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, 2022
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 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) ---------------------------- Annual Report For the Year Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 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 Notes to Fund Performance Overview.......................................... 11 Portfolio Commentary........................................................ 12 Understanding Your Fund Expenses............................................ 20 Portfolio of Investments First Trust TCW Opportunistic Fixed Income ETF (FIXD).................... 21 First Trust TCW Unconstrained Plus Bond ETF (UCON)....................... 52 First Trust TCW Securitized Plus ETF (DEED).............................. 85 First Trust TCW Emerging Markets Debt ETF (EFIX)......................... 98 Statements of Assets and Liabilities........................................ 102 Statements of Operations.................................................... 103 Statements of Changes in Net Assets......................................... 104 Financial Highlights........................................................ 106 Notes to Financial Statements............................................... 108 Report of Independent Registered Public Accounting Firm..................... 122 Additional Information...................................................... 123 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, 2022 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, 2022. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 also invest in preferred stock and common stock. 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 5 Years Inception 5 Years Inception Ended Ended (2/14/17) Ended (2/14/17) 8/31/22 8/31/22 to 8/31/22 8/31/22 to 8/31/22 <S> <C> <C> <C> <C> <C> FUND PERFORMANCE NAV -12.84% 0.72% 1.23% 3.65% 7.00% Market Price -13.14% 0.67% 1.18% 3.41% 6.71% INDEX PERFORMANCE Bloomberg U.S. Aggregate Bond Index -11.52% 0.52% 1.08% 2.62% 6.13% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 11.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 14, 2017 - AUGUST 31, 2022 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 2/28/22 11,772 11,505 8/31/22 10,700 10,613 </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. Performance in securitized product investment strategies can be impacted from the benefits of purchasing odd lot positions. The impact of these investments can be particularly meaningful when funds have limited assets under management and may not be a sustainable source of performance as a fund grows in size. 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 Agency Mortgage-Backed Securities 33.1% U.S. Government Bonds and Notes 23.2 Corporate Bonds and Notes 23.0 Asset-Backed Securities 12.2 Mortgage-Backed Securities 10.7 Foreign Corporate Bonds and Notes 7.3 Senior Floating-Rate Loan Interests 2.1 Foreign Sovereign Bonds and Notes 1.9 U.S. Government Agency Securities 1.4 Municipal Bonds 1.0 Common Stocks 0.0* Rights 0.0* Money Market Funds 1.9 Call Options Purchased 0.0* Call Options Written (0.0)* Net Other Assets and Liabilities** (17.8) ------- Total 100.0% ======= * Amount is less than 0.1%. ** Includes variation margin on futures contracts, unrealized appreciation/ depreciation on forward foreign currency contracts and unrealized appreciation/depreciation on interest rate swap agreements. ---------------------------------------------------------- % OF FIXED-INCOME CREDIT QUALITY(1) INVESTMENTS ---------------------------------------------------------- Government/Agency 49.8% AAA 3.1 AA+ 0.7 AA 2.0 AA- 1.6 A+ 0.8 A 1.6 A- 5.1 BBB+ 5.7 BBB 8.0 BBB- 5.0 BB+ 3.5 BB 1.7 BB- 1.4 B+ 0.5 B 1.0 B- 0.9 CCC+ 0.3 CCC 2.1 CCC- 0.6 CC 2.9 C 0.5 D 1.2 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- U.S. Treasury Bond, 2.00%, 11/15/41 3.9% U.S. Treasury Note, 3.13%, 08/31/27 3.9 Federal National Mortgage Association, Pool TBA, 2.50%, 10/15/52 3.8 Federal National Mortgage Association, Pool TBA, 2.00%, 10/15/52 3.5 U.S. Treasury Note, 2.75%, 07/31/27 2.5 Federal National Mortgage Association, Pool TBA, 3.00%, 10/15/52 2.3 U.S. Treasury Note, 3.25%, 08/31/24 2.3 U.S. Treasury Note, 3.00%, 07/31/24 1.8 U.S. Treasury Bond, 2.38%, 02/15/42 1.8 Federal National Mortgage Association, Pool TBA, 4.50%, 09/15/52 1.5 ------- Total 27.3% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, 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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -5.55% 2.42% 10.65% Market Price -5.31% 2.52% 11.09% INDEX PERFORMANCE ICE BofA US Dollar 3-Month Deposit Offered Rate Average Index 0.72% 1.32% 5.72% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 11.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 4, 2018 - AUGUST 31, 2022 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 2/28/22 11,489 10,505 8/31/22 11,065 10,572 </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. Performance in securitized product investment strategies can be impacted from the benefits of purchasing odd lot positions. The impact of these investments can be particularly meaningful when funds have limited assets under management and may not be a sustainable source of performance as a fund grows in size. 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 ---------------------------------------------------------- Mortgage-Backed Securities 26.5% Corporate Bonds and Notes 22.0 Asset-Backed Securities 17.5 U.S. Government Agency Mortgage-Backed Securities 14.7 Foreign Corporate Bonds and Notes 6.6 Foreign Sovereign Bonds and Notes 4.4 U.S. Government Agency Securities 0.4 Municipal Bonds 0.1 Common Stocks 0.0* Rights 0.0* U.S. Treasury Bills 19.3 Money Market Funds 1.4 Net Other Assets and Liabilities** (12.9) ------- Total 100.0% ======= * Amount is less than 0.1%. ** Includes variation margin on futures contracts, unrealized appreciation/ depreciation on forward foreign currency contracts and unrealized appreciation/depreciation on interest rate swap agreements. ---------------------------------------------------------- % OF FIXED-INCOME CREDIT QUALITY(1) INVESTMENTS ---------------------------------------------------------- Government/Agency 31.0% AAA 6.7 AA+ 1.0 AA 2.6 AA- 1.7 A+ 0.6 A 1.6 A- 4.7 BBB+ 3.9 BBB 8.1 BBB- 5.7 BB+ 3.5 BB 2.2 BB- 2.9 B+ 1.1 B 3.2 B- 2.1 CCC+ 1.5 CCC 5.6 CCC- 2.3 CC 5.0 C 1.5 D 1.5 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- U.S. Treasury Bill, 0.00%, 10/06/2022 6.7% Federal National Mortgage Association, Pool TBA, 2.50%, 10/15/2052 4.0 U.S. Treasury Bill, 0.00%, 01/19/2023 3.3 Federal National Mortgage Association, Pool TBA, 2.00%, 10/15/2052 2.7 Federal National Mortgage Association, Pool TBA, 3.00%, 10/15/2052 2.6 U.S. Treasury Bill, 0.00%, 11/10/2022 1.5 Federal National Mortgage Association, Pool TBA, 4.50%, 09/15/2052 1.3 U.S. Treasury Bill, 0.00%, 01/12/2023 1.3 U.S. Treasury Bill, 0.00%, 01/05/2023 1.0 U.S. Treasury Bill, 0.00%, 09/01/2022 1.0 ------- Total 25.4% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, 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. The Fund may utilize listed and over-the-counter derivatives instruments. 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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -10.87% -2.07% -4.77% Market Price -11.22% -2.23% -5.14% INDEX PERFORMANCE Bloomberg U.S. Mortgage-Backed Securities Index -9.73% -4.21% -9.57% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 11.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 29, 2020 - AUGUST 31, 2022 Bloomberg First Trust TCW U.S. Mortgage-Backed Securitized Plus ETF Securities Index <S> <C> <C> 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 2/28/22 10,390 9,703 8/31/22 9,523 9,043 </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. Performance in securitized product investment strategies can be impacted from the benefits of purchasing odd lot positions. The impact of these investments can be particularly meaningful when funds have limited assets under management and may not be a sustainable source of performance as a fund grows in size. 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 68.2% Mortgage-Backed Securities 29.8 Asset-Backed Securities 24.7 U.S. Government Bonds and Notes 6.7 U.S. Government Agency Securities 4.4 U.S. Treasury Bills 9.0 Money Market Funds 5.1 Net Other Assets and Liabilities* (47.9) ------- 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 61.3% AAA 5.5 AA+ 1.1 AA 2.4 AA- 1.3 A+ 0.2 A 1.8 A- 1.0 BBB 1.1 BBB- 0.8 BB 3.2 BB- 0.5 B+ 0.5 B 1.4 B- 2.2 CCC+ 0.7 CCC 3.5 CCC- 2.0 CC 6.1 C 1.8 D 1.6 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Federal National Mortgage Association, Pool TBA, 2.00%, 10/15/52 9.7% Federal National Mortgage Association, Pool TBA, 2.50%, 10/15/52 8.0 Government National Mortgage Association, Pool TBA, 2.50%, 09/15/52 4.5 Federal National Mortgage Association, Pool TBA, 3.00%, 10/15/52 4.3 U.S. Treasury Bill, 0.00%, 01/19/23 2.5 Federal National Mortgage Association, Pool TBA, 3.50%, 09/15/52 2.1 Federal National Mortgage Association, Pool TBA, 4.00%, 09/15/52 1.6 Federal Home Loan Banks, 1.20%, 12/23/24 1.5 Federal National Mortgage Association, Pool TBA, 4.50%, 09/15/52 1.4 U.S. Treasury Note, 3.25%, 08/31/24 1.1 ------- Total 36.7% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, 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 utilize listed and over-the-counter derivatives instruments. Shares of the Fund are listed on The NYSE Arca, Inc. under the ticker symbol "EFIX." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (2/17/21) Inception (2/17/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -18.52% -11.42% -16.95% Market Price -18.49% -11.59% -17.20% INDEX PERFORMANCE JP Morgan Emerging Market Bond Index Global Diversified -20.82% -12.64% -18.72% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 11.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 17, 2021 - AUGUST 31, 2022 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 10,264 2/28/22 9,204 9,086 8/31/22 8,305 8,128 </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 62.2% Foreign Corporate Bonds and Notes 34.6 Money Market Funds 3.2 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME CREDIT QUALITY(1) INVESTMENTS ---------------------------------------------------------- AA 5.1% AA- 7.3 A+ 2.3 A 5.1 A- 3.0 BBB 9.0 BBB- 22.7 BB+ 0.4 BB 2.1 BB- 16.3 B+ 8.6 B 5.4 B- 6.7 CCC+ 3.9 CCC- 1.0 CC 1.1 ------- Total 100.0% ======= ---------------------------------------------------------- % OF FIXED-INCOME TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Indonesia Asahan Aluminium Persero PT (USD), 5.45%, 05/15/30 3.6% Mexico Government International Bond (USD), 4.28%, 08/14/41 3.2 Egypt Government International Bond (USD), 6.59%, 02/21/28 3.2 Panama Government International Bond (USD), 2.25%, 09/29/32 3.1 Chile Government International Bond (USD), 3.10%, 05/07/41 3.0 Abu Dhabi Government International Bond (USD), 1.70%, 03/02/31 2.9 Angolan Government International Bond (USD), 8.75%, 04/14/32 2.8 il and Gas Holding (The) Co. BSCC (USD), 7.63%, 11/07/24 2.7 Dominican Republic International Bond (USD), 4.88%, 09/23/32 2.7 Qatar Government International Bond (USD), 3.75%, 04/16/30 2.7 ------- Total 29.9% ======= ----------------------------- (1) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, 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> -------------------------------------------------------------------------------- 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 11 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (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"), and the First Trust TCW Emerging Markets Debt ETF ("EFIX") (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 $218 billion under management or committed to management, including $191.3 billion of U.S. fixed income investments, as of August 31, 2022. PORTFOLIO MANAGEMENT TEAM FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) Bryan T. Whalen, CFA, Generalist Portfolio Manager, Co-Chief Investment Officer and Co-Director in the Fixed Income Group of TCW Stephen M. Kane, CFA, Generalist Portfolio Manager, Co-Chief Investment Officer and Co-Director in the Fixed Income Group of TCW Laird Landmann, Generalist Portfolio Manager and Co-Director in the Fixed Income Group of TCW FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) Bryan T. Whalen, CFA, Generalist Portfolio Manager, Co-Chief Investment Officer and Co-Director in the Fixed Income Group of TCW Mitchell Flack, Specialist Portfolio Manager and Managing Director in the Fixed Income Group of TCW Elizabeth J. Crawford, Specialist Portfolio Manager and Managing Director in the Fixed Income Group of TCW Harrison Choi, Specialist Portfolio Manager and Managing Director in the Fixed Income Group of 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 COMMENTARY FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) MARKET RECAP Market concerns towards the latter part of 2021 were marked by emerging inflationary pressures and the continuation of coronavirus ("COVID-19") pandemic-related headwinds as the Delta variant of COVID-19 gave way to the more contagious Omicron variant. Notwithstanding the uptick in cases and increased transmissibility of the virus, the economy remained largely resilient with solid non-farm payroll reports and strong retail sales, leading the Federal Open Market Committee ("FOMC") to announce (and later accelerate) a tapering timeline through year-end. The November 2021 Consumer Price Index ("CPI") report (+6.8% increase year-over-year) highlighted growing price pressures faced by consumers, with essentials such as gas and rent largely contributing to the surging figure, while consumers also bore the brunt of cost pressures passed along by businesses combating supply chain bottlenecks and labor supply issues. Meanwhile, equity markets remained strong after bouncing back from the pandemic lows of 2020, illustrated by a 28% return for the 2021 calendar year by the S&P 500(R) Index, while the fourth quarter gross domestic product ("GDP") also rebounded, posting a nearly 7% annualized increase. Page 12 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) As the calendar turned from 2021 to 2022, the combination of strong economic data and elevated inflation reports gave the FOMC cover to announce, in addition to the previously mentioned tapering timeline, the first rate hike since late 2018, effective in March 2022. Markets quickly repriced, with the expectations of a more aggressive Federal Reserve (the "Fed") dragging down most risk assets while Treasury yields rose across the maturity spectrum in the early months of 2022. Investors, already trying to navigate the removal of accommodative policy, lingering COVID-19 variants and elevated prices faced another headwind when Russia invaded Ukraine in February 2022, adding geopolitical tension into the confluence of factors contributing to a difficult environment in the first half of 2022. Commodity prices surged as supply and demand technicals became sharply skewed from the war, exacerbating inflationary concerns and leading to a 9.1% year-over-year increase in the June 2022 CPI report - the largest increase since 1981. The FOMC delivered back-to-back 75 basis point (bps) rate hikes at their June and July 2022 meetings in an effort to combat this climbing inflation, resulting in a tightening of financial conditions and a drag on risk assets. Treasury yields soared, led by more policy-sensitive short rates, with the climb in yields also accompanied by negative GDP reports. Investor sentiment, as measured by the University of Michigan Consumer Sentiment Index, reached a 40-year low amid elevated price pressures and slowing growth, though a brief rally in July 2022 (spurred mainly by optimism that financial conditions may loosen as inflation came in slightly below forecast) led to an improved reading during the summer months. Fed Chairman Jerome Powell's speech at the FOMC's annual retreat in Jackson Hole in late August 2022 quickly dampened any ideas of less restrictive policy, however, as he reaffirmed the committee's focus on fighting inflation despite the potential economic pain that may ensue. Against this backdrop of rising rates, slowing growth, continued COVID-19-related concerns and sustained geopolitical tension, risk assets declined during the 12-month period ended August 31, 2022 with both equity and fixed income markets falling just over 11% for the trailing 1-year period, as measured by the S&P 500(R) Index and the Bloomberg U.S. Aggregate Bond Index, respectively. Further, the Aggregate Bond Index suffered the largest drawdown since its inception during the second quarter of 2022, emphasizing the toll that the challenging economic and financial conditions had on asset prices. Unsurprisingly, all fixed income sectors posted negative total and excess returns, with asset-backed securities ("ABS") the top performer during the period at "only" -32 bps excess returns. Investment grade corporates fell nearly 15% over the period as rising rates weighed on corporate spreads, while agency mortgage-backed securities ("MBS") also suffered amid the sustained rate volatility and prospect of active Fed sales as the announcement of tapering in late 2021 eventually gave way to the most aggressive hiking regime in four decades. Meanwhile, Emerging Markets ("EMs") were among the worst performers in the fixed income space as rising rates, slowing growth and the conflict in Eastern Europe weighed on the sector, while the more levered and more risky high yield corporate sector also severely underperformed. PERFORMANCE ANALYSIS The Fund fell by 12.84% based on net asset value ("NAV") and 13.14% based on market price for the 12-month period ended August 31, 2022, while the Bloomberg U.S. Aggregate Bond Index (the "Benchmark") fell by 11.52% during the same period. Returns benefitted from the Fund's duration positioning, which was shorter than the Benchmark for the first half of the period. As rates began to rise on the Fed's comments of tapering in late 2021, and the eventual announcement of forthcoming rate hikes in early 2022, this positioning helped insulate the portfolio from the negative effects of climbing rates, though the position was extended in a disciplined fashion alongside the rise in rates throughout the second half of the period. Meanwhile, the Fund maintained a curve-steepening bias throughout the period, which weighed on returns as policy-sensitive shorter rates surged higher over the period on the back of the Fed's aggressive tightening cycle. Corporate credit was additive from a positioning standpoint as the Fund entered the period positioned defensively with a relative underweight to corporate credit overall, which was maintained for the majority of the year. With investment grade corporates declining nearly 15%, the Fund was able to avoid the worst of the downdraft from widening yield spreads and declining prices, while also preserving liquidity to eventually expand the risk budgets in the second quarter of 2022 when market dislocations provided attractive entry points. Exposure was added in high-quality names and sectors at favorable levels and enhanced compensation commensurate with the risk undertaken in doing so. Additions were largely focused among the Fund's preferred defensive sectors, including the Communications sector, Non-Cyclicals, and the Banking sector, as they traditionally better withstand prolonged bouts of volatility. Returns were negatively impacted by these additions, however, as they were made during times of yield spread widening, largely offsetting the positive impact from being previously underweight. Despite this drag on performance, we believe that these additions should bolster prospective returns when yield spreads remediate, while also providing enhanced income opportunities in the interim. Meanwhile, the relatively constant position among high yield corporates was a headwind, with the sector trailing duration-matched Treasuries by 354 bps as this cohort also struggled amid the challenging conditions observed in the marketplace, with many of the more levered borrowers feeling the effects of increased costs of financing. Page 13 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) Securitized credit also weighed on relative performance throughout the year, especially in the residential MBS space. With the Fund maintaining an overweight position in agency MBS, performance suffered as the sector struggled from continued rate volatility, aggressive Fed policy, and concern of outright sales from the Fed's balance sheet. Additionally, the off-index exposure to non-agency MBS produced a drag as the sector struggled with broader macro uncertainty and downward repricing. The small positions in ABS and commercial mortgage-backed securities ("CMBS") detracted on the margin as yield spreads in both sectors widened in sympathy with broader markets. Derivative positioning in the Fund is largely focused on futures positions used to manage duration, interest rate swaps and options for hedging, and a small allocation to currency forwards, all of which had little impact on performance. MARKET AND FUND OUTLOOK Challenging year-to-date performance aside, there is the appeal of considerably more yield in fixed income markets now versus the start of 2022, which bodes well for improved return prospects. That being said, uncertainty over effects of tighter monetary policy, inflation and geopolitical tensions renders the market vulnerable to continued volatility and would-be opportunity. We believe trying to understand the economic fallout of a tightening cycle this aggressive against the competing crosswinds of a consumer still flush with cash, and anxious to spend that money on services and experiences post-pandemic, is an impossible task. Based on the Fed's eagerness to demonstrate its inflation-fighting willpower and achieve an easing in prices, expectations are for a continued aggressive lifting of short rates until inflationary pressure subsides, suggesting that a recession is probable (if not technically already present). Clouding the outlook further will be the often overlooked but impactful repercussions of quantitative tightening, which will likely take many more months to become apparent, in our view. With valuations having moved to increasingly attractive, i.e., cheapened, levels amid increased volatility and illiquidity, the portfolio team will look to capitalize on opportunities to buy defensive, high quality bonds at attractive entry points. However, given a high likelihood for further volatility and increased potential for a recessionary environment, the team's investment approach remains disciplined, steeped in relative value across sectors. Given repriced expectations of Fed hikes and climbing Treasury yields, the duration profile of the strategy was extended throughout the period, moving from a relative short to a modestly long position versus the Benchmark. While long-term rates at current levels are close, or even slightly above, fair value, the team will be slow to add further to duration as there is the potential for a sizable, but likely temporary, move higher in rates. Among corporates, buy interest has increased as valuations have improved to reflect more symmetric risk/reward profiles. Banking is a preferred sector as fundamentals remain solid - good liquidity, peak margins, improved credit metrics, and stable leverage ratios highlight the appeal of the space. Additions have been made in this sector, among others, at attractive levels, and are expected to benefit returns as yield spreads, in time, move more in line with fundamentals. Yield spreads in the near term, however, are likely to continue widening should the economy slow, and in that environment, additions will be made in a disciplined, incremental fashion. At this point, high yield spreads appear not yet compensatory enough to increase the allocation given the myriad of risks facing issuers, but further widening of yield spread levels may present compelling opportunities to add more exposure. Within the securitized space, high quality residential MBS, both agency and non-agency, continue to look attractive as recent home price appreciation provides ample cushion for homeowners and investors, even if home prices start to level off or drop somewhat. Similarly, we believe ABS at the top of the capital structure provides fair compensation given robust structures, even with the possibility of recession. CMBS has the potential for significant future volatility - specific properties should do well in the team's view, while the broader market is likely to face challenges. As a result, allocations in CMBS heavily favor single asset/single borrower CMBS where exposure, and the accompanying risk, can be selectively targeted. FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) MARKET RECAP Market concerns towards the latter part of 2021 were marked by emerging inflationary pressures and the continuation of coronavirus ("COVID-19") pandemic-related headwinds as the Delta variant of COVID-19 gave way to the more contagious Omicron variant. Notwithstanding the uptick in cases and increased transmissibility of the virus, the economy remained largely resilient with solid non-farm payroll reports and strong retail sales, leading the Federal Open Market Committee ("FOMC") to announce (and later accelerate) a tapering timeline through year-end. The November 2021 Consumer Price Index ("CPI") report (+6.8% increase year-over-year) highlighted growing price pressures faced by consumers, with essentials such as gas and rent largely contributing to the surging figure, while consumers also bore the brunt of cost pressures passed along by businesses combating supply chain bottlenecks and labor supply issues. Meanwhile, equity markets remained strong after bouncing back from the pandemic lows of 2020, illustrated by a 28% return for the 2021 calendar year by the S&P 500(R) Index, while the fourth quarter gross domestic product ("GDP") also rebounded, posting a nearly 7% annualized increase. Page 14 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) As the calendar turned from 2021 to 2022, the combination of strong economic data and elevated inflation reports gave the FOMC cover to announce, in addition to the previously mentioned tapering timeline, the first rate hike since late 2018, effective in March 2022. Markets quickly repriced, with the expectations of a more aggressive Federal Reserve (the "Fed") dragging down most risk assets while Treasury yields rose across the maturity spectrum in the early months of 2022. Investors, already trying to navigate the removal of accommodative policy, lingering COVID-19 variants and elevated prices faced another headwind when Russia invaded Ukraine in February 2022, adding geopolitical tension into the confluence of factors contributing to a difficult environment in the first half of 2022. Commodity prices surged as supply and demand technicals became sharply skewed from the war, exacerbating inflationary concerns and leading to a 9.1% year-over-year increase in the June 2022 CPI report - the largest increase since 1981. The FOMC delivered back-to-back 75 basis point (bps) rate hikes at their June and July 2022 meetings in an effort to combat this climbing inflation, resulting in a tightening of financial conditions and a drag on risk assets. Treasury yields soared, led by more policy-sensitive short rates, with the climb in yields also accompanied by negative GDP reports. Investor sentiment, as measured by the University of Michigan Consumer Sentiment Index, reached a 40-year low amid elevated price pressures and slowing growth, though a brief rally in July 2022 (spurred mainly by optimism that financial conditions may loosen as inflation came in slightly below forecast) led to an improved reading during the summer months. Fed Chairman Jerome Powell's speech at the FOMC's annual retreat in Jackson Hole in late August 2022 quickly dampened any ideas of less restrictive policy, however, as he reaffirmed the committee's focus on fighting inflation despite the potential economic pain that may ensue. Against this backdrop of rising rates, slowing growth, continued COVID-19-related concerns and sustained geopolitical tension, risk assets declined during the 12-month period ended August 31, 2022 with both equity and fixed income markets falling just over 11% for the trailing 1-year period, as measured by the S&P 500(R) Index and the Bloomberg U.S. Aggregate Bond Index, respectively. Further, the Aggregate Bond Index suffered the largest drawdown since its inception during the second quarter of 2022, emphasizing the toll that the challenging economic and financial conditions had on asset prices. Unsurprisingly, all fixed income sectors posted negative total and excess returns, with ABS the top performer during the period at "only" -32 bps excess returns. Investment grade corporates fell nearly 15% over the period as rising rates weighed on corporate spreads, while agency MBS also suffered amid the sustained rate volatility and prospect of active Fed sales as the announcement of tapering in late 2021 eventually gave way to the most aggressive hiking regime in four decades. Meanwhile, Emerging Markets ("EMs") were among the worst performers in the fixed income space as rising rates, slowing growth and the conflict in Eastern Europe weighed on the sector, while the more levered and more risky high yield corporate sector also severely underperformed. PERFORMANCE ANALYSIS The Fund fell 5.55% based on NAV and 5.31% based on market price for the 12-month period ended August 31, 2022, while the ICE BofA U.S. Dollar 3-Month Deposit Offered Rate Average Index returned 0.72% for the same period. With interest rates rising significantly over the period on the Fed's comments of tapering in late 2021 and eventual announcement of forthcoming rate hikes in early 2022, this positive duration positioning was the largest drag on the Fund's performance. While the Fund was defensively positioned across spread sectors - higher quality emphasis and focus on defensive sectors and positions higher in the capital structure, i.e., first to receive cash flows - higher yield premiums across the fixed income space weighed on performance. Corporate credit allocations contributed early in the period, particularly the small position in high yield, which was a top performing fixed income sector in the third quarter of 2022, while issue selection among investment grade credit also rewarded returns. However, as volatility picked up and yields widened in the first half of 2022, both investment grade and high yield corporate bonds trailed Treasuries on a duration-adjusted basis, weighing on returns. Meanwhile, a small exposure to emerging markets debt proved to be a negative, as the asset class was under pressure from more aggressive central bank tightening, high inflation and slower global growth. Finally, the emphasis on securitized products also weighed on returns. Non-agency MBS bonds, which have generally been a steady source of incremental return since the housing crisis, detracted during the period as broader market volatility weighed on pricing in the first half of 2022. Nevertheless, legacy bonds continue to exhibit attractive supply and demand fundamentals and remain one of the most attractive areas in the fixed income space, in our opinion. Agency MBS also underperformed during the period as the sector struggled from continued rate volatility, aggressive Fed policy, and concern of outright sales from the Fed's balance sheet. However, exposure to the sector is largely achieved via To Be Announced ("TBAs") mortgage bonds, which benefitted from a favorable yield profile supported by the Fed's sizable footprint in the space. The small positions in ABS and CMBS detracted on the margin as yield spreads in both sectors widened in sympathy with broader markets. Derivative positioning in the Fund is largely focused on futures positions used to manage duration, interest rate swaps and options for hedging, and a small allocation to currency forwards, all of which had little impact on performance. Page 15 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) MARKET AND FUND OUTLOOK Challenging year-to-date performance aside, there is the appeal of considerably more yield in fixed income markets now versus the start of 2022, which bodes well for improved return prospects. That being said, uncertainty over effects of tighter monetary policy, inflation and geopolitical tensions renders the market vulnerable to continued volatility and would-be opportunity. We believe trying to understand the economic fallout of a tightening cycle this aggressive against the competing crosswinds of a consumer still flush with cash, and anxious to spend that money on services and experiences post-pandemic, is an impossible task. Based on the Fed's eagerness to demonstrate its inflation-fighting willpower and achieve an easing in prices, expectations are for a continued aggressive lifting of short rates until inflationary pressure subsides, suggesting that a recession is probable (if not technically already present). Clouding the outlook further will be the often overlooked but impactful repercussions of quantitative tightening, which will likely take many more months to become apparent. With valuations having moved to increasingly attractive, i.e., cheapened, levels amid increased volatility and illiquidity, the team will look to capitalize on opportunities to buy defensive, high quality bonds at attractive entry points. However, given a high likelihood for further volatility and increased potential for a recessionary environment, the team's investment approach remains disciplined, steeped in relative value across sectors. Given repriced expectations of Fed hikes and climbing Treasury yields, the duration profile of the strategy was extended, moving from 1.5 years to approximately 2.0 years. While long-term rates at current levels are close, or even slightly above, fair value, the team will be slow to add further to duration as there is the potential for a sizable, but likely temporary, move in rates higher. Among corporates, buy interest has increased as valuations have improved to reflect more symmetric risk/reward profiles. Banking is a preferred sector as fundamentals remain solid - good liquidity, peak margins, improved credit metrics, and stable leverage ratios highlight the appeal of the space. Additions have been made in this sector, among others, at attractive levels, and are expected to benefit returns as yield spreads, in time, move more in line with fundamentals. Yield spreads are likely to continue widening, however, should the economy slow, and in that environment additions will be made in a disciplined, incremental fashion. At this point, high yield spreads appear not yet compensatory enough given the myriad of risks facing issuers, though further dislocation and rising yield premiums will provide compelling opportunities to layer in additional exposure. Within the securitized space, high quality residential MBS, both agency and non-agency, continue to look attractive as recent home price appreciation provides ample cushion for homeowners and investors, even if home prices start to level off or drop somewhat. Similarly, we believe ABS at the top of the capital structure provides fair compensation given robust structures, even with the possibility of recession. CMBS has the potential for significant future volatility - specific, high-quality properties should do well, while the broader market is likely to face challenges. As a result, allocations in CMBS heavily favor single asset/single borrower CMBS where exposures can be targeted rather than more broadly diversified issues. FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) MARKET RECAP Market concerns towards the latter part of 2021 were marked by emerging inflationary pressures and the continuation of coronavirus ("COVID-19") pandemic-related headwinds as the Delta variant of COVID-19 gave way to the more contagious Omicron variant. Notwithstanding the uptick in cases and increased transmissibility of the virus, the economy remained largely resilient with solid non-farm payroll reports and strong retail sales, leading the Federal Open Market Committee ("FOMC") to announce (and later accelerate) a tapering timeline through year-end. The November 2021 Consumer Price Index ("CPI") report (+6.8% increase year-over-year) highlighted growing price pressures faced by consumers, with essentials such as gas and rent largely contributing to the surging figure, while consumers also bore the brunt of cost pressures passed along by businesses combating supply chain bottlenecks and labor supply issues. Meanwhile, equity markets remained strong after bouncing back from the pandemic lows of 2020, illustrated by a 28% return for the 2021 calendar year by the S&P 500(R) Index, while the fourth quarter gross domestic product ("GDP") also rebounded, posting a nearly 7% annualized increase. As the calendar turned from 2021 to 2022, the combination of strong economic data and elevated inflation reports gave the FOMC cover to announce, in addition to the previously mentioned tapering timeline, the first rate hike since late 2018, effective in March 2022. Markets quickly repriced, with the expectations of a more aggressive Federal Reserve (the "Fed") dragging down most risk assets while Treasury yields rose across the maturity spectrum in the early months of 2022. Investors, already trying to navigate the removal of accommodative policy, lingering COVID-19 variants and elevated prices faced another headwind when Russia invaded Ukraine in February 2022, adding geopolitical tension into the confluence of factors contributing to a difficult environment in the first half of 2022. Commodity prices surged as supply and demand technicals became sharply skewed from the war, exacerbating inflationary concerns and leading to a 9.1% year-over-year increase in the June 2022 CPI report - the largest increase since 1981. The FOMC delivered back-to-back 75 basis point (bps) rate hikes at their June and July 2022 meetings in an effort to combat this climbing inflation, resulting in a tightening of financial conditions and a drag on risk assets. Page 16 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) Treasury yields soared, led by more policy-sensitive short rates, with the climb in yields also accompanied by negative GDP reports. Investor sentiment, as measured by the University of Michigan Consumer Sentiment Index, reached a 40-year low amid elevated price pressures and slowing growth, though a brief rally in July 2022 (spurred mainly by optimism that financial conditions may loosen as inflation came in slightly below forecast) led to an improved reading during the summer months. Fed Chairman Jerome Powell's speech at the FOMC's annual retreat in Jackson Hole in late August 2022 quickly dampened any ideas of less restrictive policy, however, as he reaffirmed the committee's focus on fighting inflation despite the potential economic pain that may ensue. Against this backdrop of rising rates, slowing growth, continued COVID-19-related concerns and sustained geopolitical tension, risk assets declined during the 12-month period ended August 31, 2022 with both equity and fixed income markets falling just over 11% for the trailing 1-year period, as measured by the S&P 500(R) Index and the Bloomberg U.S. Aggregate Bond Index, respectively. Further, the Aggregate Bond Index suffered the largest drawdown since its inception during the second quarter of 2022, emphasizing the toll that the challenging economic and financial conditions had on asset prices. Unsurprisingly, all fixed income sectors posted negative total and excess returns, with asset-backed securities ("ABS") the top performer during the period at "only" -32 bps excess returns. Investment grade corporates fell nearly 15% over the period as rising rates weighed on corporate spreads, while agency MBS also suffered amid the sustained rate volatility and prospect of active Fed sales as the announcement of tapering in late 2021 eventually gave way to the most aggressive hiking regime in four decades. Meanwhile, Emerging Markets ("EMs") were among the worst performers in the fixed income space as rising rates, slowing growth and the conflict in Eastern Europe weighed on the sector, while the more levered and more risky high yield corporate sector also severely underperformed. PERFORMANCE ANALYSIS The Fund fell 10.87% based on NAV and 11.22% based on market price for the 12-month period ended August 31, 2022, while the Bloomberg U.S. Mortgage-Backed Securities Index (the "Index") fell by 9.73%. With the agency MBS sector lagging duration-matched Treasuries by 142 bps during the year, the Fund benefitted from the relative underweight to the space, though low coupon 30-year TBAs, which constitute a bulk of the Fund's agency MBS holdings, were among the bottom performers in the Index. Though these holdings largely offset the benefit from being underweight the sector, the surge in rates during the period has led to fully extended durations and near-zero negative convexity among the low coupon cohort, potentially presenting greater upside optionality looking forward. Meanwhile, the off-Index allocation to non-agency MBS weighed on performance as the sector experienced a downward repricing in 2022 due to broader macro uncertainty and rate volatility, though favorable issue selection among select credit risk transfer bonds did provide a bright spot among the Fund's non-agency MBS allocation. Elsewhere in the securitized space, CMBS and ABS holdings detracted on the margin as both sectors posted negative excess and total returns during the year in sympathy with the broader market downturn. Finally, returns benefitted from the Fund's duration positioning, which was shorter relative to the Index; with the Fund shorter than the Index through the end of the first quarter of 2022. The Fund was insulated from the worst of the effects of rising rates as the Fed initiated their cycle of interest rate hikes, before gradually extending the position in a disciplined fashion alongside the continued climb in Treasury yields and evolving value proposition. 