of sanctions by foreign governments; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. Investments in non-U.S. securities may involve higher costs than investments in U.S. securities, including higher transaction and custody costs, as well as additional taxes imposed by non-U.S. governments. These risks may be heightened for securities of companies located, or with significant operations, in emerging market countries. OPERATIONAL RISK. Each fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of a fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Each fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect a fund's ability to meet its investment objective. Although the funds and the funds' investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks. PASSIVE INVESTMENT RISK. To the extent a fund seeks to track an index, the fund will invest in the securities included in, or representative of, the index regardless of their investment merit. A fund generally will not attempt to take defensive positions in declining markets. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING APPROVAL OF CONTINUATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS The Board of Trustees of First Trust Exchange-Traded Fund VIII (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the "Advisory Agreement") between the Trust, on behalf of First Trust Multi-Manager Large Growth ETF (the "Fund"), and First Trust Advisors L.P. (the "Advisor"); the Investment Sub-Advisory Agreement (the "Sands Sub-Advisory Agreement") among the Trust, on behalf of the Fund, the Advisor and Sands Capital Management, LLC ("Sands"); and the Investment Sub-Advisory Agreement (the "Wellington Sub-Advisory Agreement") among the Trust, on behalf of the Fund, the Advisor and Wellington Management Company LLP ("Wellington"). The Sands Sub-Advisory Agreement and the Wellington Sub-Advisory Agreement are collectively referred to as the "Sub-Advisory Agreements." Sands and Wellington are each referred to as a "Sub-Advisor" and collectively as the "Sub-Advisors." The Sub-Advisory Agreements together with the Advisory Agreement are referred to as the "Agreements." The Board approved the continuation of the Agreements for a one-year period ending June 30, 2022 at a meeting held on June 6-7, 2021. The Board determined that the continuation of the Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment. To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 26, 2021 and June 6-7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and each Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, Page 22 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) that, among other things, outlined: the services provided by the Advisor and each Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the unitary fee rate payable by the Fund as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor, including other exchange-traded funds ("ETFs") managed by the Advisor; the sub-advisory fee rates for the Fund as compared to fees charged to other clients of the Sub-Advisors; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for the Fund; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor and each Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for each Sub-Advisor; any fall-out benefits to the Advisor and its affiliate, First Trust Portfolios L.P. ("FTP"), and the Sub-Advisors; and information on the Advisor's and each Sub-Advisor's compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisors. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6-7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor and among the Trust, the Advisor and each Sub-Advisor continue to be reasonable business arrangements from the Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor and the Sub-Advisors manage the Fund and knowing the Fund's unitary fee. In reviewing the Agreements, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisors under the Agreements. The Board considered that the Fund is an actively-managed ETF and employs a multi-manager structure. With respect to the Advisory Agreement, the Board considered that the Advisor is responsible for the overall management and administration of the Trust and the Fund and reviewed all of the services provided by the Advisor to the Fund, including the oversight of the Sub-Advisors and the allocation of assets between the Sub-Advisors performed by members of the Advisor's Investment Committee, as well as the background and experience of the persons responsible for such services. The Board considered that each Sub-Advisor acts as a non-discretionary manager providing model portfolio recommendations to the Advisor, and that the Advisor executes the Fund's portfolio trades. The Board noted that the Advisor oversees management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, each Sub-Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objective, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreements, the Board noted that the Fund is an actively-managed ETF and the Sub-Advisors actively manage the Fund's investments. The Board reviewed the materials provided by each Sub-Advisor and considered the services that each Sub-Advisor provides to the Fund, including each Sub-Advisor's non-discretionary management of the portion of the Fund's assets allocated to it. In considering each Sub-Advisor's services to the Fund, the Board noted the background and experience of each Sub-Advisor's portfolio management team and the Board's prior meetings with members of each portfolio management team. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Trust and the Fund by the Advisor and each Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Advisor and the Sub-Advisors have managed the Fund consistent with the Fund's investment objective, policies and restrictions. The Board considered the unitary fee rate payable by the Fund under the Advisory Agreement for the services provided. The Board noted that the Advisor pays each Sub-Advisor a separate sub-advisory fee from the unitary fee. The Board considered that as part of the unitary fee the Advisor is responsible for the Fund's expenses, including the cost of sub-advisory, transfer agency, custody, fund administration, legal, audit and other services and license fees, if any, but excluding the fee payment under the Advisory Agreement and interest, taxes, acquired fund fees and expenses, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution and service fees pursuant to a Rule 12b-1 plan, if any, and extraordinary expenses, if any. The Board received and reviewed information showing the advisory or unitary fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisors to other fund (including ETFs) and non-fund clients, as applicable. Because the Fund pays a unitary fee, the Board