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 Challenging year-to-date performance aside, there is the appeal of considerably more yield in fixed income markets now versus the start of 2022, which bodes well for improved return prospects. That being said, uncertainty over effects of tighter monetary policy, inflation and geopolitical tensions renders the market vulnerable to continued volatility and would-be opportunity. We believe trying to understand the economic fallout of a tightening cycle this aggressive against the competing crosswinds of a consumer still flush with cash, and anxious to spend that money on services and experiences post-pandemic, is an impossible task. Based on the Fed's eagerness to demonstrate its inflation-fighting willpower and achieve an easing in prices, expectations are for a continued aggressive lifting of short rates until inflationary pressure subsides, suggesting that a recession is probable (if not technically already present). Clouding the outlook further will be the often overlooked but impactful repercussions of quantitative tightening, which will likely take many more months to become apparent. With valuations having moved to increasingly attractive, i.e., cheapened, levels amid increased volatility and illiquidity, the team will look to capitalize on opportunities to buy defensive, high quality bonds at attractive entry points. However, given a high likelihood for further volatility and increased potential for a recessionary environment, the team's investment approach remains disciplined, steeped in relative value across sectors. Page 17 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) Given repriced expectations of Fed hikes and climbing Treasury yields, the duration profile of the strategy was extended, moving from a relative short to a modestly long position versus the Index. While long-term rates at current levels are close, or even slightly above, fair value, the team will be slow to add further to duration as there is the potential for a sizable, but likely temporary, move in rates higher. Within the securitized space, high quality residential MBS, both agency and non-agency, continue to look attractive as recent home price appreciation provides ample cushion for homeowners and investors, even if home prices start to drop somewhat. Current agency MBS positioning favors lower coupon issues and TBAs, though up-in-coupon issues and specified pools with favorable duration profiles are becoming increasingly emphasized. Meanwhile, non-agency MBS continues to offer opportunities in deeply discounted senior legacy non-agency MBS bonds with solid, stable fundamentals, while more recently issued 2.0 deals backed by re-performing loans are also appealing. Despite the current challenges, mortgage credit as a whole remains attractive due to recent home price appreciation, declining loan-to-value ratios and strict underwriting standards and is expected to be significantly additive to returns in coming periods. Away from residential MBS, we believe ABS at the top of the capital structure provides fair compensation given robust structures, even with the possibility of recession. CMBS has the potential for significant future volatility - specific properties should do well, while the broader market is likely to face challenges. As a result, allocations in CMBS heavily favor non-agency single asset/single borrower CMBS where exposure, and the accompanying risk, can be selectively targeted. FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) MARKET RECAP EM sovereign spreads are approximately 500 bps through September 14, 2022, around 150 bps wider than mid-September 2021. EM corporate spreads are approximately 350 bps, around 90 bps wider. The period has been characterized by risk-off sentiment driven by a number of factors, including rising inflation and a hawkish Fed, the Russia-Ukraine war and the subsequent energy crisis in Europe, and the implementation of the zero-COVID-19 policy in China, all of which have led to global growth concerns. PERFORMANCE ANALYSIS For the 12-month period ended August 31, 2022, the Fund returned -18.52% based on NAV and -18.49% based on market price versus -20.82% for the JP Morgan Emerging Market Bond Index Global Diversified (the "Benchmark"). Relative outperformance of 230 bps for the same period was primarily driven by underweight positioning in Russia, as tensions with Ukraine escalated into war in February 2022. In addition, the Fund's lack of exposure to Belarus, where bonds sold off due to its role in facilitating the invasion of Ukraine in February 2022, also contributed to relative outperformance. Security selection in Saudi Arabia, particularly oil & gas quasi-sovereign exposure, and underweight positioning in Ghana, also contributed to relative outperformance. On the other hand, the exposure in the Fund's portfolio to high yield China property companies hurt relative performance, all of which were exited in 2021. Underweight positioning to higher quality China in 2022 hurt relative performance given its shorter duration profile relative to the Benchmark. However, the Fund remains underweight China given continued concerns about the property sector and the impact of its zero-COVID-19 policy on growth. MARKET AND FUND OUTLOOK Uncertainty has been the defining characteristic of the global economic, geopolitical, and market environment throughout the 12-month period ended August 31, 2022 and it remains so today, as reflected in rising Treasury yields, a stronger U.S. Dollar and the constant tug-of-war between the market's expectations of growth versus inflation. While many of these uncertainties have yet to be resolved, a fair bit of risk has been priced into markets and we believe that inflation, one of the more important drivers of risk appetite, may have potentially peaked, while not declining as quickly as markets expected. U.S. inflation data for the next several months, we believe, will play a significant role in shaping the medium-term outlook for markets. While the Fed's interest rate hike cycle will likely include an additional 150-200 bps of hikes over the coming months, the reduction of uncertainty regarding where the terminal rate ends up and what path the Fed takes to get there will go a long way in removing one of the major headwinds plaguing risk assets in recent months, in our view. To be clear, this reduction in uncertainty may take anywhere from another few weeks to another few months to materialize, but we believe this process will coincide with a bottoming in the performance of risk assets, including EM credit. Page 18 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) There do, of course, remain risks to the global economy beyond the U.S. and we are monitoring these closely. Recent data confirms our assessment that the Chinese economy likely bottomed in the second quarter of 2022. However, further downside risk to the property sector and its potential impact on the banking system, together with the impact of continued strict zero-COVID-19 measures leading into October's Party Congress, have the potential to drag down Chinese growth expectations further. While the central bank has cut interest rates and the government has unveiled more fiscal stimulus, transmission remains hampered by weak credit demand. In addition, record-high gas prices have dramatically increased European inflation and slowed economic activity. At the end of August 2022, Russia, citing maintenance needs, switched off its largest pipeline, Nord Stream 1, to Europe, but this is now an open-ended shutdown. The European Union is taking various steps to cushion the inflationary and recessionary risk of the gas crisis, which will likely lead to higher fiscal costs that have to be funded. Given all of the near-term uncertainties, we believe an underweight to the European region remains prudent. While there are significant risks in the market, we do believe that valuations have come a long way to reflect these risks and that market sentiment may accordingly be too bearish. Spreads on the Benchmark are approximately 500 bps, or approximately 200 bps wide to long term averages. Further, the economic growth differential between EMs and Developed Markets ("DMs") is expected to widen in 2023 (1.4% in DMs versus 3.9% in EMs according to the International Monetary Fund), which we believe will be supportive for EM assets. As of the end of August 2022, the Fund was overweight Middle East/Africa and Latin America, to take advantage of a supportive commodity backdrop and attractive valuations relative to peers. The Fund's portfolio is underweight Asia and Europe, on a combination of growth concerns and valuations. Duration is slightly long relative to the Benchmark based on our view that the bulk of the repricing in U.S. rates has occurred. The Fund is slightly overweight investment grade relative to high yield ("HY"). In the coming months, as we develop a clearer picture of the risks ahead, we would look to take advantage of dislocations in high yield and add lower quality credits, as we believe markets are underestimating both the fundamental strength of the asset class (EM HY corporate net leverage has, for example, fallen to its lowest level since 2015) and relative valuations (EM HY spreads trade +135 bps over US HY, a 97th percentile reading for this relationship since 2010). Page 19 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (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 or First Trust TCW Emerging Markets Debt 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, 2022. 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 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, 2022 AUGUST 31, 2022 PERIOD (a) PERIOD (b) ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) Actual $1,000.00 $ 908.90 0.55% $2.65 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 $ 963.20 0.75% $3.71 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 $ 916.50 0.65% $3.14 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 $ 902.40 0.85% $4.08 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, 2022 through August 31, 2022), multiplied by 184/365 (to reflect the six-month period). Page 20 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 33.1% <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.2% Federal Home Loan Mortgage Corporation $ 274,036 Series 2017-4656, Class EZ....................................... 4.00% 02/15/47 $ 267,852 Federal National Mortgage Association 1,877,819 Series 2012-20, Class ZT......................................... 3.50% 03/25/42 1,780,924 2,020,765 Series 2012-84, Class VZ......................................... 3.50% 08/25/42 1,942,164 250,940 Series 2018-38, Class PA......................................... 3.50% 06/25/47 247,725 686,966 Series 2018-43, Class CT......................................... 3.00% 06/25/48 654,629 196,821 Series 2018-86, Class JA......................................... 4.00% 05/25/47 194,780 86,435 Series 2018-94, Class KD......................................... 3.50% 12/25/48 83,933 102,707 Series 2019-1, Class KP.......................................... 3.25% 02/25/49 98,043 74,150 Series 2019-20, Class BA......................................... 3.50% 02/25/48 73,353 50,763 Series 2019-52, Class PA......................................... 3.00% 09/25/49 48,216 Government National Mortgage Association 181,008 Series 2018-115, Class DE........................................ 3.50% 08/20/48 177,805 212,496 Series 2018-124, Class NW........................................ 3.50% 09/20/48 209,551 359,290 Series 2019-12, Class QA......................................... 3.50% 09/20/48 350,789 30,779 Series 2019-71, Class PT......................................... 3.00% 06/20/49 29,473 391,040 Series 2019-119, Class JE........................................ 3.00% 09/20/49 372,414 -------------- 6,531,651 -------------- PASS-THROUGH SECURITIES -- 32.9% Federal Home Loan Mortgage Corporation 60,612 Pool C91981...................................................... 3.00% 02/01/38 58,169 54,636 Pool G07961...................................................... 3.50% 03/01/45 53,347 52,409 Pool G08692...................................................... 3.00% 02/01/46 49,675 1,516,961 Pool G08715...................................................... 3.00% 08/01/46 1,437,211 29,992 Pool G08721...................................................... 3.00% 09/01/46 28,402 345,167 Pool G08726...................................................... 3.00% 10/01/46 327,448 832,875 Pool G08732...................................................... 3.00% 11/01/46 784,790 109,838 Pool G08738...................................................... 3.50% 12/01/46 106,704 218,243 Pool G08741...................................................... 3.00% 01/01/47 206,229 152,438 Pool G08747...................................................... 3.00% 02/01/47 143,980 106,995 Pool G08748...................................................... 3.50% 02/01/47 104,140 496,224 Pool G08750...................................................... 3.00% 03/01/47 468,486 116,525 Pool G08766...................................................... 3.50% 06/01/47 113,201 309,604 Pool G08788...................................................... 3.50% 11/01/47 300,449 1,024,504 Pool G08792...................................................... 3.50% 12/01/47 994,985 139,503 Pool G08800...................................................... 3.50% 02/01/48 135,208 211,773 Pool G08816...................................................... 3.50% 06/01/48 204,970 59,232 Pool G08833...................................................... 5.00% 07/01/48 60,788 11,646 Pool G08838...................................................... 5.00% 09/01/48 11,946 199,193 Pool G08843...................................................... 4.50% 10/01/48 201,213 45,565 Pool G08844...................................................... 5.00% 10/01/48 46,733 125,953 Pool G08849...................................................... 5.00% 11/01/48 129,086 465,829 Pool G16085...................................................... 2.50% 02/01/32 447,553 278,852 Pool G16350...................................................... 2.50% 10/01/32 267,903 334,428 Pool G16396...................................................... 3.50% 02/01/33 330,023 968,025 Pool G16524...................................................... 3.50% 05/01/33 955,158 107,963 Pool G18670...................................................... 3.00% 12/01/32 105,170 31,408 Pool G18691...................................................... 3.00% 06/01/33 30,595 88,566 Pool G18713...................................................... 3.50% 11/01/33 87,388 </TABLE> See Notes to Financial Statements Page 21 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) $ 1,348,899 Pool G60038...................................................... 3.50% 01/01/44 $ 1,317,108 362,172 Pool G60080...................................................... 3.50% 06/01/45 353,178 741,603 Pool G60344...................................................... 4.00% 12/01/45 744,039 235,762 Pool G60440...................................................... 3.50% 03/01/46 229,470 729,930 Pool G60582...................................................... 3.50% 05/01/46 709,241 695,178 Pool G60658...................................................... 3.50% 07/01/46 683,509 317,437 Pool G61556...................................................... 3.50% 08/01/48 308,222 2,151,785 Pool G61748...................................................... 3.50% 11/01/48 2,088,116 715,888 Pool G67700...................................................... 3.50% 08/01/46 697,858 1,612,620 Pool G67703...................................................... 3.50% 04/01/47 1,569,569 5,940,884 Pool G67706...................................................... 3.50% 12/01/47 5,782,275 1,464,439 Pool G67707...................................................... 3.50% 01/01/48 1,431,726 7,822,604 Pool G67708...................................................... 3.50% 03/01/48 7,600,707 1,486,990 Pool G67709...................................................... 3.50% 03/01/48 1,448,517 1,158,081 Pool G67710...................................................... 3.50% 03/01/48 1,123,825 1,704,619 Pool G67714...................................................... 4.00% 07/01/48 1,697,571 2,319,772 Pool G67717...................................................... 4.00% 11/01/48 2,310,180 3,613,699 Pool G67718...................................................... 4.00% 01/01/49 3,596,541 123,773 Pool Q44452...................................................... 3.00% 11/01/46 116,933 223,064 Pool Q50135...................................................... 3.50% 08/01/47 216,653 8,937,678 Pool QA7837...................................................... 3.50% 03/01/50 8,627,406 15,422,564 Pool QE0312...................................................... 2.00% 04/01/52 13,329,152 22,537,285 Pool QE0521...................................................... 2.50% 04/01/52 20,185,967 14,662,090 Pool RA3078...................................................... 3.00% 07/01/50 13,703,511 412,373 Pool RE6029...................................................... 3.00% 02/01/50 380,282 13,930,699 Pool SD0231...................................................... 3.00% 01/01/50 13,016,673 3,858,381 Pool SD7511...................................................... 3.50% 01/01/50 3,719,640 11,987,513 Pool SD7513...................................................... 3.50% 04/01/50 11,556,583 6,992,456 Pool SD7518...................................................... 3.00% 06/01/50 6,541,352 15,249,051 Pool SD8189...................................................... 2.50% 01/01/52 13,654,731 19,124,376 Pool SD8194...................................................... 2.50% 02/01/52 17,125,744 23,143,108 Pool SD8205...................................................... 2.50% 04/01/52 20,724,374 19,737,692 Pool SD8212...................................................... 2.50% 05/01/52 17,674,848 271,364 Pool U90772...................................................... 3.50% 01/01/43 264,592 328,691 Pool U99114...................................................... 3.50% 02/01/44 320,502 674,182 Pool ZA4692...................................................... 3.50% 06/01/46 654,321 326,994 Pool ZM0063...................................................... 4.00% 08/01/45 326,271 15,167,985 Pool ZM1779...................................................... 3.00% 09/01/46 14,395,960 3,260,700 Pool ZS4667...................................................... 3.00% 06/01/46 3,089,733 5,352,277 Pool ZS4688...................................................... 3.00% 11/01/46 5,038,467 8,775,426 Pool ZS4735...................................................... 3.50% 09/01/47 8,509,824 328,905 Pool ZS8602...................................................... 3.00% 03/01/31 322,135 629,949 Pool ZS9844...................................................... 3.50% 07/01/46 611,393 1,774,927 Pool ZT0277...................................................... 3.50% 10/01/46 1,722,717 790,755 Pool ZT0531...................................................... 3.50% 04/01/47 768,924 760,174 Pool ZT0536...................................................... 3.50% 03/01/48 737,918 2,413,688 Pool ZT0537...................................................... 3.50% 03/01/48 2,349,036 422,157 Pool ZT0542...................................................... 4.00% 07/01/48 420,023 93,034 Pool ZT1403...................................................... 3.50% 11/01/33 91,732 1,194,274 Pool ZT1703...................................................... 4.00% 01/01/49 1,187,505 </TABLE> Page 22 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 $ 2,593,540 Pool AL8825...................................................... 3.50% 06/01/46 $ 2,517,962 107,676 Pool AM5673...................................................... 3.65% 04/01/23 107,544 114,115 Pool AN2786...................................................... 2.76% 09/01/36 101,553 1,093,936 Pool AS0225...................................................... 4.00% 08/01/43 1,093,818 1,389,912 Pool AS3134...................................................... 3.50% 08/01/44 1,355,923 322,056 Pool AS6620...................................................... 3.50% 02/01/46 312,600 104,272 Pool AS9334...................................................... 3.00% 03/01/32 101,483 79,800 Pool AS9749...................................................... 4.00% 06/01/47 79,419 81,786 Pool BD7081...................................................... 4.00% 03/01/47 81,255 6,237,939 Pool BE3774...................................................... 4.00% 07/01/47 6,207,495 801,941 Pool BJ2692...................................................... 3.50% 04/01/48 775,311 1,020,720 Pool BM1903...................................................... 3.50% 08/01/47 992,628 266,651 Pool BM2000...................................................... 3.50% 05/01/47 259,956 716,205 Pool BM3260...................................................... 3.50% 01/01/48 694,172 400,117 Pool BM4299...................................................... 3.00% 03/01/30 393,473 364,231 Pool BM4304...................................................... 3.00% 02/01/30 358,476 843,408 Pool BM4472...................................................... 3.50% 07/01/48 817,799 1,785,475 Pool BM5585...................................................... 3.00% 11/01/48 1,679,658 14,068,036 Pool BN7755...................................................... 3.00% 09/01/49 13,132,389 29,483,655 Pool BQ6913...................................................... 2.00% 12/01/51 25,493,631 48,876,159 Pool BQ7006...................................................... 2.00% 01/01/52 42,256,745 9,557,187 Pool BV8515...................................................... 3.00% 05/01/52 8,864,529 1,023,358 Pool CA0854...................................................... 3.50% 12/01/47 992,036 484,758 Pool CA0907...................................................... 3.50% 12/01/47 469,921 400,055 Pool CA0996...................................................... 3.50% 01/01/48 387,722 2,998,885 Pool CA1182...................................................... 3.50% 02/01/48 2,905,851 508,702 Pool CA1187...................................................... 3.50% 02/01/48 494,296 353,093 Pool CA1710...................................................... 4.50% 05/01/48 356,117 228,818 Pool CA1711...................................................... 4.50% 05/01/48 230,708 135,962 Pool CA2208...................................................... 4.50% 08/01/48 137,024 492,903 Pool CA2327...................................................... 4.00% 09/01/48 491,632 3,196,854 Pool CA3633...................................................... 3.50% 06/01/49 3,084,613 13,032,798 Pool CA4534...................................................... 3.00% 11/01/49 12,173,478 4,365,283 Pool FM2870...................................................... 3.00% 03/01/50 4,095,232 7,459,173 Pool FM5397...................................................... 3.00% 12/01/50 6,979,700 29,884,062 Pool FS1598...................................................... 2.00% 04/01/52 25,835,443 242,253 Pool MA1146...................................................... 4.00% 08/01/42 241,639 431,100 Pool MA1373...................................................... 3.50% 03/01/43 419,924 447,860 Pool MA2077...................................................... 3.50% 11/01/34 444,661 117,507 Pool MA2145...................................................... 4.00% 01/01/45 117,494 489,726 Pool MA2670...................................................... 3.00% 07/01/46 462,778 469,225 Pool MA2806...................................................... 3.00% 11/01/46 443,671 13,206 Pool MA2896...................................................... 3.50% 02/01/47 12,819 428,722 Pool MA3057...................................................... 3.50% 07/01/47 416,298 193,810 Pool MA3088...................................................... 4.00% 08/01/47 192,477 447,704 Pool MA3210...................................................... 3.50% 12/01/47 432,982 5,015,698 Pool MA3238...................................................... 3.50% 01/01/48 4,858,669 432,153 Pool MA3239...................................................... 4.00% 01/01/48 429,712 210,125 Pool MA3276...................................................... 3.50% 02/01/48 203,210 607,669 Pool MA3332...................................................... 3.50% 04/01/48 586,837 </TABLE> See Notes to Financial Statements Page 23 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) $ 165,888 Pool MA3336...................................................... 3.50% 04/01/38 $ 161,946 114,332 Pool MA3410...................................................... 3.50% 07/01/33 112,707 154,344 Pool MA3537...................................................... 4.50% 12/01/48 155,758 614,953 Pool MA3846...................................................... 3.00% 11/01/49 570,469 9,697,946 Pool MA4093...................................................... 2.00% 08/01/40 8,635,968 6,709,289 Pool MA4128...................................................... 2.00% 09/01/40 5,974,537 7,437,564 Pool MA4152...................................................... 2.00% 10/01/40 6,622,397 4,002,848 Pool MA4176...................................................... 2.00% 11/01/40 3,563,898 14,236,348 Pool MA4364...................................................... 2.00% 06/01/41 12,620,251 19,316,171 Pool MA4548...................................................... 2.50% 02/01/52 17,297,478 48,750,000 Pool TBA (a)..................................................... 3.50% 09/15/52 46,552,247 46,525,000 Pool TBA (a)..................................................... 4.00% 09/15/52 45,492,727 60,100,000 Pool TBA (a)..................................................... 4.50% 09/15/52 59,858,033 168,900,000 Pool TBA (a)..................................................... 2.00% 10/15/52 145,730,116 174,125,000 Pool TBA (a)..................................................... 2.50% 10/15/52 155,758,725 103,950,000 Pool TBA (a)..................................................... 3.00% 10/15/52 96,314,732 49,275,000 Pool TBA (a)..................................................... 4.50% 10/15/52 49,016,946 Government National Mortgage Association 191,597 Pool MA1157...................................................... 3.50% 07/20/43 188,250 567,723 Pool MA2825...................................................... 3.00% 05/20/45 542,768 191,801 Pool MA3521...................................................... 3.50% 03/20/46 187,877 8,119,778 Pool MA3662...................................................... 3.00% 05/20/46 7,765,867 734,405 Pool MA3663...................................................... 3.50% 05/20/46 719,553 495,582 Pool MA3735...................................................... 3.00% 06/20/46 473,641 10,092,648 Pool MA3937...................................................... 3.50% 09/20/46 9,886,711 139,691 Pool MA4069...................................................... 3.50% 11/20/46 136,422 80,399 Pool MA4195...................................................... 3.00% 01/20/47 76,865 95,896 Pool MA4196...................................................... 3.50% 01/20/47 94,046 481,106 Pool MA4261...................................................... 3.00% 02/20/47 459,984 123,516 Pool MA4262...................................................... 3.50% 02/20/47 121,000 3,138,976 Pool MA4322...................................................... 4.00% 03/20/47 3,135,433 3,296,848 Pool MA4382...................................................... 3.50% 04/20/47 3,220,608 39,301 Pool MA4453...................................................... 4.50% 05/20/47 40,266 41,510 Pool MA4586...................................................... 3.50% 07/20/47 40,608 272,835 Pool MA4588...................................................... 4.50% 07/20/47 279,215 726,244 Pool MA4651...................................................... 3.00% 08/20/47 692,630 1,054,147 Pool MA4652...................................................... 3.50% 08/20/47 1,030,889 365,688 Pool MA4719...................................................... 3.50% 09/20/47 359,091 44,714 Pool MA4722...................................................... 5.00% 09/20/47 46,117 36,338 Pool MA4777...................................................... 3.00% 10/20/47 34,576 915,265 Pool MA4778...................................................... 3.50% 10/20/47 894,549 871,232 Pool MA4836...................................................... 3.00% 11/20/47 830,282 904,933 Pool MA4837...................................................... 3.50% 11/20/47 883,487 302,600 Pool MA4838...................................................... 4.00% 11/20/47 302,442 50,281 Pool MA4901...................................................... 4.00% 12/20/47 50,255 232,973 Pool MA4961...................................................... 3.00% 01/20/48 221,140 314,377 Pool MA4962...................................................... 3.50% 01/20/48 306,683 456,193 Pool MA4963...................................................... 4.00% 01/20/48 455,688 231,710 Pool MA5078...................................................... 4.00% 03/20/48 231,589 </TABLE> Page 24 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) $ 630,368 Pool MA5136...................................................... 3.50% 04/20/48 $ 615,409 484,869 Pool MA5399...................................................... 4.50% 08/20/48 490,592 191,327 Pool MA5466...................................................... 4.00% 09/20/48 190,409 51,243 Pool MA5467...................................................... 4.50% 09/20/48 51,818 137,211 Pool MA5597...................................................... 5.00% 11/20/48 140,183 157,968 Pool MA5976...................................................... 3.50% 06/20/49 150,652 39,950 Pool MA6030...................................................... 3.50% 07/20/49 38,043 211,753 Pool MA6080...................................................... 3.00% 08/20/49 198,474 64,950,000 Pool TBA (a)..................................................... 2.50% 09/15/52 59,304,932 -------------- 1,168,170,246 -------------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES........................................ 1,174,701,897 (Cost $1,220,771,466) -------------- U.S. GOVERNMENT BONDS AND NOTES -- 23.2% 204,074,000 U.S. Treasury Bond.................................................. 2.00% 11/15/41 159,373,025 90,055,000 U.S. Treasury Bond.................................................. 2.38% 02/15/42 75,013,001 55,285,000 U.S. Treasury Bond.................................................. 3.00% 08/15/52 52,615,771 6,687,051 U.S. Treasury Inflation Indexed Bond (b)............................ 0.13% 02/15/52 5,264,745 76,340,000 U.S. Treasury Note.................................................. 3.00% 07/31/24 75,710,791 95,475,000 U.S. Treasury Note.................................................. 3.25% 08/31/24 95,116,969 51,308,000 U.S. Treasury Note.................................................. 3.13% 08/15/25 50,826,987 33,435,000 U.S. Treasury Note.................................................. 3.25% 06/30/27 33,334,434 107,275,000 U.S. Treasury Note.................................................. 2.75% 07/31/27 104,580,553 160,065,000 U.S. Treasury Note.................................................. 3.13% 08/31/27 158,914,533 14,535,000 U.S. Treasury Note.................................................. 2.75% 08/15/32 14,064,884 -------------- TOTAL U.S. GOVERNMENT BONDS AND NOTES.......................................................... 824,815,693 (Cost $860,340,168) -------------- CORPORATE BONDS AND NOTES -- 23.0% AEROSPACE/DEFENSE -- 0.4% 3,208,000 BAE Systems Holdings, Inc. (c)...................................... 3.85% 12/15/25 3,113,087 8,500,000 Boeing (The) Co..................................................... 1.43% 02/04/24 8,155,320 1,610,000 Boeing (The) Co..................................................... 4.88% 05/01/25 1,616,021 -------------- 12,884,428 -------------- AGRICULTURE -- 0.5% 3,715,000 BAT Capital Corp.................................................... 3.56% 08/15/27 3,420,193 1,400,000 BAT Capital Corp.................................................... 2.73% 03/25/31 1,122,283 4,530,000 BAT Capital Corp.................................................... 4.39% 08/15/37 3,600,692 1,855,000 BAT Capital Corp.................................................... 4.54% 08/15/47 1,359,991 2,500,000 BAT Capital Corp.................................................... 5.65% 03/16/52 2,130,675 4,250,000 Reynolds American, Inc.............................................. 5.70% 08/15/35 3,938,707 3,735,000 Reynolds American, Inc.............................................. 5.85% 08/15/45 3,216,763 -------------- 18,789,304 -------------- AIRLINES -- 0.4% 900,438 American Airlines Pass-Through Trust, Series 2014-1, Class A........ 3.70% 10/01/26 772,061 107,368 American Airlines Pass-Through Trust, Series 2015-2, Class AA....... 3.60% 09/22/27 98,352 3,571,897 American Airlines Pass-Through Trust, Series 2016-1, Class AA....... 3.58% 01/15/28 3,229,274 4,402,061 Delta Air Lines Pass-Through Trust, Series 2020-1, Class AA......... 2.00% 06/10/28 3,826,252 </TABLE> See Notes to Financial Statements Page 25 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> AIRLINES (CONTINUED) $ 8,116,601 JetBlue Pass-Through Trust, Series 2020-1, Class A.................. 4.00% 11/15/32 $ 7,410,284 374,230 US Airways Pass-Through Trust, Series 2012-1, Class A............... 5.90% 10/01/24 367,115 -------------- 15,703,338 -------------- BANKS -- 7.2% 4,565,000 Bank of America Corp. (d)........................................... 3.00% 12/20/23 4,548,957 9,965,000 Bank of America Corp. (d)........................................... 3.37% 01/23/26 9,643,803 325,000 Bank of America Corp. (d)........................................... 1.73% 07/22/27 288,913 4,765,000 Bank of America Corp. (d)........................................... 2.69% 04/22/32 3,968,526 3,165,000 Bank of America Corp. (d)........................................... 2.57% 10/20/32 2,596,288 1,075,000 Bank of America Corp. (d)........................................... 2.97% 02/04/33 906,416 18,465,000 Bank of America Corp., Series N (d)................................. 1.66% 03/11/27 16,575,674 1,300,000 Bank of America Corp., Series N (d)................................. 2.65% 03/11/32 1,081,478 1,500,000 Bank of America Corp., Medium-Term Note (d)......................... 1.32% 06/19/26 1,366,053 1,345,000 Bank of America Corp., Medium-Term Note (d)......................... 3.97% 03/05/29 1,276,460 11,320,000 Bank of America Corp., Medium-Term Note (d)......................... 2.09% 06/14/29 9,650,326 2,839,000 Bank of America Corp., Medium-Term Note (d)......................... 3.97% 02/07/30 2,671,078 4,060,000 Bank of America Corp., Medium-Term Note (d)......................... 1.92% 10/24/31 3,221,990 2,180,000 Citigroup, Inc. (d)................................................. 3.35% 04/24/25 2,138,572 2,375,000 Citigroup, Inc. (d)................................................. 3.52% 10/27/28 2,209,379 4,110,000 Citigroup, Inc. (d)................................................. 2.98% 11/05/30 3,595,865 2,000,000 Citigroup, Inc. (d)................................................. 2.67% 01/29/31 1,692,490 1,670,000 Citigroup, Inc. (d)................................................. 4.41% 03/31/31 1,594,960 6,040,000 Citigroup, Inc. (d)................................................. 2.57% 06/03/31 5,066,577 720,000 Citigroup, Inc. (d)................................................. 2.56% 05/01/32 594,697 13,365,000 Citigroup, Inc. (d)................................................. 3.06% 01/25/33 11,334,240 5,140,000 Goldman Sachs Group (The), Inc...................................... 3.20% 02/23/23 5,131,918 10,000,000 Goldman Sachs Group (The), Inc...................................... 1.22% 12/06/23 9,662,156 1,995,000 Goldman Sachs Group (The), Inc. (d)................................. 0.93% 10/21/24 1,910,771 950,000 Goldman Sachs Group (The), Inc. (d)................................. 3.27% 09/29/25 926,080 9,860,000 Goldman Sachs Group (The), Inc. (d)................................. 1.43% 03/09/27 8,798,684 9,105,000 Goldman Sachs Group (The), Inc. (d)................................. 1.54% 09/10/27 8,020,861 1,345,000 Goldman Sachs Group (The), Inc. (d)................................. 1.99% 01/27/32 1,067,103 7,710,000 Goldman Sachs Group (The), Inc. (d)................................. 2.38% 07/21/32 6,262,741 6,060,000 Goldman Sachs Group (The), Inc. (d)................................. 2.65% 10/21/32 5,005,536 13,465,000 JPMorgan Chase & Co. (d)............................................ 0.97% 06/23/25 12,625,632 8,015,000 JPMorgan Chase & Co. (d)............................................ 1.56% 12/10/25 7,490,982 1,895,000 JPMorgan Chase & Co. (d)............................................ 2.01% 03/13/26 1,778,776 2,585,000 JPMorgan Chase & Co. (d)............................................ 3.96% 01/29/27 2,519,346 10,455,000 JPMorgan Chase & Co. (d)............................................ 1.58% 04/22/27 9,344,899 2,625,000 JPMorgan Chase & Co. (d)............................................ 2.74% 10/15/30 2,279,869 8,025,000 JPMorgan Chase & Co. (d)............................................ 2.58% 04/22/32 6,652,559 4,790,000 JPMorgan Chase & Co. (d)............................................ 2.55% 11/08/32 3,952,822 495,000 Morgan Stanley (d).................................................. 0.99% 12/10/26 438,850 2,785,000 Morgan Stanley (d).................................................. 5.30% 04/20/37 2,672,392 7,135,000 Morgan Stanley, Global Medium-Term Note (d)......................... 1.51% 07/20/27 6,329,703 2,125,000 Morgan Stanley, Global Medium-Term Note (d)......................... 2.24% 07/21/32 1,720,297 13,355,000 Morgan Stanley, Medium-Term Note (d)................................ 1.16% 10/21/25 12,410,520 8,125,000 Morgan Stanley, Medium-Term Note (d)................................ 1.93% 04/28/32 6,457,829 3,200,000 Morgan Stanley, Medium-Term Note (d)................................ 2.51% 10/20/32 2,630,235 4,385,000 Wells Fargo & Co. (d)............................................... 2.19% 04/30/26 4,107,798 </TABLE> Page 26 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> BANKS (CONTINUED) $ 10,185,000 Wells Fargo & Co., Medium-Term Note (d)............................. 3.53% 03/24/28 $ 9,644,712 9,444,000 Wells Fargo & Co., Medium-Term Note (d)............................. 2.39% 06/02/28 8,477,878 5,790,000 Wells Fargo & Co., Medium-Term Note (d)............................. 2.88% 10/30/30 5,094,447 15,370,000 Wells Fargo & Co., Medium-Term Note (d)............................. 3.35% 03/02/33 13,525,679 3,350,000 Wells Fargo & Co., Medium-Term Note (d)............................. 4.90% 07/25/33 3,301,410 -------------- 256,265,227 -------------- BEVERAGES -- 0.2% 2,700,000 Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc................................................... 4.90% 02/01/46 2,574,614 1,200,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.60% 04/15/48 1,093,779 200,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.44% 10/06/48 178,649 4,145,000 Constellation Brands, Inc........................................... 4.75% 05/09/32 4,100,524 -------------- 7,947,566 -------------- BIOTECHNOLOGY -- 0.1% 1,412,000 Amgen, Inc.......................................................... 4.40% 05/01/45 1,276,614 3,010,000 Regeneron Pharmaceuticals, Inc...................................... 1.75% 09/15/30 2,390,300 -------------- 3,666,914 -------------- CHEMICALS -- 0.2% 4,758,000 International Flavors & Fragrances, Inc. (c)........................ 2.30% 11/01/30 3,912,067 3,114,000 International Flavors & Fragrances, Inc............................. 5.00% 09/26/48 2,873,196 -------------- 6,785,263 -------------- COMMERCIAL SERVICES -- 0.1% 1,730,000 Global Payments, Inc................................................ 5.40% 08/15/32 1,701,713 1,066,000 Global Payments, Inc................................................ 5.95% 08/15/52 1,034,880 -------------- 2,736,593 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.4% 1,890,000 Air Lease Corp...................................................... 3.25% 03/01/25 1,808,118 940,000 Air Lease Corp...................................................... 3.38% 07/01/25 894,232 360,000 Air Lease Corp., Medium-Term Note................................... 2.30% 02/01/25 337,658 7,930,000 Capital One Financial Corp. (d)..................................... 