determined that expense ratios were the most relevant comparative data point. Based on the information provided, the Board noted that the unitary fee rate for the Fund was above the median total (net) expense ratio of the peer funds in the Expense Group. With respect to the Expense Group, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating peer groups for actively-managed ETFs and that Page 23 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) different business models may affect the pricing of services among ETF sponsors. The Board noted that not all peer funds employ an advisor/sub-advisor management structure. The Board took these limitations and differences into account in considering the peer data. With respect to fees charged to other non-ETF clients, the Board considered differences between the Fund and other non-ETF clients that limited their comparability. In considering the unitary fee rate overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex. The Board considered performance information for the Fund. The Board noted the process it has established for monitoring the Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund's performance. Because the Fund commenced operations on July 21, 2020 and therefore has a limited performance history, comparative performance information for the Fund was not considered. On the basis of all the information provided on the unitary fee for the Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for the Fund (out of which the Sub-Advisors are compensated) continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisors to the Fund under the Agreements. The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund and noted the Advisor's statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Fund. The Board noted that any reduction in fixed costs associated with the management of the Fund would benefit the Advisor, but that the unitary fee structure provides a level of certainty in expenses for the Fund. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the period from inception through December 31, 2020 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the twelve months ended December 31, 2020. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for the Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as a fall out benefit to the Advisor and FTP their exposure to investors and brokers who, absent their exposure to the Fund, may have had no dealings with the Advisor or FTP, and noted that the Advisor does not utilize soft-dollars in connection with the Fund. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable. With respect to the Sands Sub-Advisory Agreement, the Board considered Sands' statements that it did not believe there are any specific economies of scale in connection with providing sub-advisory services to the Fund that will benefit the Fund's shareholders and that Sands believes that the sub-advisory fee is appropriate given the services provided to the Fund. The Board did not review the profitability of Sands with respect to the Fund. The Board noted that the Advisor pays Sands from the unitary fee, and its understanding that the Fund's sub-advisory fee rate was the product of an arm's length negotiation. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered fall-out benefits that may be realized by Sands from its relationship with the Fund, and noted Sands' statement that there are no additional benefits expected to be derived as part of its relationship with the Fund given that the Advisor is responsible for trade execution. The Board noted that Sands acts as a non-discretionary manager providing model portfolio recommendations to the Advisor and does not provide trade execution services to the Fund. The Board concluded that the character and amount of potential fall-out benefits to Sands were not unreasonable. With respect to the Wellington Sub-Advisory Agreement, the Board considered Wellington's statement that it believes the sub-advisory fee schedule reflects the economies of scale inherent in providing investment advice to funds similar in size to the Fund, and that Wellington believes the fee schedule is competitive given the nature and quality of service provided by Wellington. The Board did not review the profitability of Wellington with respect to the Fund. The Board noted that the Advisor pays Wellington from the unitary fee, and its understanding that the Fund's sub-advisory fee rate was the product of an arm's length negotiation. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered fall-out benefits that may be realized by Wellington from its relationship with the Fund, and noted Wellington's statements that it derives no ancillary economic benefits of the type that may accrue to an adviser that also provides distribution and other services, and that although not quantifiable Wellington recognizes the reputational benefit that accrues from its relationship with the Fund and the Advisor. The Board noted that Wellington acts as a non-discretionary manager providing model portfolio recommendations to the Advisor and does not provide trade execution services to the Fund. The Board concluded that the character and amount of potential fall-out benefits to Wellington were not unreasonable. Page 24 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board's analysis. LIQUIDITY RISK MANAGEMENT PROGRAM In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Fund and each other fund in the First Trust Fund Complex, other than the closed-end funds, have adopted and implemented a liquidity risk management program (the "Program") reasonably designed to assess and manage the funds' liquidity risk, i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund. The Board of Trustees of the First Trust Funds has appointed First Trust Advisors, L.P. (the "Advisor") as the person designated to administer the Program, and in this capacity the Advisor performs its duties primarily through the activities and efforts of the First Trust Liquidity Committee (the "Liquidity Committee"). Pursuant to the Program, the Liquidity Committee classifies the liquidity of each fund's portfolio investments into one of the four liquidity categories specified by Rule 22e-4: highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments. The Liquidity Committee determines certain of the inputs for this classification process, including reasonably anticipated trade sizes and significant investor dilution thresholds. The Liquidity Committee also determines and periodically reviews a highly liquid investment minimum for certain funds, monitors the funds' holdings of assets classified as illiquid investments to seek to ensure they do not exceed 15% of a fund's net assets and establishes policies and procedures regarding redemptions in kind. At the April 26, 