1.34% 12/06/24 7,618,970 3,755,000 Discover Financial Services......................................... 3.95% 11/06/24 3,721,166 950,000 Intercontinental Exchange, Inc...................................... 4.60% 03/15/33 943,066 450,000 Raymond James Financial, Inc........................................ 4.95% 07/15/46 438,982 -------------- 15,762,192 -------------- ELECTRIC -- 1.5% 1,000,000 AEP Transmission Co. LLC............................................ 3.75% 12/01/47 837,723 4,128,000 Alliant Energy Finance LLC (c)...................................... 3.75% 06/15/23 4,104,056 2,655,000 Alliant Energy Finance LLC (c)...................................... 1.40% 03/15/26 2,343,313 200,000 Ameren Illinois Co.................................................. 3.70% 12/01/47 170,686 3,000,000 Appalachian Power Co., Series Z..................................... 3.70% 05/01/50 2,391,720 750,000 Cleco Power LLC..................................................... 6.00% 12/01/40 785,771 500,000 Consolidated Edison Co. of New York, Inc............................ 4.50% 05/15/58 454,648 1,695,000 Dominion Energy, Inc., Series A..................................... 3.30% 03/15/25 1,657,542 7,030,000 Duke Energy Corp.................................................... 2.55% 06/15/31 5,904,911 2,000,000 Duke Energy Corp.................................................... 3.85% 06/15/34 1,915,363 750,000 Entergy Texas, Inc.................................................. 3.45% 12/01/27 721,205 9,101,000 FirstEnergy Transmission LLC (c).................................... 2.87% 09/15/28 8,102,879 </TABLE> See Notes to Financial Statements Page 27 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> ELECTRIC (CONTINUED) $ 3,855,000 Interstate Power and Light Co....................................... 2.30% 06/01/30 $ 3,276,425 1,500,000 ITC Holdings Corp. (c).............................................. 2.95% 05/14/30 1,315,614 1,750,000 Jersey Central Power & Light Co. (c)................................ 4.30% 01/15/26 1,720,181 830,000 Metropolitan Edison Co. (c)......................................... 4.00% 04/15/25 793,552 2,253,000 Metropolitan Edison Co. (c)......................................... 4.30% 01/15/29 2,208,017 10,000,000 Niagara Mohawk Power Corp. (c)...................................... 3.03% 06/27/50 6,675,337 825,000 Public Service Co. of New Mexico.................................... 3.85% 08/01/25 787,779 3,480,000 Southwestern Public Service Co., Series 9........................... 5.15% 06/01/52 3,472,861 700,000 Trans-Allegheny Interstate Line Co. (c)............................. 3.85% 06/01/25 685,264 1,505,000 Xcel Energy, Inc.................................................... 4.80% 09/15/41 1,404,422 -------------- 51,729,269 -------------- ENTERTAINMENT -- 0.5% 9,840,000 Warnermedia Holdings, Inc. (c)...................................... 5.05% 03/15/42 8,136,229 11,190,000 Warnermedia Holdings, Inc. (c)...................................... 5.14% 03/15/52 9,049,919 -------------- 17,186,148 -------------- FOOD -- 0.3% 643,000 Chobani LLC / Chobani Finance Corp., Inc. (c)....................... 4.63% 11/15/28 563,583 721,000 Kraft Heinz Foods Co................................................ 5.00% 07/15/35 704,685 5,885,000 Kraft Heinz Foods Co................................................ 5.20% 07/15/45 5,557,432 2,755,000 Kraft Heinz Foods Co................................................ 4.88% 10/01/49 2,513,354 3,570,000 Pilgrim's Pride Corp. (c)........................................... 3.50% 03/01/32 2,902,553 -------------- 12,241,607 -------------- GAS -- 0.1% 500,000 Piedmont Natural Gas Co., Inc....................................... 3.35% 06/01/50 374,324 3,856,000 Southern Co. Gas Capital Corp....................................... 5.88% 03/15/41 4,039,025 200,000 Spire, Inc.......................................................... 3.54% 02/27/24 196,264 -------------- 4,609,613 -------------- HEALTHCARE-PRODUCTS -- 0.2% 525,000 Alcon Finance Corp. (c)............................................. 2.75% 09/23/26 485,945 1,500,000 Alcon Finance Corp. (c)............................................. 2.60% 05/27/30 1,281,269 3,015,000 DENTSPLY SIRONA, Inc................................................ 3.25% 06/01/30 2,492,278 5,000,000 PerkinElmer, Inc.................................................... 2.55% 03/15/31 4,124,156 -------------- 8,383,648 -------------- HEALTHCARE-SERVICES -- 1.5% 2,105,000 Bon Secours Mercy Health, Inc., Series 20-2......................... 2.10% 06/01/31 1,730,251 1,845,000 Centene Corp........................................................ 4.25% 12/15/27 1,754,743 9,311,000 Centene Corp........................................................ 2.45% 07/15/28 7,866,119 2,982,000 Centene Corp........................................................ 3.00% 10/15/30 2,492,356 2,135,000 CommonSpirit Health................................................. 2.76% 10/01/24 2,070,341 1,985,000 CommonSpirit Health................................................. 3.35% 10/01/29 1,780,450 475,000 CommonSpirit Health................................................. 2.78% 10/01/30 399,310 7,164,000 HCA, Inc............................................................ 5.25% 06/15/26 7,213,122 3,250,000 HCA, Inc. (c)....................................................... 3.13% 03/15/27 2,999,036 8,233,000 HCA, Inc............................................................ 4.13% 06/15/29 7,603,888 3,250,000 HCA, Inc. (c)....................................................... 3.63% 03/15/32 2,819,594 4,330,000 HCA, Inc. (c)....................................................... 4.63% 03/15/52 3,603,753 500,000 Humana, Inc......................................................... 3.15% 12/01/22 499,832 </TABLE> Page 28 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> HEALTHCARE-SERVICES (CONTINUED) $ 360,000 Humana, Inc......................................................... 2.90% 12/15/22 $ 359,553 2,910,000 Humana, Inc......................................................... 2.15% 02/03/32 2,365,196 5,000,000 Molina Healthcare, Inc. (c)......................................... 4.38% 06/15/28 4,620,675 2,500,000 Molina Healthcare, Inc. (c)......................................... 3.88% 05/15/32 2,155,462 200,000 New York and Presbyterian (The) Hospital............................ 3.56% 08/01/36 180,853 160,000 UnitedHealth Group, Inc............................................. 4.45% 12/15/48 152,960 2,630,000 Universal Health Services, Inc. (c)................................. 1.65% 09/01/26 2,277,098 -------------- 54,944,592 -------------- INSURANCE -- 1.3% 2,465,000 Aon Corp. / Aon Global Holdings PLC................................. 3.90% 02/28/52 2,055,764 5,090,000 Athene Global Funding, SOFR + 0.70% (c) (e)......................... 2.99% 05/24/24 4,989,203 2,145,000 Athene Global Funding (c)........................................... 3.21% 03/08/27 1,953,973 5,585,000 Athene Global Funding (c)........................................... 1.99% 08/19/28 4,647,060 2,605,000 Athene Global Funding (c)........................................... 2.72% 01/07/29 2,218,863 1,650,000 Farmers Exchange Capital (c)........................................ 7.05% 07/15/28 1,770,419 2,200,000 Farmers Exchange Capital II (c) (d)................................. 6.15% 11/01/53 2,251,902 1,770,000 Farmers Exchange Capital III (c) (d)................................ 5.45% 10/15/54 1,727,130 600,000 Farmers Insurance Exchange (c)...................................... 8.63% 05/01/24 633,247 3,495,000 Farmers Insurance Exchange (c) (d).................................. 4.75% 11/01/57 3,089,423 7,000,000 National General Holdings Corp. (c)................................. 6.75% 05/15/24 7,303,590 1,525,000 Nationwide Mutual Insurance Co., 3 Mo. LIBOR + 2.29% (c) (e)........ 4.12% 12/15/24 1,525,346 3,630,000 New York Life Insurance Co. (c)..................................... 3.75% 05/15/50 3,036,117 1,790,000 Teachers Insurance & Annuity Association of America (c)............. 4.90% 09/15/44 1,742,641 3,910,000 Teachers Insurance & Annuity Association of America (c)............. 4.27% 05/15/47 3,540,579 1,980,000 Teachers Insurance & Annuity Association of America (c) (d)......... 4.38% 09/15/54 1,927,720 -------------- 44,412,977 -------------- INTERNET -- 0.1% 1,945,000 Netflix, Inc........................................................ 4.63% 05/15/29 1,928,077 -------------- LODGING -- 0.1% 4,385,000 Hyatt Hotels Corp................................................... 1.80% 10/01/24 4,172,233 -------------- MEDIA -- 0.9% 1,475,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 4.91% 07/23/25 1,474,200 1,410,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 2.30% 02/01/32 1,076,571 1,471,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.38% 04/01/38 1,296,209 6,920,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.38% 05/01/47 5,885,916 1,960,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.25% 04/01/53 1,663,712 3,570,000 Cox Communications, Inc. (c)........................................ 2.60% 06/15/31 2,986,781 4,670,000 Cox Enterprises, Inc. (c)........................................... 7.38% 07/15/27 5,078,681 8,275,000 Diamond Sports Group LLC / Diamond Sports Finance Co. (c)........... 5.38% 08/15/26 1,582,594 3,000,000 Paramount Global.................................................... 4.20% 05/19/32 2,653,842 8,320,000 Time Warner Cable LLC............................................... 5.50% 09/01/41 7,176,799 -------------- 30,875,305 -------------- </TABLE> See Notes to Financial Statements Page 29 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> MISCELLANEOUS MANUFACTURING -- 0.1% $ 943,000 General Electric Co., Medium-Term Note, 3 Mo. LIBOR + 0.38% (e)........................................................ 3.21% 05/05/26 $ 898,207 1,304,000 General Electric Co., Medium-Term Note.............................. 6.75% 03/15/32 1,481,335 -------------- 2,379,542 -------------- OIL & GAS -- 0.0% 400,000 Hess Corp........................................................... 5.60% 02/15/41 387,934 -------------- PACKAGING & CONTAINERS -- 0.4% 3,000,000 Amcor Finance USA, Inc.............................................. 3.63% 04/28/26 2,862,598 1,000,000 Amcor Flexibles North America, Inc.................................. 2.63% 06/19/30 833,486 4,157,000 Berry Global, Inc................................................... 1.57% 01/15/26 3,721,262 2,125,000 Berry Global, Inc. (c).............................................. 4.88% 07/15/26 2,071,777 2,650,000 Berry Global, Inc................................................... 1.65% 01/15/27 2,283,305 3,670,000 WRKCo, Inc.......................................................... 3.00% 06/15/33 3,077,560 -------------- 14,849,988 -------------- PHARMACEUTICALS -- 1.2% 4,997,000 AbbVie, Inc......................................................... 4.50% 05/14/35 4,774,121 870,000 AbbVie, Inc......................................................... 4.45% 05/14/46 785,800 1,045,000 Bayer US Finance II LLC (c)......................................... 3.38% 07/15/24 1,022,621 625,000 Bayer US Finance II LLC (c)......................................... 2.85% 04/15/25 592,504 7,880,000 Bayer US Finance II LLC (c)......................................... 4.25% 12/15/25 7,760,198 3,160,000 Bayer US Finance II LLC (c)......................................... 4.38% 12/15/28 3,046,044 815,000 Bayer US Finance II LLC (c)......................................... 4.63% 06/25/38 729,416 1,750,000 Bayer US Finance II LLC (c)......................................... 4.40% 07/15/44 1,432,574 2,540,000 Bayer US Finance II LLC (c)......................................... 4.88% 06/25/48 2,312,723 2,107,000 Becton Dickinson and Co............................................. 3.73% 12/15/24 2,090,540 2,000,000 Cigna Corp.......................................................... 3.40% 03/01/27 1,918,635 75,000 Cigna Corp.......................................................... 3.05% 10/15/27 70,072 2,060,000 Cigna Corp.......................................................... 3.88% 10/15/47 1,668,413 1,279,000 Cigna Corp.......................................................... 3.40% 03/15/51 978,745 1,225,000 CVS Health Corp..................................................... 1.75% 08/21/30 991,330 1,850,000 CVS Health Corp..................................................... 5.13% 07/20/45 1,784,582 10,430,000 CVS Health Corp..................................................... 5.05% 03/25/48 10,080,674 -------------- 42,038,992 -------------- PIPELINES -- 0.7% 583,000 Energy Transfer L.P................................................. 5.50% 06/01/27 591,217 2,030,000 Energy Transfer L.P................................................. 4.95% 06/15/28 2,001,493 3,200,000 Energy Transfer L.P................................................. 4.90% 03/15/35 2,927,537 260,000 Energy Transfer L.P................................................. 5.15% 03/15/45 225,632 2,600,000 Energy Transfer L.P................................................. 6.13% 12/15/45 2,517,381 3,606,000 Energy Transfer L.P................................................. 5.40% 10/01/47 3,228,865 3,601,000 Energy Transfer L.P................................................. 5.00% 05/15/50 3,102,812 3,640,000 NGPL PipeCo LLC (c)................................................. 4.88% 08/15/27 3,536,750 150,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 2.85% 01/31/23 149,363 425,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 3.55% 12/15/29 373,329 1,350,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 3.80% 09/15/30 1,202,130 716,000 Rockies Express Pipeline LLC (c).................................... 4.95% 07/15/29 646,496 1,500,000 Rockies Express Pipeline LLC (c).................................... 4.80% 05/15/30 1,264,178 1,360,000 Rockies Express Pipeline LLC (c).................................... 6.88% 04/15/40 1,134,974 </TABLE> Page 30 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> PIPELINES (CONTINUED) $ 329,909 Ruby Pipeline LLC (f) (g) (h)....................................... 8.00% 04/01/22 $ 277,124 -------------- 23,179,281 -------------- REAL ESTATE INVESTMENT TRUSTS -- 1.6% 250,000 Alexandria Real Estate Equities, Inc................................ 4.30% 01/15/26 248,861 612,000 Alexandria Real Estate Equities, Inc................................ 4.50% 07/30/29 596,635 500,000 American Assets Trust L.P........................................... 3.38% 02/01/31 423,101 4,320,000 American Campus Communities Operating Partnership L.P............... 3.75% 04/15/23 4,325,180 750,000 CubeSmart L.P....................................................... 4.38% 02/15/29 724,174 1,150,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 11/01/23 1,140,852 4,785,000 GLP Capital L.P. / GLP Financing II, Inc............................ 3.35% 09/01/24 4,574,879 7,701,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 04/15/26 7,577,418 1,210,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.30% 01/15/29 1,171,456 2,525,000 GLP Capital L.P. / GLP Financing II, Inc............................ 4.00% 01/15/30 2,216,268 895,000 Healthcare Realty Holdings L.P...................................... 3.63% 01/15/28 823,506 2,000,000 Healthcare Realty Holdings L.P...................................... 3.10% 02/15/30 1,729,873 7,235,000 Healthcare Realty Holdings L.P...................................... 2.00% 03/15/31 5,654,599 3,930,000 Hudson Pacific Properties L.P....................................... 3.95% 11/01/27 3,694,311 1,000,000 Hudson Pacific Properties L.P....................................... 4.65% 04/01/29 941,827 740,000 Invitation Homes Operating Partnership L.P.......................... 2.30% 11/15/28 619,824 860,000 Kilroy Realty L.P................................................... 2.50% 11/15/32 668,387 1,093,000 Kilroy Realty L.P................................................... 2.65% 11/15/33 833,744 200,000 Life Storage L.P.................................................... 3.88% 12/15/27 189,464 1,135,000 Life Storage L.P.................................................... 2.20% 10/15/30 915,306 1,605,000 LXP Industrial Trust................................................ 2.70% 09/15/30 1,301,022 1,837,000 LXP Industrial Trust................................................ 2.38% 10/01/31 1,403,744 350,000 Piedmont Operating Partnership L.P.................................. 3.40% 06/01/23 348,046 670,000 Piedmont Operating Partnership L.P.................................. 3.15% 08/15/30 553,005 300,000 SL Green Operating Partnership L.P.................................. 3.25% 10/15/22 299,421 550,000 SL Green Realty Corp................................................ 4.50% 12/01/22 550,000 1,000,000 Ventas Realty L.P................................................... 2.65% 01/15/25 957,969 205,000 VICI Properties L.P................................................. 4.95% 02/15/30 197,117 6,178,000 VICI Properties L.P................................................. 5.13% 05/15/32 5,873,733 350,000 VICI Properties L.P. / VICI Note Co., Inc. (c)...................... 4.63% 06/15/25 339,284 1,275,000 VICI Properties L.P. / VICI Note Co., Inc. (c)...................... 4.50% 09/01/26 1,203,077 1,425,000 VICI Properties L.P. / VICI Note Co., Inc. (c)...................... 5.75% 02/01/27 1,404,907 195,000 VICI Properties L.P. / VICI Note Co., Inc. (c)...................... 3.75% 02/15/27 176,818 750,000 VICI Properties L.P. / VICI Note Co., Inc. (c)...................... 4.50% 01/15/28 696,558 2,930,000 VICI Properties L.P. / VICI Note Co., Inc. (c)...................... 3.88% 02/15/29 2,609,905 75,000 Welltower, Inc...................................................... 4.50% 01/15/24 75,285 -------------- 57,059,556 -------------- RETAIL -- 0.3% 7,335,000 7-Eleven, Inc. (c).................................................. 0.80% 02/10/24 6,981,791 5,035,000 Michaels (The) Cos., Inc. (c)....................................... 7.88% 05/01/29 3,355,953 -------------- 10,337,744 -------------- SEMICONDUCTORS -- 0.1% 2,505,000 Broadcom, Inc....................................................... 4.30% 11/15/32 2,271,988 2,000,000 Broadcom, Inc. (c).................................................. 3.47% 04/15/34 1,622,824 -------------- 3,894,812 -------------- </TABLE> See Notes to Financial Statements Page 31 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> SOFTWARE -- 0.3% $ 126,000 Change Healthcare Holdings LLC / Change Healthcare Finance, Inc. (c)......................................................... 5.75% 03/01/25 $ 124,504 1,400,000 Fiserv, Inc......................................................... 2.25% 06/01/27 1,263,562 510,000 Fiserv, Inc......................................................... 2.65% 06/01/30 435,881 10,000 Oracle Corp......................................................... 2.88% 03/25/31 8,320 2,050,000 Oracle Corp......................................................... 4.00% 11/15/47 1,495,304 2,535,000 Oracle Corp......................................................... 3.60% 04/01/50 1,734,331 6,397,000 Oracle Corp......................................................... 3.95% 03/25/51 4,616,158 -------------- 9,678,060 -------------- TELECOMMUNICATIONS -- 2.3% 3,175,000 AT&T, Inc........................................................... 4.50% 05/15/35 2,995,373 3,500,000 AT&T, Inc........................................................... 5.25% 03/01/37 3,522,417 145,000 AT&T, Inc........................................................... 4.30% 12/15/42 126,306 6,270,000 AT&T, Inc........................................................... 4.75% 05/15/46 5,842,487 3,880,000 AT&T, Inc........................................................... 4.50% 03/09/48 3,393,788 9,327,000 AT&T, Inc........................................................... 3.80% 12/01/57 7,098,727 1,985,000 Level 3 Financing, Inc. (c)......................................... 3.40% 03/01/27 1,764,168 4,525,000 Level 3 Financing, Inc. (c)......................................... 3.75% 07/15/29 3,641,268 4,240,000 Level 3 Financing, Inc. (c)......................................... 3.88% 11/15/29 3,603,622 4,500,000 SES GLOBAL Americas Holdings, Inc. (c).............................. 5.30% 03/25/44 3,859,975 4,891,563 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (c)......................................... 4.74% 03/20/25 4,913,105 21,145,000 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (c)......................................... 5.15% 03/20/28 21,316,122 3,415,000 T-Mobile USA, Inc................................................... 3.75% 04/15/27 3,283,351 6,980,000 T-Mobile USA, Inc................................................... 3.88% 04/15/30 6,481,091 8,231,000 T-Mobile USA, Inc................................................... 2.55% 02/15/31 6,858,886 2,845,000 T-Mobile USA, Inc................................................... 4.38% 04/15/40 2,522,652 750,000 T-Mobile USA, Inc................................................... 4.50% 04/15/50 656,635 -------------- 81,879,973 -------------- TOTAL CORPORATE BONDS AND NOTES................................................................ 816,710,176 (Cost $926,768,119) -------------- ASSET-BACKED SECURITIES -- 12.2% ACE Securities Corp. Home Equity Loan Trust 15,091,266 Series 2007-HE1, Class A1, 1 Mo. LIBOR + 0.30% (e)............... 2.74% 01/25/37 8,945,908 13,106,697 Series 2007-WM2, Class A1, 1 Mo. LIBOR + 0.21% (e)............... 2.65% 02/25/37 6,408,414 AGL CLO Ltd. 13,000,000 Series 2021-12A, Class A1, 3 Mo. LIBOR + 1.16% (c) (e)........... 3.87% 07/20/34 12,738,720 AMMC CLO Ltd. 1,476,281 Series 2016-19A, Class AR, 3 Mo. LIBOR + 1.14% (c) (e)........... 3.65% 10/16/28 1,472,771 AMSR Trust 3,500,000 Series 2021-SFR3, Class G (c).................................... 3.80% 10/17/38 3,009,614 Argent Securities, Inc. 125,566 Series 2005-W2, Class M1, 1 Mo. LIBOR + 0.74% (e)................ 3.18% 10/25/35 123,602 Asset Backed Funding Certificates Trust 8,633,948 Series 2006-HE1, Class A2B, 1 Mo. LIBOR + 0.11% (e).............. 2.55% 01/25/37 5,294,207 Bardot CLO Ltd. 10,400,000 Series 2019-2A, Class BR, 3 Mo. LIBOR + 1.60% (c) (e)............ 4.36% 10/22/32 9,994,866 </TABLE> Page 32 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Barings CLO Ltd. $ 290,253 Series 2013-IA, Class AR, 3 Mo. LIBOR + 0.80% (c) (e)............ 3.51% 01/20/28 $ 288,076 12,500,000 Series 2019-2A, Class A2R, 3 Mo. LIBOR + 1.70% (c) (e)........... 4.21% 04/15/36 11,994,014 Brazos Higher Education Authority, Inc. 294,587 Series 2011-2, Class A3, 3 Mo. LIBOR + 1.00% (e)................. 3.78% 10/27/36 291,904 Carrington Mortgage Loan Trust 18,000,000 Series 2006-NC4, 1 Mo. LIBOR + 0.24% (e)......................... 2.68% 10/25/36 15,676,054 597,801 Series 2006-OPT1, Class M1, 1 Mo. LIBOR + 0.53% (e).............. 2.97% 02/25/36 592,900 Carvana Auto Receivables Trust 70,350 Series 2022-P3, Class R (c) (i).................................. (j) 09/10/29 12,145,928 CF Hippolyta Issuer LLC 9,471,981 Series 2020-1, Class A1 (c)...................................... 1.69% 07/15/60 8,617,813 CIFC Funding Ltd. 5,610,000 Series 2021-7A, Class A1, 3 Mo. LIBOR + 1.13% (c) (e)............ 3.91% 01/23/35 5,491,257 Citigroup Mortgage Loan Trust 373,340 Series 2006-HE2, Class M1, 1 Mo. LIBOR + 0.44% (e)............... 2.88% 08/25/36 371,437 Dryden Senior Loan Fund 819,616 Series 2013-26A, Class AR, 3 Mo. LIBOR + 0.90% (c) (e)........... 3.41% 04/15/29 810,190 572,000 Series 2013-28A, Class A1LR, 3 Mo. LIBOR + 1.20% (c) (e)......... 4.11% 08/15/30 570,639 ECMC Group Student Loan Trust 1,533,565 Series 2017-2A, Class A, 1 Mo. LIBOR + 1.05% (c) (e)............. 3.49% 05/25/67 1,511,756 EFS Volunteer No 3 LLC 90,553 Series 2012-1, Class A3, 1 Mo. LIBOR + 1.00% (c) (e)............. 3.44% 04/25/33 89,464 Elmwood CLO VI Ltd. 13,400,000 Series 2020-3A, Class BR, 3 Mo. LIBOR + 1.65% (c) (e)............ 4.36% 10/20/34 12,834,192 First Franklin Mortgage Loan Trust 16,657,072 Series 2006-FF13, Class A2C, 1 Mo. LIBOR + 0.32% (e)............. 2.76% 10/25/36 12,026,864 12,352,627 Series 2007-FF2, Class A1, 1 Mo. LIBOR + 0.14% (e)............... 2.58% 03/25/37 7,578,642 GE-WMC Mortgage Securities LLC 430,076 Series 2005-1, Class M1, 1 Mo. LIBOR + 0.66% (e)................. 3.10% 10/25/35 416,792 GoldenTree Loan Management US CLO Ltd. 5,000,000 Series 2020-8A, Class AR, 3 Mo. LIBOR + 1.15% (c) (e)............ 3.86% 10/20/34 4,913,309 GSAA Home Equity Trust 698,491 Series 2005-6, Class M1, 1 Mo. LIBOR + 0.65% (e)................. 3.09% 06/25/35 692,011 GSAMP Trust 13,329,917 Series 2006-NC2, Class A2C, 1 Mo. LIBOR + 0.30% (e).............. 2.74% 06/25/36 8,254,593 9,545,164 Series 2007-FM2, Class A1, 1 Mo. LIBOR + 0.14% (e)............... 2.58% 01/25/37 6,066,631 JP Morgan Mortgage Acquisition Trust 16,155 Series 2006-ACC1, Class M1, 1 Mo. LIBOR + 0.41% (e).............. 2.85% 05/25/36 16,426 2,240,791 Series 2006-WF1, Class A6........................................ 6.50% 07/25/36 768,169 17,928,435 Series 2006-WMC2, Class A4, 1 Mo. LIBOR + 0.30% (e).............. 2.74% 07/25/36 9,048,538 18,968,975 Series 2006-WMC2, Class A5, 1 Mo. LIBOR + 0.50% (e).............. 2.94% 07/25/36 9,661,193 226,967 Series 2007-CH2, Class MV1, 1 Mo. LIBOR + 0.28% (e).............. 2.72% 01/25/37 225,857 Lehman XS Trust 3,004,504 Series 2006-9, Class A1C, 1 Mo. LIBOR + 0.52% (e)................ 2.96% 05/25/46 2,731,287 Long Beach Mortgage Loan Trust 462,467 Series 2006-1, Class 1A, 1 Mo. LIBOR + 0.44% (e)................. 2.88% 02/25/36 450,673 Magnetite VII Ltd. 4,197,496 Series 2012-7A, Class A1R2, 3 Mo. LIBOR + 0.80% (c) (e).......... 3.31% 01/15/28 4,163,818 Mastr Asset Backed Securities Trust 7,143,966 Series 2006-WMC3, Class A2, 1 Mo. LIBOR + 0.05% (e).............. 2.49% 08/25/36 2,802,540 </TABLE> See Notes to Financial Statements Page 33 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Merrill Lynch First Franklin Mortgage Loan Trust $ 282,652 Series 2007-3, Class A2B, 1 Mo. LIBOR + 0.13% (e)................ 2.57% 06/25/37 $ 234,791 Mid-State Trust 115,282 Series 2003-11, Class A1......................................... 4.86% 07/15/38 112,983 Morgan Stanley ABS Capital I, Inc. Trust 10,306,943 Series 2006-HE4, Class A3, 1 Mo. LIBOR + 0.30% (e)............... 2.74% 06/25/36 5,839,995 5,562,849 Series 2006-HE8, Class A2B, 1 Mo. LIBOR + 0.10% (e).............. 2.54% 10/25/36 2,806,985 371,356 Series 2006-NC1, Class M1, 1 Mo. LIBOR + 0.57% (e)............... 3.01% 12/25/35 368,614 6,014,535 Series 2007-HE1, Class A2D, 1 Mo. LIBOR + 0.23% (e).............. 2.67% 11/25/36 3,827,819 26,499,025 Series 2007-HE2, Class A2D, 1 Mo. LIBOR + 0.21% (e).............. 2.65% 01/25/37 13,966,838 6,809,847 Series 2007-NC3, Class A2D, 1 Mo. LIBOR + 0.26% (e).............. 2.70% 05/25/37 5,306,286 Navient Student Loan Trust 217,348 Series 2014-1, Class A3, 1 Mo. LIBOR + 0.51% (e)................. 2.95% 06/25/31 209,639 190,588 Series 2014-3, Class A, 1 Mo. LIBOR + 0.62% (e).................. 3.06% 03/25/83 185,757 162,306 Series 2015-1, Class A2, 1 Mo. LIBOR + 0.60% (e)................. 3.04% 04/25/40 157,424 1,665,382 Series 2016-2A, Class A3, 1 Mo. LIBOR + 1.50% (c) (e)............ 3.94% 06/25/65 1,662,412 3,618,265 Series 2016-5A, Class A, 1 Mo. LIBOR + 1.25% (c) (e)............. 3.69% 06/25/65 3,582,048 300,000 Series 2017-3A, Class A3, 1 Mo. LIBOR + 1.05% (c) (e)............ 3.49% 07/26/66 298,233 2,929,749 Series 2017-5A, Class A, 1 Mo. LIBOR + 0.80% (c) (e)............. 3.24% 07/26/66 2,840,763 New Century Home Equity Loan Trust 796,649 Series 2005-4, Class M3, 1 Mo. LIBOR + 0.83% (e)................. 3.27% 09/25/35 795,880 New Residential Mortgage Loan Trust 16,615,000 Series 2022-SFR2, Class B........................................ 3.75% 09/04/39 15,267,435 15,000,000 Series 2022-SFR2, Class E1....................................... 4.00% 09/04/39 12,769,010 OCP CLO Ltd. 6,200,000 Series 2020-19A, Class AR, 3 Mo. LIBOR + 1.15% (c) (e)........... 3.86% 10/20/34 6,065,635 8,530,000 Series 2021-21A, Class B, 3 Mo. LIBOR + 1.70% (c) (e)............ 4.41% 07/20/34 8,271,702 Octagon Investment Partners 46 Ltd. 14,000,000 Series 2020-2A, Class AR, 3 Mo. LIBOR + 1.16% (c) (e)............ 3.67% 07/15/36 13,746,451 OHA Credit Funding 4 Ltd. 12,685,000 Series 2019-4A, Class BR, 3 Mo. LIBOR + 1.65% (c) (e)............ 4.41% 10/22/36 12,296,932 Palmer Square Loan Funding Ltd. 517,567 Series 2019-4A, Class A1, 3 Mo. LIBOR + 0.90% (c) (e)............ 3.68% 10/24/27 518,406 Rad CLO 14 Ltd. 10,000,000 Series 2021-14A, Class BR, 3 Mo. LIBOR + 1.65% (c) (e)........... 4.16% 01/15/35 9,501,964 Residential Asset Securities Corp. 86,535 Series 2006-EMX3, Class A3, 1 Mo. LIBOR + 0.28% (e).............. 3.00% 04/25/36 85,075 680,270 Series 2006-KS3, Class M1, 1 Mo. LIBOR + 0.33% (e)............... 2.94% 04/25/36 672,437 Rockford Tower CLO Ltd. 10,000,000 Series 2017-3A, Class A, 3 Mo. LIBOR + 1.19% (c) (e)............. 3.90% 10/20/30 9,886,000 Saxon Asset Securities Trust 565,347 Series 2007-2, Class A2C, 1 Mo. LIBOR + 0.24% (e)................ 2.68% 05/25/47 426,997 Securitized Asset-Backed Receivables LLC Trust 23,221,291 Series 2006-WM4, Class A1, 1 Mo. LIBOR + 0.38% (c) (e)........... 2.82% 11/25/36 12,248,167 Skyline Aircraft Finance LLC 12,836,102 Series 2020-1, Class A (k) (l)................................... 3.23% 05/10/38 11,677,343 SLC Student Loan Trust 5,054,000 Series 2006-1, Class A6, 3 Mo. LIBOR + 0.16% (e)................. 1.99% 03/15/55 4,830,385 109,729 Series 2006-2, Class A6, 3 Mo. LIBOR + 0.16% (e)................. 1.99% 09/15/39 102,815 1,331,448 Series 2008-1, Class A4A, 3 Mo. LIBOR + 1.60% (e)................ 3.43% 12/15/32 1,331,085 </TABLE> Page 34 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> SLM Student Loan Trust $ 461,476 Series 2005-9, Class A7A, 3 Mo. LIBOR + 0.60% (e)................ 3.38% 01/25/41 $ 450,962 80,000 Series 2007-7, Class B, 3 Mo. LIBOR + 0.75% (e).................. 3.53% 10/27/70 68,712 130,000 Series 2008-2, Class B, 3 Mo. LIBOR + 1.20% (e).................. 3.98% 01/25/83 102,956 700,000 Series 2008-3, Class B, 3 Mo. LIBOR + 1.20% (e).................. 3.98% 04/26/83 588,883 4,360,637 Series 2008-6, Class A4, 3 Mo. LIBOR + 1.10% (e)................. 3.88% 07/25/23 4,263,954 320,000 Series 2008-7, Class B, 3 Mo. LIBOR + 1.85% (e).................. 4.63% 07/26/83 289,313 2,030,759 Series 2008-8, Class A4, 3 Mo. LIBOR + 1.50% (e)................. 4.28% 04/25/23 2,017,902 3,525,456 Series 2011-2, Class A2, 1 Mo. LIBOR + 1.20% (e)................. 3.64% 10/25/34 3,507,572 640,848 Series 2012-2, Class A, 1 Mo. LIBOR + 0.70% (e).................. 3.14% 01/25/29 612,449 620,303 Series 2012-3, Class A, 1 Mo. LIBOR + 0.65% (e).................. 3.09% 12/27/38 601,509 226,786 Series 2012-6, Class A3, 1 Mo. LIBOR + 0.75% (e)................. 3.19% 05/26/26 216,335 3,357,734 Series 2012-7, Class A3, 1 Mo. LIBOR + 0.65% (e)................. 3.09% 05/26/26 3,210,343 555,000 Series 2012-7, Class B, 1 Mo. LIBOR + 1.80% (e).................. 4.24% 09/25/43 529,238 118,579 Series 2013-2, Class A, 1 Mo. LIBOR + 0.45% (e).................. 2.89% 06/25/43 115,468 Soundview Home Loan Trust 6,285,397 Series 2007-OPT4, Class 1A1, 1 Mo. LIBOR + 1.00% (e)............. 3.44% 09/25/37 4,819,608 Structured Asset Investment Loan Trust 652,707 Series 2004-6, Class A3, 1 Mo. LIBOR + 0.80% (e)................. 3.24% 07/25/34 632,167 64,308 Series 2005-2, Class M2, 1 Mo. LIBOR + 0.74% (e)................. 3.18% 03/25/35 63,989 Structured Asset Securities Corp. Mortgage Loan Trust 979,045 Series 2005-NC2, Class M5, 1 Mo. LIBOR + 0.93% (e)............... 3.37% 05/25/35 973,172 TAL Advantage VII LLC 9,585,000 Series 2020-1A, Class A (c)...................................... 2.05% 09/20/45 8,649,549 TIF Funding II LLC 8,196,500 Series 2020-1A, Class A (c)...................................... 2.09% 08/20/45 7,316,438 Trestles CLO V Ltd. 13,000,000 Series 2021-5A, Class A1, 3 Mo. LIBOR + 1.17% (c) (e)............ 3.88% 10/20/34 12,761,803 Voya CLO Ltd. 13,000,000 Series 2020-1A, Class AR, 3 Mo. LIBOR + 1.15% (c) (e)............ 3.89% 07/16/34 12,761,635 Wachovia Student Loan Trust 718,481 Series 2006-1, Class A6, 3 Mo. LIBOR + 0.17% (c) (e)............. 2.95% 04/25/40 691,568 WaMu Asset-Backed Certificates WaMu Trust 1,088,166 Series 2007-HE2, Class 2A1, 1 Mo. LIBOR + 0.11% (e).............. 2.55% 04/25/37 446,224 3,776,120 Series 2007-HE2, Class 2A2, 1 Mo. LIBOR + 0.19% (e).............. 2.63% 04/25/37 1,555,615 8,091,685 Series 2007-HE2, Class 2A3, 1 Mo. LIBOR + 0.25% (e).............. 2.69% 04/25/37 3,343,925 Wellman Park CLO Ltd. 11,650,000 Series 2021-1A, Class B, 3 Mo. LIBOR + 1.60% (c) (e)............. 4.11% 07/15/34 11,225,676 -------------- TOTAL ASSET-BACKED SECURITIES.................................................................. 432,802,340 (Cost $465,283,328) -------------- MORTGAGE-BACKED SECURITIES -- 10.7% COLLATERALIZED MORTGAGE OBLIGATIONS -- 7.8% Ajax Mortgage Loan Trust 2,695,660 Series 2019-F, Class A1, steps up to 3.86% on 11/25/26 (c) (m)... 2.86% 07/25/59 2,596,890 Alternative Loan Trust 5,186,628 Series 2005-16, Class A4, 1 Mo. LIBOR + 0.48% (e)................ 2.92% 06/25/35 4,507,573 5,917,071 Series 2005-56, Class 1A1, 1 Mo. LIBOR + 1.46% (e)............... 3.90% 11/25/35 5,494,869 5,867,528 Series 2005-67CB, Class A1....................................... 5.50% 01/25/36 4,789,805 2,711,560 Series 2007-13, Class A1......................................... 6.00% 06/25/47 1,637,089 </TABLE> See Notes to Financial Statements Page 35 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) American Home Mortgage Assets Trust $ 12,190,555 Series 2007-1, Class A1, 12 Mo. Treasury Average + 0.70% (e)..... 1.56% 02/25/47 $ 5,310,168 American Home Mortgage Investment Trust 1,661,251 Series 2005-4, Class 1A1, 1 Mo. LIBOR + 0.58% (e)................ 3.02% 11/25/45 1,508,153 Banc of America Funding Trust 479,822 Series 2014-R6, Class 2A13 (c) (n)............................... 2.52% 07/26/36 464,236 Bear Stearns Mortgage Funding Trust 96,180 Series 2006-AR1, Class 1A1, 1 Mo. LIBOR + 0.42% (e).............. 2.86% 07/25/36 87,004 2,377,521 Series 2006-AR3, Class 1A1, 1 Mo. LIBOR + 0.18% (e).............. 2.62% 10/25/36 2,039,806 3,285,907 Series 2006-AR5, Class 2A1, 1 Mo. LIBOR + 0.19% (e).............. 2.63% 01/25/37 2,921,033 173,886 Series 2007-AR5, Class 1A1G, 1 Mo. LIBOR + 0.16% (e)............. 2.60% 06/25/47 153,007 CIM Trust 5,779,682 Series 2018-R6, Class A1, 1 Mo. LIBOR + 1.08% (c) (e)............ 3.45% 09/25/58 5,658,149 3,013,353 Series 2019-R1, Class A (c)...................................... 3.25% 10/25/58 2,863,389 3,504,461 Series 2019-R4, Class A1 (c)..................................... 3.00% 10/25/59 3,264,257 5,855,115 Series 2020-R3, Class A1A (c).................................... 4.00% 01/26/60 5,694,779 7,836,354 Series 2020-R4, Class A1A (c) (o)................................ 3.30% 06/25/60 7,481,700 21,112,000 Series 2020-R7, Class A1B (c) (o)................................ 2.25% 12/27/61 17,635,854 6,474,487 Series 2021-NR3, Class A1, steps-up to 5.57% on 04/26/24 (c) (m).............................................. 2.57% 06/25/57 6,107,815 19,612,125 Series 2021-NR4, Class A1, steps up to 5.82% on 10/25/24 (c) (m).............................................. 2.82% 10/25/61 18,354,672 16,932,939 Series 2021-R3, Class A1A (c).................................... 1.95% 06/25/57 15,346,766 CitiMortgage Alternative Loan Trust 2,173,908 Series 2006-A4, Class 1A8........................................ 6.00% 09/25/36 1,907,221 Credit Suisse Mortgage Trust 9,278,983 Series 2007-2, Class 1A4......................................... 5.75% 03/25/37 6,152,025 27,106,940 Series 2007-3, Class 1A1A........................................ 5.84% 04/25/37 7,849,289 15,016,920 Series 2021-RP11 (c) (e)......................................... 3.76% 10/25/61 12,650,468 CSMCM Trust 643,714 Series 2021-RP1 (c).............................................. 3.78% 10/27/61 547,121 GMACM Mortgage Loan Trust 1,356,150 Series 2006-J1, Class A4......................................... 5.75% 04/25/36 1,208,895 1,310,698 Series 2006-AR1, Class 1A1 (n)................................... 2.90% 04/19/36 1,055,733 GreenPoint Mortgage Funding Trust 73,966 Series 2006-AR1, Class A1A, 1 Mo. LIBOR + 0.58% (e).............. 3.02% 02/25/36 67,289 GSR Mortgage Loan Trust 21,427,389 Series 2006-OA1, Class 2A2, 1 Mo. LIBOR + 0.52% (e).............. 2.96% 08/25/46 7,772,648 HarborView Mortgage Loan Trust 352,038 Series 2005-10, Class 2A1A, 1 Mo. LIBOR + 0.62% (e).............. 2.99% 11/19/35 282,732 1,165,537 Series 2007-7, Class 1A1, 1 Mo. LIBOR + 2.00% (e)................ 3.44% 10/25/37 1,032,938 HomeBanc Mortgage Trust 626,814 Series 2004-2, Class A1, 1 Mo. LIBOR + 0.74% (e)................. 3.18% 12/25/34 599,237 Impac CMB Trust 174,117 Series 2005-2, Class 1A1, 1 Mo. LIBOR + 0.52% (e)................ 2.96% 04/25/35 166,034 542,952 Series 2005-4, Class 1A1A, 1 Mo. LIBOR + 0.54% (e)............... 2.98% 05/25/35 512,708 IndyMac INDX Mortgage Loan Trust 1,316,385 Series 2005-AR14, Class 2A1A, 1 Mo. LIBOR + 0.60% (e)............ 3.04% 07/25/35 1,121,580 18,283,578 Series 2005-AR29, Class A1 (n)................................... 3.19% 01/25/36 16,284,479 3,226,196 Series 2006-AR6, Class 2A1A, 1 Mo. LIBOR + 0.40% (e)............. 2.84% 06/25/46 2,823,864 3,927,984 Series 2007-FLX4, Class 2A2, 1 Mo. LIBOR + 0.25% (e)............. 2.69% 07/25/37 3,647,057 </TABLE> Page 36 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) JP Morgan Mortgage Trust $ 1,506,610 Series 2006-A4, Class 1A1 (n).................................... 3.36% 06/25/36 $ 1,159,738 Lehman XS Trust 249,346 Series 2006-16N, Class A4A, 1 Mo. LIBOR + 0.38% (e).............. 2.82% 11/25/46 221,294 4,691,031 Series 2007-16N, Class 1A1, 1 Mo. LIBOR + 0.94% (e).............. 3.38% 09/25/47 4,385,526 2,417,459 Series 2007-16N, Class 2A1, 1 Mo. LIBOR + 0.80% (e).............. 3.24% 09/25/47 2,177,909 Merrill Lynch Alternative Note Asset Trust 3,266,556 Series 2007-OAR3, Class A1, 1 Mo. LIBOR + 0.19% (e).............. 2.63% 07/25/47 2,856,552 Morgan Stanley Mortgage Loan Trust 107,048 Series 2004-6AR, Class 1M1, 1 Mo. LIBOR + 0.98% (e).............. 3.42% 07/25/34 107,427 28,203 Series 2005-2AR, Class A, 1 Mo. LIBOR + 0.26% (e)................ 2.70% 04/25/35 27,054 MortgageIT Trust 48,565 Series 2005-5, Class A1, 1 Mo. LIBOR + 0.52% (e)................. 2.96% 12/25/35 46,754 Nomura Resecuritization Trust 734,114 Series 2015-5R, Class 1A1 (c).................................... 4.00% 08/26/37 731,903 Opteum Mortgage Acceptance Corp. 945,098 Series 2005-5, Class 1A1D, 1 Mo. LIBOR + 0.76% (e)............... 3.20% 12/25/35 914,072 301,983 Series 2006-1, Class 1APT, 1 Mo. LIBOR + 0.42% (e)............... 2.86% 04/25/36 274,448 Pretium Mortgage Credit Partners LLC 10,698,000 Series 2022-RN3, Class A1 (c) (l)................................ 5.00% 08/25/52 10,462,291 PRPM LLC 11,065,323 Series 2021-7, Class A1, steps up to 4.87% on 8/25/24 (c) (m).... 1.87% 08/25/26 10,306,721 20,144,015 Series 2021-10, Class A1, steps up to 5.49% on 10/25/24 (c) (m).............................................. 2.49% 10/25/26 18,919,019 RALI Trust 6,668,216 Series 2007-QS7, Class 1A1....................................... 6.00% 05/25/37 5,795,083 3,275,300 Series 2007-QS9, Class A33....................................... 6.50% 07/25/37 2,802,675 RFMSI Trust 6,807,389 Series 2007-S6, Class 1A4........................................ 6.00% 06/25/37 5,886,200 Structured Adjustable Rate Mortgage Loan Trust 19,557 Series 2004-12, Class 3A1 (n).................................... 3.06% 09/25/34 19,223 24,423,775 Series 2006-2, Class 4A1 (n)..................................... 3.57% 03/25/36 16,727,238 Structured Asset Mortgage Investments II Trust 2,408,267 Series 2006-AR1, Class 3A1, 1 Mo. LIBOR + 0.46% (e).............. 2.90% 02/25/36 2,199,916 6,557,351 Series 2006-AR7, Class A1A, 1 Mo. LIBOR + 0.42% (e).............. 2.86% 08/25/36 6,202,751 3,390,097 Series 2007-AR6, Class A1, 12 Mo. Treasury Average + 1.50% (e)..................................................... 2.36% 08/25/47 3,115,503 WaMu Mortgage Pass-Through Certificates Trust 74,352 Series 2005-AR1, Class A2A1, 1 Mo. LIBOR + 0.68% (e)............. 3.12% 01/25/45 70,816 148,832 Series 2005-AR15, Class A1A1, 1 Mo. LIBOR + 0.52% (e)............ 2.96% 11/25/45 136,889 197,653 Series 2006-AR3, Class A1A, 12 Mo. Treasury Average + 1.00% (e)..................................................... 1.86% 02/25/46 180,230 301,516 Series 2006-AR4, Class 1A1A, 12 Mo. Treasury Average + 0.94% (e)..................................................... 1.58% 05/25/46 273,800 -------------- 275,599,364 -------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 2.9% BX Commercial Mortgage Trust 8,821,865 Series 2019-XL, Class A, 1 Mo. LIBOR + 0.92% (c) (e)............. 3.31% 10/15/36 8,723,459 </TABLE> See Notes to Financial Statements Page 37 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) BXSC Commercial Mortgage Trust $ 8,450,000 Series 2022-WSS, Class D, 1 Mo. CME Term SOFR + 3.19% (c) (e)................................................. 5.50% 03/15/35 $ 8,144,312 CAMB Commercial Mortgage Trust 9,150,000 Series 2019-LIFE, Class F, 1 Mo. LIBOR + 2.55% (c) (e)........... 4.94% 12/15/37 8,853,904 COMM Mortgage Trust 247,587 Series 2012-CR5, Class A4........................................ 