2021 meeting of the Board of Trustees, as required by Rule 22e-4 and the Program, the Advisor provided the Board with a written report prepared by the Advisor that addressed the operation of the Program during the period from March 20, 2020 through the Liquidity Committee's annual meeting held on March 16, 2021 and assessed the Program's adequacy and effectiveness of implementation during this period, including the operation of the highly liquid investment minimum for each fund that is required under the Program to have one, and any material changes to the Program. Note that because the Fund primarily holds assets that are highly liquid investments, the Fund has not adopted any highly liquid investment minimum. As stated in the written report, during the review period, no fund breached the 15% limitation on illiquid investments, no fund with a highly liquid investment minimum breached that minimum and no fund filed a Form N-LIQUID. The Advisor concluded that each fund's investment strategy is appropriate for an open-end fund; that the Program operated effectively in all material respects during the review period; and that the Program is reasonably designed to assess and manage the liquidity risk of each fund and to maintain compliance with Rule 22e-4. Page 25 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) The following tables identify the Trustees and Officers of the Trust. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The Trust's statement of additional information includes additional information about the Trustees and is available, without charge, upon request, by calling (800) 988-5891. <TABLE> <CAPTION> NUMBER OF OTHER PORTFOLIOS IN TRUSTEESHIPS OR TERM OF OFFICE THE FIRST TRUST DIRECTORSHIPS NAME, AND YEAR FIRST FUND COMPLEX HELD BY TRUSTEE YEAR OF BIRTH AND ELECTED OR PRINCIPAL OCCUPATIONS OVERSEEN BY DURING PAST POSITION WITH THE TRUST APPOINTED DURING PAST 5 YEARS TRUSTEE 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> Richard E. Erickson, Trustee o Indefinite Term Physician, Officer, Wheaton Orthopedics; 210 None (1951) Limited Partner, Gundersen Real Estate o Since Inception Limited Partnership (June 1992 to December 2016) Thomas R. Kadlec, Trustee o Indefinite Term President, ADM Investors Services, Inc. 210 Director of ADM (1957) (Futures Commission Merchant) Investor Services, o Since Inception Inc., ADM Investor Services International, Futures Industry Association, and National Futures Association Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises (Financial 210 Director of Trust (1956) and Management Consulting) Company of o Since Inception Illinois Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (August 2018 to Present), 210 None (1954) Managing Director and Chief Operating o Since Inception Officer (January 2015 to August 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First Trust 210 None Chairman of the Board Advisors L.P. and First Trust (1955) o Since Inception Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) </TABLE> ----------------------------- (1) Mr. Bowen is deemed an "interested person" of the Trust due to his position as Chief Executive Officer of First Trust Advisors L.P., investment advisor of the Trust. Page 26 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS AND YEAR OF BIRTH WITH TRUST SERVICE DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS(2) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> James M. Dykas President and Chief o Indefinite Term Managing Director and Chief Financial Officer (1966) Executive Officer (January 2016 to Present), Controller (January 2011 o Since Inception to January 2016), Senior Vice President (April 2007 to January 2016), First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer (January 2016 to Present), BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President (July 2016 to Present), Vice (1972) Officer and Chief President (April 2012 to July 2016), First Trust Accounting Officer o Since Inception Advisors L.P. and First Trust Portfolios L.P. W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P. and (1960) Legal Officer First Trust Portfolios L.P.; Secretary and General o Since Inception Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and (1970) First Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. (1966) and Assistant Secretary and First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1966) and First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. (1970) and First Trust Portfolios L.P. o Since Inception </TABLE> ----------------------------- (2) The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. Page 27 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2021 (UNAUDITED) PRIVACY POLICY First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information. SOURCES OF INFORMATION We collect nonpublic personal information about you from the following sources: o Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; o Information about your transactions with us, our affiliates or others; o Information we receive from your inquiries by mail, e-mail or telephone; and o Information we collect on our website through the use of "cookies". For example, we may identify the pages on our website that your browser requests or visits. INFORMATION COLLECTED The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information. DISCLOSURE OF INFORMATION We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons: o In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. o We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust. USE OF WEBSITE ANALYTICS We currently use third party analytics tools, Google Analytics and AddThis to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics and AddThis. CONFIDENTIALITY AND SECURITY With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information. POLICY UPDATES AND INQUIRIES As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors). March 2021 Page 28 <PAGE> FIRST TRUST First Trust Exchange-Traded Fund VIII INVESTMENT ADVISOR First Trust Advisors L.P. 120 East Liberty Drive, Suite 400 Wheaton, IL 60187 INVESTMENT SUB-ADVISORS Wellington Management Company LLP 280 Congress Street Boston, MA 02210 Sands Capital Management, LLC 1000 Wilson Boulevard, Suite 3000 Arlington, Virginia 22209 ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 111 S. Wacker Drive Chicago, IL 60606 LEGAL COUNSEL Chapman and Cutler LLP 111 W. Monroe Street Chicago, IL 60603 <PAGE> [BLANK BACK COVER] <PAGE>
Item 2. Code of Ethics.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(b) | Not applicable. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
(e) | Not applicable. |
(f) | A copy of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller is filed as an exhibit pursuant to Item 13(a)(1). |
Item 3. Audit Committee Financial Expert.