2.77% 12/10/45 246,823 DROP Mortgage Trust 12,284,000 Series 2021-FILE, Class B, 1 Mo. LIBOR + 1.70% (c) (e)........... 4.09% 10/15/43 11,759,888 Life Mortgage Trust 7,863,761 Series 2021-BMR, Class G, 1 Mo. LIBOR + 2.95% (c) (e)............ 5.34% 03/15/38 7,293,862 Manhattan West 3,855,000 Series 2020-1MW, Class A (c)..................................... 2.13% 09/10/39 3,402,218 Med Trust 7,000,000 Series 2021-MDLN, Class D, 1 Mo. LIBOR + 2.00% (c) (e)........... 4.39% 11/15/38 6,661,789 MSCG Trust 15,132,000 Series 2018-SELF, Class F, 1 Mo. LIBOR + 3.05% (c) (e)........... 5.44% 10/15/37 14,302,617 MSDB Trust 4,800,000 Series 2017-712F, Class A (c) (n)................................ 3.43% 07/11/39 4,381,160 NCMF Trust 10,000,000 Series 2022-MFP, Class C, 1 Mo. CME Term SOFR + 2.84% (c) (e)................................................. 5.14% 03/15/39 9,825,771 SFAVE Commercial Mortgage Securities Trust 9,265,000 Series 2015-5AVE, Class A2A (c) (n).............................. 3.66% 01/05/43 7,387,950 SFO Commercial Mortgage Trust 3,787,000 Series 2021-555, Class A, 1 Mo. LIBOR + 1.15% (c) (e)............ 3.54% 05/15/38 3,635,587 SLG Office Trust 5,000,000 Series 2021-OVA, Class F (c)..................................... 2.85% 07/15/41 3,645,521 TPGI Trust 4,500,000 Series 2021-DGWD, Class E, 1 Mo. LIBOR + 2.35% (c) (e)........... 4.74% 06/15/26 4,199,931 UBS-Barclays Commercial Mortgage Trust 201,638 Series 2013-C6, Class A3......................................... 2.97% 04/10/46 199,868 -------------- 102,664,660 -------------- TOTAL MORTGAGE-BACKED SECURITIES............................................................... 378,264,024 (Cost $416,393,977) -------------- PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES -- 7.3% AGRICULTURE -- 0.3% 1,780,000 Imperial Brands Finance PLC (USD) (c)............................... 3.50% 02/11/23 1,778,850 2,325,000 Imperial Brands Finance PLC (USD) (c)............................... 3.13% 07/26/24 2,239,094 5,085,000 Imperial Brands Finance PLC (USD) (c)............................... 4.25% 07/21/25 4,982,459 -------------- 9,000,403 -------------- </TABLE> Page 38 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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> AIRLINES -- 0.0% 596,400 Air Canada Pass-Through Trust, Series 2017-1, Class AA (USD) (c)........................................................ 3.30% 01/15/30 $ 534,183 -------------- BANKS -- 3.6% 12,020,000 Credit Suisse Group AG (USD) (c) (d)................................ 1.31% 02/02/27 10,144,368 3,365,000 Credit Suisse Group AG (USD) (c) (d)................................ 6.44% 08/11/28 3,305,796 5,260,000 Credit Suisse Group AG (USD) (c) (d)................................ 3.09% 05/14/32 3,988,312 6,415,000 Credit Suisse Group AG (USD) (c) (d)................................ 6.54% 08/12/33 6,146,427 7,000,000 DNB Bank ASA (USD) (c) (d).......................................... 1.61% 03/30/28 6,068,212 400,000 Global Bank Corp. (USD) (d) (p)..................................... 5.25% 04/16/29 377,960 1,830,000 HSBC Holdings PLC (USD) (d)......................................... 2.10% 06/04/26 1,688,093 6,095,000 HSBC Holdings PLC (USD) (d)......................................... 4.76% 06/09/28 5,889,950 6,100,000 HSBC Holdings PLC (USD) (d)......................................... 2.01% 09/22/28 5,171,284 7,800,000 HSBC Holdings PLC (USD) (d)......................................... 2.21% 08/17/29 6,471,690 6,915,000 HSBC Holdings PLC (USD) (d)......................................... 2.80% 05/24/32 5,504,895 1,390,000 HSBC Holdings PLC (USD) (d)......................................... 5.40% 08/11/33 1,328,801 8,175,000 Lloyds Banking Group PLC (USD) (d).................................. 2.91% 11/07/23 8,151,626 3,000,000 Lloyds Banking Group PLC (USD) (d).................................. 3.87% 07/09/25 2,941,199 5,000,000 Lloyds Banking Group PLC (USD) (d).................................. 1.63% 05/11/27 4,425,494 3,000,000 Lloyds Banking Group PLC (USD) (d).................................. 3.57% 11/07/28 2,779,013 1,245,000 Lloyds Banking Group PLC (USD) (d).................................. 4.98% 08/11/33 1,189,620 1,285,000 Macquarie Group Ltd. (USD) (c) (d).................................. 3.19% 11/28/23 1,281,589 7,600,000 Macquarie Group Ltd. (USD) (c) (d).................................. 1.34% 01/12/27 6,662,989 4,775,000 Macquarie Group Ltd. (USD) (c) (d).................................. 2.87% 01/14/33 3,842,277 1,710,000 Macquarie Group Ltd. (USD) (c) (d).................................. 4.44% 06/21/33 1,559,299 9,800,000 NatWest Group PLC (USD) (d)......................................... 4.27% 03/22/25 9,696,883 10,775,000 Santander UK Group Holdings PLC (USD) (d)........................... 4.80% 11/15/24 10,742,767 5,545,000 Santander UK Group Holdings PLC (USD) (d)........................... 1.09% 03/15/25 5,192,571 930,000 Santander UK Group Holdings PLC (USD) (d)........................... 1.53% 08/21/26 832,502 5,250,000 Santander UK Group Holdings PLC (USD) (d)........................... 1.67% 06/14/27 4,556,728 1,735,000 Santander UK Group Holdings PLC (USD) (d)........................... 2.47% 01/11/28 1,524,169 4,700,000 UBS AG (USD), SOFR + 0.45% (c) (e).................................. 2.74% 08/09/24 4,670,012 1,200,000 UBS Group AG (USD) (c) (d).......................................... 4.70% 08/05/27 1,177,560 -------------- 127,312,086 -------------- BEVERAGES -- 0.4% 7,945,000 Bacardi Ltd. (USD) (c).............................................. 4.45% 05/15/25 7,817,355 7,000,000 Becle SAB de CV (USD) (c)........................................... 2.50% 10/14/31 5,767,895 -------------- 13,585,250 -------------- COMMERCIAL SERVICES -- 0.1% 2,800,000 DP World Crescent Ltd. (USD) (c).................................... 4.85% 09/26/28 2,852,038 -------------- COMPUTERS -- 0.1% 1,790,000 Lenovo Group Ltd. (USD) (c)......................................... 6.54% 07/27/32 1,780,767 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.6% 1,000,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)............................................................ 3.50% 01/15/25 957,291 1,296,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)............................................................ 4.45% 10/01/25 1,256,560 </TABLE> See Notes to Financial Statements Page 39 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) 14,200,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)............................................................ 3.00% 10/29/28 $ 12,104,009 1,755,000 Avolon Holdings Funding Ltd. (USD) (c).............................. 2.88% 02/15/25 1,611,729 670,000 Avolon Holdings Funding Ltd. (USD) (c).............................. 3.25% 02/15/27 580,983 5,256,000 Avolon Holdings Funding Ltd. (USD) (c).............................. 2.53% 11/18/27 4,304,463 850,000 Park Aerospace Holdings Ltd. (USD) (c).............................. 4.50% 03/15/23 845,335 467,000 Park Aerospace Holdings Ltd. (USD) (c).............................. 5.50% 02/15/24 461,597 -------------- 22,121,967 -------------- ELECTRIC -- 0.0% 1,200,000 Empresas Publicas de Medellin ESP (USD) (p)......................... 4.38% 02/15/31 961,566 250,000 Mong Duong Finance Holdings B.V. (USD) (p).......................... 5.13% 05/07/29 206,723 -------------- 1,168,289 -------------- ENGINEERING & CONSTRUCTION -- 0.1% 4,335,000 Heathrow Funding Ltd., Medium-Term Note (EUR) (p)................... 1.88% 03/14/34 3,411,854 -------------- FOOD -- 0.3% 150,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (c)........................................................ 5.50% 01/15/30 150,083 1,505,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (c)........................................................ 3.75% 12/01/31 1,320,750 2,115,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (c)........................................................ 3.00% 05/15/32 1,751,950 3,000,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (c)........................................................ 4.38% 02/02/52 2,378,501 4,015,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (c)........................................................ 6.50% 12/01/52 4,253,611 -------------- 9,854,895 -------------- INTERNET -- 0.1% 2,775,000 Tencent Holdings Ltd. (USD) (c)..................................... 3.98% 04/11/29 2,618,650 3,290,000 Tencent Holdings Ltd. (USD) (c)..................................... 3.84% 04/22/51 2,453,034 -------------- 5,071,684 -------------- MINING -- 0.0% 600,000 Indonesia Asahan Aluminium Persero PT (USD) (c)..................... 5.45% 05/15/30 589,632 -------------- MISCELLANEOUS MANUFACTURING -- 0.1% 4,789,000 GE Capital International Funding Co. Unlimited Co. (USD)............ 4.42% 11/15/35 4,548,718 -------------- OIL & GAS -- 0.6% 840,000 Ecopetrol S.A. (USD)................................................ 6.88% 04/29/30 781,775 1,383,000 KazMunayGas National Co. JSC (USD) (p).............................. 5.38% 04/24/30 1,294,621 1,200,000 KazMunayGas National Co. JSC (USD) (c).............................. 3.50% 04/14/33 948,271 2,504,000 Pertamina Persero PT (USD) (c)...................................... 3.10% 08/27/30 2,234,330 2,430,000 Petroleos Mexicanos (USD)........................................... 6.75% 09/21/47 1,535,165 3,310,000 Petroleos Mexicanos (USD)........................................... 7.69% 01/23/50 2,283,966 1,705,000 Petroleos Mexicanos (USD)........................................... 6.95% 01/28/60 1,073,340 1,113,000 Petronas Capital Ltd. (USD) (c)..................................... 3.50% 04/21/30 1,070,932 1,650,000 Petronas Capital Ltd. (USD) (c)..................................... 2.48% 01/28/32 1,441,767 1,400,000 Qatar Energy (USD) (p).............................................. 2.25% 07/12/31 1,223,776 </TABLE> Page 40 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) 1,800,000 Saudi Arabian Oil Co. (USD) (p)..................................... 1.63% 11/24/25 $ 1,672,200 452,375 Transocean Poseidon Ltd. (USD) (c).................................. 6.88% 02/01/27 426,759 3,600,000 Transocean Proteus Ltd. (USD) (c)................................... 6.25% 12/01/24 3,503,826 -------------- 19,490,728 -------------- PACKAGING & CONTAINERS -- 0.1% 1,000,000 Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc. (USD) (c)........................................................ 5.25% 08/15/27 724,740 3,000,000 Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc. (USD) (c)........................................................ 5.25% 08/15/27 2,174,218 2,500,000 Trivium Packaging Finance B.V. (USD) (c)............................ 5.50% 08/15/26 2,404,225 -------------- 5,303,183 -------------- PHARMACEUTICALS -- 0.0% 1,859,000 Endo Dac / Endo Finance LLC / Endo Finco, Inc. (USD) (f) (g) (h)................................................ 6.00% 06/30/28 106,893 -------------- PIPELINES -- 0.1% 1,729,548 Galaxy Pipeline Assets Bidco Ltd. (USD) (c)......................... 2.16% 03/31/34 1,513,465 800,000 Southern Gas Corridor CJSC (USD) (p)................................ 6.88% 03/24/26 844,064 -------------- 2,357,529 -------------- REAL ESTATE -- 0.0% 500,000 Vonovia SE (EUR) (p)................................................ 1.50% 06/14/41 308,182 -------------- REAL ESTATE INVESTMENT TRUSTS -- 0.0% 1,000,000 Ascendas Real Estate Investment Trust, Medium-Term Note (EUR) (p)........................................................ 0.75% 06/23/28 804,337 -------------- RETAIL -- 0.1% 100,000 Alimentation Couche-Tard, Inc. (USD) (c)............................ 3.55% 07/26/27 94,039 4,230,000 Alimentation Couche-Tard, Inc. (USD) (c)............................ 3.80% 01/25/50 3,180,042 -------------- 3,274,081 -------------- SAVINGS & LOANS -- 0.3% 6,645,000 Nationwide Building Society (USD) (c) (d)........................... 3.77% 03/08/24 6,621,576 1,300,000 Nationwide Building Society (USD) (c) (d)........................... 4.36% 08/01/24 1,290,985 4,055,000 Nationwide Building Society (USD) (c) (d)........................... 2.97% 02/16/28 3,662,403 -------------- 11,574,964 -------------- SEMICONDUCTORS -- 0.0% 1,000,000 TSMC Global Ltd. (USD) (c).......................................... 4.63% 07/22/32 1,005,028 -------------- TELECOMMUNICATIONS -- 0.4% 200,000 C&W Senior Financing DAC (USD) (c).................................. 6.88% 09/15/27 177,805 2,000,000 Intelsat Jackson Holdings S.A. (USD) (g)............................ 5.50% 08/01/23 23,020 3,860,000 Intelsat Jackson Holdings S.A. (USD) (c) (g)........................ 8.50% 10/15/24 44,737 390,000 Intelsat Jackson Holdings S.A. (USD) (c) (g)........................ 9.75% 07/15/25 4,489 4,513,000 Intelsat Jackson Holdings S.A. (USD) (c) (g)........................ 6.50% 03/15/30 4,102,227 500,000 SES S.A. (USD) (c).................................................. 3.60% 04/04/23 494,362 5,640,000 Vodafone Group PLC (USD)............................................ 5.25% 05/30/48 5,231,706 1,477,000 Vodafone Group PLC (USD)............................................ 4.88% 06/19/49 1,333,198 </TABLE> See Notes to Financial Statements Page 41 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 (CONTINUED) 1,375,000 Vodafone Group PLC (USD)............................................ 4.25% 09/17/50 $ 1,130,187 -------------- 12,541,731 -------------- TRANSPORTATION -- 0.0% 726,000 Empresa de Transporte de Pasajeros Metro S.A. (USD) (c)............. 3.65% 05/07/30 672,959 -------------- TOTAL FOREIGN CORPORATE BONDS AND NOTES........................................................ 259,271,381 (Cost $289,827,930) -------------- PRINCIPAL STATED VALUE DESCRIPTION RATE (q) MATURITY (r) VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- SENIOR FLOATING-RATE LOAN INTERESTS -- 2.1% AIRLINES -- 0.0% $ 384,105 United Airlines, Inc., Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor............................................................ 6.53% 04/21/28 372,798 -------------- CABLE AND SATELLITE -- 0.1% 932,500 DIRECTV Financing LLC, Term Loan, 1 Mo. LIBOR + 5.00%, 0.75% Floor...................................................... 7.52% 08/02/27 890,304 2,314,031 EagleView Technology Corp., Term Loan B, 3 Mo. LIBOR + 3.50%, 0.00% Floor...................................................... 5.75% 08/14/25 2,168,247 725,000 Virgin Media Bristol LLC, Term Loan N, 1 Mo. LIBOR + 2.50%, 0.00% Floor...................................................... 4.89% 01/31/28 707,781 -------------- 3,766,332 -------------- CONSUMER PRODUCTS -- 0.1% 131,444 AI Aqua Merger Sub, Inc., Delayed Draw Term Loan, 1 Mo. CME Term SOFR + 4.00%, 0.50% Floor................................... 6.52% 07/30/28 126,241 578,352 AI Aqua Merger Sub, Inc., Term Loan B, 1 Mo. CME Term SOFR + 4.00%, 0.50% Floor............................................... 6.52% 07/30/28 555,461 833,170 Sunshine Luxembourg VII, Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor...................................................... 6.00% 10/02/26 801,410 2,577,031 Zep, Inc., Term Loan B, 1 Yr. LIBOR + 4.00%, 1.00% Floor............ 7.67% 08/11/24 2,242,017 -------------- 3,725,129 -------------- ENTERTAINMENT -- 0.1% 1,676,348 Caesars Resort Collection LLC, Term Loan B, 3 Mo. LIBOR + 2.75%, 0.00% Floor............................................... 5.27% 12/22/24 1,652,728 -------------- FINANCE COMPANIES -- 0.2% 4,949,749 Avolon TLB Borrower 1 (U.S.) LLC, Term Loan B, 1 Mo. LIBOR + 2.25%, 0.50% Floor............................................... 4.62% 12/01/27 4,859,416 1,450,000 Setanta Airecraft Leasing DAC, Term Loan B, 3 Mo. LIBOR + 2.00%, 0.00% Floor............................................... 4.25% 11/05/28 1,422,812 -------------- 6,282,228 -------------- FOOD AND BEVERAGE -- 0.0% 509,030 Hostess Brands LLC, Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor............................................................ 4.77% - 5.06% 08/03/25 501,181 1,364 Naked Juice LLC, Delayed Draw Term Loan, 1 Mo. CME Term SOFR + 3.25%, 0.50% Floor........................................ 5.67% 01/24/29 1,306 </TABLE> Page 42 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED VALUE DESCRIPTION RATE (q) MATURITY (r) VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED) <S> <C> <C> <C> <C> FOOD AND BEVERAGE (CONTINUED) $ 544,432 Naked Juice LLC, Term Loan, 3 Mo. CME Term SOFR + 3.25%, 0.50% Floor...................................................... 5.40% 01/24/29 $ 521,098 -------------- 1,023,585 -------------- HEALTHCARE -- 0.3% 2,123,125 ADMI Corp., Term Loan B, 1 Mo. LIBOR + 3.38%, 0.50% Floor........... 5.90% 12/23/27 1,952,893 224,577 Change Healthcare Holdings LLC, Term Loan B, 3 Mo. LIBOR + 2.50%, 1.00% Floor............................................... 5.02% 03/01/24 222,987 124,369 Gainwell Acquisition Corp., Term Loan B, 3 Mo. LIBOR + 4.00%, 0.75% Floor...................................................... 6.25% 10/01/27 121,338 3,597,046 Grifols Worldwide Operations Ltd., Term Loan B, 1 Mo. LIBOR + 2.00%, 0.00% Floor............................................... 4.52% 11/15/27 3,473,164 598,500 Mozart Borrower L.P., Term Loan B, 1 Mo. LIBOR + 3.25%, 0.50% Floor............................................................ 5.77% 10/21/28 569,963 1,450,833 Pathway Vet Alliance LLC, Term Loan A, 1 Mo. LIBOR + 3.75%, 0.00% Floor...................................................... 6.00% 03/31/27 1,366,622 1,995,000 Phoenix Newco, Inc., Term Loan, 1 Mo. LIBOR + 3.25%, 0.50% Floor............................................................ 5.77% 11/15/28 1,940,125 -------------- 9,647,092 -------------- INFORMATION TECHNOLOGY -- 0.0% 352,402 Asurion LLC (fka Asurion Corp.), Term Loan B, 1 Mo. LIBOR + 3.25%, 0.00% Floor............................................... 5.77% 12/23/26 322,197 -------------- INSURANCE -- 0.2% 1,144,148 Acrisure LLC, Term Loan B, 1 Mo. LIBOR + 3.50%, 0.00% Floor............................................................ 6.02% 02/15/27 1,093,851 4,925,029 AmWINS Group, Inc., Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor............................................................ 4.77% 02/19/28 4,803,036 -------------- 5,896,887 -------------- LEISURE -- 0.1% 3,510,570 Cineworld Group PLC (Crown), Priority Term Loan B-1, Fixed Rate at 15.25% (s).................................................... 15.25% 05/23/24 4,035,506 -------------- MEDIA ENTERTAINMENT -- 0.0% 938,053 Diamond Sports Group LLC, Term Loan B, 1 Mo. CME Term SOFR + 3.25%, 0.00% Floor............................................. 5.95% 08/24/26 168,268 -------------- MEDICAL EQUIPMENT & DEVICES -- 0.1% 2,504,858 Avantor Funding, Inc., Term Loan B, 1 Mo. LIBOR + 2.25%, 0.50% Floor............................................................ 4.77% 11/06/27 2,460,246 -------------- PACKAGING -- 0.1% 1,273,386 Berry Global, Inc., Term Loan Z, 1 Mo. LIBOR + 1.75%, 0.00% Floor............................................................ 4.18% 07/01/26 1,243,346 1,526,750 Plaze, Inc., Term Loan B, 1 Mo. CME Term SOFR + 3.75%, 0.75% Floor............................................................ 6.26% 08/03/26 1,450,413 2,201,973 Proampac PG Borrower LLC, Term Loan B, 1 Mo. LIBOR + 3.75%, 0.75% Floor...................................................... 6.03% - 6.73% 11/03/25 2,137,741 -------------- 4,831,500 -------------- PHARMACEUTICALS -- 0.3% 1,617,144 Elanco Animal Health, Inc., Term Loan B, 1 Mo. LIBOR + 1.75%, 0.00% Floor...................................................... 4.12% 08/01/27 1,559,282 </TABLE> See Notes to Financial Statements Page 43 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED VALUE DESCRIPTION RATE (q) MATURITY (r) VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED) <S> <C> <C> <C> <C> PHARMACEUTICALS (CONTINUED) $ 1,795,625 Horizon Therapeutics USA, Inc., Term Loan B, 1 Mo. LIBOR + 1.75%, 0.50% Floor............................................... 4.31% 03/15/28 $ 1,747,520 2,351,250 Jazz Financing LUX S.A.R.L., Term Loan B, 1 Mo. LIBOR + 3.50%, 0.50% Floor............................................... 6.02% 05/05/28 2,303,379 2,492,413 Organon & Co., Term Loan, 1 Mo. LIBOR + 3.00%, 0.50% Floor.......... 4.63% 06/02/28 2,461,258 750,000 Perrigo Investments LLC, Term Loan B, 1 Mo. CME Term SOFR + 2.50%, 0.50% Floor............................................... 4.91% 04/20/29 742,500 -------------- 8,813,939 -------------- SERVICES -- 0.0% 1,673,813 Spin Holdco, Inc., Term Loan, 1 Mo. LIBOR + 4.00%, 0.75% Floor............................................................ 5.61% 03/04/28 1,569,199 -------------- TECHNOLOGY -- 0.3% 337,068 Central Parent Inc., Term Loan, 1 Mo. CME Term SOFR + 4.50%, 0.50% Floor...................................................... 6.61% 07/06/29 328,125 3,949,239 Commscope, Inc., Term Loan B2, 3 Mo. LIBOR + 3.25%, 0.00% Floor............................................................ 5.77% 04/04/26 3,780,172 145,588 DTI Holdco Inc., Term Loan B, 1 Mo. CME Term SOFR + 4.75%, 0.75% Floor...................................................... 7.33% 04/26/29 138,543 770,000 Entegris, Inc., Term Loan B, 1 Mo. CME Term SOFR + 3.00%, 0.00% Floor...................................................... 5.46% - 5.60% 07/06/29 767,528 3,300,000 NortonLifeLock, Inc., Tern Loan B, 1 Mo. CME Term SOFR + 2.00%, 0.50% Floor............................................... 4.52% 01/28/29 3,196,875 3,960,952 Waystar Technologies, Inc., Term Loan B, 1 Mo. LIBOR + 4.00%, 0.00% Floor...................................................... 6.52% 10/23/26 3,870,167 -------------- 12,081,410 -------------- WIRELINES -- 0.2% 5,703,675 Level 3 Financing, Inc., Term Loan B, 1 Mo. LIBOR + 1.75%, 0.00% Floor...................................................... 4.27% 03/01/27 5,437,826 1,817,515 Zayo Group Holdings, Inc., Term Loan B, 1 Mo. CME Term SOFR + 4.25%, 0.50% Floor............................................. 6.71% 03/09/27 1,708,519 -------------- 7,146,345 -------------- TOTAL SENIOR FLOATING-RATE LOAN INTERESTS...................................................... 73,795,389 (Cost $76,303,262) -------------- PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS AND NOTES-- 1.9% BAHRAIN -- 0.0% 1,600,000 Bahrain Government International Bond (USD) (p)..................... 7.00% 01/26/26 1,649,278 -------------- BRAZIL -- 0.1% 650,000 Brazilian Government International Bond (USD)....................... 2.88% 06/06/25 621,507 600,000 Brazilian Government International Bond (USD)....................... 4.63% 01/13/28 576,652 3,830,000 Brazilian Government International Bond (USD)....................... 3.88% 06/12/30 3,350,535 -------------- 4,548,694 -------------- </TABLE> Page 44 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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> CHILE -- 0.1% 2,800,000 Chile Government International Bond (USD)........................... 3.24% 02/06/28 $ 2,615,679 300,000 Chile Government International Bond (USD)........................... 2.55% 01/27/32 250,742 -------------- 2,866,421 -------------- COLOMBIA -- 0.1% 850,000 Colombia Government International Bond (USD)........................ 4.50% 01/28/26 805,861 2,885,000 Colombia Government International Bond (USD)........................ 3.00% 01/30/30 2,235,663 -------------- 3,041,524 -------------- DOMINICAN REPUBLIC -- 0.1% 2,485,000 Dominican Republic International Bond (USD) (c)..................... 4.50% 01/30/30 2,095,194 1,480,000 Dominican Republic International Bond (USD) (p)..................... 4.88% 09/23/32 1,199,757 -------------- 3,294,951 -------------- EGYPT -- 0.1% 1,300,000 Egypt Government International Bond (USD) (p)....................... 5.25% 10/06/25 1,112,484 1,200,000 Egypt Government International Bond (USD) (c)....................... 7.60% 03/01/29 948,918 -------------- 2,061,402 -------------- GUATEMALA -- 0.0% 500,000 Guatemala Government Bond (USD) (p)................................. 3.70% 10/07/33 406,205 -------------- HONG KONG -- 0.1% 5,020,000 Airport Authority Hong Kong (USD) (c)............................... 3.25% 01/12/52 3,967,740 -------------- HUNGARY -- 0.1% 3,130,000 Hungary Government International Bond (USD) (c)..................... 2.13% 09/22/31 2,301,270 -------------- INDONESIA -- 0.1% 957,000 Indonesia Government International Bond (USD)....................... 2.85% 02/14/30 884,626 2,600,000 Perusahaan Penerbit SBSN Indonesia III (USD) (c).................... 2.80% 06/23/30 2,346,786 -------------- 3,231,412 -------------- MEXICO -- 0.2% 2,000,000 Mexico Government International Bond (USD).......................... 3.75% 01/11/28 1,930,303 5,772,000 Mexico Government International Bond (USD).......................... 2.66% 05/24/31 4,802,960 -------------- 6,733,263 -------------- OMAN -- 0.1% 1,700,000 Oman Government International Bond (USD) (p)........................ 5.63% 01/17/28 1,678,599 -------------- PANAMA -- 0.1% 3,683,000 Panama Government International Bond (USD).......................... 3.16% 01/23/30 3,249,321 500,000 Panama Government International Bond (USD).......................... 2.25% 09/29/32 390,209 -------------- 3,639,530 -------------- PARAGUAY -- 0.1% 1,900,000 Paraguay Government International Bond (USD) (c).................... 4.95% 04/28/31 1,835,248 2,397,000 Paraguay Government International Bond (USD) (c).................... 2.74% 01/29/33 1,903,085 -------------- 3,738,333 -------------- </TABLE> See Notes to Financial Statements Page 45 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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> PERU -- 0.1% 4,775,000 Peruvian Government International Bond (USD)........................ 2.84% 06/20/30 $ 4,163,442 560,000 Peruvian Government International Bond (USD)........................ 2.78% 01/23/31 478,230 -------------- 4,641,672 -------------- PHILIPPINES -- 0.0% 1,570,000 Philippine Government International Bond (USD)...................... 2.46% 05/05/30 1,415,034 240,000 Philippine Government International Bond (USD)...................... 1.65% 06/10/31 199,511 -------------- 1,614,545 -------------- QATAR -- 0.1% 2,874,000 Qatar Government International Bond (USD) (p)....................... 4.50% 04/23/28 3,001,936 -------------- ROMANIA -- 0.1% 3,000,000 Romanian Government International Bond (USD) (p).................... 3.00% 02/14/31 2,399,748 -------------- SAUDI ARABIA -- 0.1% 460,000 Saudi Government International Bond (USD) (p)....................... 3.25% 10/26/26 454,542 2,440,000 Saudi Government International Bond (USD) (p)....................... 3.63% 03/04/28 2,430,533 -------------- 2,885,075 -------------- SOUTH AFRICA -- 0.1% 2,874,000 Republic of South Africa Government International Bond (USD)........ 4.85% 09/30/29 2,554,210 1,750,000 Republic of South Africa Government International Bond (USD)........ 5.88% 04/20/32 1,563,188 -------------- 4,117,398 -------------- TURKEY -- 0.0% 1,200,000 Turkey Government International Bond (USD).......................... 3.25% 03/23/23 1,182,727 -------------- UNITED ARAB EMIRATES -- 0.0% 787,000 Abu Dhabi Government International Bond (USD) (p)................... 2.50% 09/30/29 734,267 -------------- URUGUAY -- 0.1% 3,260,000 Uruguay Government International Bond (USD)......................... 4.38% 01/23/31 3,345,121 -------------- TOTAL FOREIGN SOVEREIGN BONDS AND NOTES........................................................ 67,081,111 (Cost $78,045,649) -------------- PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY SECURITIES -- 1.4% $ 52,905,000 Federal Home Loan Banks............................................. 1.04% 06/14/24 50,434,555 (Cost $52,905,000) -------------- MUNICIPAL BONDS -- 1.0% CALIFORNIA -- 0.3% 3,960,000 City of San Francisco CA Public Utilities Commission Water Rev...... 2.83% 11/01/41 3,123,535 2,085,000 Los Angeles CA Unif Sch Dist Build America Bonds.................... 5.75% 07/01/34 2,276,492 595,000 Los Angeles CA Unif Sch Dist Build America Bonds.................... 6.76% 07/01/34 695,450 4,715,000 Regents of the Univ of CA Medical Center Pooled Rev................. 3.26% 05/15/60 3,483,965 -------------- 9,579,442 -------------- </TABLE> Page 46 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MUNICIPAL BONDS (CONTINUED) <S> <C> <C> <C> <C> MASSACHUSETTS -- 0.0% $ 1,845,000 Massachusetts Sch Bldg Auth......................................... 2.97% 10/15/32 $ 1,662,849 -------------- MICHIGAN -- 0.0% 1,815,000 Univ of Michigan.................................................... 3.50% 04/01/52 1,572,460 -------------- NEW JERSEY -- 0.1% 2,000,000 NJ St Turnpike Auth Rev............................................. 1.86% 01/01/31 1,654,695 500,000 NJ St Turnpike Auth Rev............................................. 3.73% 01/01/36 457,382 -------------- 2,112,077 -------------- NEW YORK -- 0.6% 2,285,000 City of New York NY................................................. 3.62% 04/01/31 2,159,549 3,620,000 City of New York NY................................................. 1.92% 08/01/31 2,964,962 1,225,000 Metro Transprtn Auth NY Reb Txbl Green Bonds, Ser C2................ 5.18% 11/15/49 1,222,233 400,000 New York City NY Transitional Fin Auth Rev Qualified Sch Constr, Ser BD G-3....................................................... 5.27% 05/01/27 421,038 970,000 New York City NY Transitional Fin Auth Rev, Ser A-3................. 3.96% 08/01/32 924,900 6,940,000 New York City NY Transitional Fin Auth Rev, Ser B-3................. 1.85% 08/01/32 5,464,033 5,140,000 New York State Urban Development Corp............................... 2.97% 03/15/34 4,462,678 2,690,000 NY St Dorm Auth..................................................... 5.00% 03/15/24 2,734,579 1,405,000 NY St Dorm Auth..................................................... 2.96% 02/15/32 1,259,253 -------------- 21,613,225 -------------- TOTAL MUNICIPAL BONDS.......................................................................... 36,540,053 (Cost $43,623,493) -------------- SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- COMMON STOCKS -- 0.0% <S> <C> <C> TELECOMMUNICATIONS --0.0% 59,704 Intelsat Jackson Emergence S.A. (k) (l) (t) (u)................................................ 0 (Cost $2,000,073) -------------- RIGHTS -- 0.0% TELECOMMUNICATIONS -- 0.0% 6,253 Intelsat Jackson Holdings S.A., Series A (k) (l) (t) (u)....................................... 0 6,253 Intelsat Jackson Holdings S.A., Series B (k) (l) (t) (u)....................................... 0 -------------- TOTAL RIGHTS................................................................................... 0 (Cost $0) -------------- MONEY MARKET FUNDS -- 1.9% 65,561,759 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 1.87% (v)..... 65,561,759 (Cost $65,561,759) -------------- TOTAL INVESTMENTS -- 117.8%.................................................................... 4,179,978,378 (Cost $4,497,824,224) -------------- </TABLE> See Notes to Financial Statements Page 47 <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- ---------------------------------------------------- -------------- ----------- ------------ -------------- PURCHASED OPTIONS -- 0.0% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 0.0% 648 Eurodollar 1-Year Mid-Curve Options Futures Call............................................. $ 155,641,500 $ 98.38 09/16/22 $ 4,050 1,403 Eurodollar 1-Year Mid-Curve Options Futures Call............................................. 336,983,063 98.75 09/16/22 8,769 -------------- TOTAL PURCHASED OPTIONS........................................................................ 12,819 (Cost $1,113,442) -------------- WRITTEN OPTIONS -- (0.0)% CALL OPTIONS WRITTEN -- (0.0)% (3,185) Eurodollar 1-Year Mid-Curve Options Futures Call............................................. (764,997,188) 99.00 09/16/22 (19,906) (Premiums received $1,053,958) -------------- NET OTHER ASSETS AND LIABILITIES -- (17.8)%.................................................... (631,528,313) -------------- NET ASSETS -- 100.0%........................................................................... $3,548,442,978 ============== </TABLE> <TABLE> <CAPTION> FORWARD FOREIGN CURRENCY CONTRACTS AT AUGUST 31, 2022 (See Note 2E - Forward Foreign Currency Contracts in the Notes to Financial Statements): PURCHASE VALUE SALE VALUE UNREALIZED SETTLEMENT AMOUNT AMOUNT AS OF AS OF APPRECIATION DATE COUNTERPARTY PURCHASED SOLD 8/31/2022 8/31/2022 (DEPRECIATION) -------------- -------------- ----------------- ------------------ ---------------- ---------------- -------------- <S> <C> <C> <C> <C> <C> <C> 10/07/2022 Citi EUR 509,000 USD 511,183 $ 512,811 $ 511,183 $ 1,628 10/07/2022 Citi USD 3,956,715 EUR 3,734,000 3,956,715 3,761,957 194,758 10/07/2022 Citi USD 1,815,511 EUR 1,792,000 1,815,511 1,805,417 10,094 10/07/2022 Citi USD 847,721 EUR 823,000 847,721 829,162 18,559 10/07/2022 GSIL USD 1,837,416 EUR 1,798,000 1,837,416 1,811,462 25,954 10/07/2022 GSIL USD 340,121 EUR 332,000 340,121 334,485 5,636 10/07/2022 GSIL USD 492,617 EUR 483,000 492,617 486,616 6,001 -------------- Net Unrealized Appreciation (Depreciation) $ 262,630 ============== </TABLE> Counterparty Abbreviations: Citi - Citibank N.A. GSIL - Goldman Sachs International, London <TABLE> <CAPTION> FUTURES CONTRACTS AT AUGUST 31, 2022 (See Note 2D - Futures Contracts in the Notes to Financial Statements): UNREALIZED APPRECIATION NUMBER OF (DEPRECIATION)/ FUTURES CONTRACTS POSITION CONTRACTS EXPIRATION DATE NOTIONAL VALUE VALUE ---------------------------------- -------------- --------------- ------------------ ----------------- -------------- <S> <C> <C> <C> <C> <C> U.S. 2-Year Treasury Notes Long 3,076 Dec-2022 $ 640,817,316 $ (1,258,934) Ultra U.S. Treasury Bond Futures Long 64 Dec-2022 9,568,000 (14,298) U.S. 5-Year Treasury Notes Short 304 Dec-2022 (33,689,375) 128,550 Ultra 10-Year U.S. Treasury Notes Short 705 Dec-2022 (88,257,188) 661,008 -------------- -------------- $ 528,438,753 $ (483,674) ============== ============== </TABLE> Page 48 See Notes to Financial Statements <PAGE> FIRST TRUST TCW OPPORTUNISTIC FIXED INCOME ETF (FIXD) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> INTEREST RATE SWAP AGREEMENTS AT AUGUST 31, 2022 (See Note 2F - Swap Agreements in the Notes to Financial Statements): UNREALIZED APPRECIATION EXPIRATION NOTIONAL (DEPRECIATION)/ COUNTERPARTY FLOATING 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) $ (5,446,928) Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 86,880,000 1.034%(1) (4,016,291) Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 58,725,000 1.073%(1) (2,672,213) Citibank, Global Markets, Inc. 3 month LIBOR(2) 09/28/2025 145,575,000 1.390%(2) (5,477,696) Citibank, Global Markets, Inc. 3 month LIBOR(3) 07/24/2053 9,810,000 1.773%(3) 2,195,524 Citibank, Global Markets, Inc. 3 month LIBOR(3) 07/24/2053 7,260,000 1.785%(3) 1,607,101 Citibank, Global Markets, Inc. 3 month LIBOR(3) 07/24/2053 4,905,000 1.808%(3) 1,064,238 Citibank, Global Markets, Inc. 3 month LIBOR(4) 09/28/2053 12,425,000 1.870%(4) 2,496,033 JPMorgan Chase and Co. SOFR(5) 06/10/2024 249,860,000 1.950%(5) (7,026,244) -------------- -------------- $ 692,890,000 $ (17,276,476) ============== ============== </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 floating rate and receives the fixed rate. The floating rate is not effective until 09/28/2023 and no interest is being accrued until that date. (3) 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. (4) The Fund pays the fixed rate and receives the floating rate. The floating rate is not effective until 09/28/2023 and no interest is being accrued until that date. (5) The Fund pays the floating rate and receives the fixed rate. The floating rate is not effective until 06/14/2023 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) Security whose principal value is adjusted in accordance with changes to the country's Consumer Price Index. Interest is calculated on the basis of the current adjusted principal value. (c) 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 "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, 2022, securities noted as such amounted to $830,424,922 or 23.4% of net assets. (d) Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at August 31, 2022. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. (e) Floating or variable rate security. (f) 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). (g) This issuer is in default. (h) This issuer has filed for protection in bankruptcy court. (i) When-issued security. (j) Zero coupon security. (k) This security's value was determined using significant unobservable inputs (see Note 2A - Portfolio Valuation in the Notes to Financial Statements). (l) 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, 2022, securities noted as such are valued at $22,139,634 or 0.6% of net assets. (m) Step-up security. A security where the coupon increases or steps up at a predetermined date. (n) 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, 2022 (o) 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. (p) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (q) 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 SOFR obtained from the U.S. Department of the Treasury's Office of Financial Research, (iii) the prime rate offered by one or more United States banks or (iv) the certificate of deposit rate. Certain Senior Loans are subject to a LIBOR or SOFR floor that establishes a minimum LIBOR or SOFR rate. When a range of rates is disclosed, the Fund holds more than one contract within the same tranche with identical LIBOR or SOFR period, spread and floor, but different LIBOR or SOFR reset dates. (r) 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. (s) 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, 2022, the Fund received a portion of the interest in cash and PIK interest with a principal value of $278,912 for Cineworld Group PLC. (t) Pursuant to procedures adopted by the Trust's Board of Trustees, this security has been determined to be illiquid by the advisor. (u) Non-income producing security. (v) Rate shown reflects yield as of August 31, 2022. LIBOR - London Interbank Offered Rate SOFR - Secured Overnight Financing Rate TBA - To-Be-Announced Security Currency Abbreviations: EUR - Euro 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------- -------------- --------------- -------------- <S> <C> <C> <C> <C> U.S. Government Agency Mortgage-Backed Securities.................................... $ 1,174,701,897 $ -- $ 1,174,701,897 $ -- U.S. Government Bonds and Notes.................. 824,815,693 -- 824,815,693 -- Corporate Bonds and Notes*....................... 816,710,176 -- 816,710,176 -- Asset-Backed Securities.......................... 432,802,340 -- 421,124,997 11,677,343 Mortgage-Backed Securities....................... 378,264,024 -- 378,264,024 -- Foreign Corporate Bonds and Notes*............... 259,271,381 -- 259,271,381 -- Senior Floating-Rate Loan Interests*............. 73,795,389 -- 73,795,389 -- Foreign Sovereign Bonds and Notes**.............. 67,081,111 -- 67,081,111 -- U.S. Government Agency Securities................ 50,434,555 -- 50,434,555 -- Municipal Bonds***............................... 36,540,053 -- 36,540,053 -- Common Stocks*................................... --**** -- -- --**** Rights*.......................................... --**** -- -- --**** Money Market Funds............................... 65,561,759 65,561,759 -- -- --------------- -------------- --------------- -------------- Total Investments................................ 4,179,978,378 65,561,759 4,102,739,276 11,677,343 Call Options Purchased........................... 12,819 12,819 -- -- Forward Foreign Currency Contracts............... 262,630 -- 262,630 -- Futures Contracts*****........................... 789,558 789,558 -- -- Interest Rate Swap Agreements.................... 7,362,896 -- 7,362,896 -- --------------- -------------- --------------- -------------- Total............................................ $ 4,188,406,281 $ 66,364,136 $ 4,110,364,802 $ 11,677,343 =============== ============== =============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS --------------- -------------- --------------- -------------- Call Options Written............................. $ (19,906) $ (19,906) $ -- $ -- Futures Contracts*****........................... (1,273,232) (1,273,232) -- -- Interest Rate Swap Agreements.................... (24,639,372) -- (24,639,372) -- --------------- -------------- --------------- -------------- Total............................................ $ (25,932,510) $ (1,293,138) $ (24,639,372) $ -- =============== ============== =============== ============== </TABLE> * See Portfolio of Investments for industry breakout. ** See Portfolio of Investments for country breakout. *** See Portfolio of Investments for state breakout. **** Investment is valued at $0. ***** 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, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES -- 26.5% <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS -- 16.9% Adjustable Rate Mortgage Trust $ 83,318 Series 2005-8, Class 3A21 (a).................................... 3.57% 11/25/35 $ 68,371 Ajax Mortgage Loan Trust 3,585,632 Series 2021-D, Class A, steps up to 5.00% on 02/25/25 (b) (c).... 2.00% 03/25/60 3,332,508 Alternative Loan Trust 240,007 Series 2005-16, Class A3, 1 Mo. LIBOR + 0.50% (d)................ 2.94% 06/25/35 208,836 65,984 Series 2005-76, Class 1A1, 12 Mo. Treasury Average + 1.48% (d)..................................................... 2.34% 01/25/36 61,806 687,509 Series 2005-13CB, Class A8....................................... 