As of the end of the period covered by the report, the registrant’s board of trustees has determined that Thomas R. Kadlec and Robert F. Keith are qualified to serve as audit committee financial experts serving on its audit committee and that each of them is “independent,” as defined by Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees (Registrant) -- The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $462,750 for the fiscal year ended August 31, 2020 and $819,125 for the fiscal year ended August 31, 2021.
(b) Audit-Related Fees (Registrant) -- The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2020 and $0 for the fiscal year ended August 31, 2021.
Audit-Related Fees (Investment Advisor) -- The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2020 and $0 for the fiscal year ended August 31, 2021.
(c) Tax Fees (Registrant) -- The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the registrant were $57,862 for the fiscal year ended August 31, 2020 and $107,971 for the fiscal year ended August 31, 2021. These fees were for tax consultation and/or tax return preparation and professional services rendered for Passive Foreign Investment Company Identification.
Tax Fees (Investment Advisor) -- The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the registrant’s advisor were $0 for the fiscal year ended August 31, 2020 and $0 for the fiscal year ended August 31, 2021.
(d) All Other Fees (Registrant) -- The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registrant, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended August 31, 2020 and $0 for the fiscal year ended August 31, 2021.
All Other Fees (Investment Advisor) -- The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registrant’s investment advisor, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended August 31, 2020 and $0 for the fiscal year ended August 31, 2021.
(e)(1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.
Pursuant to its charter and its Audit and Non-Audit Services Pre-Approval Policy, the Audit Committee (the “Committee”) is responsible for the pre-approval of all audit services and permitted non-audit services (including the fees and terms thereof) to be performed for the registrant by its independent auditors. The Chairman of the Committee is authorized to give such pre-approvals on behalf of the Committee up to $25,000 and report any such pre-approval to the full Committee.
The Committee is also responsible for the pre-approval of the independent auditor’s engagements for non-audit services with the registrant’s advisor (not including a sub-advisor whose role is primarily portfolio management and is sub-contracted or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant, subject to the de minimis exceptions for non-audit services described in Rule 2-01 of Regulation S-X. If the independent auditor has provided non-audit services to the registrant’s advisor (other than any sub-advisor whose role is primarily portfolio management and is sub-contracted with or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the registrant that were not pre-approved pursuant to its policies, the Committee will consider whether the provision of such non-audit services is compatible with the auditor’s independence.
(e)(2) The percentage of services described in each of paragraphs (b) through (d) for the registrant and the registrant’s investment advisor of this Item that were approved by the audit committee pursuant to the pre-approval exceptions included in paragraph (c)(7)(i)(c) or paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X are as follows:
Registrant: | Advisor and Distributor: |
(b) 0% | (b) 0% |
(c) 0% | (c) 0% |
(d) 0% | (d) 0% |
(f) The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty
percent.
(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant for the fiscal year ended August 31, 2020, were $57,862 for the registrant, $47,170 for the registrant’s investment advisor and $70,330 for the registrant’s distributor; and for the fiscal year ended August 31, 2021 were $107,971 for the registrant, $23,200 for the registrant’s investment advisor and $29,500 for the registrant’s distributor.
(h) The registrant’s audit committee of its Board of Trustees has determined that the provision of non-audit services that were rendered to the registrant’s investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
(a) | The registrant has a separately designated audit committee consisting of all the independent trustees of the registrant. The members of the audit committee are: Thomas R. Kadlec, Niel B. Nielson, Richard E. Erickson and Robert F. Keith. |
(b) | Not applicable. |
Item 6. Investments.
(a) | Schedules of Investments in securities of unaffiliated issuers as of the close of the reporting period are included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3 (c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15 (b)). |
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | Not applicable. |
Item 13. Exhibits.
(a)(1) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | First Trust Exchange-Traded Fund VIII |
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | November 8, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | November 8, 2021 |
By (Signature and Title)* | /s/ Donald P. Swade | |
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | November 8, 2021 |
* Print the name and title of each signing officer under his or her signature.