5.50% 05/25/35 626,051 731,282 Series 2005-65CB, Class 2A4...................................... 5.50% 12/25/35 571,140 277,771 Series 2006-33CB, Class 2A1...................................... 6.00% 11/25/36 179,312 910,052 Series 2007-15CB, Class A6....................................... 5.75% 07/25/37 629,194 460,996 Series 2007-OA6, Class A1B, 1 Mo. LIBOR + 0.40% (d).............. 2.84% 06/25/37 404,921 American Home Mortgage Assets Trust 1,231,366 Series 2006-1, Class 1A1, 1 Mo. LIBOR + 0.21% (d)................ 2.65% 05/25/46 1,101,511 1,409,076 Series 2007-1, Class A1, 12 Mo. Treasury Average + 0.70% (d)..... 1.56% 02/25/47 613,789 3,016,387 Series 2007-2, Class A1, 1 Mo. LIBOR + 0.13% (d)................. 2.57% 03/25/47 2,737,170 American Home Mortgage Investment Trust 558,785 Series 2005-4, Class 1A1, 1 Mo. LIBOR + 0.58% (d)................ 3.02% 11/25/45 507,288 APS Resecuritization Trust 14,371,866 Series 2016-3, Class 3MZ (a) (b)................................. 0.87% 09/27/46 7,691,061 Banc of America Funding Trust 700,357 Series 2007-1, Class TA3A, 1 Mo. LIBOR + 0.32% (d)............... 2.76% 01/25/37 640,562 2,284,825 Series 2007-2, Class TA4, 1 Mo. LIBOR + 0.80% (d)................ 3.24% 03/25/37 2,274,608 BCAP LLC Trust 350,419 Series 2007-AA3, Class 1A1A, 1 Mo. LIBOR + 0.42% (d)............. 2.86% 04/25/37 327,116 5,352,064 Series 2012-RR8, Class 4A6 (a) (b)............................... 2.28% 11/20/36 4,624,009 548,416 Series 2015-RR2, Class 25A3 (a) (b).............................. 2.28% 10/28/36 544,645 Bear Stearns ALT-A Trust 654,964 Series 2004-8, Class M1, 1 Mo. LIBOR + 0.92% (d)................. 3.36% 09/25/34 652,268 1,800,079 Series 2006-1, Class 21A2 (a).................................... 3.30% 02/25/36 1,424,605 Bear Stearns Mortgage Funding Trust 531,518 Series 2006-AR1, Class 1A1, 1 Mo. LIBOR + 0.42% (d).............. 2.86% 07/25/36 480,807 477,734 Series 2006-AR3, Class 1A1, 1 Mo. LIBOR + 0.18% (d).............. 2.62% 10/25/36 409,874 6,130,701 Series 2007-AR1, Class 1A1, 1 Mo. LIBOR + 0.16% (d).............. 2.60% 01/25/37 5,439,358 165,389 Series 2007-AR3, Class 1A1, 1 Mo. LIBOR + 0.14% (d).............. 2.58% 03/25/37 144,119 4,002,306 Series 2007-AR5, Class 2A2, 1 Mo. LIBOR + 0.23% (d).............. 2.67% 06/25/37 3,725,936 CIM Trust 128,437 Series 2018-R6, Class A1, 1 Mo. LIBOR + 1.08% (b) (d)............ 3.45% 09/25/58 125,737 627,695 Series 2020-R7, Class A1A (b) (e)................................ 2.25% 12/27/61 587,449 1,208,537 Series 2021-R3, Class A1A (b).................................... 1.95% 06/25/57 1,095,328 1,509,197 Series 2021-R5, Class A1A (b).................................... 2.00% 08/25/61 1,328,886 Citigroup Mortgage Loan Trust 491,830 Series 2005-8, Class 2A4A........................................ 5.50% 09/25/35 465,615 1,116,882 Series 2009-10, Class 2A2 (b).................................... 7.00% 12/25/35 890,629 Connecticut Avenue Securities Trust 3,244,000 Series 2020-R01, Class 1B1, 1 Mo. LIBOR + 3.25% (b) (d).......... 5.69% 01/25/40 3,043,101 Credit Suisse Mortgage Trust 44,287 Series 2014-2R, Class 28A1 (a) (b)............................... 3.00% 06/27/37 41,528 899,505 Series 2014-8R, Class 3A2 (a) (b)................................ 4.05% 02/27/36 848,581 </TABLE> Page 52 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 (Continued) $ 1,632,800 Series 2014-11R, Class 17A2, 1 Mo. LIBOR + 0.15% (b) (d)......... 2.41% 12/27/36 $ 1,548,983 5,128,921 Series 2020-RPL3, Class A1 (a) (b)............................... 2.69% 03/25/60 4,977,186 4,251,387 Series 2020-RPL6, Class A1 (b)................................... 2.69% 03/25/59 4,099,396 5,017,923 Series 2021-RP11, Class A1 (b)................................... 2.25% 10/25/61 4,448,864 3,926,410 Series 2021-RPL4, Class A1 (b)................................... 1.80% 12/27/60 3,702,079 3,765,450 Series 2022-RPL1, Class A1 (b)................................... 4.15% 04/25/61 3,671,833 3,271,775 Series 2022-RPL1 (b)............................................. 4.27% 04/25/61 3,123,054 137,509 Series 2022-RPL1 (b)............................................. 4.23% 04/25/61 131,196 Deutsche Alt-A Securities Mortgage Loan Trust 2,771,046 Series 2007-AR3, Class 2A5, 1 Mo. LIBOR + 0.40% (d).............. 2.84% 06/25/37 2,566,746 DSLA Mortgage Loan Trust 44,513 Series 2004-AR4, Class 2A1A, 1 Mo. LIBOR + 0.72% (d)............. 3.09% 01/19/45 35,899 5,146,249 Series 2005-AR3, Class 1A, 1 Mo. LIBOR + 0.52% (d)............... 2.89% 07/19/45 4,033,544 Federal Home Loan Mortgage Corporation 2,975,000 Series 2021-HQA2, Class M2, 30 Day Average SOFR + 2.05% (b) (d)................................................. 4.23% 12/25/33 2,782,281 First Horizon Alternative Mortgage Securities Trust 28,580 Series 2004-AA4, Class A1 (a).................................... 2.66% 10/25/34 28,666 1,698,005 Series 2005-AA4, Class 2A1 (a)................................... 2.80% 06/25/35 1,570,704 2,480,237 Series 2007-FA1, Class A4........................................ 6.25% 03/25/37 1,325,367 GreenPoint Mortgage Funding Trust 40,809 Series 2006-AR1, Class A1A, 1 Mo. LIBOR + 0.58% (d).............. 3.02% 02/25/36 37,125 4,332,397 Series 2006-AR6, Class A3A, 1 Mo. LIBOR + 0.44% (d).............. 2.88% 10/25/46 4,192,008 5,415,046 Series 2007-AR1, Class 2A1A, 1 Mo. LIBOR + 0.20% (d)............. 2.64% 03/25/47 4,924,007 554,098 Series 2007-AR2, Class 2A1, 1 Mo. LIBOR + 0.40% (d).............. 2.84% 05/25/37 527,443 GreenPoint MTA Trust 261,265 Series 2005-AR3, Class 1A1, 1 Mo. LIBOR + 0.48% (d).............. 2.92% 08/25/45 207,566 HarborView Mortgage Loan Trust 161,386 Series 2005-9, Class 2A1A, 1 Mo. LIBOR + 0.68% (d)............... 3.05% 06/20/35 150,096 444,709 Series 2005-9, Class 2A1C, 1 Mo. LIBOR + 0.90% (d)............... 3.27% 06/20/35 414,133 712,272 Series 2007-7, Class 1A1, 1 Mo. LIBOR + 2.00% (d)................ 3.44% 10/25/37 631,240 Headlands Residential LLC 4,240,000 Series 2021-RPL1 (b)............................................. 2.49% 09/25/26 3,962,041 HomeBanc Mortgage Trust 4,057,000 Series 2005-3, Class M4, 1 Mo. LIBOR + 1.01% (d)................. 3.45% 07/25/35 3,954,459 9,478 Series 2005-4, Class A1, 1 Mo. LIBOR + 0.54% (d)................. 2.98% 10/25/35 9,479 Impac CMB Trust 47,203 Series 2005-1, Class 1A1, 1 Mo. LIBOR + 0.52% (d)................ 2.96% 04/25/35 44,837 4,732,405 Series 2005-3, Class A1, 1 Mo. LIBOR + 0.48% (d)................. 2.92% 08/25/35 4,373,485 4,116,667 Series 2005-5, Class A1, 1 Mo. LIBOR + 0.32% (d)................. 3.08% 08/25/35 3,882,713 3,219,955 Series 2005-8, Class 1A, 1 Mo. LIBOR + 0.52% (d)................. 2.96% 02/25/36 3,060,873 Impac Secured Assets Trust 5,998,088 Series 2007-1, Class A3, 1 Mo. LIBOR + 0.48% (d)................. 2.92% 03/25/37 5,351,995 IndyMac INDX Mortgage Loan Trust 1,468,350 Series 2005-16IP, Class A1, 1 Mo. LIBOR + 0.64% (d).............. 3.08% 07/25/45 1,197,747 3,512,960 Series 2006-AR2, Class 1A1B, 1 Mo. LIBOR + 0.42% (d)............. 2.86% 04/25/46 3,110,702 469,750 Series 2006-AR4, Class A1A, 1 Mo. LIBOR + 0.42% (d).............. 2.86% 05/25/46 425,176 147,663 Series 2007-FLX2, Class A1C, 1 Mo. LIBOR + 0.19% (d)............. 2.63% 04/25/37 122,633 </TABLE> See Notes to Financial Statements Page 53 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) JP Morgan Alternative Loan Trust $ 2,858,153 Series 2006-S1, Class 1A19....................................... 6.50% 03/25/36 $ 1,881,119 675,842 Series 2006-S1, Class 3A4........................................ 6.18% 03/25/36 588,448 50,974 Series 2007-S1, Class A2, 1 Mo. LIBOR + 0.68% (d)................ 3.12% 04/25/47 48,816 JP Morgan Resecuritization Trust Series 6,269,416 Series 2014-6, Class 3A2, 1 Mo. LIBOR + 0.21% (b) (d)............ 2.68% 07/27/46 5,959,439 Legacy Mortgage Asset Trust 4,101,900 Series 2020-GS2, Class A1, steps up to 5.75% on 03/26/23 (b) (c).............................................. 2.75% 03/25/60 4,098,913 Lehman Mortgage Trust 755,698 Series 2006-1, Class 1A5......................................... 5.50% 02/25/36 452,238 Lehman XS Trust 107,670 Series 2005-5N, Class 3A1A, 1 Mo. LIBOR + 0.30% (d).............. 2.74% 11/25/35 106,635 699,264 Series 2006-2N, Class 2A1, 12 Mo. Treasury Average + 2.02% (d)..................................................... 2.88% 02/25/36 630,515 3,462,836 Series 2006-4N, Class A1D1, 1 Mo. LIBOR + 0.66% (d).............. 3.10% 04/25/46 3,161,591 546,720 Series 2007-12N, Class 1A3A, 1 Mo. LIBOR + 0.40% (d)............. 2.84% 07/25/47 530,558 5,984,955 Series 2007-16N, Class 1A1, 1 Mo. LIBOR + 0.94% (d).............. 3.38% 09/25/47 5,595,183 MASTR Adjustable Rate Mortgages Trust 542,102 Series 2004-14, Class B1, 1 Mo. LIBOR + 2.15% (d)................ 4.59% 01/25/35 542,663 5,685,151 Series 2006-OA2, Class 1A1, 12 Mo. Treasury Average + 0.80% (d)..................................................... 1.66% 12/25/46 4,674,643 6,252,434 Series 2007-1, Class I1A, 1 Mo. LIBOR + 0.39% (d)................ 2.83% 01/25/47 2,564,527 3,164,770 Series 2007-1, Class I2A3, 12 Mo. Treasury Average + 0.74% (d)..................................................... 1.60% 01/25/47 3,113,502 298,080 Series 2007-2, Class A1, 1 Mo. LIBOR + 0.30% (d)................. 2.74% 03/25/47 277,829 4,700,000 Series 2007-HF2, Class A2, 1 Mo. LIBOR + 1.10% (d)............... 3.54% 09/25/37 2,249,353 Merrill Lynch Mortgage Investors Trust 111,948 Series 2003-D, Class A, 1 Mo. LIBOR + 0.62% (d).................. 3.06% 08/25/28 108,727 169,853 Series 2004-E, Class A2B, 6 Mo. LIBOR + 0.72% (d)................ 2.11% 11/25/29 161,874 Morgan Stanley Resecuritization Trust 19,104 Series 2014-R8, Class 3B1, 12 Mo. Treasury Average + 0.75% (b) (d)................................................. 1.39% 06/26/47 19,067 Nomura Resecuritization Trust 1,861,470 Series 2014-1R, Class 1A13, 1 Mo. LIBOR + 0.16% (b) (d).......... 1.84% 10/26/36 1,821,652 Opteum Mortgage Acceptance Corp Trust 5,925,043 Series 2006-1, Class 1AC1, 1 Mo. LIBOR + 0.60% (d)............... 3.04% 04/25/36 5,457,172 PHH Alternative Mortgage Trust 1,179,848 Series 2007-2, Class 1A4, 1 Mo. LIBOR + 0.60% (d)................ 3.04% 05/25/37 1,118,621 PRPM LLC 2,919,070 Series 2021-6, Class A1, steps up to 5.93% on 07/25/25 (b) (c)... 1.79% 07/25/26 2,727,538 4,362,571 Series 2021-9, Class A1, steps up to 5.36% on 10/25/24 (b) (c)... 2.36% 10/25/26 4,101,091 4,515,617 Series 2021-10, Class A1, steps up to 5.49% on 10/25/24 (b) (c).. 2.49% 10/25/26 4,241,014 RALI Trust 1,461,976 Series 2005-QO1, Class A1, 1 Mo. LIBOR + 0.30% (d)............... 2.74% 08/25/35 1,145,128 2,434,464 Series 2006-QO10, Class A1, 1 Mo. LIBOR + 0.32% (d).............. 2.76% 01/25/37 2,168,488 477,732 Series 2006-QS6, Class 1A15...................................... 6.00% 06/25/36 408,624 2,412,807 Series 2007-QA3, Class A1, 1 Mo. LIBOR + 0.20% (d)............... 2.64% 05/25/37 2,257,246 2,955,689 Series 2007-QA3, Class A2, 1 Mo. LIBOR + 0.34% (d)............... 2.78% 05/25/37 2,775,575 975,577 Series 2007-QH4, Class A1, 1 Mo. LIBOR + 0.38% (d)............... 2.82% 05/25/37 880,503 </TABLE> Page 54 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) $ 918,435 Series 2007-QH9, Class A1 (a).................................... 2.11% 11/25/37 $ 829,460 2,312,559 Series 2007-QS9, Class A33....................................... 6.50% 07/25/37 1,978,857 Structured Adjustable Rate Mortgage Loan Trust 16,773 Series 2005-12, Class 3A1 (a).................................... 3.04% 06/25/35 15,327 323,405 Series 2006-11, Class 1A1, 1 Mo. LIBOR + 0.32% (d)............... 2.76% 12/25/36 302,690 575,684 Series 2007-4, Class 1A1, 1 Mo. LIBOR + 0.48% (d)................ 2.92% 05/25/37 528,786 545,384 Series 2007-4, Class 1A2, 1 Mo. LIBOR + 0.44% (d)................ 2.88% 05/25/37 500,778 Structured Asset Mortgage Investments Trust 119,718 Series 2003-AR3, Class A1, 1 Mo. LIBOR + 0.68% (d)............... 3.05% 11/19/33 115,955 Structured Asset Mortgage Investments II Trust 251,035 Series 2005-AR2, Class 2A1, 1 Mo. LIBOR + 0.46% (d).............. 2.90% 05/25/45 226,237 454,562 Series 2006-AR1, Class 3A1, 1 Mo. LIBOR + 0.46% (d).............. 2.90% 02/25/36 415,235 345,197 Series 2006-AR3, Class 12A1, 1 Mo. LIBOR + 0.44% (d)............. 2.88% 05/25/36 293,193 402,868 Series 2006-AR4, Class 3A1, 1 Mo. LIBOR + 0.38% (d).............. 2.82% 06/25/36 350,939 39,093 Series 2006-AR5, Class 1A1, 1 Mo. LIBOR + 0.42% (d).............. 2.86% 05/25/36 31,009 1,678,563 Series 2006-AR6, Class 2A1, 1 Mo. LIBOR + 0.38% (d).............. 2.82% 07/25/46 1,304,099 899,898 Series 2006-AR8, Class A1A, 1 Mo. LIBOR + 0.40% (d).............. 2.84% 10/25/36 835,663 386,479 Series 2007-AR1, Class 1A1, 1 Mo. LIBOR + 0.32% (d).............. 2.76% 01/25/37 346,811 160,080 Series 2007-AR1, Class 2A1, 1 Mo. LIBOR + 0.18% (d).............. 2.62% 01/25/37 144,062 612,668 Series 2007-AR6, Class A1, 12 Mo. Treasury Average + 1.50% (d)..................................................... 2.36% 08/25/47 563,043 TBW Mortgage-Backed Trust 114,651 Series 2006-4, Class A4.......................................... 6.66% 09/25/36 112,869 WaMu Mortgage Pass-Through Certificates Trust 121,008 Series 2004-AR12, Class A2A, 1 Mo. LIBOR + 0.78% (d)............. 3.22% 10/25/44 109,415 5,235,475 Series 2005-AR15, Class A1A2, 1 Mo. LIBOR + 0.56% (d)............ 3.00% 11/25/45 4,745,223 2,413,147 Series 2006-AR3, Class A1A, 12 Mo. Treasury Average + 1.00% (d)..................................................... 1.86% 02/25/46 2,200,428 46,171 Series 2006-AR11, Class 1A, 12 Mo. Treasury Average + 0.96% (d)..................................................... 1.82% 09/25/46 39,602 2,788,436 Series 2007-OA4, Class 1A, 12 Mo. Treasury Average + 0.77% (d)..................................................... 1.63% 05/25/47 2,512,280 789,814 Series 2007-OA5, Class 1A, 12 Mo. Treasury Average + 0.75% (d)..................................................... 1.61% 06/25/47 693,549 Washington Mutual Mortgage Pass-Through Certificates WMALT Trust 2,125,493 Series 2006-AR6, Class 2A, 12 Mo. Treasury Average + 0.96% (d)..................................................... 1.82% 08/25/46 1,366,192 650,367 Series 2007-OC1, Class A4, 1 Mo. LIBOR + 0.32% (d)............... 2.76% 01/25/47 620,450 Wells Fargo Mortgage Backed Securities Trust 199,371 Series 2007-AR5, Class A1 (a).................................... 3.57% 10/25/37 182,867 -------------- 213,706,586 -------------- COMMERCIAL MORTGAGE-BACKED OBLIGATIONS -- 9.6% AREIT Trust 1,460,000 Series 2020-CRE4, Class B, 30 Day Average SOFR + 4.26% (b) (d)................................................. 6.25% 04/15/37 1,462,992 BAMLL Commercial Mortgage Securities Trust 2,975,000 Series 2020-BHP3, Class A, 1 Mo. LIBOR + 1.90% (b) (d)........... 4.29% 03/15/37 2,961,631 Banc of America Commercial Mortgage Trust 13,113,069 Series 2015-UBS7, Class XA, IO (a)............................... 0.90% 09/15/48 246,368 </TABLE> See Notes to Financial Statements Page 55 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED OBLIGATIONS (CONTINUED) BANK $ 29,230,260 Series 2020-BN27, Class XA, IO (a)............................... 1.27% 04/15/63 $ 1,953,189 Bayview Commercial Asset Trust 717,097 Series 2005-4A, Class A1, 1 Mo. LIBOR + 0.45% (b) (d)............ 2.89% 01/25/36 655,350 BBCMS Mortgage Trust 2,445,000 Series 2020-BID, Class A, 1 Mo. LIBOR + 2.14% (b) (d)............ 4.53% 10/15/37 2,416,360 2,300,000 Series 2020-BID, Class C, 1 Mo. LIBOR + 3.64% (b) (d)............ 6.03% 10/15/37 2,251,479 BDS Ltd. 2,000,000 Series 2020-FL6, Class C, 30 Day Average SOFR + 2.36% (b) (d)................................................. 4.37% 09/15/35 1,943,125 1,125,000 Series 2020-FL6, Class D, 30 Day Average SOFR + 2.86% (b) (d)................................................. 4.87% 09/15/35 1,113,916 2,984,000 Series 2020-FL6, Class E, 30 Day Average SOFR + 3.36% (b) (d)................................................. 5.37% 09/15/35 2,886,131 3,061,297 Series 2021-FL8, Class A, 1 Mo. LIBOR + 0.92% (b) (d)............ 3.30% 01/18/36 2,994,745 Benchmark Mortgage Trust 1,134,102 Series 2018-B6, Class A2......................................... 4.20% 10/10/51 1,127,270 2,000,000 Series 2020-B18, Class AGNE (b).................................. 3.76% 07/15/53 1,727,724 1,810,000 Series 2020-IG2, Class UBRD (a) (b).............................. 3.63% 09/15/48 1,608,603 72,517,197 Series 2020-IG3, Class XA, IO (a) (b)............................ 0.82% 09/15/48 1,926,419 BFLD Trust 2,304,000 Series 2019-DPLO, Class A, 1 Mo. LIBOR + 1.09% (b) (d)........... 3.48% 10/15/34 2,265,829 2,385,000 Series 2020-OBRK, Class A, 1 Mo. LIBOR + 2.05% (b) (d)........... 4.44% 11/15/28 2,361,477 782,000 Series 2021-FPM, Class A, 1 Mo. LIBOR + 1.60% (b) (d)............ 3.99% 06/15/38 758,932 BLOX Trust 1,570,000 Series 2021-BLOX, Class D, 1 Mo. LIBOR + 1.75% (b) (d)........... 4.14% 09/15/26 1,493,376 BWAY Mortgage Trust 1,700,000 Series 2015-1740, Class A (b).................................... 2.92% 01/10/35 1,561,984 BX Commercial Mortgage Trust 3,420,000 Series 2020-VIV3, Class B (a) (b)................................ 3.66% 03/09/44 2,987,835 4,050,000 Series 2020-VIV4, Class A (b).................................... 2.84% 03/09/44 3,483,600 1,800,000 Series 2021-21M, Class E, 1 Mo. LIBOR + 2.17% (b) (d)............ 4.56% 10/15/36 1,701,552 3,728,247 Series 2021-XL2, Class J, 1 Mo. LIBOR + 3.89% (b) (d)............ 6.28% 10/15/38 3,547,678 1,400,000 Series 2021-VINO, Class E, 1 Mo. LIBOR + 1.95% (b) (d)........... 4.34% 05/15/38 1,309,659 2,462,000 Series 2021-VOLT, Class E, 1 Mo. LIBOR + 2.00% (b) (d)........... 4.39% 09/15/36 2,350,098 2,845,000 Series 2022-AHP, Class AS, 1 Mo. CME Term SOFR + 1.49% (b) (d)................................................. 3.80% 01/17/39 2,773,543 BX Trust 2,800,000 Series 2019-OC11, Class A (b).................................... 3.20% 12/09/41 2,486,082 2,040,000 Series 2021-BXMF, Class G, 1 Mo. LIBOR + 3.35% (b) (d)........... 5.74% 10/15/26 1,853,421 1,500,000 Series 2022-VAMF, Class E, 1 Mo. CME Term SOFR + 2.70% (b) (d)................................................. 5.01% 01/15/39 1,415,570 2,250,000 Series 2021-VIEW, Class A, 1 Mo. LIBOR + 1.28% (b) (d)........... 3.67% 06/15/36 2,185,971 BXMT Ltd. 3,375,000 Series 2020-FL3, Class A, 30 Day Average SOFR + 1.51% (b) (d)................................................. 3.50% 11/15/37 3,340,328 CAMB Commercial Mortgage Trust 3,050,000 Series 2019-LIFE, Class F, 1 Mo. LIBOR + 2.55% (b) (d)........... 4.94% 12/15/37 2,951,301 Citigroup Commercial Mortgage Trust 56,315,281 Series 2017-C4, Class XA, IO (a)................................. 1.22% 10/12/50 1,973,338 </TABLE> Page 56 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 $ 717,377 Series 2012-CR1, Class B......................................... 4.61% 05/15/45 $ 715,446 853,109 Series 2012-CR4, Class XA, IO (a)................................ 1.74% 10/15/45 4 1,285,167 Series 2014-CR14, Class A2....................................... 3.15% 02/10/47 1,278,029 4,601,344 Series 2020-CBM, Class XCP, IO (a) (b)........................... 0.72% 02/10/37 61,267 21,254,000 Series 2020-SBX, Class X, IO (a) (b)............................. 0.66% 01/10/38 373,539 Credit Suisse Mortgage Trust 3,180,000 Series 2020-TMIC, Class A, 1 Mo. LIBOR + 3.00% (b) (d)........... 5.39% 12/15/35 3,154,211 2,450,000 Series 2020-TMIC, Class B, 1 Mo. LIBOR + 5.00% (b) (d)........... 7.39% 12/15/35 2,430,664 25,699,000 Series 2021-980M, Class X, IO (a) (b)............................ 1.11% 07/15/31 885,788 Csail Commercial Mortgage Trust 1,350,000 Series 2015-C2, Class C (a)...................................... 4.32% 06/15/57 1,209,361 DBWF Mortgage Trust 600,000 Series 2016-85T, Class A (b)..................................... 3.79% 12/10/36 568,427 DROP Mortgage Trust 3,280,000 Series 2021-FILE, Class B, 1 Mo. LIBOR + 1.70% (b) (d)........... 4.09% 10/15/43 3,140,055 Extended Stay America Trust 2,435,014 Series 2021-ESH, Class C, 1 Mo. LIBOR + 1.70% (b) (d)............ 4.09% 07/15/38 2,367,118 FREMF Mortgage Trust 2,282,949 Series 2019-KF64, Class B, 1 Mo. LIBOR + 2.30% (b) (d)........... 4.66% 06/25/26 2,256,680 GS Mortgage Securities Corp Trust 2,600,000 Series 2020-UPTN, Class XA, IO (a) (b)........................... 0.45% 02/10/37 21,567 GS Mortgage Securities Trust 84,796,785 Series 2016-GS4, Class XA, IO (a)................................ 0.69% 11/10/49 1,638,274 Hilton USA Trust 3,161,000 Series 2016-SFP, Class F (b)..................................... 6.16% 11/05/35 3,029,290 JP Morgan Chase Commercial Mortgage Securities Trust 37,277,073 Series 2016-JP3, Class XA, IO (a)................................ 1.52% 08/15/49 1,537,385 1,800,000 Series 2022-NLP, Class G, 1 Mo. CME Term SOFR + 4.27% (b) (d)................................................. 6.58% 04/15/37 1,670,376 Life Mortgage Trust 2,309,980 Series 2021-BMR, Class G, 1 Mo. LIBOR + 2.95% (b) (d)............ 5.34% 03/15/38 2,142,572 Med Trust 1,400,000 Series 2021-MDLN, Class G, 1 Mo. LIBOR + 5.25% (b) (d)........... 7.64% 11/15/38 1,338,878 Morgan Stanley Capital I Trust 28,223,426 Series 2018-H4, Class XA, IO (a)................................. 1.00% 12/15/51 1,107,620 1,050,000 Series 2018-MP, Class A (a) (b).................................. 4.42% 07/11/40 980,535 MSCG Trust 1,645,000 Series 2018-SELF, Class E, 1 Mo. LIBOR + 2.15% (b) (d)........... 4.54% 10/15/37 1,579,128 One Bryant Park Trust 2,800,000 Series 2019-OBP, Class A (b)..................................... 2.52% 09/15/54 2,410,927 Ready Capital Mortgage Financing LLC 1,100,000 Series 2020-FL4, Class AS, 1 Mo. LIBOR + 3.10% (b) (d)........... 5.54% 02/25/35 1,098,650 SFAVE Commercial Mortgage Securities Trust 545,000 Series 2015-5AVE, Class C (a) (b)................................ 4.53% 01/05/43 380,807 SMRT 2,730,000 Series 2022-MINI, Class F, 1 Mo. CME Term SOFR + 3.35% (b) (d)................................................. 5.66% 01/15/39 2,528,677 STWD Mortgage Trust 1,550,000 Series 2021-LIH, Class AS, 1 Mo. LIBOR + 1.26% (b) (d)........... 3.65% 11/15/36 1,488,331 </TABLE> See Notes to Financial Statements Page 57 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED OBLIGATIONS (CONTINUED) UBS Commercial Mortgage Trust $ 60,819,894 Series 2017-C4, Class XA, IO (a)................................. 1.16% 10/15/50 $ 2,510,846 VMC Finance LLC 779,000 Series 2021-FL4, Class B, 1 Mo. LIBOR + 1.80% (b) (d)............ 4.18% 06/16/36 755,630 3,000,000 Series 2021-HT1, Class B, 1 Mo. LIBOR + 4.50% (b) (d)............ 6.88% 01/18/37 2,881,537 Wells Fargo Commercial Mortgage Trust 34,138,282 Series 2016-C35, Class XA, IO (a)................................ 2.04% 07/15/48 1,869,290 2,704,000 Series 2019-JWDR, Class E (a) (b)................................ 3.99% 09/15/31 2,358,730 -------------- 121,846,515 -------------- TOTAL MORTGAGE-BACKED SECURITIES............................................................... 335,553,101 (Cost $348,659,172) -------------- CORPORATE BONDS AND NOTES -- 22.0% ADVERTISING -- 0.1% 1,525,000 National CineMedia LLC (b).......................................... 5.88% 04/15/28 1,067,996 -------------- AEROSPACE/DEFENSE -- 0.1% 635,000 Boeing (The) Co..................................................... 1.43% 02/04/24 609,251 1,350,000 TransDigm, Inc...................................................... 5.50% 11/15/27 1,216,640 -------------- 1,825,891 -------------- AGRICULTURE -- 0.4% 30,000 BAT Capital Corp.................................................... 2.73% 03/25/31 24,049 1,250,000 BAT Capital Corp.................................................... 4.54% 08/15/47 916,436 3,555,000 BAT Capital Corp.................................................... 5.65% 03/16/52 3,029,820 645,000 Reynolds American, Inc.............................................. 5.85% 08/15/45 555,505 -------------- 4,525,810 -------------- AIRLINES -- 0.1% 300,146 American Airlines Pass-Through Trust, Series 2014-1, Class A........ 3.70% 10/01/26 257,354 541,107 JetBlue Pass-Through Trust, Series 2020-1, Class A.................. 4.00% 11/15/32 494,019 452,331 United Airlines Pass-Through Trust, Series 2013-1, Class A.......... 4.30% 08/15/25 426,042 106,315 US Airways Pass-Through Trust, Series 2012-1, Class A............... 5.90% 10/01/24 104,294 -------------- 1,281,709 -------------- BANKS -- 4.9% 3,000,000 Bank of America Corp. (f)........................................... 3.00% 12/20/23 2,989,457 300,000 Bank of America Corp. (f)........................................... 2.69% 04/22/32 249,855 3,510,000 Bank of America Corp. (f)........................................... 2.30% 07/21/32 2,820,982 1,500,000 Bank of America Corp. (f)........................................... 2.57% 10/20/32 1,230,468 765,000 Bank of America Corp. (f)........................................... 2.97% 02/04/33 645,031 570,000 Bank of America Corp., Series RR (f)................................ 4.38% (g) 489,955 750,000 Bank of America Corp., Medium-Term Note (f)......................... 2.02% 02/13/26 703,918 2,665,000 Bank of America Corp., Medium-Term Note (f)......................... 1.32% 06/19/26 2,427,022 390,000 Bank of America Corp., Medium-Term Note (f)......................... 3.82% 01/20/28 374,116 815,000 Bank of America Corp., Medium-Term Note (f)......................... 2.09% 06/14/29 694,789 465,000 Bank of America Corp., Medium-Term Note (f)......................... 3.97% 02/07/30 437,496 2,530,000 Bank of America Corp., Medium-Term Note (f)......................... 1.92% 10/24/31 2,007,792 500,000 Citigroup, Inc. (f)................................................. 3.35% 04/24/25 490,498 520,000 Citigroup, Inc. (f)................................................. 3.07% 02/24/28 482,255 225,000 Citigroup, Inc. (f)................................................. 4.08% 04/23/29 214,663 525,000 Citigroup, Inc. (f)................................................. 2.98% 11/05/30 459,326 </TABLE> Page 58 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> BANKS (CONTINUED) $ 315,000 Citigroup, Inc. (f)................................................. 2.67% 01/29/31 $ 266,567 1,390,000 Citigroup, Inc. (f)................................................. 4.41% 03/31/31 1,327,541 630,000 Citigroup, Inc. (f)................................................. 2.57% 06/03/31 528,468 520,000 Citigroup, Inc. (f)................................................. 2.56% 05/01/32 429,503 1,540,000 Citigroup, Inc. (f)................................................. 2.52% 11/03/32 1,249,179 3,130,000 Citigroup, Inc. (f)................................................. 3.06% 01/25/33 2,654,409 135,000 Comerica, Inc. (f).................................................. 5.63% (g) 135,650 1,615,000 Goldman Sachs Group (The), Inc. (f)................................. 0.93% 10/21/24 1,546,815 3,025,000 Goldman Sachs Group (The), Inc. (f)................................. 2.62% 04/22/32 2,498,268 4,125,000 Goldman Sachs Group (The), Inc. (f)................................. 2.65% 10/21/32 3,407,234 4,530,000 Goldman Sachs Group (The), Inc., Series D (f)....................... 2.38% 07/21/32 3,679,665 130,000 JPMorgan Chase & Co. (f)............................................ 0.70% 03/16/24 127,668 1,110,000 JPMorgan Chase & Co. (f)............................................ 0.97% 06/23/25 1,040,806 355,000 JPMorgan Chase & Co. (f)............................................ 2.01% 03/13/26 333,227 1,660,000 JPMorgan Chase & Co. (f)............................................ 1.58% 04/22/27 1,483,743 780,000 JPMorgan Chase & Co. (f)............................................ 1.47% 09/22/27 684,895 675,000 JPMorgan Chase & Co. (f)............................................ 2.95% 02/24/28 627,825 200,000 JPMorgan Chase & Co. (f)............................................ 4.01% 04/23/29 189,792 3,170,000 JPMorgan Chase & Co. (f)............................................ 2.58% 04/22/32 2,627,864 3,535,000 JPMorgan Chase & Co. (f)............................................ 2.55% 11/08/32 2,917,166 710,000 JPMorgan Chase & Co. (f)............................................ 2.96% 01/25/33 605,163 595,000 JPMorgan Chase & Co., Series KK (f)................................. 3.65% (g) 517,275 720,000 Morgan Stanley (f).................................................. 2.48% 09/16/36 556,402 3,710,000 Morgan Stanley (f).................................................. 5.30% 04/20/37 3,559,992 1,100,000 Morgan Stanley, Global Medium-Term Note (f)......................... 0.79% 01/22/25 1,044,214 2,630,000 Morgan Stanley, Global Medium-Term Note (f)......................... 2.24% 07/21/32 2,129,121 940,000 Morgan Stanley, Medium-Term Note (f)................................ 2.51% 10/20/32 772,631 555,000 US Bancorp (f)...................................................... 3.70% (g) 466,073 1,485,000 Wells Fargo & Co., Medium-Term Note (f)............................. 2.39% 06/02/28 1,333,084 5,830,000 Wells Fargo & Co., Medium-Term Note (f)............................. 3.35% 03/02/33 5,130,430 1,665,000 Wells Fargo & Co., Medium-Term Note (f)............................. 4.90% 07/25/33 1,640,850 385,000 Wells Fargo & Co., Medium-Term Note (f)............................. 5.01% 04/04/51 378,095 -------------- 62,607,238 -------------- BEVERAGES -- 0.2% 775,000 Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc.............................................................. 4.90% 02/01/46 739,009 215,000 Anheuser-Busch InBev Worldwide, Inc................................. 4.60% 04/15/48 195,969 1,335,000 Constellation Brands, Inc........................................... 4.35% 05/09/27 1,333,364 720,000 Primo Water Holdings, Inc. (b)...................................... 4.38% 04/30/29 616,695 -------------- 2,885,037 -------------- BIOTECHNOLOGY -- 0.1% 1,000,000 Illumina, Inc....................................................... 2.55% 03/23/31 824,147 -------------- CHEMICALS -- 0.2% 475,000 International Flavors & Fragrances, Inc. (b)........................ 1.23% 10/01/25 427,801 175,000 Unifrax Escrow Issuer Corp. (b)..................................... 5.25% 09/30/28 140,645 625,000 Unifrax Escrow Issuer Corp. (b)..................................... 7.50% 09/30/29 458,098 1,350,000 Valvoline, Inc. (b)................................................. 4.25% 02/15/30 1,317,870 -------------- 2,344,414 -------------- </TABLE> See Notes to Financial Statements Page 59 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL SERVICES -- 0.6% $ 436,000 Adtalem Global Education, Inc. (b).................................. 5.50% 03/01/28 $ 414,793 375,000 Carriage Services, Inc. (b)......................................... 4.25% 05/15/29 315,936 520,000 Global Payments, Inc................................................ 5.40% 08/15/32 511,498 293,000 Global Payments, Inc................................................ 5.95% 08/15/52 284,446 2,015,000 Hertz (The) Corp. (b)............................................... 5.00% 12/01/29 1,624,433 1,475,000 Prime Security Services Borrower LLC / Prime Finance, Inc. (b)...... 3.38% 08/31/27 1,271,244 1,250,000 Rent-A-Center, Inc. (b)............................................. 6.38% 02/15/29 1,056,100 215,000 S&P Global, Inc. (b)................................................ 4.75% 08/01/28 220,907 535,000 S&P Global, Inc. (b)................................................ 2.90% 03/01/32 476,307 61,000 Service Corp. International......................................... 4.63% 12/15/27 57,352 1,250,000 WASH Multifamily Acquisition, Inc. (b).............................. 5.75% 04/15/26 1,206,606 -------------- 7,439,622 -------------- COMPUTERS -- 0.1% 1,875,000 NCR Corp. (b)....................................................... 5.13% 04/15/29 1,753,500 -------------- COSMETICS/PERSONAL CARE -- 0.1% 1,300,000 Edgewell Personal Care Co. (b)...................................... 5.50% 06/01/28 1,202,090 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.6% 570,000 Air Lease Corp...................................................... 3.88% 07/03/23 568,393 1,390,000 Air Lease Corp...................................................... 2.20% 01/15/27 1,223,381 300,000 Air Lease Corp., Medium-Term Note................................... 2.88% 01/15/26 277,255 605,000 American Express Co. (f)............................................ 3.55% (g) 521,661 1,505,000 Capital One Financial Corp. (f)..................................... 1.88% 11/02/27 1,329,144 1,735,000 Charles Schwab (The) Corp........................................... 1.95% 12/01/31 1,419,696 540,000 Charles Schwab (The) Corp. (f)...................................... 5.00% (g) 503,358 1,505,000 Intercontinental Exchange, Inc...................................... 4.60% 03/15/33 1,494,015 -------------- 7,336,903 -------------- ELECTRIC -- 0.9% 75,000 Alliant Energy Finance LLC (b)...................................... 3.75% 06/15/23 74,565 2,045,000 Alliant Energy Finance LLC (b)...................................... 3.60% 03/01/32 1,855,138 1,285,000 American Electric Power Co., Inc.................................... 2.03% 03/15/24 1,245,774 365,000 Appalachian Power Co., Series X..................................... 3.30% 06/01/27 348,032 540,000 Duke Energy Carolinas LLC........................................... 3.55% 03/15/52 447,351 1,000,000 Duke Energy Corp.................................................... 3.75% 04/15/24 996,220 600,000 Duke Energy Corp.................................................... 3.85% 06/15/34 574,609 750,000 Duke Energy Corp.................................................... 3.75% 09/01/46 593,976 100,000 Evergy Metro, Inc................................................... 4.20% 06/15/47 89,514 290,000 Exelon Corp. (b).................................................... 3.35% 03/15/32 261,076 1,254,000 FirstEnergy Corp., Series C......................................... 3.40% 03/01/50 900,755 955,000 FirstEnergy Transmission LLC (b).................................... 2.87% 09/15/28 850,264 750,000 Jersey Central Power & Light Co. (b)................................ 4.70% 04/01/24 746,739 100,000 Metropolitan Edison Co. (b)......................................... 3.50% 03/15/23 99,840 750,000 MidAmerican Energy Co............................................... 3.95% 08/01/47 668,995 550,000 NextEra Energy Capital Holdings, Inc., 3 Mo. LIBOR + 0.27% (d)........................................................ 3.25% 02/22/23 548,811 345,000 NextEra Energy Capital Holdings, Inc................................ 0.65% 03/01/23 338,932 500,000 Pennsylvania Electric Co. (b)....................................... 4.15% 04/15/25 487,539 100,000 Puget Sound Energy, Inc............................................. 4.22% 06/15/48 89,678 450,000 Southwestern Electric Power Co., Series M........................... 4.10% 09/15/28 436,555 -------------- 11,654,363 -------------- </TABLE> Page 60 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> ELECTRICAL COMPONENT & EQUIPMENT -- 0.1% $ 1,122,000 Energizer Holdings, Inc. (b)........................................ 4.38% 03/31/29 $ 912,652 -------------- ENGINEERING & CONSTRUCTION -- 0.1% 1,113,000 Artera Services LLC (b)............................................. 9.03% 12/04/25 914,574 -------------- ENTERTAINMENT -- 1.0% 1,000,000 Caesars Entertainment, Inc. (b)..................................... 8.13% 07/01/27 985,190 1,140,000 Caesars Entertainment, Inc. (b)..................................... 4.63% 10/15/29 921,969 515,000 Churchill Downs, Inc. (b)........................................... 5.50% 04/01/27 494,420 600,000 Cinemark USA, Inc. (b).............................................. 5.25% 07/15/28 485,659 1,220,000 Everi Holdings, Inc. (b)............................................ 5.00% 07/15/29 1,075,372 600,000 Live Nation Entertainment, Inc. (b)................................. 4.75% 10/15/27 546,999 2,075,000 Penn Entertainment, Inc. (b)........................................ 4.13% 07/01/29 1,678,831 515,000 Warnermedia Holdings, Inc. (b)...................................... 4.28% 03/15/32 448,720 2,715,000 Warnermedia Holdings, Inc. (b)...................................... 5.05% 03/15/42 2,244,905 3,988,000 Warnermedia Holdings, Inc. (b)...................................... 5.14% 03/15/52 3,225,297 -------------- 12,107,362 -------------- ENVIRONMENTAL CONTROL -- 0.1% 200,000 Clean Harbors, Inc. (b)............................................. 4.88% 07/15/27 185,746 1,953,000 Waste Pro USA, Inc. (b)............................................. 5.50% 02/15/26 1,753,403 -------------- 1,939,149 -------------- FOOD -- 0.6% 1,150,000 Chobani LLC / Chobani Finance Corp., Inc. (b)....................... 4.63% 11/15/28 1,007,964 300,000 Kraft Heinz Foods Co................................................ 3.75% 04/01/30 279,032 186,000 Kraft Heinz Foods Co................................................ 4.25% 03/01/31 177,699 1,650,000 Kraft Heinz Foods Co................................................ 5.20% 07/15/45 1,558,158 240,000 Kraft Heinz Foods Co................................................ 4.38% 06/01/46 204,797 765,000 Kraft Heinz Foods Co................................................ 4.88% 10/01/49 697,901 20,000 Pilgrim's Pride Corp. (b)........................................... 5.88% 09/30/27 19,728 286,000 Pilgrim's Pride Corp. (b)........................................... 4.25% 04/15/31 246,741 1,200,000 Pilgrim's Pride Corp. (b)........................................... 3.50% 03/01/32 975,648 661,000 Post Holdings, Inc. (b)............................................. 5.75% 03/01/27 646,828 387,000 Smithfield Foods, Inc. (b).......................................... 5.20% 04/01/29 377,253 1,500,000 TreeHouse Foods, Inc................................................ 4.00% 09/01/28 1,259,865 -------------- 7,451,614 -------------- FOREST PRODUCTS & PAPER -- 0.1% 755,000 Clearwater Paper Corp. (b).......................................... 4.75% 08/15/28 676,053 -------------- GAS -- 0.0% 155,000 Southern Co. Gas Capital Corp....................................... 5.88% 03/15/41 162,357 -------------- HEALTHCARE-PRODUCTS -- 0.3% 1,600,000 Alcon Finance Corp. (b)............................................. 3.00% 09/23/29 1,424,723 1,425,000 DENTSPLY SIRONA, Inc................................................ 3.25% 06/01/30 1,177,942 208,000 Hologic, Inc. (b)................................................... 4.63% 02/01/28 194,228 1,000,000 PerkinElmer, Inc.................................................... 2.25% 09/15/31 798,266 -------------- 3,595,159 -------------- HEALTHCARE-SERVICES -- 1.7% 635,000 Barnabas Health, Inc., Series 2012.................................. 4.00% 07/01/28 614,383 700,000 Cano Health LLC (b)................................................. 6.25% 10/01/28 630,257 400,000 Catalent Pharma Solutions, Inc. (b)................................. 3.13% 02/15/29 332,444 </TABLE> See Notes to Financial Statements Page 61 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> HEALTHCARE-SERVICES (CONTINUED) $ 900,000 Catalent Pharma Solutions, Inc. (b)................................. 3.50% 04/01/30 $ 742,500 1,125,000 Centene Corp........................................................ 4.25% 12/15/27 1,069,965 1,778,000 Centene Corp........................................................ 2.45% 07/15/28 1,502,090 1,396,000 Centene Corp........................................................ 3.00% 10/15/30 1,166,777 500,000 Centene Corp........................................................ 2.50% 03/01/31 399,690 250,000 CommonSpirit Health................................................. 3.35% 10/01/29 224,238 370,000 CommonSpirit Health................................................. 2.78% 10/01/30 311,041 90,000 HCA, Inc............................................................ 5.25% 04/15/25 90,994 380,000 HCA, Inc............................................................ 5.38% 09/01/26 381,524 360,000 HCA, Inc............................................................ 7.05% 12/01/27 386,377 417,000 HCA, Inc............................................................ 4.13% 06/15/29 385,136 1,300,000 HCA, Inc............................................................ 3.50% 09/01/30 1,135,632 2,068,000 HCA, Inc. (b)....................................................... 3.63% 03/15/32 1,794,129 1,830,000 HCA, Inc............................................................ 5.50% 06/15/47 1,697,659 470,000 HCA, Inc............................................................ 5.25% 06/15/49 421,077 2,445,000 HCA, Inc. (b)....................................................... 4.63% 03/15/52 2,034,913 365,000 HCA, Inc., Medium-Term Note......................................... 7.58% 09/15/25 393,047 100,000 Humana, Inc......................................................... 3.15% 12/01/22 99,966 700,000 Molina Healthcare, Inc. (b)......................................... 4.38% 06/15/28 646,895 919,000 Molina Healthcare, Inc. (b)......................................... 3.88% 11/15/30 796,906 325,000 Molina Healthcare, Inc. (b)......................................... 3.88% 05/15/32 280,210 1,350,000 Prime Healthcare Services, Inc. (b)................................. 7.25% 11/01/25 1,196,903 62,000 Tenet Healthcare Corp............................................... 4.63% 07/15/24 60,791 178,000 Tenet Healthcare Corp. (b).......................................... 4.63% 06/15/28 162,048 748,000 Tenet Healthcare Corp. (b).......................................... 4.25% 06/01/29 649,182 850,000 Tenet Healthcare Corp. (b).......................................... 4.38% 01/15/30 743,750 1,350,000 Universal Health Services, Inc. (b)................................. 1.65% 09/01/26 1,168,853 -------------- 21,519,377 -------------- HOUSEHOLD PRODUCTS/WARES -- 0.2% 1,505,000 Clorox (The) Co..................................................... 1.80% 05/15/30 1,231,410 2,250,000 Spectrum Brands, Inc. (b)........................................... 5.50% 07/15/30 1,942,268 -------------- 3,173,678 -------------- INSURANCE -- 1.0% 437,000 Acrisure LLC / Acrisure Finance, Inc. (b)........................... 4.25% 02/15/29 371,341 700,000 Acrisure LLC / Acrisure Finance, Inc. (b)........................... 6.00% 08/01/29 568,710 1,250,000 Alliant Holdings Intermediate LLC / Alliant Holdings Co-Issuer (b).................................................... 6.75% 10/15/27 1,137,550 550,000 AmWINS Group, Inc. (b).............................................. 4.88% 06/30/29 479,411 1,060,000 Aon Corp. / Aon Global Holdings PLC................................. 3.90% 02/28/52 884,020 1,115,000 Athene Global Funding (b)........................................... 3.21% 03/08/27 1,015,702 1,560,000 Athene Global Funding (b)........................................... 1.99% 08/19/28 1,298,015 675,000 Athene Global Funding (b)........................................... 2.72% 01/07/29 574,945 975,000 Berkshire Hathaway Finance Corp..................................... 3.85% 03/15/52 844,593 810,000 Brown & Brown, Inc.................................................. 4.95% 03/17/52 725,634 250,000 Farmers Exchange Capital III (b) (f)................................ 5.45% 10/15/54 243,945 775,000 Farmers Insurance Exchange (b)...................................... 8.63% 05/01/24 817,944 465,000 Farmers Insurance Exchange (b) (f).................................. 4.75% 11/01/57 411,039 750,000 MassMutual Global Funding II (b).................................... 3.40% 03/08/26 730,424 1,360,000 Nationwide Mutual Insurance Co., 3 Mo. LIBOR + 2.29% (b) (d)........ 4.12% 12/15/24 1,360,308 </TABLE> Page 62 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> INSURANCE (CONTINUED) $ 50,000 Teachers Insurance & Annuity Association of America (b)............. 4.27% 05/15/47 $ 45,276 220,000 Teachers Insurance & Annuity Association of America (b)............. 3.30% 05/15/50 168,334 1,260,000 Teachers Insurance & Annuity Association of America (b) (f)......... 4.38% 09/15/54 1,226,731 -------------- 12,903,922 -------------- INTERNET -- 0.2% 600,000 Cogent Communications Group, Inc. (b)............................... 7.00% 06/15/27 574,129 1,775,000 Netflix, Inc........................................................ 5.88% 02/15/25 1,822,960 -------------- 2,397,089 -------------- MACHINERY-DIVERSIFIED -- 0.1% 2,650,000 OT Merger Corp. (b)................................................. 7.88% 10/15/29 1,912,492 -------------- MEDIA -- 0.9% 1,249,000 Cable One, Inc. (b)................................................. 4.00% 11/15/30 1,042,059 2,250,000 CCO Holdings LLC / CCO Holdings Capital Corp. (b)................... 4.75% 02/01/32 1,865,183 295,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 2.30% 02/01/32 225,240 370,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.38% 05/01/47 314,709 325,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.75% 04/01/48 290,555 542,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.13% 07/01/49 441,933 1,000,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 4.80% 03/01/50 789,914 690,000 Charter Communications Operating LLC / Charter Communications Operating Capital................................................ 5.25% 04/01/53 585,694 173,000 Cox Communications, Inc. (b)........................................ 3.15% 08/15/24 168,139 680,000 Cox Communications, Inc. (b)........................................ 2.60% 06/15/31 568,911 900,000 Cox Enterprises, Inc. (b)........................................... 7.38% 07/15/27 978,761 20,000 CSC Holdings LLC (b)................................................ 5.38% 02/01/28 18,167 1,200,000 CSC Holdings LLC (b)................................................ 4.50% 11/15/31 942,108 1,772,000 Diamond Sports Group LLC / Diamond Sports Finance Co. (b)........... 5.38% 08/15/26 338,895 450,000 Directv Financing LLC / Directv Financing Co-Obligor, Inc. (b)...... 5.88% 08/15/27 415,746 1,205,000 Gray Escrow II, Inc. (b)............................................ 5.38% 11/15/31 1,019,900 816,000 Scripps Escrow II, Inc. (b)......................................... 5.38% 01/15/31 668,875 630,000 Time Warner Cable LLC............................................... 5.88% 11/15/40 566,935 450,000 Time Warner Cable LLC............................................... 5.50% 09/01/41 388,168 390,000 Walt Disney (The) Co................................................ 4.00% 10/01/23 391,867 -------------- 12,021,759 -------------- OIL & GAS -- 0.1% 1,118,000 Occidental Petroleum Corp........................................... (h) 10/10/36 583,154 800,000 Sunoco L.P. / Sunoco Finance Corp................................... 4.50% 05/15/29 681,442 196,000 Sunoco L.P. / Sunoco Finance Corp................................... 4.50% 04/30/30 167,507 -------------- 1,432,103 -------------- OIL & GAS SERVICES -- 0.2% 1,336,000 Archrock Partners L.P. / Archrock Partners Finance Corp. (b)........ 6.25% 04/01/28 1,217,878 1,190,000 USA Compression Partners L.P. / USA Compression Finance Corp............................................................. 6.88% 04/01/26 1,118,088 -------------- 2,335,966 -------------- </TABLE> See Notes to Financial Statements Page 63 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> PACKAGING & CONTAINERS -- 0.2% $ 58,000 Ball Corp........................................................... 4.00% 11/15/23 $ 57,464 1,830,000 Berry Global, Inc. (b).............................................. 4.88% 07/15/26 1,784,165 295,000 Berry Global, Inc................................................... 1.65% 01/15/27 254,179 58,000 Graphic Packaging International LLC................................. 4.88% 11/15/22 58,069 728,000 Graphic Packaging International LLC................................. 4.13% 08/15/24 708,861 20,000 Mauser Packaging Solutions Holding Co. (b).......................... 5.50% 04/15/24 19,387 60,000 Sealed Air Corp. (b)................................................ 5.50% 09/15/25 59,789 -------------- 2,941,914 -------------- PHARMACEUTICALS -- 1.5% 725,000 180 Medical, Inc. (b)............................................... 3.88% 10/15/29 633,681 1,495,000 AbbVie, Inc......................................................... 4.55% 03/15/35 1,441,042 1,158,000 AbbVie, Inc......................................................... 4.50% 05/14/35 1,106,350 105,000 AbbVie, Inc......................................................... 4.05% 11/21/39 92,956 200,000 AbbVie, Inc......................................................... 4.45% 05/14/46 180,644 375,000 AbbVie, Inc......................................................... 4.25% 11/21/49 330,071 810,000 Bayer US Finance II LLC (b)......................................... 2.85% 04/15/25 767,886 180,000 Bayer US Finance II LLC (b)......................................... 4.25% 12/15/25 177,263 880,000 Bayer US Finance II LLC (b)......................................... 4.38% 12/15/28 848,265 265,000 Bayer US Finance II LLC (b)......................................... 4.63% 06/25/38 237,172 1,960,000 Bayer US Finance II LLC (b)......................................... 4.40% 07/15/44 1,604,483 400,000 Bayer US Finance II LLC (b)......................................... 4.88% 06/25/48 364,208 1,495,000 Becton Dickinson and Co............................................. 2.82% 05/20/30 1,323,678 330,000 Cigna Corp.......................................................... 4.38% 10/15/28 325,850 400,000 Cigna Corp.......................................................... 4.90% 12/15/48 382,439 950,000 CVS Health Corp..................................................... 2.75% 12/01/22 950,000 2,280,000 CVS Health Corp..................................................... 5.05% 03/25/48 2,203,637 1,950,000 Embecta Corp. (b)................................................... 5.00% 02/15/30 1,713,777 2,005,000 Option Care Health, Inc. (b)........................................ 4.38% 10/31/29 1,766,375 1,431,000 Organon & Co. / Organon Foreign Debt Co-Issuer B.V. (b)............. 5.13% 04/30/31 1,253,928 1,350,000 Prestige Brands, Inc. (b)........................................... 3.75% 04/01/31 1,082,248 -------------- 18,785,953 -------------- PIPELINES -- 0.7% 50,000 Energy Transfer L.P................................................. 4.00% 10/01/27 47,643 1,535,000 Energy Transfer L.P................................................. 5.40% 10/01/47 1,374,461 470,000 Energy Transfer L.P................................................. 5.00% 05/15/50 404,977 594,000 Energy Transfer L.P., Series B (f).................................. 6.63% (g) 481,682 115,000 Enterprise Products Operating LLC................................... 5.10% 02/15/45 110,319 765,000 Global Partners L.P. / GLP Finance Corp............................. 6.88% 01/15/29 701,176 250,000 Kinder Morgan, Inc.................................................. 5.55% 06/01/45 244,430 607,000 NGL Energy Operating LLC / NGL Energy Finance Corp. (b)............. 7.50% 02/01/26 549,538 845,000 Plains All American Pipeline L.P. / PAA Finance Corp................ 3.55% 12/15/29 742,265 350,000 Rockies Express Pipeline LLC (b).................................... 4.95% 07/15/29 316,025 100,000 Rockies Express Pipeline LLC (b).................................... 6.88% 04/15/40 83,454 598,788 Ruby Pipeline LLC (i) (j) (k)....................................... 8.00% 04/01/22 502,982 1,275,000 Sabine Pass Liquefaction LLC........................................ 4.50% 05/15/30 1,222,019 1,274,000 TransMontaigne Partners L.P. / TLP Finance Corp..................... 6.13% 02/15/26 1,099,557 1,705,000 Venture Global Calcasieu Pass LLC (b)............................... 4.13% 08/15/31 1,482,861 -------------- 9,363,389 -------------- </TABLE> Page 64 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> REAL ESTATE INVESTMENT TRUSTS -- 1.6% $ 75,000 Alexandria Real Estate Equities, Inc., Class E...................... 3.45% 04/30/25 $ 73,911 1,310,000 American Assets Trust LP............................................ 3.38% 02/01/31 1,108,524 75,000 American Campus Communities Operating Partnership L.P............... 3.75% 04/15/23 75,090 2,235,000 American Homes 4 Rent L.P........................................... 3.63% 04/15/32 1,956,386 250,000 Boston Properties L.P............................................... 2.75% 10/01/26 233,291 200,000 Boston Properties L.P............................................... 3.40% 06/21/29 179,422 550,000 Camden Property Trust............................................... 2.95% 12/15/22 549,521 500,000 CubeSmart L.P....................................................... 4.38% 02/15/29 482,782 200,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 11/01/23 198,409 3,625,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.38% 04/15/26 3,566,828 175,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.75% 06/01/28 173,815 185,000 GLP Capital L.P. / GLP Financing II, Inc............................ 5.30% 01/15/29 179,107 555,000 GLP Capital L.P. / GLP Financing II, Inc............................ 4.00% 01/15/30 487,140 490,000 Healthcare Realty Holdings L.P...................................... 3.63% 01/15/28 450,858 595,000 Healthcare Realty Holdings L.P...................................... 3.10% 02/15/30 514,637 1,597,000 Healthcare Realty Holdings L.P...................................... 2.40% 03/15/30 1,273,036 870,000 Healthcare Realty Holdings L.P...................................... 2.00% 03/15/31 679,959 500,000 Hudson Pacific Properties L.P....................................... 3.95% 11/01/27 470,014 175,000 Hudson Pacific Properties L.P....................................... 4.65% 04/01/29 164,820 310,000 Invitation Homes Operating Partnership L.P.......................... 2.30% 11/15/28 259,656 1,350,000 Iron Mountain Information Management Services, Inc. (b)............. 5.00% 07/15/32 1,122,734 200,000 Iron Mountain, Inc. (b)............................................. 4.50% 02/15/31 166,397 400,000 Kilroy Realty L.P................................................... 3.45% 12/15/24 391,335 400,000 Kilroy Realty L.P................................................... 4.38% 10/01/25 395,380 505,000 LXP Industrial Trust................................................ 2.70% 09/15/30 409,356 250,000 National Retail Properties, Inc..................................... 3.90% 06/15/24 247,835 325,000 SL Green Operating Partnership L.P.................................. 3.25% 10/15/22 324,373 250,000 Ventas Realty L.P................................................... 2.65% 01/15/25 239,492 80,000 VICI Properties L.P................................................. 4.95% 02/15/30 76,924 1,250,000 VICI Properties L.P................................................. 5.13% 05/15/32 1,188,437 503,000 VICI Properties L.P................................................. 5.63% 05/15/52 466,048 117,000 VICI Properties L.P. / VICI Note Co., Inc. (b)...................... 5.63% 05/01/24 118,699 399,000 VICI Properties L.P. / VICI Note Co., Inc. (b)...................... 4.63% 06/15/25 386,784 290,000 VICI Properties L.P. / VICI Note Co., Inc. (b)...................... 4.50% 09/01/26 273,641 210,000 VICI Properties L.P. / VICI Note Co., Inc. (b)...................... 5.75% 02/01/27 207,039 85,000 VICI Properties L.P. / VICI Note Co., Inc. (b)...................... 3.75% 02/15/27 77,074 220,000 VICI Properties L.P. / VICI Note Co., Inc. (b)...................... 4.50% 01/15/28 204,324 440,000 VICI Properties L.P. / VICI Note Co., Inc. (b)...................... 3.88% 02/15/29 391,931 -------------- 19,765,009 -------------- RETAIL -- 0.5% 1,260,000 Bloomin' Brands, Inc. / OSI Restaurant Partners LLC (b)............. 5.13% 04/15/29 1,095,151 1,817,000 Fertitta Entertainment LLC / Fertitta Entertainment Finance Co., Inc. (b)......................................................... 6.75% 01/15/30 1,484,853 788,000 FirstCash, Inc. (b)................................................. 5.63% 01/01/30 706,308 2,170,000 Michaels (The) Cos., Inc. (b)....................................... 7.88% 05/01/29 1,446,359 1,400,000 Papa John's International, Inc. (b)................................. 3.88% 09/15/29 1,198,876 -------------- 5,931,547 -------------- </TABLE> See Notes to Financial Statements Page 65 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- CORPORATE BONDS AND NOTES (CONTINUED) <S> <C> <C> <C> <C> SEMICONDUCTORS -- 0.1% $ 75,000 Broadcom, Inc....................................................... 3.63% 10/15/24 $ 74,183 295,000 Broadcom, Inc....................................................... 4.30% 11/15/32 267,560 660,000 Broadcom, Inc. (b).................................................. 3.42% 04/15/33 546,491 415,000 Intel Corp.......................................................... 3.73% 12/08/47 339,720 -------------- 1,227,954 -------------- SOFTWARE -- 0.3% 225,000 Central Parent, Inc. / CDK Global, Inc. (b)......................... 7.25% 06/15/29 215,732 960,000 Oracle Corp......................................................... 2.88% 03/25/31 798,689 1,755,000 Oracle Corp......................................................... 3.80% 11/15/37 1,376,103 1,640,000 Oracle Corp......................................................... 4.00% 11/15/47 1,196,243 -------------- 3,586,767 -------------- TELECOMMUNICATIONS -- 2.0% 775,000 AT&T, Inc........................................................... 2.55% 12/01/33 620,152 2,150,000 AT&T, Inc........................................................... 4.50% 05/15/35 2,028,363 200,000 AT&T, Inc........................................................... 5.25% 03/01/37 201,281 594,000 AT&T, Inc........................................................... 4.85% 03/01/39 558,051 750,000 AT&T, Inc........................................................... 4.30% 12/15/42 653,308 605,000 AT&T, Inc........................................................... 4.75% 05/15/46 563,749 2,720,000 AT&T, Inc........................................................... 3.80% 12/01/57 2,070,177 1,249,000 CommScope, Inc. (b)................................................. 6.00% 03/01/26 1,181,929 456,000 Frontier Communications Holdings LLC (b)............................ 5.00% 05/01/28 400,245 592,000 Level 3 Financing, Inc. (b)......................................... 4.63% 09/15/27 523,882 1,400,000 Level 3 Financing, Inc. (b)......................................... 4.25% 07/01/28 1,165,465 1,515,000 Level 3 Financing, Inc. (b)......................................... 3.63% 01/15/29 1,218,181 300,000 Level 3 Financing, Inc. (b)......................................... 3.75% 07/15/29 241,410 1,070,000 Level 3 Financing, Inc. (b)......................................... 3.88% 11/15/29 909,404 400,000 Lumen Technologies Inc (b).......................................... 4.00% 02/15/27 348,436 1,800,000 Lumen Technologies, Inc. (b)........................................ 5.38% 06/15/29 1,405,584 342,000 Qwest Corp.......................................................... 7.25% 09/15/25 354,674 335,000 SES GLOBAL Americas Holdings, Inc. (b).............................. 5.30% 03/25/44 287,354 542,000 Sprint Corp......................................................... 7.88% 09/15/23 559,639 3,327,500 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (b)......................................... 4.74% 03/20/25 3,342,155 280,000 Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (b)......................................... 5.15% 03/20/28 282,266 1,075,000 T-Mobile USA, Inc................................................... 2.25% 02/15/26 989,806 74,000 T-Mobile USA, Inc................................................... 4.75% 02/01/28 72,481 1,000,000 T-Mobile USA, Inc................................................... 2.63% 02/15/29 863,704 1,445,000 T-Mobile USA, Inc................................................... 3.88% 04/15/30 1,341,716 700,000 T-Mobile USA, Inc................................................... 2.55% 02/15/31 583,309 2,000,000 T-Mobile USA, Inc................................................... 3.50% 04/15/31 1,774,668 250,000 T-Mobile USA, Inc................................................... 4.38% 04/15/40 221,674 1,215,000 Zayo Group Holdings, Inc. (b)....................................... 4.00% 03/01/27 1,037,385 -------------- 25,800,448 -------------- TOTAL CORPORATE BONDS AND NOTES................................................................ 279,607,007 (Cost $307,387,635) -------------- </TABLE> Page 66 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES -- 17.5% <S> <C> <C> <C> <C> 321 Henderson Receivables LLC $ 265,636 Series 2013-2A, Class A (b)...................................... 4.21% 03/15/62 $ 253,603 ABFC Trust 71,614 Series 2007-NC1, Class A2, 1 Mo. LIBOR + 0.30% (b) (d)........... 2.74% 05/25/37 66,907 992,713 Series 2007-WMC1, Class A1A, 1 Mo. LIBOR + 1.25% (d)............. 3.69% 06/25/37 741,712 ACE Securities Corp. Home Equity Loan Trust 3,421,008 Series 2006-ASP6, Class A2C, 1 Mo. LIBOR + 0.32% (d)............. 2.76% 12/25/36 1,329,328 820,882 Series 2006-HE3, Class A2C, 1 Mo. LIBOR + 0.30% (d).............. 2.74% 06/25/36 635,061 2,174,796 Series 2007-HE1, Class A1, 1 Mo. LIBOR + 0.30% (d)............... 2.74% 01/25/37 1,289,191 2,998,233 Series 2007-WM2, Class A1, 1 Mo. LIBOR + 0.21% (d)............... 2.65% 02/25/37 1,465,962 AFN ABSPROP001 LLC 3,670,912 Series 2019-1A, Class A1 (b)..................................... 3.78% 05/20/49 3,538,509 AGL CLO Ltd. 3,600,000 Series 2021-12A, Class A1, 3 Mo. LIBOR + 1.16% (b) (d)........... 3.87% 07/20/34 3,527,646 AIG CLO Ltd. 1,600,000 Series 2018-1A, Class BR, 3 Mo. LIBOR + 1.70% (b) (d)............ 4.41% 04/20/32 1,552,386 Aimco CLO Ltd. 2,600,000 Series 2015-AA, Class BR2, 3 Mo. LIBOR + 1.60% (b) (d)........... 4.34% 10/17/34 2,487,508 2,100,000 Series 2020-11A, Class AR, 3 Mo. LIBOR + 1.13% (b) (d)........... 3.87% 10/17/34 2,050,789 Ameriquest Mortgage Securities, Inc., Asset Backed Pass-Through Certificates 419,898 Series 2002-AR1, Class M1, 1 Mo. LIBOR + 1.07% (d)............... 3.33% 09/25/32 437,575 AMMC CLO Ltd. 2,500,000 Series 2021-24A, Class B, 3 Mo. LIBOR + 1.75% (b) (d)............ 4.46% 01/20/35 2,396,898 Apidos CLO XXXVII 1,625,000 Series 2021-37A, Class B, 3 Mo. LIBOR + 1.60% (b) (d)............ 4.36% 10/22/34 1,556,918 Arbor Realty Commercial Real Estate Notes Ltd. 2,000,000 Series 2021-FL1, Class E, 1 Mo. LIBOR + 3.40% (b) (d)............ 5.79% 12/15/35 1,970,549 Ares LXII CLO Ltd. 2,000,000 Series 2021-62A, Class B, 3 Mo. LIBOR + 1.65% (b) (d)............ 4.43% 01/25/34 1,899,348 Argent Securities Trust 1,278,137 Series 2006-W2, Class A2B, 1 Mo. LIBOR + 0.38% (d)............... 2.82% 03/25/36 743,559 Argent Securities, Inc., Asset-Backed Pass-Through Certificates 127,756 Series 2005-W3, Class M1, 1 Mo. LIBOR + 0.66% (d)................ 3.10% 11/25/35 125,288 2,200,000 Series 2005-W3, Class M2, 1 Mo. LIBOR + 0.69% (d)................ 3.13% 11/25/35 1,880,108 BCMSC Trust 2,369,065 Series 2000-A, Class A5.......................................... 8.32% 06/15/30 407,230 BlueMountain CLO XXXI Ltd 2,500,000 Series 2021-31A, Class B, 3 Mo. LIBOR + 1.70% (b) (d)............ 4.44% 04/19/34 2,402,764 BNC Mortgage Loan Trust 1,156,171 Series 2006-2, Class A4, 1 Mo. LIBOR + 0.32% (d)................. 2.76% 11/25/36 1,125,475 CAL Funding IV Ltd. 1,484,986 Series 2020-1A, Class A (b)...................................... 2.22% 09/25/45 1,327,467 Carvana Auto Receivables Trust 5,450 Series 2020-P1, Class R (b)...................................... (h) 09/08/27 1,014,526 3,300 Series 2021-N2, Class R (b)...................................... (h) 03/10/28 1,094,215 2,800 Series 2021-P4, Class R (b)...................................... (h) 09/11/28 1,256,003 19,300 Series 2022-N1, Class R (b)...................................... (h) 12/11/28 3,373,152 2,500 Series 2022-P2, Class R (b)...................................... (h) 05/10/28 966,826 17,100 Series 2022-P2, Class R (b)...................................... (h) 05/10/29 2,954,914 </TABLE> See Notes to Financial Statements Page 67 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> C-BASS TRUST $ 2,728,301 Series 2007-CB1, Class AF2, steps up to 6.22% after Redemption Date (c)...................................................... 3.12% 01/25/37 $ 970,193 2,702,477 Series 2007-CB1, Class AF3, steps up to 6.24% after Redemption Date (c)...................................................... 3.12% 01/25/37 960,973 Cedar Funding XIV CLO Ltd. 1,850,000 Series 2021-14A, Class A, 3 Mo. LIBOR + 1.10% (b) (d)............ 3.61% 07/15/33 1,824,063 CF Hippolyta Issuer LLC 3,743,688 Series 2020-1, Class A1 (b)...................................... 1.69% 07/15/60 3,406,088 Chase Auto Owner Trust 10,000 Series 2022-AA, Class R1 (b) (l)................................. (h) 06/25/30 1,725,000 CIT Education Loan Trust 3,177,944 Series 2005-1, Class A4, 3 Mo. LIBOR + 0.16% (d)................. 1.99% 12/15/33 3,007,448 Citigroup Mortgage Loan Trust 2,806,377 Series 2006-HE3, Class A2B, 1 Mo. LIBOR + 0.20% (d).............. 2.64% 12/25/36 2,087,646 Citigroup Mortgage Loan Trust, Inc. 319,496 Series 2007-WFH3, Class M1, 1 Mo. LIBOR + 0.39% (d).............. 2.83% 06/25/37 313,987 CMFT Net Lease Master Issuer LLC 2,872,645 Series 2021-1, Class A1 (b)...................................... 2.09% 07/20/51 2,482,403 Cologix Data Centers US Issuer LLC 1,960,000 Series 2021-1A, Class A2 (b)..................................... 3.30% 12/26/51 1,814,361 Conseco Finance Corp. 1,881,595 Series 1999-3, Class A8.......................................... 7.06% 02/01/31 1,729,086 CoreVest American Finance Trust 1,037,196 Series 2020-1, Class XA, IO (a) (b).............................. 2.77% 03/15/50 74,009 932,419 Series 2020-3, Class XA, IO (a) (b).............................. 3.84% 08/15/53 80,958 1,250,000 Series 2020-3, Class XB, IO (a) (b).............................. 2.78% 08/15/53 166,081 1,640,000 Series 2020-4, Class B (b)....................................... 1.71% 12/15/52 1,450,212 Credit-Based Asset Servicing & Securitization LLC 880,794 Series 2006-MH1, Class B1 (b).................................... 6.25% 10/25/36 847,305 CWABS Asset-Backed Certificates Trust 1,950,000 Series 2005-17, Class MV2, 1 Mo. LIBOR + 0.72% (d)............... 3.16% 05/25/36 1,885,853 32,904 Series 2006-6, Class 1A1, 1 Mo. LIBOR + 0.34% (d)................ 2.78% 09/25/36 32,898 DataBank Issuer 2,245,000 Series 2021-1A, Class A2 (b)..................................... 2.06% 02/27/51 2,003,739 Dryden CLO Ltd. 625,000 Series 2019-72A, Class BR, 3 Mo. LIBOR + 1.65% (b) (d)........... 4.56% 05/15/32 603,734 Eaton Vance CLO Ltd. 1,800,000 Series 2019-1A, Class AR, 3 Mo. LIBOR + 1.10% (b) (d)............ 3.61% 04/15/31 1,773,865 1,750,000 Series 2020-1A, Class AR, 3 Mo. LIBOR + 1.17% (b) (d)............ 3.68% 10/15/34 1,717,912 ECMC Group Student Loan Trust 1,703,961 Series 2017-2A, Class A, 1 Mo. LIBOR + 1.05% (b) (d)............. 3.49% 05/25/67 1,679,729 1,556,529 Series 2021-1A, Class A1B, 1 Mo. LIBOR + 0.57% (b) (d)........... 3.01% 11/25/70 1,511,890 Elmwood CLO VI Ltd. 2,600,000 Series 2020-3A, Class BR, 3 Mo. LIBOR + 1.65% (b) (d)............ 4.36% 10/20/34 2,490,216 EquiFirst Mortgage Loan Trust 5,930 Series 2005-1, Class M3, 1 Mo. LIBOR + 0.72% (d)................. 3.16% 04/25/35 5,929 First Franklin Mortgage Loan Trust 62,233 Series 2006-FF11, Class 2A3, 1 Mo. LIBOR + 0.30% (d)............. 2.74% 08/25/36 58,394 FirstKey Homes Trust 4,760,000 Series 2020-SFR1, Class B (b).................................... 1.74% 08/17/37 4,415,173 </TABLE> Page 68 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Flatiron CLO Ltd. $ 1,000,000 Series 2021-1A, Class B, 3 Mo. LIBOR + 1.60% (b) (d)............. 4.34% 07/19/34 $ 958,169 Fremont Home Loan Trust 31,961 Series 2005-D, Class 2A4, 1 Mo. LIBOR + 0.68% (d)................ 3.12% 11/25/35 31,533 GCI Funding I LLC 1,452,028 Series 2021-1, Class A (b)....................................... 2.38% 06/18/46 1,289,678 Goldentree Loan Management US CLO Ltd. 1,200,000 Series 2019-4A, Class AR, 3 Mo. LIBOR + 1.11% (b) (d)............ 3.89% 04/24/31 1,183,882 Golub Capital Partners CLO L.P. 1,575,000 Series 2021-54A, Class A, 3 Mo. LIBOR + 1.53% (b) (d)............ 4.36% 08/05/33 1,537,652 GSAA Home Equity Trust 3,455,000 Series 2005-4, Class M2, 1 Mo. LIBOR + 1.05% (d)................. 3.49% 03/25/35 3,396,862 243,351 Series 2007-8, Class A3, 1 Mo. LIBOR + 0.90% (d)................. 3.34% 08/25/37 244,521 GSAMP Trust 858,075 Series 2006-HE4, Class A2D, 1 Mo. LIBOR + 0.52% (d).............. 2.96% 06/25/36 831,475 1,149,701 Series 2007-FM2, Class A1, 1 Mo. LIBOR + 0.14% (d)............... 2.58% 01/25/37 730,717 HPS Loan Management Ltd. 1,225,000 Series 10A-16, Class A1RR, 3 Mo. LIBOR + 1.14% (b) (d)........... 3.85% 04/20/34 1,197,438 2,700,000 Series 2021-16A, Class B, 3 Mo. LIBOR + 1.70% (b) (d)............ 4.48% 01/23/35 2,574,360 HSI Asset Securitization Corp Trust 5,863,522 Series 2007-OPT1, Class 1A, 1 Mo. LIBOR + 0.14% (d).............. 2.58% 12/25/36 5,252,208 Invitation Homes Trust 1,128,116 Series 2018-SFR4, Class A, 1 Mo. LIBOR + 1.10% (b) (d)........... 3.48% 01/17/38 1,123,082 JP Morgan Mortgage Acquisition Trust 674,607 Series 2006-CH2, Class AF6, steps up to 6.04% after Redemption Date (c)...................................................... 5.54% 10/25/36 451,551 603,765 Series 2006-WF1, Class A5........................................ 6.91% 07/25/36 206,770 937,309 Series 2007-CH2, Class AF6, steps up to 6.05% after Redemption Date (c)...................................................... 4.43% 01/25/37 570,855 Lehman XS Trust 1,305,150 Series 2006-15, Class A4, 1 Mo. LIBOR + 0.34% (d)................ 2.78% 10/25/36 1,232,334 3,667,560 Series 2006-19, Class A3, 1 Mo. LIBOR + 0.50% (d)................ 2.94% 12/25/36 3,214,683 1,911,234 Series 2007-11, Class A3, 1 Mo. LIBOR + 0.52% (d)................ 2.96% 02/25/47 1,764,668 Long Beach Mortgage Loan Trust 2,280,318 Series 2006-8, Class 2A3, 1 Mo. LIBOR + 0.32% (d)................ 2.76% 09/25/36 734,970 13,445,164 Series 2006-10, Class 2A3, 1 Mo. LIBOR + 0.16% (d)............... 2.60% 11/25/36 4,852,496 Magnetite XXI Ltd 2,000,000 Series 2019-21A, Class BR, 3 Mo. LIBOR + 1.35% (b) (d)........... 4.06% 04/20/34 1,887,752 Mastr Asset Backed Securities Trust 121,780 Series 2006-HE5, Class A3, 1 Mo. LIBOR + 0.16% (d)............... 2.60% 11/25/36 77,328 1,652,478 Series 2006-NC2, Class A3, 1 Mo. LIBOR + 0.22% (d)............... 2.66% 08/25/36 714,856 Merrill Lynch First Franklin Mortgage Loan Trust 1,755,461 Series 2007-1, Class A1, 1 Mo. LIBOR + 0.28% (d)................. 2.72% 04/25/37 870,770 3,209,945 Series 2007-5, Class 1A, 1 Mo. LIBOR + 0.85% (d)................. 3.29% 10/25/37 2,191,338 Merrill Lynch Mortgage Investors Trust 2,958,877 Series 2006-HE6, Class A2C, 1 Mo. LIBOR + 0.46% (d).............. 2.90% 11/25/37 1,219,397 Morgan Stanley ABS Capital I, Inc. Trust 1,875,720 Series 2006-HE8, Class A2B, 1 Mo. LIBOR + 0.10% (d).............. 2.54% 10/25/36 946,479 1,816,052 Series 2006-HE8, Class A2C, 1 Mo. LIBOR + 0.14% (d).............. 2.58% 10/25/36 918,431 4,657,672 Series 2007-HE2, Class A2B, 1 Mo. LIBOR + 0.09% (d).............. 2.53% 01/25/37 2,440,850 1,297,995 Series 2007-HE4, Class A2B, 1 Mo. LIBOR + 0.18% (d).............. 2.62% 02/25/37 448,551 1,823,309 Series 2007-NC3, Class A2D, 1 Mo. LIBOR + 0.26% (d).............. 2.70% 05/25/37 1,420,737 </TABLE> See Notes to Financial Statements Page 69 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Navient Student Loan Trust $ 23,855 Series 2014-1, Class A3, 1 Mo. LIBOR + 0.51% (d)................. 2.95% 06/25/31 $ 23,010 2,499,977 Series 2016-2A, Class A3, 1 Mo. LIBOR + 1.50% (b) (d)............ 3.94% 06/25/65 2,495,518 4,269,000 Series 2018-2A, Class A3, 1 Mo. LIBOR + 0.75% (b) (d)............ 3.19% 03/25/67 4,165,357 2,500,000 Series 2019-3A, Class B, 1 Mo. LIBOR + 1.55% (b) (d)............. 3.99% 07/25/68 2,384,248 Neuberger Berman Loan Advisers CLO Ltd. 1,300,000 Series 2021-43A, Class A, 3 Mo. LIBOR + 1.13% (b) (d)............ 3.87% 07/17/35 1,278,056 NovaStar Mortgage Funding Trust 615,841 Series 2007-2, Class A1A, 1 Mo. LIBOR + 0.20% (d)................ 2.64% 09/25/37 595,658 OCP CLO Ltd. 1,500,000 Series 2021-21A, Class B, 3 Mo. LIBOR + 1.70% (b) (d)............ 4.41% 07/20/34 1,454,578 Octagon Investment Partners 46 Ltd. 2,100,000 Series 2020-2A, Class AR, 3 Mo. LIBOR + 1.16% (b) (d)............ 3.67% 07/15/36 2,061,968 OHA Credit Funding Ltd. 2,000,000 Series 2019-3A, Class AR, 3 Mo. LIBOR + 1.14% (b) (d)............ 3.85% 07/02/35 1,967,985 3,000,000 Series 2020-5A, Class B, 3 Mo. LIBOR + 1.60% (b) (d)............. 4.34% 04/18/33 2,878,974 Palmer Square CLO Ltd. 3,100,000 Series 2020-3A, Class A1AR, 3 Mo. LIBOR + 1.08% (b) (d).......... 3.99% 11/15/31 3,055,442 PRET LLC 3,856,346 Series 2022-RN2, Class A1, steps up to 9.00% on 07/25/26 (b) (c).............................................. 5.00% 06/25/52 3,666,057 Progress Residential Trust 1,200,000 Series 2019-SFR3, Class F (b).................................... 3.87% 09/17/36 1,163,581 Regatta XII Funding Ltd. 3,000,000 Series 2019-1A, Class BR, 3 Mo. LIBOR + 1.60% (b) (d)............ 4.11% 10/15/32 2,884,100 Regatta XX Funding Ltd 3,200,000 Series 2021-2A, Class A, 3 Mo. LIBOR + 1.16% (b) (d)............. 3.67% 10/15/34 3,116,000 Residential Asset Mortgage Products, Inc. 1,400,000 Series 2006-NC2, Class M1, 1 Mo. LIBOR + 0.54% (d)............... 2.98% 02/25/36 1,333,958 1,955,284 Series 2006-RZ2, Class M1, 1 Mo. LIBOR + 0.33% (d)............... 2.94% 05/25/36 1,914,461 Residential Asset Securities Corp. 41,263 Series 2005-KS11, Class M2, 1 Mo. LIBOR + 0.63% (d).............. 3.07% 12/25/35 41,082 Rockford Tower CLO Ltd. 1,325,000 Series 2019-2A, Class BR, 3 Mo. LIBOR + 1.65% (b) (d)............ 4.63% 08/20/32 1,278,401 Sabey Data Center Issuer LLC 1,785,000 Series 2020-1, Class A2 (b)...................................... 3.81% 04/20/45 1,712,922 Saxon Asset Securities Trust 1,243,025 Series 2006-1, Class M1, 1 Mo. LIBOR + 0.47% (d)................. 2.91% 03/25/36 1,202,730 Securitized Asset Backed Receivables LLC Trust 2,401,937 Series 2006-CB5, Class A3, 1 Mo. LIBOR + 0.28% (d)............... 2.72% 06/25/36 1,679,111 Skyline Aircraft Finance LLC 641,805 Series 2020-1, Class A (l) (m)................................... 3.23% 05/10/38 583,867 SLC Student Loan Trust 1,007,573 Series 2008-1, Class A4A, 3 Mo. LIBOR + 1.60% (d)................ 3.43% 12/15/32 1,007,298 SLM Student Loan EDC Repackaging Trust 1,000 Series 2013-M1, Class M1R (b).................................... (h) 10/28/29 568,516 SLM Student Loan Trust 2,030,332 Series 2006-2, Class B, 3 Mo. LIBOR + 0.22% (d).................. 3.00% 01/25/41 1,824,013 3,400 Series 2006-2, Class R........................................... (h) 01/25/41 779,109 2,310,275 Series 2007-1, Class B, 3 Mo. LIBOR + 0.22% (d).................. 3.00% 01/27/42 2,066,464 1,375 Series 2007-4, Class R........................................... (h) 01/25/42 419,571 1,728,817 Series 2007-7, Class A4, 3 Mo. LIBOR + 0.33% (d)................. 3.11% 01/25/22 1,702,086 </TABLE> Page 70 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> SLM Student Loan Trust (Continued) $ 905,000 Series 2007-7, Class B, 3 Mo. LIBOR + 0.75% (d).................. 3.53% 10/27/70 $ 777,304 300,000 Series 2008-2, Class B, 3 Mo. LIBOR + 1.20% (d).................. 3.98% 01/25/83 237,589 300,000 Series 2008-3, Class B, 3 Mo. LIBOR + 1.20% (d).................. 3.98% 04/26/83 252,379 794,833 Series 2008-4, Class A4, 3 Mo. LIBOR + 1.65% (d)................. 4.43% 07/25/22 794,832 2,358,426 Series 2008-5, Class A4, 3 Mo. LIBOR + 1.70% (d)................. 4.48% 07/25/23 2,343,590 650,000 Series 2008-5, Class B, 3 Mo. LIBOR + 1.85% (d).................. 4.63% 07/25/73 639,745 340,000 Series 2008-6, Class B, 3 Mo. LIBOR + 1.85% (d).................. 4.63% 07/26/83 319,482 220,000 Series 2008-8, Class B, 3 Mo. LIBOR + 2.25% (d).................. 5.03% 10/25/75 213,826 1,980,321 Series 2008-9, Class A, 3 Mo. LIBOR + 1.50% (d).................. 4.28% 04/25/23 1,972,059 800,000 Series 2008-9, Class B, 3 Mo. LIBOR + 2.25% (d).................. 5.03% 10/25/83 756,882 100,000 Series 2012-7, Class B, 1 Mo. LIBOR + 1.80% (d).................. 4.24% 09/25/43 95,358 Soundview Home Loan Trust 2,083,951 Series 2007-OPT1, Class 2A3, 1 Mo. LIBOR + 0.21% (d)............. 2.65% 06/25/37 1,528,352 202,836 Series 2007-OPT2, Class 2A4, 1 Mo. LIBOR + 0.25% (d)............. 2.69% 07/25/37 168,691 Specialty Underwriting & Residential Finance Trust 2,819,482 Series 2006-AB3, Class A2C, 1 Mo. LIBOR + 0.48% (d).............. 2.92% 09/25/37 2,080,973 Structured Asset Securities Corp Mortgage Loan Trust 4,812,094 Series 2005-2XS, Class M1, 1 Mo. LIBOR + 0.71% (d)............... 3.15% 02/25/35 4,780,291 995,221 Series 2006-BC3, Class A3, 1 Mo. LIBOR + 0.32% (d)............... 2.76% 10/25/36 921,613 Structured Receivables Finance LLC 72,261 Series 2010-B, Class A (b)....................................... 3.73% 08/15/36 70,146 STWD Ltd. 2,483,000 Series 2019-FL1, Class AS, 1 Mo. CME Term SOFR + 1.51% (b) (d)................................................. 3.81% 07/15/38 2,447,331 TAL Advantage VII LLC 2,863,519 Series 2020-1A, Class A (b)...................................... 2.05% 09/20/45 2,584,053 Textainer Marine Containers Ltd. 1,668,000 Series 2021-3A, Class A (b)...................................... 1.94% 08/20/46 1,435,946 Textainer Marine Containers VII Ltd. 2,063,330 Series 2020-2A, Class A (b)...................................... 2.10% 09/20/45 1,858,064 Trestles CLO V Ltd. 1,900,000 Series 2021-5A, Class A1, 3 Mo. LIBOR + 1.17% (b) (d)............ 3.88% 10/20/34 1,865,187 Tricon American Homes Trust 1,400,000 Series 2017-SFR2, Class E (b).................................... 4.22% 01/17/36 1,375,912 Triton Container Finance VIII LLC 3,197,285 Series 2021-1A, Class A (b)...................................... 1.86% 03/20/46 2,771,371 TRP LLC 3,533,257 Series 2021-1, Class A (b)....................................... 2.07% 06/19/51 3,109,988 Wachovia Student Loan Trust 1,415,644 Series 2006-1, Class B, 3 Mo. LIBOR + 0.24% (b) (d).............. 3.02% 04/25/40 1,311,453 WaMu Asset-Backed Certificates WaMu Trust 1,618,337 Series 2007-HE2, Class 2A3, 1 Mo. LIBOR + 0.25% (d).............. 2.69% 04/25/37 668,785 Washington Mutual Asset-Backed Certificates WMABS Trust 420,890 Series 2006-HE5, Class 1A, 1 Mo. LIBOR + 0.16% (d)............... 2.60% 10/25/36 342,119 -------------- TOTAL ASSET-BACKED SECURITIES................................................................. 222,534,397 (Cost $237,388,580) -------------- </TABLE> See Notes to Financial Statements Page 71 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 14.7% <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1% Federal Home Loan Mortgage Corporation $ 213,265 Series 2019-4919, Class FP, 1 Mo. LIBOR + 0.45% (d).............. 2.89% 09/25/49 $ 212,595 Federal National Mortgage Association 1,001,537 Series 2011-116, Class SA, IO, 1 Mo. LIBOR (multiply) -1 + 6.00% (n)..................................................... 3.56% 11/25/41 91,559 132,384 Series 2012-56, Class FK, 1 Mo. LIBOR + 0.45% (d)................ 2.89% 06/25/42 132,278 106,085 Series 2012-128, Class UA........................................ 2.50% 06/25/42 97,246 1,125,166 Series 2013-18, Class MI, IO..................................... 3.00% 02/25/33 63,934 267,700 Series 2019-33, Class FN, 1 Mo. LIBOR + 0.40% (d)................ 2.84% 07/25/49 266,382 Government National Mortgage Association 1,006,210 Series 2003-110, Class S, IO, 1 Mo. LIBOR (multiply) -1 + 6.60% (n)..................................................... 4.23% 10/20/33 38,935 989,099 Series 2018-63, Class IO, IO..................................... 4.00% 09/20/47 160,366 276,816 Series 2019-86, Class FE, 1 Mo. LIBOR + 0.40% (d)................ 2.77% 07/20/49 275,210 197,143 Series 2020-133, Class FA (e).................................... 2.54% 02/20/49 196,565 -------------- 1,535,070 -------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.8% Federal Home Loan Mortgage Corporation Multiclass Certificates 11,161,921 Series 2021-P009, Class X, IO (a)................................ 1.55% 01/25/31 735,648 Federal Home Loan Mortgage Corporation Multifamily PC REMIC Trust 4,095,000 Series 2019-P002, Class X, IO (e)................................ 1.14% 07/25/33 357,473 Federal Home Loan Mortgage Corporation Multifamily Structured Pass-Through Certificates 2,308,821 Series 2012-K022, Class X3, IO (a)............................... 1.81% 08/25/40 23 11,075,000 Series 2013-K025, Class X3, IO (a) (o)........................... 1.80% 11/25/40 111 30,000,000 Series 2013-K026, Class X3, IO (a)............................... 1.85% 12/25/40 96,510 71,417,103 Series 2013-K031, Class X1, IO (a)............................... 0.29% 04/25/23 59,155 16,790,412 Series 2013-K035, Class X1, IO (a)............................... 0.45% 08/25/23 45,442 4,000,000 Series 2013-K035, Class X3, IO (a)............................... 1.85% 12/25/41 64,782 2,500,000 Series 2014-K037, Class X3, IO (a)............................... 2.28% 01/25/42 70,193 30,871,342 Series 2014-K039, Class X1, IO (a)............................... 0.82% 07/25/24 328,653 2,145,000 Series 2014-K039, Class X3, IO (a)............................... 2.18% 08/25/42 95,543 115,076,197 Series 2015-K043, Class X1, IO (a)............................... 0.64% 12/25/24 1,206,194 11,180,249 Series 2015-K044, Class X1, IO (a)............................... 0.87% 01/25/25 164,573 11,804 Series 2015-K045, Class X1, IO (a) (o)........................... 0.54% 01/25/25 107 20,449,223 Series 2015-K048, Class X3, IO (a)............................... 1.54% 08/25/43 762,384 15,875,892 Series 2015-K051, Class X1, IO (a)............................... 0.64% 09/25/25 206,468 6,897,149 Series 2016-K056, Class X3, IO (a)............................... 2.18% 06/25/44 470,535 1,900,000 Series 2016-K060, Class X3, IO (a)............................... 1.96% 12/25/44 127,411 26,082,170 Series 2016-K723, Class X3, IO (a)............................... 1.97% 10/25/34 521,826 85,007 Series 2016-KF25, Class A, 1 Mo. LIBOR + 0.48% (d)............... 2.84% 10/25/23 85,012 3,635,084 Series 2016-KS06, Class X, IO (a)................................ 1.18% 08/25/26 104,116 4,840,663 Series 2016-KS07, Class X, IO (a)................................ 0.75% 09/25/25 83,021 69,530 Series 2016-KW01, Class X1, IO (a)............................... 1.11% 01/25/26 1,752 8,815,971 Series 2017-K726, Class X1, IO (a)............................... 1.05% 04/25/24 106,328 2,230,000 Series 2017-K728, Class X3, IO (a)............................... 2.02% 11/25/45 91,294 1,356,786 Series 2019-KC04, Class X1, IO (a)............................... 1.41% 12/25/26 43,897 7,133,381 Series 2019-KC05, Class X1, IO (a)............................... 1.34% 06/25/27 239,713 4,877,203 Series 2019-KLU1, Class X3, IO (a)............................... 4.10% 01/25/31 644,156 77,050,000 Series 2022-Q017, Class X, IO (e)................................ 1.22% 04/25/30 1,378,810 </TABLE> Page 72 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 National Mortgage Association $ 41,764 Series 2016-M2, Class X3, IO (a) (o)............................. 2.13% 04/25/36 $ 0 1,288,951 Series 2016-M4, Class X2, IO (a)................................. 2.70% 01/25/39 22,593 147,953 Series 2016-M11, Class X2, IO (a)................................ 2.96% 07/25/39 1,431 268,264 Series 2018-M10, Class A1 (a).................................... 3.48% 07/25/28 267,078 6,100,000 Series 2019-M29, Class X4, IO.................................... 0.70% 03/25/29 204,545 Government National Mortgage Association 139,311 Series 2011-119, Class D......................................... 3.51% 04/16/45 137,153 512,504 Series 2011-142, Class B (e)..................................... 3.37% 02/16/44 510,589 378,326 Series 2013-125, Class IO, IO (e)................................ 0.21% 10/16/54 5,253 38,066 Series 2013-162, Class C (e)..................................... 3.00% 01/16/44 38,000 762,436 Series 2014-52, Class D (e)...................................... 3.63% 05/16/46 750,472 894,417 Series 2014-125, Class IO, IO (e)................................ 0.94% 11/16/54 26,149 -------------- 10,054,393 -------------- PASS-THROUGH SECURITIES -- 13.8% Federal Home Loan Mortgage Corporation 560,693 Pool WN0006...................................................... 3.42% 07/01/30 546,726 Federal National Mortgage Association 462,628 Pool AM2974...................................................... 4.10% 04/01/43 460,826 1,499,774 Pool AM9897...................................................... 3.50% 09/01/35 1,450,462 5,675,000 Pool TBA (p)..................................................... 3.50% 09/15/52 5,419,159 17,975,000 Pool TBA (p)..................................................... 4.50% 09/15/52 17,902,631 5,550,000 Pool TBA (p)..................................................... 4.00% 09/15/52 5,426,859 44,425,000 Pool TBA (p)..................................................... 2.00% 10/15/52 38,330,731 63,150,000 Pool TBA (p)..................................................... 2.50% 10/15/52 56,489,094 39,000,000 Pool TBA (p)..................................................... 3.00% 10/15/52 36,135,397 12,800,000 Pool TBA (p)..................................................... 4.50% 10/15/52 12,732,966 -------------- 174,894,851 -------------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES....................................... 186,484,314 (Cost $191,242,016) -------------- PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN CORPORATE BONDS AND NOTES -- 6.6% AGRICULTURE -- 0.1% 1,200,000 Imperial Brands Finance PLC (USD) (b)............................... 6.13% 07/27/27 1,220,857 -------------- BANKS -- 2.6% 1,025,000 ABN AMRO Bank N.V. (USD) (b) (f).................................... 2.47% 12/13/29 861,855 2,160,000 Credit Suisse Group AG (USD) (b) (f)................................ 1.31% 02/02/27 1,822,948 5,550,000 Credit Suisse Group AG (USD) (b) (f)................................ 3.09% 05/14/32 4,208,200 1,775,000 Credit Suisse Group AG (USD) (b) (f)................................ 6.54% 08/12/33 1,700,687 955,000 DNB Bank ASA (USD) (b) (f).......................................... 0.86% 09/30/25 884,362 435,000 DNB Bank ASA (USD) (b) (f).......................................... 1.61% 03/30/28 377,096 200,000 Global Bank Corp. (USD) (f) (q)..................................... 5.25% 04/16/29 188,980 590,000 HSBC Holdings PLC (USD) (f)......................................... 0.98% 05/24/25 550,526 </TABLE> See Notes to Financial Statements Page 73 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 (CONTINUED) 505,000 HSBC Holdings PLC (USD) (f)......................................... 1.59% 05/24/27 $ 440,658 3,180,000 HSBC Holdings PLC (USD) (f)......................................... 4.76% 06/09/28 3,073,018 2,070,000 HSBC Holdings PLC (USD) (f)......................................... 2.01% 09/22/28 1,754,845 1,440,000 HSBC Holdings PLC (USD) (f)......................................... 2.21% 08/17/29 1,194,773 1,175,000 HSBC Holdings PLC (USD) (f)......................................... 2.80% 05/24/32 935,394 965,000 HSBC Holdings PLC (USD) (f)......................................... 5.40% 08/11/33 922,513 3,260,000 Lloyds Banking Group PLC (USD) (f).................................. 2.91% 11/07/23 3,250,679 200,000 Lloyds Banking Group PLC (USD)...................................... 3.90% 03/12/24 199,236 365,000 Lloyds Banking Group PLC (USD) (f).................................. 3.87% 07/09/25 357,846 760,000 Lloyds Banking Group PLC (USD) (f).................................. 3.57% 11/07/28 704,017 1,575,000 Lloyds Banking Group PLC (USD) (f).................................. 4.98% 08/11/33 1,504,941 390,000 Macquarie Group Ltd. (USD) (b) (f).................................. 3.19% 11/28/23 388,965 565,000 Macquarie Group Ltd. (USD) (b) (f).................................. 1.34% 01/12/27 495,341 785,000 Macquarie Group Ltd. (USD) (b) (f).................................. 2.69% 06/23/32 631,085 1,070,000 Macquarie Group Ltd. (USD) (b) (f).................................. 2.87% 01/14/33 860,992 1,575,000 NatWest Group PLC (USD) (f)......................................... 4.27% 03/22/25 1,558,428 1,420,000 Santander UK Group Holdings PLC (USD) (f)........................... 4.80% 11/15/24 1,415,752 525,000 Santander UK Group Holdings PLC (USD) (f)........................... 1.09% 03/15/25 491,632 2,390,000 Santander UK Group Holdings PLC (USD) (f)........................... 1.67% 06/14/27 2,074,396 430,000 Santander UK Group Holdings PLC (USD) (f)........................... 2.47% 01/11/28 377,748 -------------- 33,226,913 -------------- BEVERAGES -- 0.2% 505,000 Bacardi Ltd. (USD) (b).............................................. 2.75% 07/15/26 464,845 670,000 Bacardi Ltd. (USD) (b).............................................. 4.70% 05/15/28 653,690 1,000,000 Becle SAB de CV (USD) (b)........................................... 2.50% 10/14/31 823,985 -------------- 1,942,520 -------------- BIOTECHNOLOGY -- 0.1% 1,000,000 Grifols Escrow Issuer S.A. (USD) (b)................................ 4.75% 10/15/28 834,875 -------------- CHEMICALS -- 0.1% 925,000 EverArc Escrow Sarl (USD) (b)....................................... 5.00% 10/30/29 792,383 275,000 Herens Holdco Sarl (USD) (b)........................................ 4.75% 05/15/28 233,402 -------------- 1,025,785 -------------- COMMERCIAL SERVICES -- 0.0% 200,000 DP World Crescent Ltd. (USD) (b).................................... 4.85% 09/26/28 203,717 -------------- COMPUTERS -- 0.1% 600,000 Lenovo Group Ltd. (USD) (b)......................................... 6.54% 07/27/32 596,905 -------------- DIVERSIFIED FINANCIAL SERVICES -- 0.6% 55,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)............................................................ 4.13% 07/03/23 54,893 115,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)............................................................ 3.88% 01/23/28 104,813 1,650,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)............................................................ 3.00% 10/29/28 1,406,452 1,940,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (USD)............................................................ 3.30% 01/30/32 1,570,819 100,000 Avolon Holdings Funding Ltd. (USD) (b).............................. 3.95% 07/01/24 95,574 </TABLE> Page 74 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) 325,000 Avolon Holdings Funding Ltd. (USD) (b).............................. 2.88% 02/15/25 $ 298,468 4,645,000 Avolon Holdings Funding Ltd. (USD) (b).............................. 2.53% 11/18/27 3,804,078 82,000 Park Aerospace Holdings Ltd. (USD) (b).............................. 5.50% 02/15/24 81,051 -------------- 7,416,148 -------------- ELECTRIC -- 0.1% 500,000 Comision Federal de Electricidad (USD) (b).......................... 4.69% 05/15/29 455,637 250,000 Mong Duong Finance Holdings B.V. (USD) (q).......................... 5.13% 05/07/29 206,723 -------------- 662,360 -------------- ENGINEERING & CONSTRUCTION -- 0.0% 735,000 Heathrow Funding Ltd. (EUR)......................................... 1.88% 03/14/34 578,480 -------------- ENVIRONMENTAL CONTROL -- 0.1% 1,400,000 GFL Environmental, Inc. (USD) (b)................................... 4.00% 08/01/28 1,185,478 300,000 Waste Connections, Inc. (USD)....................................... 2.60% 02/01/30 263,993 -------------- 1,449,471 -------------- FOOD -- 0.3% 443,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (b)........................................................ 5.50% 01/15/30 443,246 1,350,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (b)........................................................ 3.75% 12/01/31 1,184,726 650,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (b)........................................................ 5.75% 04/01/33 651,681 1,285,000 JBS USA LUX S.A. / JBS USA Food Co. / JBS USA Finance, Inc. (USD) (b)........................................................ 6.50% 12/01/52 1,361,368 -------------- 3,641,021 -------------- INTERNET -- 0.0% 200,000 Tencent Holdings Ltd. (USD) (b)..................................... 3.68% 04/22/41 156,013 200,000 Tencent Holdings Ltd. (USD) (b)..................................... 3.84% 04/22/51 149,121 -------------- 305,134 -------------- MACHINERY-DIVERSIFIED -- 0.0% 222,000 Titan Acquisition Ltd. / Titan Co-Borrower LLC (USD) (b)............ 7.75% 04/15/26 202,255 -------------- MEDIA -- 0.1% 1,500,000 VZ Secured Financing BV (USD) (b)................................... 5.00% 01/15/32 1,224,878 -------------- MINING -- 0.1% 200,000 Freeport Indonesia PT (USD) (b)..................................... 4.76% 04/14/27 195,200 1,200,000 Indonesia Asahan Aluminium Persero PT (USD) (q)..................... 4.75% 05/15/25 1,204,650 -------------- 1,399,850 -------------- MISCELLANEOUS MANUFACTURING -- 0.2% 2,253,000 GE Capital International Funding Co. Unlimited Co. (USD)............ 4.42% 11/15/35 2,139,959 40,000 Ingersoll-Rand Luxembourg Finance S.A. (USD)........................ 3.55% 11/01/24 39,475 -------------- 2,179,434 -------------- OIL & GAS -- 0.6% 450,000 Ecopetrol SA (USD).................................................. 6.88% 04/29/30 418,808 200,000 KazMunayGas National Co. JSC (USD) (q).............................. 4.75% 04/19/27 185,304 </TABLE> See Notes to Financial Statements Page 75 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) 900,000 KazMunayGas National Co. JSC (USD) (q).............................. 5.38% 04/24/30 $ 842,487 1,100,000 Pertamina Persero PT (USD) (b)...................................... 3.10% 08/27/30 981,535 105,000 Petroleos Mexicanos (USD)........................................... 6.75% 09/21/47 66,334 170,000 Petroleos Mexicanos (USD)........................................... 6.35% 02/12/48 103,343 355,000 Petroleos Mexicanos (USD)........................................... 7.69% 01/23/50 244,957 110,000 Petroleos Mexicanos (USD)........................................... 6.95% 01/28/60 69,248 2,750,000 Petronas Capital Ltd. (USD) (b)..................................... 3.50% 04/21/30 2,646,057 1,150,000 Qatar Energy (USD) (q).............................................. 2.25% 07/12/31 1,005,245 200,000 SA Global Sukuk Ltd. (USD) (q)...................................... 1.60% 06/17/26 183,905 700,000 Saudi Arabian Oil Co. (USD) (q)..................................... 1.63% 11/24/25 650,300 200,000 Saudi Arabian Oil Co. (USD) (b)..................................... 2.25% 11/24/30 174,516 331,625 Transocean Poseidon Ltd. (USD) (b).................................. 6.88% 02/01/27 312,847 -------------- 7,884,886 -------------- OIL & GAS SERVICES -- 0.1% 1,154,250 Transocean Phoenix 2 Ltd. (USD) (b)................................. 7.75% 10/15/24 1,132,792 276,750 Transocean Proteus Ltd. (USD) (b)................................... 6.25% 12/01/24 269,357 -------------- 1,402,149 -------------- PACKAGING & CONTAINERS -- 0.3% 2,200,000 Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc. (USD) (b)........................................................ 5.25% 08/15/27 1,594,427 1,800,000 Trivium Packaging Finance B.V. (USD) (b)............................ 5.50% 08/15/26 1,731,042 -------------- 3,325,469 -------------- PHARMACEUTICALS -- 0.0% 637,000 Endo Dac / Endo Finance LLC / Endo Finco, Inc. (USD) (i) (j) (k)................................................ 6.00% 06/30/28 36,628 365,000 Jazz Securities DAC (USD) (b)....................................... 4.38% 01/15/29 329,664 -------------- 366,292 -------------- PIPELINES -- 0.2% 2,306,064 Galaxy Pipeline Assets Bidco Ltd. (USD) (b)......................... 2.16% 03/31/34 2,017,953 400,000 KazTransGas JSC (USD) (q)........................................... 4.38% 09/26/27 364,500 -------------- 2,382,453 -------------- REAL ESTATE -- 0.0% 605,000 China Aoyuan Group Ltd. (USD) (q)................................... 6.35% 02/08/24 41,827 200,000 China SCE Group Holdings Ltd. (USD) (q)............................. 7.00% 05/02/25 44,000 400,000 Sunac China Holdings Ltd. (USD) (q)................................. 6.50% 01/10/25 59,000 200,000 Times China Holdings Ltd. (USD) (q)................................. 6.75% 07/08/25 31,975 300,000 Vonovia SE (EUR).................................................... 1.50% 06/14/41 184,909 415,000 Zhenro Properties Group Ltd. (USD) (k) (q).......................... 6.63% 01/07/26 16,752 -------------- 378,463 -------------- REAL ESTATE INVESTMENT TRUSTS -- 0.0% 510,000 Ascendas Real Estate Investment Trust (EUR)......................... 0.75% 06/23/28 410,212 -------------- RETAIL -- 0.0% 510,000 Alimentation Couche-Tard, Inc. (USD) (b)............................ 3.55% 07/26/27 479,601 -------------- </TABLE> Page 76 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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> SAVINGS & LOANS -- 0.2% 135,000 Nationwide Building Society (USD) (b) (f)........................... 3.77% 03/08/24 $ 134,524 1,165,000 Nationwide Building Society (USD) (b) (f)........................... 4.36% 08/01/24 1,156,921 1,520,000 Nationwide Building Society (USD) (b) (f)........................... 2.97% 02/16/28 1,372,837 -------------- 2,664,282 -------------- SEMICONDUCTORS -- 0.0% 400,000 TSMC Global Ltd. (USD) (b).......................................... 4.63% 07/22/32 402,011 -------------- TELECOMMUNICATIONS -- 0.5% 200,000 C&W Senior Financing DAC (USD) (b).................................. 6.88% 09/15/27 177,805 1,500,000 Global Switch Finance BV (EUR)...................................... 1.38% 10/07/30 1,329,122 600,000 Intelsat Jackson Holdings S.A. (USD) (b) (k)........................ 5.50% 08/01/23 6,906 750,000 Intelsat Jackson Holdings S.A. (USD) (b) (k)........................ 8.50% 10/15/24 8,692 303,000 Intelsat Jackson Holdings S.A. (USD) (b) (k)........................ 9.75% 07/15/25 3,488 1,929,000 Intelsat Jackson Holdings S.A. (USD) (b)............................ 6.50% 03/15/30 1,753,422 200,000 SES S.A. (USD) (b).................................................. 3.60% 04/04/23 197,745 1,235,000 Vmed O2 UK Financing I PLC (USD) (b)................................ 4.25% 01/31/31 998,152 895,000 Vodafone Group PLC (USD)............................................ 5.25% 05/30/48 830,209 113,000 Vodafone Group PLC (USD)............................................ 4.88% 06/19/49 101,998 580,000 Vodafone Group PLC (USD)............................................ 4.25% 09/17/50 476,733 -------------- 5,884,272 -------------- TRANSPORTATION -- 0.0% 200,000 Empresa de Transporte de Pasajeros Metro S.A. (USD) (b)............. 3.65% 05/07/30 185,388 -------------- TOTAL FOREIGN CORPORATE BONDS AND NOTES........................................................ 83,876,081 (Cost $92,704,024) -------------- FOREIGN SOVEREIGN BONDS AND NOTES -- 4.4% BAHRAIN -- 0.1% 825,000 CBB International Sukuk Co. 7 SPC (USD) (q)......................... 6.88% 10/05/25 868,433 -------------- BRAZIL -- 0.3% 1,650,000 Brazilian Government International Bond (USD)....................... 2.88% 06/06/25 1,577,673 700,000 Brazilian Government International Bond (USD)....................... 4.63% 01/13/28 672,761 1,350,000 Brazilian Government International Bond (USD)....................... 3.88% 06/12/30 1,180,998 -------------- 3,431,432 -------------- CHILE -- 0.2% 2,200,000 Chile Government International Bond (USD)........................... 3.24% 02/06/28 2,055,176 850,000 Chile Government International Bond (USD)........................... 2.55% 01/27/32 710,437 -------------- 2,765,613 -------------- COLOMBIA -- 0.3% 2,250,000 Colombia Government International Bond (USD)........................ 4.50% 01/28/26 2,133,162 1,250,000 Colombia Government International Bond (USD)........................ 3.00% 01/30/30 968,658 400,000 Colombia Government International Bond (USD)........................ 3.13% 04/15/31 302,031 -------------- 3,403,851 -------------- DOMINICAN REPUBLIC -- 0.2% 2,850,000 Dominican Republic International Bond (USD) (b)..................... 4.50% 01/30/30 2,402,939 350,000 Dominican Republic International Bond (USD) (q)..................... 4.88% 09/23/32 283,726 -------------- 2,686,665 -------------- </TABLE> See Notes to Financial Statements Page 77 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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> EGYPT -- 0.0% 400,000 Egypt Government International Bond (USD) (b)....................... 5.25% 10/06/25 $ 342,303 200,000 Egypt Government International Bond (USD) (q)....................... 5.25% 10/06/25 171,151 -------------- 513,454 -------------- GUATEMALA -- 0.2% 2,667,000 Guatemala Government Bond (USD) (q)................................. 3.70% 10/07/33 2,166,695 -------------- HONG KONG -- 0.1% 915,000 Airport Authority Hong Kong (USD) (b)............................... 3.25% 01/12/52 723,204 -------------- HUNGARY -- 0.1% 2,450,000 Hungary Government International Bond (USD) (b)..................... 2.13% 09/22/31 1,801,313 -------------- INDONESIA -- 0.2% 800,000 Indonesia Government International Bond (USD)....................... 2.85% 02/14/30 739,499 2,300,000 Perusahaan Penerbit SBSN Indonesia III (USD) (b).................... 2.80% 06/23/30 2,076,003 -------------- 2,815,502 -------------- MEXICO -- 0.4% 3,750,000 Mexico Government International Bond (USD).......................... 3.75% 01/11/28 3,619,318 1,960,000 Mexico Government International Bond (USD).......................... 2.66% 05/24/31 1,630,943 -------------- 5,250,261 -------------- OMAN -- 0.2% 600,000 Oman Government International Bond (USD) (q)........................ 6.75% 10/28/27 626,789 1,450,000 Oman Government International Bond (USD) (q)........................ 5.63% 01/17/28 1,431,746 -------------- 2,058,535 -------------- PANAMA -- 0.3% 2,500,000 Panama Government International Bond (USD).......................... 3.16% 01/23/30 2,205,621 1,903,000 Panama Government International Bond (USD).......................... 2.25% 09/29/32 1,485,136 -------------- 3,690,757 -------------- PARAGUAY -- 0.2% 1,300,000 Paraguay Government International Bond (USD) (b).................... 4.95% 04/28/31 1,255,696 1,650,000 Paraguay Government International Bond (USD) (b).................... 2.74% 01/29/33 1,310,008 -------------- 2,565,704 -------------- PERU -- 0.2% 1,500,000 Peruvian Government International Bond (USD)........................ 4.13% 08/25/27 1,476,744 1,203,000 Peruvian Government International Bond (USD)........................ 2.84% 06/20/30 1,048,926 700,000 Peruvian Government International Bond (USD)........................ 2.78% 01/23/31 597,787 -------------- 3,123,457 -------------- PHILIPPINES -- 0.2% 2,800,000 Philippine Government International Bond (USD)...................... 2.46% 05/05/30 2,523,628 300,000 Philippine Government International Bond (USD)...................... 1.95% 01/06/32 252,390 -------------- 2,776,018 -------------- QATAR -- 0.2% 2,302,000 Qatar Government International Bond (USD) (q)....................... 4.50% 04/23/28 2,404,474 600,000 Qatar Government International Bond (USD) (q)....................... 3.75% 04/16/30 604,486 -------------- 3,008,960 -------------- </TABLE> Page 78 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 -- 0.2% 2,350,000 Romanian Government International Bond (USD) (q).................... 3.00% 02/14/31 $ 1,879,803 -------------- SAUDI ARABIA -- 0.3% 1,100,000 Saudi Government International Bond (USD) (q)....................... 3.25% 10/26/26 1,086,947 1,900,000 Saudi Government International Bond (USD) (q)....................... 3.63% 03/04/28 1,892,628 200,000 Saudi Government International Bond (USD) (q)....................... 3.25% 10/22/30 193,202 -------------- 3,172,777 -------------- SOUTH AFRICA -- 0.2% 2,358,000 Republic of South Africa Government International Bond (USD)........ 4.30% 10/12/28 2,097,912 620,000 Republic of South Africa Government International Bond (USD)........ 4.85% 09/30/29 551,013 400,000 Republic of South Africa Government International Bond (USD)........ 5.88% 04/20/32 357,300 -------------- 3,006,225 -------------- UNITED ARAB EMIRATES -- 0.2% 2,000,000 Abu Dhabi Government International Bond (USD) (q)................... 2.50% 09/30/29 1,865,990 -------------- URUGUAY -- 0.1% 500,000 Uruguay Government International Bond (USD)......................... 4.38% 10/27/27 515,414 1,100,000 Uruguay Government International Bond (USD)......................... 4.38% 01/23/31 1,128,722 -------------- 1,644,136 -------------- TOTAL FOREIGN SOVEREIGN BONDS AND NOTES........................................................ 55,218,785 (Cost $60,570,676) -------------- PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY SECURITIES -- 0.4% $ 2,520,000 Federal Home Loan Banks............................................. 1.61% 09/04/24 2,416,360 2,515,000 Federal Home Loan Banks............................................. 1.61% 09/04/24 2,411,566 -------------- TOTAL U.S. GOVERNMENT AGENCY SECURITIES........................................................ 4,827,926 (Cost $5,035,000) -------------- MUNICIPAL BONDS -- 0.1% CALIFORNIA -- 0.1% 1,010,000 Los Angeles CA Unif Sch Dist Build America Bonds.................... 5.75% 07/01/34 1,102,761 75,000 Univ of CA Rev Txbl Gen, Ser AJ..................................... 4.60% 05/15/31 75,998 -------------- 1,178,759 -------------- COLORADO -- 0.0% 220,000 City & Cnty of Denver Cnty Arpt Rev................................. 2.24% 11/15/30 187,223 -------------- FLORIDA -- 0.0% 105,000 Cnty of Miami-Dade FL Aviation Rev Ref, Ser D....................... 3.45% 10/01/30 97,372 -------------- NEW YORK -- 0.0% 50,000 Metro Transprtn Auth NY Rev Txbl Green Bond, Ser C2................. 5.18% 11/15/49 49,887 -------------- TOTAL MUNICIPAL BONDS.......................................................................... 1,513,241 (Cost $1,700,783) -------------- </TABLE> See Notes to Financial Statements Page 79 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- COMMON STOCKS -- 0.0% <S> <C> <C> TELECOMMUNICATIONS -- 0.0% 15,736 Intelsat Jackson Emergence S.A. (l) (m) (o) (r)................................................ $ 0 (Cost $527,164) -------------- RIGHTS -- 0.0% TELECOMMUNICATIONS -- 0.0% 1,648 Intelsat Jackson Holdings S.A., Series A (l) (m) (o) (r)....................................... 0 1,648 Intelsat Jackson Holdings S.A., Series B (l) (m) (o) (r)....................................... 0 -------------- TOTAL RIGHTS................................................................................... 0 (Cost $0) -------------- PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. TREASURY BILLS -- 19.3% <S> <C> <C> <C> <C> $ 14,345,000 U.S. Treasury Bill.................................................. (h) 09/01/22 14,345,000 6,715,000 U.S. Treasury Bill.................................................. (h) 09/22/22 6,706,958 94,965,000 U.S. Treasury Bill.................................................. (h) 10/06/22 94,762,342 6,295,000 U.S. Treasury Bill.................................................. (h) 10/20/22 6,273,811 3,675,000 U.S. Treasury Bill.................................................. (h) 11/03/22 3,658,158 21,770,000 U.S. Treasury Bill.................................................. (h) 11/10/22 21,660,308 6,095,000 U.S. Treasury Bill.................................................. (h) 12/01/22 6,050,838 14,545,000 U.S. Treasury Bill.................................................. (h) 01/05/23 14,394,017 17,895,000 U.S. Treasury Bill.................................................. (h) 01/12/23 17,698,482 47,310,000 U.S. Treasury Bill.................................................. (h) 01/19/23 46,757,590 13,120,000 U.S. Treasury Bill.................................................. (h) 01/26/23 12,958,878 -------------- TOTAL U.S. TREASURY BILLS...................................................................... 245,266,382 (Cost $245,441,469) -------------- SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.4% <S> <C> <C> 18,225,536 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 1.87% (s)..... 18,225,536 (Cost $18,225,536) -------------- TOTAL INVESTMENTS -- 112.9%.................................................................... 1,433,106,770 (Cost $1,508,882,055) NET OTHER ASSETS AND LIABILITIES -- (12.9)%.................................................... (164,292,232) -------------- NET ASSETS -- 100.0%........................................................................... $1,268,814,538 ============== </TABLE> Page 80 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> FORWARD FOREIGN CURRENCY CONTRACTS AT AUGUST 31, 2022 (See Note 2E - Forward Foreign Currency Contracts in the Notes to Financial Statements): PURCHASE VALUE SALE VALUE UNREALIZED SETTLEMENT AMOUNT AMOUNT AS OF AS OF APPRECIATION DATE COUNTERPARTY PURCHASED SOLD 8/31/2022 8/31/2022 (DEPRECIATION) -------------- -------------- ----------------- ------------------ ---------------- ---------------- -------------- <S> <C> <C> <C> <C> <C> <C> 10/07/2022 Citi EUR 166,000 USD 165,411 $ 167,243 $ 165,411 $ 1,832 10/07/2022 Citi USD 2,366,647 EUR 2,233,000 2,366,647 2,249,718 116,929 10/07/2022 Citi USD 200,559 EUR 196,000 200,559 197,467 3,092 10/07/2022 GSIL USD 620,307 EUR 607,000 620,307 611,545 8,762 10/07/2022 GSIL USD 203,868 EUR 199,000 203,868 200,490 3,378 -------------- Net Unrealized Appreciation (Depreciation) $ 133,993 ============== </TABLE> Counterparty Abbreviations: Citi - Citigroup Global Markets, Inc. GSIL - Goldman Sachs International, London <TABLE> <CAPTION> FUTURES CONTRACTS AT AUGUST 31, 2022 (See Note 2D - Futures Contracts in the Notes to Financial Statements): UNREALIZED APPRECIATION NUMBER OF (DEPRECIATION)/ FUTURES CONTRACTS POSITION CONTRACTS EXPIRATION DATE NOTIONAL VALUE VALUE ---------------------------------- -------------- --------------- ------------------ ----------------- -------------- <S> <C> <C> <C> <C> <C> U.S. 2-Year Treasury Notes Long 420 Dec-2022 $ 87,497,813 $ (193,842) U.S. 5-Year Treasury Notes Long 747 Dec-2022 82,782,774 (390,611) Euro-Bund Future Short 8 Sep-2022 (1,189,625) (4,014) Ultra 10-Year U.S. Treasury Notes Short 1,434 Dec-2022 (179,518,875) 1,329,194 Ultra U.S. Treasury Bond Futures Short 344 Dec-2022 (51,428,000) 97,671 --------------- -------------- $ (61,855,913) $ 838,398 =============== ============== </TABLE> See Notes to Financial Statements Page 81 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> INTEREST RATE SWAP AGREEMENTS AT AUGUST 31, 2022 (See Note 2F - Swap Agreements in the Notes to Financial Statements): UNREALIZED APPRECIATION EXPIRATION NOTIONAL (DEPRECIATION)/ COUNTERPARTY FLOATING 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) $ (569,968) Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 9,080,000 1.034%(1) (419,750) Citibank, Global Markets, Inc. 3 month LIBOR(1) 07/24/2025 6,145,000 1.073%(1) (279,621) Citibank, Global Markets, Inc. 3 month LIBOR(2) 09/28/2025 20,785,000 1.390%(2) (782,098) Citibank, Global Markets, Inc. 3 month LIBOR(3) 07/24/2053 1,030,000 1.773%(3) 230,519 Citibank, Global Markets, Inc. 3 month LIBOR(3) 07/24/2053 755,000 1.785%(3) 167,130 Citibank, Global Markets, Inc. 3 month LIBOR(3) 07/24/2053 515,000 1.808%(3) 111,739 Citibank, Global Markets, Inc. 3 month LIBOR(4) 09/28/2053 1,775,000 1.870%(4) 356,576 JPMorgan Chase and Co. SOFR(5) 06/10/2024 54,810,000 1.950%(5) (1,541,297) --------------- ------------- $ 107,185,000 $ (2,726,770) =============== ============= </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 floating rate and receives the fixed rate. The floating rate is not effective until 09/28/2023 and no interest is being accrued until that date. (3) 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. (4) The Fund pays the fixed rate and receives the floating rate. The floating rate is not effective until 09/28/2023 and no interest is being accrued until that date. (5) The Fund pays the floating rate and receives the fixed rate. The floating rate is not effective until 06/14/2023 and no interest is being accrued until that date. (a) Collateral Strip Rate security. Coupon is based on the weighted net interest rate of the investment's underlying collateral. The interest rate resets periodically. (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, 2022, securities noted as such amounted to $485,665,984 or 38.3% of net assets. (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) Floating or variable rate security. (e) 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. (f) Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at August 31, 2022. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. (g) Perpetual maturity. (h) Zero coupon security. (i) 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). (j) This issuer has filed for protection in bankruptcy court. (k) This issuer is in default. (l) 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, 2022, securities noted as such are valued at $2,308,867 or 0.2% of net assets. Page 82 See Notes to Financial Statements <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 (m) This security's value was determined using significant unobservable inputs (see Note 2A - Portfolio Valuation in the Notes to Financial Statements). (n) Inverse floating rate security. (o) Pursuant to procedures adopted by the Trust's Board of Trustees, this security has been determined to be illiquid by the Advisor. (p) 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). (q) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (r) Non-income producing security. (s) Rate shown reflects yield as of August 31, 2022. CME - Chicago Mercantile Exchange IO - Interest-Only Security - Principal amount shown represents par value on which interest payments are based LIBOR - London Interbank Offered Rate SOFR - Secured Overnight Financing Rate TBA - To-Be-Announced Security Currency Abbreviations: EUR - Euro USD - United States Dollar See Notes to Financial Statements Page 83 <PAGE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------- -------------- --------------- -------------- <S> <C> <C> <C> <C> Mortgage-Backed Securities....................... $ 335,553,101 $ -- $ 335,553,101 $ -- Corporate Bonds and Notes*....................... 279,607,007 -- 279,607,007 -- Asset-Backed Securities.......................... 222,534,397 -- 221,950,530 583,867 U.S. Government Agency Mortgage-Backed Securities.................................... 186,484,314 -- 186,484,314 -- Foreign Corporate Bonds and Notes*............... 83,876,081 -- 83,876,081 -- Foreign Sovereign Bonds and Notes**.............. 55,218,785 -- 55,218,785 -- U.S. Government Agency Securities................ 4,827,926 -- 4,827,926 -- Municipal Bonds***............................... 1,513,241 -- 1,513,241 -- Common Stocks*................................... --**** -- -- --**** Rights*.......................................... --**** -- -- --**** U.S. Treasury Bills.............................. 245,266,382 -- 245,266,382 -- Money Market Funds............................... 18,225,536 18,225,536 -- -- --------------- -------------- --------------- -------------- Total Investments................................ 1,433,106,770 18,225,536 1,414,297,367 583,867 Forward Foreign Currency Contracts............... 133,993 -- 133,993 -- Futures Contracts*****........................... 1,426,865 1,426,865 -- -- Interest Rate Swap Agreements.................... 865,964 -- 865,964 -- --------------- -------------- --------------- -------------- Total............................................ $ 1,435,533,592 $ 19,652,401 $ 1,415,297,324 $ 583,867 =============== ============== =============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS --------------- -------------- --------------- -------------- Futures Contracts*****........................... $ (588,467) $ (588,467) $ -- $ -- Interest Rate Swap Agreements.................... (3,592,734) -- (3,592,734) -- --------------- -------------- --------------- -------------- Total............................................ $ (4,181,201) $ (588,467) $ (3,592,734) $ -- =============== ============== =============== ============== </TABLE> * See Portfolio of Investments for industry breakout. ** See Portfolio of Investments for country breakout. *** See Portfolio of Investments for state breakout. **** Investment is valued at $0. ***** 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. Page 84 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 68.2% <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.6% Federal Home Loan Mortgage Corporation $ 31,198 Series 2005-3071, Class TF, 1 Mo. LIBOR + 0.30% (a).............. 2.69% 04/15/35 $ 31,188 56,172 Series 2010-3778, Class L........................................ 3.50% 12/15/25 55,972 106,219 Series 2017-360, Class 250....................................... 2.50% 11/15/47 99,053 52,002 Series 2020-4993, Class OP, PO................................... (b) 10/25/58 45,031 925,000 Series 2022-5210, Class LB....................................... 3.00% 08/25/50 800,034 Federal Home Loan Mortgage Corporation STACR REMIC Trust 500,000 Series 2021-HQA1, Class M2, 30 Day Average SOFR + 2.25% (a) (d)................................................. 4.53% 08/25/33 481,862 1,100,000 Series 2022-DNA1, Class M1B, 30 Day Average SOFR + 1.85% (a) (d)................................................. 4.03% 01/25/42 1,055,982 Federal National Mortgage Association 122,936 Series 2006-56, Class FE, 1 Mo. LIBOR + 0.43% (a)................ 2.87% 07/25/36 122,807 97,379 Series 2011-47, Class GF, 1 Mo. LIBOR + 0.57% (a)................ 3.01% 06/25/41 97,792 121,097 Series 2018-50, Class BA......................................... 3.00% 07/25/48 115,436 5,592 Series 2018-86, Class JA......................................... 4.00% 05/25/47 5,533 84,590 Series 2019-67, Class FE, 1 Mo. LIBOR + 0.45% (a)................ 2.89% 11/25/49 84,198 -------------- 2,994,888 -------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.0% Federal Home Loan Mortgage Corporation Multifamily Structured Pass-Through Certificates 67,804,725 Series 2013-K024, Class X3, IO (c)............................... 1.70% 11/25/40 678 1,000,000 Series 2018-K732, Class X3, IO (c)............................... 2.24% 05/25/46 55,449 FREMF Mortgage Trust 21,686,166 Series 2017-K726, Class X2B, IO (d).............................. 0.10% 07/25/49 33,503 -------------- 89,630 -------------- PASS-THROUGH SECURITIES -- 66.6% Federal Home Loan Mortgage Corporation 54,463 Pool G08681...................................................... 3.50% 12/01/45 52,910 28,197 Pool G08792...................................................... 3.50% 12/01/47 27,385 103,228 Pool G60659...................................................... 3.50% 08/01/46 100,297 122,959 Pool G61748...................................................... 3.50% 11/01/48 119,321 140,322 Pool G67706...................................................... 3.50% 12/01/47 136,575 178,407 Pool G67710...................................................... 3.50% 03/01/48 173,130 1,970,629 Pool QD1841...................................................... 2.00% 11/01/51 1,701,416 1,578,863 Pool QD7088...................................................... 2.00% 02/01/52 1,364,487 1,894,116 Pool RA5855...................................................... 2.50% 09/01/51 1,696,675 425,161 Pool RA6528...................................................... 2.50% 02/01/52 380,794 120,337 Pool SD0499...................................................... 3.00% 08/01/50 112,573 1,068,322 Pool SD0956...................................................... 2.50% 04/01/52 956,864 2,087,031 Pool SD1011...................................................... 2.50% 04/01/52 1,870,201 62,778 Pool SD7502...................................................... 3.50% 07/01/49 60,892 129,043 Pool SD7511...................................................... 3.50% 01/01/50 124,403 79,651 Pool SD7513...................................................... 3.50% 04/01/50 76,788 985,050 Pool SD8194...................................................... 2.50% 02/01/52 882,105 1,033,645 Pool SD8212...................................................... 2.50% 05/01/52 925,615 79,210 Pool ZM1779...................................................... 3.00% 09/01/46 75,178 </TABLE> See Notes to Financial Statements Page 85 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 $ 29,613 Pool BE3619...................................................... 4.00% 05/01/47 $ 29,401 1,549,223 Pool BQ6913...................................................... 2.00% 12/01/51 1,339,567 2,807,305 Pool BQ7056...................................................... 2.00% 01/01/52 2,423,925 635,147 Pool BT6597...................................................... 2.00% 02/01/52 549,141 731,488 Pool BU9074...................................................... 2.00% 01/01/52 632,600 760,456 Pool BV7761...................................................... 2.50% 03/01/52 681,218 1,418,319 Pool BV8463...................................................... 2.50% 04/01/52 1,270,305 1,039,970 Pool BV8464...................................................... 3.00% 04/01/52 975,783 1,458,201 Pool BV8477...................................................... 3.00% 05/01/52 1,352,641 1,459,215 Pool BV8515...................................................... 3.00% 05/01/52 1,353,459 54,338 Pool CA0995...................................................... 3.50% 01/01/48 52,674 602,075 Pool CA5689...................................................... 3.00% 05/01/50 563,834 992,910 Pool CB2852...................................................... 2.00% 11/01/51 858,620 2,594,324 Pool CB3151...................................................... 2.00% 03/01/52 2,242,515 70,317 Pool FM2870...................................................... 3.00% 03/01/50 65,967 1,491,045 Pool FS0139...................................................... 2.50% 01/01/52 1,339,312 1,128,626 Pool FS1598...................................................... 2.00% 04/01/52 975,723 64,978 Pool MA4093...................................................... 2.00% 08/01/40 57,863 94,979 Pool MA4152...................................................... 2.00% 10/01/40 84,569 145,898 Pool MA4176...................................................... 2.00% 11/01/40 129,899 153,641 Pool MA4204...................................................... 2.00% 12/01/40 136,780 197,286 Pool MA4333...................................................... 2.00% 05/01/41 174,893 1,201,976 Pool MA4387...................................................... 2.00% 07/01/41 1,065,434 2,169,139 Pool MA4437...................................................... 2.00% 10/01/51 1,874,040 1,173,216 Pool MA4438...................................................... 2.50% 10/01/51 1,051,122 1,052,563 Pool MA4512...................................................... 2.50% 01/01/52 942,759 2,936,918 Pool MA4547...................................................... 2.00% 02/01/52 2,535,699 1,035,655 Pool MA4548...................................................... 2.50% 02/01/52 927,421 1,881,518 Pool MA4579...................................................... 3.00% 04/01/52 1,745,968 5,800,000 Pool TBA (e)..................................................... 3.50% 09/15/52 5,538,524 4,400,000 Pool TBA (e)..................................................... 4.00% 09/15/52 4,302,375 3,775,000 Pool TBA (e)..................................................... 4.50% 09/15/52 3,759,802 29,825,000 Pool TBA (e)..................................................... 2.00% 10/15/52 25,733,574 23,625,000 Pool TBA (e)..................................................... 2.50% 10/15/52 21,133,093 12,425,000 Pool TBA (e)..................................................... 3.00% 10/15/52 11,512,367 1,025,000 Pool TBA (e)..................................................... 4.50% 10/15/52 1,019,632 Government National Mortgage Association 48,737 Pool MA3873...................................................... 3.00% 08/20/46 46,594 61,053 Pool MA4382...................................................... 3.50% 04/20/47 59,641 45,993 Pool MA4778...................................................... 3.50% 10/20/47 44,952 32,166 Pool MA4779...................................................... 4.00% 10/20/47 32,150 13,150,000 Pool TBA (e)..................................................... 2.50% 09/15/52 12,007,080 -------------- 123,460,525 -------------- TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES........................................ 126,545,043 (Cost $129,314,853) -------------- </TABLE> Page 86 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES -- 29.8% <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS -- 18.8% Alternative Loan Trust $ 218,188 Series 2005-16, Class A4, 1 Mo. LIBOR + 0.48% (a)................ 2.92% 06/25/35 $ 189,622 93,298 Series 2006-HY12, Class A5 (c)................................... 3.61% 08/25/36 87,541 135,520 Series 2007-5CB, Class 1A11...................................... 6.00% 04/25/37 86,050 119,895 Series 2007-15CB, Class A5....................................... 5.75% 07/25/37 82,893 353,815 Series 2007-HY8C, Class A1, 1 Mo. LIBOR + 0.32% (a).............. 2.76% 09/25/47 323,641 159,222 Series 2007-OA7, Class A1A, 1 Mo. LIBOR + 0.36% (a).............. 2.80% 05/25/47 137,928 American Home Mortgage Assets Trust 330,366 Series 2006-1, Class 1A1, 1 Mo. LIBOR + 0.21% (a)................ 2.65% 05/25/46 295,527 110,298 Series 2006-3, Class 1A1, 12 Mo. Treasury Average + 0.97% (a)..................................................... 1.83% 10/25/46 98,282 Banc of America Funding Trust 130,186 Series 2007-C, Class 7A1, 1 Mo. LIBOR + 0.42% (a)................ 2.79% 05/20/47 121,740 BCAP LLC Trust 94,209 Series 2006-AA2, Class A1, 1 Mo. LIBOR + 0.34% (a)............... 2.78% 01/25/37 84,542 Bear Stearns ALT-A Trust 517,836 Series 2005-1, Class M2, 1 Mo. LIBOR + 1.13% (a)................. 3.57% 01/25/35 539,795 700,031 Series 2006-1, Class 21A2 (c).................................... 3.30% 02/25/36 554,013 Bear Stearns ARM Trust 172,353 Series 2005-1, Class 2A1 (c)..................................... 3.17% 03/25/35 164,119 Bear Stearns Mortgage Funding Trust 102,418 Series 2006-AR5, Class 2A1, 1 Mo. LIBOR + 0.19% (a).............. 2.63% 01/25/37 91,046 CHL Mortgage Pass-Through Trust 207,929 Series 2004-25, Class 2A1, 1 Mo. LIBOR + 0.68% (a)............... 3.12% 02/25/35 181,777 103,271 Series 2007-20, Class A1......................................... 6.50% 01/25/38 55,070 CIM Trust 248,421 Series 2021-R3, Class A1A (d).................................... 1.95% 06/25/57 225,151 1,336,016 Series 2021-NR1, Class A1, steps up to 5.57% on 02/25/24 (d) (f).............................................. 2.57% 07/25/55 1,277,014 421,372 Series 2021-NR2, Class A1, steps up to 5.57% on 03/25/24 (d) (f).............................................. 2.57% 07/25/59 401,873 98,659 Series 2021-NR3, Class A1, Steps-up to 5.57% on 04/25/24 (d) (f).............................................. 2.57% 06/25/57 93,071 Citigroup Mortgage Loan Trust 261,543 Series 2009-10, Class 2A2 (d).................................... 7.00% 12/25/35 208,560 Connecticut Avenue Securities Trust 500,000 Series 2021-R03, Class 1B2, 30 Day Average SOFR + 5.50% (a) (d)................................................. 7.68% 12/25/41 450,547 Credit Suisse Mortgage Trust 538,254 Series 2014-8R, Class 3A2 (c) (d)................................ 4.05% 02/27/36 507,781 299,202 Series 2020-RPL2, Class A12 (d).................................. 3.44% 02/25/60 293,386 763,261 Series 2021-RP11, Class PT (d)................................... 3.76% 10/25/61 642,982 503,704 Series 2021-RPL4, Class A1 (d)................................... 1.80% 12/27/60 474,925 CSMCM Trust 27,588 Series 2021-RP11, Class CERT (d)................................. 3.78% 10/27/61 23,448 Deutsche Alt-A Securities Mortgage Loan Trust 195,689 Series 2007-3, Class 2A1, 1 Mo. LIBOR + 0.75% (a)................ 3.19% 10/25/47 164,561 GreenPoint Mortgage Funding Trust 161,697 Series 2005-AR4, Class G41B, 1 Mo. LIBOR + 0.20% (a)............. 2.64% 10/25/45 146,731 </TABLE> See Notes to Financial Statements Page 87 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED) GreenPoint MTA Trust $ 317,851 Series 2005-AR1, Class A2, 1 Mo. LIBOR + 0.44% (a)............... 2.88% 06/25/45 $ 296,466 27,502 Series 2005-AR3, Class 1A1, 1 Mo. LIBOR + 0.48% (a).............. 2.92% 08/25/45 21,849 GSR Mortgage Loan Trust 230,758 Series 2006-OA1, Class 2A2, 1 Mo. LIBOR + 0.52% (a).............. 2.96% 08/25/46 83,706 Impac CMB Trust 212,091 Series 2007-A, Class A, 1 Mo. LIBOR + 0.50% (a) (d).............. 2.94% 05/25/37 203,794 IndyMac IMSC Mortgage Loan Trust 1,020,392 Series 2007-F2, Class 1 A4....................................... 6.00% 07/25/37 845,921 IndyMac INDX Mortgage Loan Trust 141,682 Series 2005-AR29, Class A1 (c)................................... 3.19% 01/25/36 126,191 1,051,784 Series 2006-AR2, Class 1A1B, 1 Mo. LIBOR + 0.42% (a)............. 2.86% 04/25/46 931,348 69,834 Series 2006-AR3, Class 2A1A (c).................................. 3.01% 03/25/36 56,420 62,105 Series 2006-AR9, Class 3A2, 1 Mo. LIBOR + 0.35% (a).............. 2.79% 06/25/36 52,552 588,795 Series 2006-AR13, Class A3 (c)................................... 3.34% 07/25/36 473,199 141,791 Series 2006-AR19, Class 5A2 (c).................................. 3.45% 08/25/36 114,661 506,203 Series 2006-AR31, Class A3 (c)................................... 3.02% 11/25/36 472,026 781,211 Series 2007-AR21, Class 6A1 (c).................................. 2.80% 09/25/37 609,574 103,620 Series 2007-FLX2, Class A1A, 1 Mo. LIBOR + 0.16% (a)............. 2.60% 04/25/37 89,754 784,837 Series 2007-FLX3, Class A1, 1 Mo. LIBOR + 0.48% (a).............. 2.92% 06/25/37 712,722 Lanebrook Mortgage Transaction PLC GBP 542,229 Series 2021-1, Class X1, SONIA + 2.90% (a) (g)................... 4.47% 07/20/58 624,022 Lehman XS Trust $ 825,260 Series 2005-7N, Class 1A1A, 1 Mo. LIBOR + 0.54% (a).............. 2.98% 12/25/35 763,847 1,317,383 Series 2006-4N, Class A1D1, 1 Mo. LIBOR + 0.66% (a).............. 3.10% 04/25/46 1,202,779 480,602 Series 2006-10N, Class 1A4A, 1 Mo. LIBOR + 0.60% (a)............. 3.04% 07/25/46 384,673 187,036 Series 2007-12N, Class 1A3A, 1 Mo. LIBOR + 0.40% (a)............. 2.84% 07/25/47 181,507 LHOME Mortgage Trust 1,275,000 Series 2021-RTL3, Class A1, steps up to 3.36% on 04/25/24 (d) (f).............................................. 2.36% 09/25/26 1,223,116 Luminent Mortgage Trust 1,249,327 Series 2005-1, Class A1, 1 Mo. LIBOR + 0.52% (a)................. 2.96% 11/25/35 1,204,750 929,166 Series 2007-1, Class 1A1, 1 Mo. LIBOR + 0.32% (a)................ 2.76% 11/25/36 862,246 MASTR Adjustable Rate Mortgages Trust 1,122,069 Series 2006-OA2, Class 1A1, 12 Mo. Treasury Average + 0.80% (a)..................................................... 1.66% 12/25/46 922,627 508,722 Series 2007-2, Class A1, 1 Mo. LIBOR + 0.30% (a)................. 2.74% 03/25/47 474,161 1,800,000 Series 2007-HF2, Class A2, 1 Mo. LIBOR + 1.10% (a)............... 3.54% 09/25/37 861,454 PRPM LLC 1,130,650 Series 2021-1, Class A1, steps up to 5.12% on 01/25/24 (d) (f)... 2.12% 01/25/26 1,085,768 1,364,757 Series 2021-3, Class A1, steps up to 4.87% on 04/25/24 (d) (f)... 1.87% 04/25/26 1,290,652 1,259,001 Series 2021-10, Class A1, steps up to 5.49% on 10/25/24 (d) (f).. 2.49% 10/25/26 1,182,439 1,318,883 Series 2021-11, Class A1, steps up to 5.49% on 11/25/24 (d) (f).. 2.49% 11/25/26 1,238,370 RALI Trust 456,772 Series 2005-QO1, Class A1, 1 Mo. LIBOR + 0.30% (a)............... 2.74% 08/25/35 357,778 126,238 Series 2006-QA6, Class A1, 1 Mo. LIBOR + 0.38% (a)............... 2.82% 07/25/36 125,023 3,222,305 Series 2006-QO2, Class A1, 1 Mo. LIBOR + 0.44% (a)............... 2.88% 02/25/46 734,418 210,063 Series 2006-QS7, Class A2........................................ 6.00% 06/25/36 179,176 322,950 Series 2007-QH4, Class A1, 1 Mo. LIBOR + 0.38% (a)............... 2.82% 05/25/37 291,477 </TABLE> Page 88 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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) $ 101,652 Series 2007-QS1, Class 1A4....................................... 6.00% 01/25/37 $ 86,240 174,181 Series 2007-QS2, Class A4........................................ 6.25% 01/25/37 148,513 RFMSI Trust 591,035 Series 2006-S10, Class 1A1....................................... 6.00% 10/25/36 522,912 Structured Adjustable Rate Mortgage Loan Trust 712,128 Series 2005-17, Class 3A1 (c).................................... 3.60% 08/25/35 640,756 Structured Asset Mortgage Investments II Trust 226,215 Series 2005-AR8, Class A2, 12 Mo. Treasury Average + 1.48% (a)..................................................... 2.34% 02/25/36 200,086 639,453 Series 2006-AR6, Class 2A1, 1 Mo. LIBOR + 0.38% (a).............. 2.82% 07/25/46 496,800 1,244,740 Series 2006-AR7, Class A1A, 1 Mo. LIBOR + 0.42% (a).............. 2.86% 08/25/36 1,177,429 151,781 Series 2006-AR7, Class A1BG, 1 Mo. LIBOR + 0.12% (a)............. 2.56% 08/25/36 140,188 861,374 Series 2007-AR1, Class 2A1, 1 Mo. LIBOR + 0.18% (a).............. 2.62% 01/25/37 775,187 46,599 Series 2007-AR3, Class 2A1, 1 Mo. LIBOR + 0.19% (a).............. 2.63% 09/25/47 43,154 WaMu Mortgage Pass-Through Certificates Trust 150,029 Series 2005-AR17, Class A1A2, 1 Mo. LIBOR + 0.58% (a)............ 3.02% 12/25/45 135,960 55,084 Series 2006-AR3, Class A1A, 12 Mo. Treasury Average + 1.00% (a)..................................................... 1.86% 02/25/46 50,228 1,013,977 Series 2007-OA4, Class 1A, 12 Mo. Treasury Average + 0.77% (a)..................................................... 1.63% 05/25/47 913,556 Washington Mutual Mortgage Pass-Through Certificates WMALT 637,648 Series 2006-AR6, Class 2A, 12 Mo. Treasury Average + 0.96% (a)..................................................... 1.82% 08/25/46 409,858 827,445 Series 2006-AR10, Class A2A, 1 Mo. LIBOR + 0.34% (a)............. 2.78% 12/25/36 765,697 -------------- 34,790,646 -------------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 11.0% BBCMS Mortgage Trust 545,000 Series 2020-BID, Class D, 1 Mo. LIBOR + 4.63% (a) (d)............ 7.02% 10/15/37 531,136 BDS Ltd. 662,000 Series 2020-FL6, Class C, 30 Day Average SOFR+ 2.36% (a) (d)................................................. 4.37% 09/15/35 643,174 Benchmark Mortgage Trust 117,000 Series 2020-B18, Class AGNF (d).................................. 4.14% 07/15/53 98,962 BFLD Trust 943,000 Series 2020-OBRK, Class A, 1 Mo. LIBOR + 2.05% (a) (d)........... 4.44% 11/15/28 933,699 200,000 Series 2021-FPM, Class B, 1 Mo. LIBOR + 2.50% (a) (d)............ 4.89% 06/15/38 195,144 BWAY Mortgage Trust 18,545,654 Series 2013-1515, Class XA, IO (c) (d)........................... 0.70% 03/10/33 200,302 BX Commercial Mortgage Trust 793,443 Series 2021-XL2, Class J, 1 Mo. LIBOR + 3.89% (a) (d)............ 6.28% 10/15/38 755,014 744,361 Series 2021-SOAR, Class J, 1 Mo. LIBOR + 3.75% (a) (d)........... 6.14% 06/15/38 699,463 BX Trust 605,000 Series 2021-VIEW, Class B, 1 Mo. LIBOR + 1.80% (a) (d)........... 4.19% 06/15/36 582,402 CAMB Commercial Mortgage Trust 890,000 Series 2019-LIFE, Class G, 1 Mo. LIBOR + 3.25% (a) (d)........... 5.64% 12/15/37 861,092 Citigroup Commercial Mortgage Trust 715,958 Series 2013-GC15, Class XA, IO (c)............................... 0.96% 09/10/46 4,138 4,449,241 Series 2016-P3, Class XA, IO (c)................................. 1.82% 04/15/49 192,899 </TABLE> See Notes to Financial Statements Page 89 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) COMM Mortgage Trust $ 2,599,093 Series 2012-CR4, Class XA, IO (c)................................ 1.74% 10/15/45 $ 13 7,207,903 Series 2013-CR12, Class XA, IO (c)............................... 1.24% 10/10/46 59,537 1,060,930 Series 2013-LC13, Class XA, IO (c)............................... 1.14% 08/10/46 6,778 24,126,602 Series 2014-CR14, Class XA, IO (c)............................... 0.66% 02/10/47 136,178 32,033,112 Series 2014-CR16, Class XA, IO (c)............................... 1.10% 04/10/47 389,206 1,483,556 Series 2014-UBS2, Class XA, IO (c)............................... 1.24% 03/10/47 16,524 20,885,259 Series 2014-UBS3, Class XA, IO (c)............................... 1.22% 06/10/47 278,636 11,151,000 Series 2014-UBS3, Class XB, IO (c) (d)........................... 0.42% 06/10/47 54,236 15,709,915 Series 2014-UBS6, Class XA, IO (c)............................... 1.00% 12/10/47 234,441 7,000,000 Series 2015-LC21, Class XE, IO (c) (d)........................... 1.23% 07/10/48 183,389 35,000 Series 2020-CX, Class E (c) (d).................................. 2.77% 11/10/46 25,746 Credit Suisse Mortgage Trust 815,000 Series 2018-SITE, Class A (d).................................... 4.28% 04/15/36 787,327 182,000 Series 2019-UVIL, Class B (c) (d)................................ 3.39% 12/15/41 158,756 800,000 Series 2020-TMIC, Class A, 1 Mo. LIBOR + 3.00% (a) (d)........... 5.39% 12/15/35 793,512 801,000 Series 2021-BPNY, Class A, 1 Mo. LIBOR + 3.71% (a) (d)........... 6.11% 08/15/23 766,472 CSAIL Commercial Mortgage Trust 20,344,184 Series 2015-C2, Class XA, IO (c)................................. 0.86% 06/15/57 301,883 6,016,006 Series 2015-C4, Class XA, IO (c)................................. 0.96% 11/15/48 123,700 2,839,472 Series 2016-C5, Class XA, IO (c)................................. 1.07% 11/15/48 64,042 DBUBS Mortgage Trust 120,000 Series 2017-BRBK, Class A (d).................................... 3.45% 10/10/34 115,479 DROP Mortgage Trust 386,000 Series 2021-FILE, Class B, 1 Mo. LIBOR + 1.70% (a) (d)........... 4.09% 10/15/43 369,531 European Loan Conduit DAC EUR 581,855 Series 36A, Class E, 3 Mo. EURIBOR + 3.35% (a) (d)............... 3.68% 02/17/30 540,623 Frost CMBS DAC GBP 800,000 Series 2021-1A, Class GBB, SONIA + 1.65% (a) (g)................. 3.34% 11/20/33 908,457 Grace Trust $ 1,000,000 Series 2020-GRCE, Class X, IO (c) (d)............................ 0.39% 12/10/40 22,205 GS Mortgage Securities Corp. II 5,432,386 Series 2013-GC10, Class XA, IO (c)............................... 1.60% 02/10/46 9,229 GS Mortgage Securities Trust 147,654 Series 2011-GC5, Class AS (d).................................... 5.21% 08/10/44 147,196 1,827,783 Series 2011-GC5, Class XA, IO (c) (h)............................ 0.09% 08/10/44 18 28,709,541 Series 2015-GC28, Class XA, IO (c)............................... 1.12% 02/10/48 523,780 JP Morgan Chase Commercial Mortgage Securities Trust 4,619,772 Series 2013-C16, Class XA, IO (c)................................ 1.01% 12/15/46 30,511 1,804,496 Series 2013-LC11, Class XA, IO (c)............................... 1.35% 04/15/46 7,213 16,176,947 Series 2014-C20, Class XA, IO (c)................................ 0.96% 07/15/47 131,611 JPMBB Commercial Mortgage Securities Trust 867,780 Series 2015-C32, Class XA, IO (c)................................ 1.29% 11/15/48 17,682 JPMCC Commercial Mortgage Securities Trust 10,450,940 Series 2017-JP5, Class XA, IO (c)................................ 1.00% 03/15/50 282,163 JPMDB Commercial Mortgage Securities Trust 5,586,785 Series 2016-C2, Class XA, IO (c)................................. 1.65% 06/15/49 229,511 JPMorgan Chase Commercial Mortgage Securities Trust 800,000 Series 2020-ACE, Class A (d)..................................... 3.29% 01/10/37 759,522 </TABLE> Page 90 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- MORTGAGE-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) Last Mile Logistics Pan Euro Finance DAC EUR 716,788 Series 1A, Class E, 3 Mo. EURIBOR + 2.70% (a) (d)................ 3.04% 08/17/33 $ 660,020 MHC Commercial Mortgage Trust $ 205,000 Series 2021-MHC, Class E, 1 Mo. LIBOR + 2.10% (a) (d)............ 4.49% 04/15/38 195,405 Morgan Stanley Bank of America Merrill Lynch Trust 1,816,811 Series 2013-C13, Class XA, IO (c)................................ 1.10% 11/15/46 14,335 4,398,240 Series 2014-C14, Class XA, IO (c)................................ 1.09% 02/15/47 37,655 10,164,989 Series 2015-C20, Class XA, IO (c)................................ 1.40% 02/15/48 209,886 30,348,377 Series 2015-C25, Class XA, IO (c)................................ 1.20% 10/15/48 692,532 MSCG Trust 1,151,000 Series 2018-SELF, Class F, 1 Mo. LIBOR + 3.05% (a) (d)........... 5.44% 10/15/37 1,087,914 One Bryant Park Trust 125,000 Series 2019-OBP, Class A (d)..................................... 2.52% 09/15/54 107,631 SFAVE Commercial Mortgage Securities Trust 690,000 Series 2015-5AVE, Class A2A (c) (d).............................. 3.66% 01/05/43 550,209 340,000 Series 2015-5AVE, Class A2B (c) (d).............................. 4.14% 01/05/43 270,714 SLG Office Trust 385,000 Series 2021-OVA, Class G (d)..................................... 2.85% 07/15/41 266,960 SMRT 105,000,000 Series 2022-MINI, Class XCP, IO (c) (d).......................... 0.73% 01/15/39 285,033 UBS-Barclays Commercial Mortgage Trust 1,006,495 Series 2012-C2, Class XA, IO (c) (d)............................. 0.81% 05/10/63 10 Wells Fargo Commercial Mortgage Trust 8,529,116 Series 2015-C26, Class XA, IO (c)................................ 1.34% 02/15/48 197,325 14,462,758 Series 2015-C27, Class XA, IO (c)................................ 0.97% 02/15/48 238,790 28,169,696 Series 2015-C28, Class XA, IO (c)................................ 0.72% 05/15/48 346,718 1,923,769 Series 2015-LC22, Class XA, IO (c)............................... 0.92% 09/15/58 35,786 6,590,722 Series 2015-NXS3, Class XA, IO (c)............................... 1.03% 09/15/57 144,917 3,737,291 Series 2016-C33, Class XA, IO (c)................................ 1.75% 03/15/59 165,880 5,823,000 Series 2016-C37, Class XEF, IO (c) (d)........................... 1.60% 12/15/49 322,504 WFRBS Commercial Mortgage Trust 56,679 Series 2012-C9, Class XA, IO (c) (d)............................. 1.84% 11/15/45 1 3,375,708 Series 2014-C20, Class XA, IO (c)................................ 1.07% 05/15/47 37,295 982,308 Series 2014-C22, Class XA, IO (c)................................ 0.94% 09/15/57 11,680 4,884,507 Series 2014-C24, Class XA, IO (c)................................ 0.99% 11/15/47 69,583 27,148,531 Series 2014-LC14, Class XA, IO (c)............................... 1.42% 03/15/47 336,419 -------------- 20,457,734 -------------- TOTAL MORTGAGE-BACKED SECURITIES............................................................... 55,248,380 (Cost $60,117,802) -------------- ASSET-BACKED SECURITIES -- 24.7% Accredited Mortgage Loan Trust 33,931 Series 2005-1, Class M2, 1 Mo. LIBOR + 1.04% (a)................. 3.48% 04/25/35 33,903 ACE Securities Corp. Home Equity Loan Trust 1,447,108 Series 2007-HE1, Class A1, 1 Mo. LIBOR + 0.30% (a)............... 2.74% 01/25/37 857,827 AGL CLO 7 Ltd. 1,000,000 Series 2020-7A, Class BR, 3 Mo. LIBOR + 1.70% (a) (d)............ 4.21% 07/15/34 960,076 AIG CLO LLC 320,000 Series 2018-1A, Class BR, 3 Mo. LIBOR + 1.70% (a) (d)............ 4.41% 04/20/32 310,477 </TABLE> See Notes to Financial Statements Page 91 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> AMMC CLO Ltd. $ 78,946 Series 2016-19A, Class AR, 3 Mo. LIBOR + 1.14% (a) (d)........... 3.65% 10/16/28 $ 78,758 AMSR Trust 572,000 Series 2020-SFR1, Class F (d).................................... 3.57% 04/17/37 540,224 605,000 Series 2020-SFR3, Class G (d).................................... 4.99% 09/17/37 567,827 1,776,000 Series 2020-SFR5, Class A (d).................................... 1.38% 11/17/37 1,636,445 Antares CLO Ltd. 1,200,000 Series 2020-1A, Class A1R, 3 Mo. LIBOR + 1.46% (a) (d)........... 4.24% 10/23/33 1,170,361 Ares LXII CLO Ltd. 700,000 Series 2021-62A, Class B, 3 Mo. LIBOR + 1.65% (a) (d)............ 4.43% 01/25/34 664,772 Argent Securities Trust 759,331 Series 2006-M1, Class A2C, 1 Mo. LIBOR + 0.30% (a)............... 2.74% 07/25/36 233,458 Argent Securities, Inc., Asset-Backed Pass-Through Certificates 600,000 Series 2005-W3, Class M2, 1 Mo. LIBOR + 0.69% (a)................ 3.13% 11/25/35 512,757 Blackrock DLF VIII-L CLO Trust 35,133 Series 2021-1A, Class A, 3 Mo. LIBOR + 1.35% (a) (d)............. 4.09% 04/17/32 35,079 BlueMountain CLO Ltd. 750,000 Series 2020-30A, Class BR, 3 Mo. CME Term SOFR + 1.90% (a) (d)................................................. 4.23% 04/15/35 714,959 Boyce Park CLO Ltd. 1,178,571 Series 2022-1A, Class M2, IO (d)................................. 0.00% 04/21/35 58,612 1,100,000 Series 2022-1A, Class SUB (d).................................... 0.00% 04/21/35 889,491 C-BASS Mortgage Loan Trust 853,629 Series 2007-CB3, Class A3 (f).................................... 3.29% 03/25/37 354,244 981,674 Series 2007-CB3, Class A4 (f).................................... 3.29% 03/25/37 407,183 C-BASS Trust 192,323 Series 2006-CB7, Class A5, 1 Mo. LIBOR + 0.48% (a)............... 2.92% 10/25/36 138,151 CF Hippolyta Issuer LLC 1,086,194 Series 2020-1, Class A1 (d)...................................... 1.69% 07/15/60 988,243 CIFC Funding Ltd. 700,000 Series 2022-2A, Class INCB (d)................................... 0.00% 04/19/35 586,320 Cologix Data Centers US Issuer LLC 715,000 Series 2021-1A, Class A2 (d)..................................... 3.30% 12/26/51 661,872 CoreVest American Finance Trust 29,129 Series 2017-1, Class D (d)....................................... 4.36% 10/15/49 29,056 2,600,408 Series 2021-2, Class XA, IO (c) (d).............................. 3.15% 07/15/54 254,657 Credit-Based Asset Servicing and Securitization LLC 137,967 Series 2007-CB6, Class A1, 1 Mo. LIBOR + 0.12% (a) (d)........... 1.74% 07/25/37 96,343 Dryden CLO Ltd. 615,000 Series 2019-72A, Class BR, 3 Mo. LIBOR + 1.65% (a) (d)........... 4.56% 05/15/32 594,075 Eaton Vance CLO Ltd. 575,000 Series 2019-1A, Class AR, 3 Mo. LIBOR + 1.10% (a) (d)............ 3.61% 04/15/31 566,651 Elmwood CLO VI Ltd. 600,000 Series 2020-3A, Class BR, 3 Mo. LIBOR + 1.65% (a) (d)............ 4.36% 10/20/34 574,665 First Franklin Mortgage Loan Trust 565,000 Series 2006-FF7, Class 2A4, 1 Mo. LIBOR + 0.48% (a).............. 2.92% 05/25/36 478,905 388,957 Series 2006-FF11, Class 2A3, 1 Mo. LIBOR + 0.30% (a)............. 2.74% 08/25/36 364,961 Flexential Issuer 610,000 Series 2021-1A, Class A2 (d)..................................... 3.25% 11/27/51 558,556 Fremont Home Loan Trust 58,990 Series 2005-A, Class M3, 1 Mo. LIBOR + 0.74% (a)................. 3.18% 01/25/35 57,634 </TABLE> Page 92 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> GCI Funding I LLC $ 956,104 Series 2021-1, Class A (d)....................................... 2.38% 06/18/46 $ 849,203 Golub Capital Partners CLO L.P. 1,100,000 Series 2021-54A, Class A, 3 Mo. LIBOR + 1.53% (a) (d)............ 4.36% 08/05/33 1,073,916 GSAA Home Equity Trust 1,352,474 Series 2007-6, Class 3A1A, 1 Mo. LIBOR + 0.42% (a)............... 2.86% 05/25/47 1,017,410 HPS Loan Management Ltd. 1,000,000 Series 15A-19, Class A1R, 3 Mo. CME Term SOFR + 1.32% (a) (d)................................................. 3.83% 01/22/35 977,613 HSI Asset Securitization Corp. Trust 210,939 Series 2006-WMC1, Class A4, 1 Mo. LIBOR + 0.50% (a).............. 2.94% 07/25/36 104,718 ITE Rail Fund Levered LP 1,135,002 Series 2021-3A, Class A (d)...................................... 2.21% 06/28/51 1,016,234 JP Morgan Mortgage Acquisition Trust 1,415,701 Series 2006-WMC2, Class A4, 1 Mo. LIBOR + 0.30% (a).............. 2.74% 07/25/36 714,509 127,383 Series 2006-WMC4, Class A1A, 1 Mo. LIBOR + 0.13% (a)............. 2.57% 12/25/36 87,238 Long Beach Mortgage Loan Trust 3,798,937 Series 2006-9, Class 2A4, 1 Mo. LIBOR + 0.23% (a)................ 2.90% 10/25/36 1,366,322 300,026 Series 2006-10, Class 2A3, 1 Mo. LIBOR + 0.16% (a)............... 2.60% 11/25/36 108,283 Madison Park Funding XLV Ltd. 825,000 Series 2020-45A, Class BR, 3 Mo. LIBOR + 1.70% (a) (d)........... 4.21% 07/15/34 792,012 Mastr Asset Backed Securities Trust 1,512,866 Series 2006-HE2, Class A3, 1 Mo. LIBOR + 0.30% (a)............... 2.74% 06/25/36 640,597 1,535,500 Series 2007-HE1, Class A4, 1 Mo. LIBOR + 0.28% (a)............... 2.72% 05/25/37 1,264,852 Merrill Lynch First Franklin Mortgage Loan Trust 346,758 Series 2007-1, Class A1, 1 Mo. LIBOR + 0.28% (a)................. 2.72% 04/25/37 172,004 664,062 Series 2007-3, Class A2B, 1 Mo. LIBOR + 0.13% (a)................ 2.57% 06/25/37 551,617 Merrill Lynch Mortgage Investors Trust 1,172,804 Series 2006-HE6, Class A2B, 1 Mo. LIBOR + 0.30% (a).............. 2.74% 11/25/37 478,021 1,000,000 Series 2006-OPT1, Class A2D, 1 Mo. LIBOR + 0.24% (a)............. 2.68% 08/25/37 831,252 Morgan Stanley Capital I, Inc., Trust 23,071 Series 2006-NC2, Class A2D, 1 Mo. LIBOR + 0.58% (a).............. 3.02% 02/25/36 22,770 Navient Student Loan Trust 320,000 Series 2015-3, Class B, 1 Mo. LIBOR + 1.50% (a).................. 3.94% 10/25/58 285,033 975,000 Series 2019-3A, Class B, 1 Mo. LIBOR + 1.55% (a) (d)............. 3.99% 07/25/68 929,857 Nelnet Student Loan Trust 353,604 Series 2005-4, Class B, 3 Mo. LIBOR + 0.28% (a).................. 2.38% 09/22/35 307,840 215,000 Series 2014-4A, Class A2, 1 Mo. LIBOR + 0.95% (a) (d)............ 3.39% 11/25/48 211,845 370,000 Series 2015-3A, Class A3, 1 Mo. LIBOR + 0.90% (a) (d)............ 3.34% 06/25/54 350,682 Nomura Home Equity Loan, Inc., Home Equity Loan Trust 17,817 Series 2006-HE1, Class M1, 1 Mo. LIBOR + 0.62% (a)............... 3.06% 02/25/36 17,803 Oakwood Mortgage Investors, Inc. 827,961 Series 1999-C, Class A2.......................................... 7.48% 08/15/27 721,119 582,662 Series 2001-C, Class A2.......................................... 5.92% 06/15/31 75,491 Option One Mortgage Loan Trust 357,365 Series 2007-4, Class 2A3, 1 Mo. LIBOR + 0.24% (a)................ 2.68% 04/25/37 221,251 Ownit Mortgage Loan Trust 677,941 Series 2006-6, Class A2C, 1 Mo. LIBOR + 0.32% (a)................ 2.76% 09/25/37 365,945 Palmer Square CLO Ltd. 400,000 Series 2018-1A, Class A1, 3 Mo. LIBOR + 1.03% (a) (d)............ 3.77% 04/18/31 395,906 </TABLE> See Notes to Financial Statements Page 93 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- ASSET-BACKED SECURITIES (CONTINUED) <S> <C> <C> <C> <C> Park Avenue Institutional Advisers CLO Ltd. $ 150,000 Series 2018-1A, Class A2R, 3 Mo. LIBOR + 1.60% (a) (d)........... 4.31% 10/20/31 $ 145,561 Park Place Securities Inc Asset-Backed Pass-Through Certificates 338,020 Series 2004-WWF1, Class M5, 1 Mo. LIBOR + 1.80% (a).............. 4.24% 12/25/34 331,608 PRET LLC 1,143,307 Series 2022-RN1, Class A1, steps up to 6.72% on 02/25/25 (d) (f).............................................. 3.72% 07/25/51 1,085,496 Progress Residential Trust 1,169,000 Series 2019-SFR3, Class F (d).................................... 3.87% 09/17/36 1,133,522 1,060,000 Series 2021-SFR1, Class H (d).................................... 5.00% 04/17/38 954,920 Sabey Data Center Issuer LLC 650,000 Series 2020-1, Class A2 (d)...................................... 3.81% 04/20/45 623,753 Saxon Asset Securities Trust 74,350 Series 2005-1, Class M2, 1 Mo. LIBOR + 0.72% (a)................. 1.90% 05/25/35 71,668 Securitized Asset Backed Receivables LLC Trust 1,119,263 Series 2006-CB5, Class A3, 1 Mo. LIBOR + 0.28% (a)............... 2.72% 06/25/36 782,438 60,156 Series 2006-NC2, Class A3, 1 Mo. LIBOR + 0.48% (a)............... 2.92% 03/25/36 59,233 371,986 Series 2007-NC2, Class A2B, 1 Mo. LIBOR + 0.14% (a).............. 2.58% 01/25/37 329,595 SLC Student Loan Trust 698,345 Series 2008-1, Class A4A, 3 Mo. LIBOR + 1.60% (a)................ 3.43% 12/15/32 698,154 SLM Student Loan Trust 65,000 Series 2008-4, Class B, 3 Mo. LIBOR + 1.85% (a).................. 4.63% 04/25/73 62,816 612,187 Series 2008-5, Class A4, 3 Mo. LIBOR + 1.70% (a)................. 4.48% 07/25/23 608,336 65,000 Series 2008-5, Class B, 3 Mo. LIBOR + 1.85% (a).................. 4.63% 07/25/73 63,975 545,080 Series 2008-6, Class A4, 3 Mo. LIBOR + 1.10% (a)................. 3.88% 07/25/23 532,994 Small Business Lending Trust 572,840 Series 2019-A, Class D (d)....................................... 6.30% 07/15/26 571,265 Soundview Home Loan Trust 1,359,591 Series 2007-OPT1, Class 1A1, 1 Mo. LIBOR + 0.20% (a)............. 2.64% 06/25/37 997,717 339,248 Series 2007-OPT1, Class 2A2, 1 Mo. LIBOR + 0.15% (a)............. 2.59% 06/25/37 248,765 197,421 Series 2007-OPT3, Class 1A1, 1 Mo. LIBOR + 0.17% (a)............. 2.61% 08/25/37 175,092 Specialty Underwriting & Residential Finance Trust 1,210,969 Series 2006-AB3, Class A2C, 1 Mo. LIBOR + 0.48% (a).............. 2.92% 09/25/37 893,779 Stratus CLO Ltd. 925,000 Series 2021-3A, Class SUB (d).................................... 0.00% 12/29/29 614,584 Structured Asset Securities Corp. Mortgage Loan Trust 58,106 Series 2006-OPT1, Class A1, 1 Mo. LIBOR + 0.18% (a).............. 2.62% 04/25/36 57,408 TAL Advantage VII LLC 459,281 Series 2020-1A, Class A (d)...................................... 2.05% 09/20/45 414,458 Textainer Marine Containers VII Ltd. 817,161 Series 2020-2A, Class A (d)...................................... 2.10% 09/20/45 735,867 82,558 Series 2020-3A, Class A (d)...................................... 2.11% 09/20/45 74,243 TRP LLC 284,624 Series 2021-1, Class A (d)....................................... 2.07% 06/19/51 250,527 VOYA CLO 175,000 Series 2017-2A, Class A2AR, 3 Mo. LIBOR + 1.65% (a) (d).......... 4.16% 06/07/30 171,225 Wachovia Student Loan Trust 740,529 Series 2006-1, Class B, 3 Mo. LIBOR + 0.24% (a) (d).............. 3.02% 04/25/40 686,026 WaMu Asset-Backed Certificates WaMu Trust 1,081,237 Series 2007-HE1, Class 2A4, 1 Mo. LIBOR + 0.23% (a).............. 2.67% 01/25/37 563,296 -------------- TOTAL ASSET-BACKED SECURITIES.................................................................. 45,866,206 (Cost $50,204,656) -------------- </TABLE> Page 94 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE -------------- -------------------------------------------------------------------- ----------- ------------ -------------- U.S. GOVERNMENT BONDS AND NOTES -- 6.7% <S> <C> <C> <C> <C> $ 705,000 U.S. Treasury Bond.................................................. 2.00% 11/15/41 $ 550,575 465,000 U.S. Treasury Bond.................................................. 2.38% 02/15/42 387,330 100,000 U.S. Treasury Bond.................................................. 3.00% 08/15/52 95,172 1,880,000 U.S. Treasury Note.................................................. 3.00% 07/31/24 1,864,505 2,895,000 U.S. Treasury Note.................................................. 3.25% 08/31/24 2,884,144 305,000 U.S. Treasury Note.................................................. 3.13% 08/15/25 302,141 570,000 U.S. Treasury Note.................................................. 3.25% 06/30/27 568,285 1,550,000 U.S. Treasury Note.................................................. 2.75% 07/31/27 1,511,068 2,770,000 U.S. Treasury Note.................................................. 3.13% 08/31/27 2,750,091 1,585,000 U.S. Treasury Note.................................................. 2.75% 08/15/32 1,533,735 -------------- TOTAL U.S. GOVERNMENT BONDS AND NOTE........................................................... 12,447,046 (Cost $12,698,143) -------------- U.S. GOVERNMENT AGENCY SECURITIES -- 4.4% 2,770,000 Federal Home Loan Banks............................................. 1.04% 06/14/24 2,640,652 760,000 Federal Home Loan Banks............................................. 1.61% 09/04/24 728,743 760,000 Federal Home Loan Banks............................................. 1.61% 09/04/24 728,744 4,230,000 Federal Home Loan Banks............................................. 1.20% 12/23/24 4,011,122 -------------- TOTAL U.S. GOVERNMENT AGENCY SECURITIES........................................................ 8,109,261 (Cost $8,520,000) -------------- U.S. TREASURY BILLS -- 9.0% 2,375,000 U.S. Treasury Bill.................................................. (b) 09/01/22 2,375,000 900,000 U.S. Treasury Bill.................................................. (b) 09/15/22 899,248 2,595,000 U.S. Treasury Bill.................................................. (b) 10/06/22 2,589,462 875,000 U.S. Treasury Bill.................................................. (b) 10/20/22 872,055 1,240,000 U.S. Treasury Bill.................................................. (b) 11/03/22 1,234,317 1,160,000 U.S. Treasury Bill.................................................. (b) 12/01/22 1,151,595 1,010,000 U.S. Treasury Bill.................................................. (b) 01/05/23 999,516 6,740,000 U.S. Treasury Bill.................................................. (b) 01/19/23 6,661,301 -------------- TOTAL U.S. TREASURY BILLS...................................................................... 16,782,494 (Cost $16,795,168) -------------- </TABLE> <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 5.1% <S> <C> <C> 9,430,866 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 1.87% (i)..... 9,430,866 (Cost $9,430,866) -------------- TOTAL INVESTMENTS -- 147.9%.................................................................... 274,429,296 (Cost $287,081,488) NET OTHER ASSETS AND LIABILITIES -- (47.9)%.................................................... (88,921,971) -------------- NET ASSETS -- 100.0%........................................................................... $ 185,507,325 ============== </TABLE> See Notes to Financial Statements Page 95 <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> FORWARD FOREIGN CURRENCY CONTRACTS AT AUGUST 31, 2022 (See Note 2E - Forward Foreign Currency Contracts in the Notes to Financial Statements): PURCHASE VALUE SALE VALUE UNREALIZED SETTLEMENT AMOUNT AMOUNT AS OF AS OF APPRECIATION DATE COUNTERPARTY PURCHASED SOLD 8/31/2022 8/31/2022 (DEPRECIATION) -------------- -------------- ----------------- ------------------ ---------------- ---------------- -------------- <S> <C> <C> <C> <C> <C> <C> 10/07/2022 GS USD 1,357,765 EUR 1,283,000 $ 1,357,765 $ 1,292,606 $ 65,159 10/07/2022 Citi USD 1,881,050 GBP 1,535,000 1,881,050 1,784,523 96,527 10/07/2022 GS EUR 80,000 USD 81,196 80,599 81,196 (597) 10/07/2022 Citi GBP 226,000 USD 271,513 262,737 271,513 (8,776) -------------- Net Unrealized Appreciation (Depreciation) $ 152,313 ============== </TABLE> Counterparty Abbreviations: Citi - Citibank N.A. GS - Goldman Sachs and Co. <TABLE> <CAPTION> FUTURES CONTRACTS AT AUGUST 31, 2022 (See Note 2D - Futures Contracts in the Notes to Financial Statements): UNREALIZED APPRECIATION NUMBER OF (DEPRECIATION)/ FUTURES CONTRACTS POSITION CONTRACTS EXPIRATION DATE NOTIONAL VALUE VALUE ---------------------------------- -------------- --------------- ------------------ ----------------- -------------- <S> <C> <C> <C> <C> <C> U.S. 2-Year Treasury Notes Long 114 Dec-2022 $ 23,749,406 $ (52,013) U.S. 5-Year Treasury Notes Long 94 Dec-2022 10,417,110 (49,127) Ultra 10-Year U.S. Treasury Notes Long 48 Dec-2022 6,009,000 (37,575) Ultra U.S. Treasury Bond Futures Short 14 Dec-2022 (2,093,000) 4,427 --------------- -------------- $ 38,082,516 $ (134,288) =============== ============== </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, 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, 2022, securities noted as such amounted to $52,961,241 or 28.5% 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 may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (h) 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). (i) Rate shown reflects yield as of August 31, 2022. Page 96 See Notes to Financial Statements <PAGE> FIRST TRUST TCW SECURITIZED PLUS ETF (DEED) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 EURIBOR - Euro Interbank Offered Rate IO - Interest-Only Security - Principal amount shown represents par value on which interest payments are based LIBOR - London Interbank Offered Rate PO - Principal-Only Security SOFR - Secured Overnight Financing Rate SONIA - Sterling Overnight Index Average TBA - To-Be-Announced Security Currency Abbreviations: GBP - British Pound Sterling EUR - Euro USD - United States Dollar ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 2/28/2022 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- <S> <C> <C> <C> <C> U.S. Government Agency Mortgage-Backed Securities.... $ 126,545,043 $ -- $ 126,545,043 $ -- Mortgage-Backed Securities........................... 55,248,380 -- 55,248,380 -- Asset-Backed Securities.............................. 45,866,206 -- 45,866,206 -- U.S. Government Bonds and Notes...................... 12,447,046 -- 12,447,046 -- U.S. Government Agency Securities.................... 8,109,261 -- 8,109,261 -- U.S. Treasury Bills.................................. 16,782,494 -- 16,782,494 -- Money Market Funds................................... 9,430,866 9,430,866 -- -- ---------------- --------------- ---------------- ---------------- Total Investments.................................... 274,429,296 9,430,866 264,998,430 -- Forward Foreign Currency Contracts................... 161,686 -- 161,686 -- Futures Contracts*................................... 4,427 4,427 -- -- ---------------- --------------- ---------------- ---------------- Total................................................ $ 274,595,409 $ 9,435,293 $ 265,160,116 $ -- ================ =============== ================ ================ LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 2/28/2022 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- Forward Foreign Currency Contracts................... $ (9,373) $ -- $ (9,373) $ -- Futures Contracts*................................... (138,715) (138,715) -- -- ---------------- --------------- ---------------- ---------------- Total. . . .......................................... $ (148,088) $ (138,715) $ (9,373) $ -- ================ =============== ================ ================ </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. See Notes to Financial Statements Page 97 <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL VALUE (LOCAL STATED STATED VALUE CURRENCY) DESCRIPTION COUPON MATURITY (U.S. DOLLAR) -------------- -------------------------------------------------------------------- ----------- ------------ -------------- FOREIGN SOVEREIGN BONDS AND NOTES -- 61.5% <S> <C> <C> <C> <C> ANGOLA -- 2.6% 250,000 Angolan Government International Bond (USD) (a)..................... 8.75% 04/14/32 $ 205,610 -------------- ARGENTINA -- 1.0% 18,177 Argentine Republic Government International Bond, steps up to 3.63% on 07/10/2023 (USD) (b).................................... 1.50% 07/09/35 4,112 128,605 Argentine Republic Government International Bond, steps up to 4.25% on 07/10/2023 (USD) (b).................................... 3.88% 01/09/38 36,330 143,894 Argentine Republic Government International Bond, steps up to 4.88% on 07/10/2029 (USD) (b).................................... 3.50% 07/09/41 38,026 -------------- 78,468 -------------- BRAZIL -- 2.2% 200,000 Brazilian Government International Bond (USD)....................... 3.88% 06/12/30 174,963 -------------- CHILE -- 2.8% 300,000 Chile Government International Bond (USD)........................... 3.10% 05/07/41 220,697 -------------- DOMINICAN REPUBLIC -- 4.0% 250,000 Dominican Republic International Bond (USD) (a)..................... 4.88% 09/23/32 202,662 150,000 Dominican Republic International Bond (USD) (a)..................... 5.30% 01/21/41 111,626 -------------- 314,288 -------------- ECUADOR -- 1.0% 42,000 Ecuador Government International Bond, steps up to 3.50% on 08/01/2023 (USD) (a) (b)......................................... 2.50% 07/31/35 16,267 112,700 Ecuador Government International Bond, steps up to 6.00% on 08/01/2023 (USD) (b) (c)......................................... 5.50% 07/31/30 60,117 -------------- 76,384 -------------- EGYPT -- 3.1% 300,000 Egypt Government International Bond (USD) (c)....................... 6.59% 02/21/28 237,941 -------------- GABON -- 1.9% 200,000 Gabon Government International Bond (USD) (c)....................... 6.63% 02/06/31 149,306 -------------- GUATEMALA -- 2.0% 200,000 Guatemala Government Bond (USD) (a)................................. 4.65% 10/07/41 159,036 -------------- INDONESIA -- 2.1% 200,000 Perusahaan Penerbit SBSN Indonesia III (USD) (a).................... 3.80% 06/23/50 165,446 -------------- IRAQ -- 1.9% 171,875 Iraq International Bond (USD) (c)................................... 5.80% 01/15/28 144,001 -------------- JORDAN -- 2.6% 200,000 Jordan Government International Bond (USD) (a)...................... 7.75% 01/15/28 198,650 -------------- MEXICO -- 5.6% 200,000 Mexico Government International Bond (USD).......................... 4.88% 05/19/33 192,129 300,000 Mexico Government International Bond (USD).......................... 4.28% 08/14/41 242,029 -------------- 434,158 -------------- NIGERIA -- 1.7% 200,000 Nigeria Government International Bond (USD) (a)..................... 7.70% 02/23/38 128,816 -------------- </TABLE> Page 98 See Notes to Financial Statements <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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> OMAN -- 2.6% 200,000 Oman Government International Bond (USD) (c)........................ 6.00% 08/01/29 $ 200,092 -------------- PANAMA -- 3.0% 300,000 Panama Government International Bond (USD).......................... 2.25% 09/29/32 234,125 -------------- PARAGUAY -- 2.0% 200,000 Paraguay Government International Bond (USD) (c).................... 2.74% 01/29/33 158,789 -------------- PERU -- 3.0% 100,000 Peruvian Government International Bond (USD)........................ 2.78% 01/23/31 85,398 184,000 Peruvian Government International Bond (USD)........................ 3.00% 01/15/34 150,563 -------------- 235,961 -------------- PHILIPPINES -- 3.5% 100,000 Philippine Government International Bond (USD)...................... 6.38% 10/23/34 115,357 200,000 Philippine Government International Bond (USD)...................... 3.20% 07/06/46 155,745 -------------- 271,102 -------------- QATAR -- 2.6% 200,000 Qatar Government International Bond (USD) (a)....................... 3.75% 04/16/30 201,495 -------------- ROMANIA -- 1.4% 114,000 Romanian Government International Bond (USD) (a).................... 3.00% 02/27/27 103,076 4,000 Romanian Government International Bond (USD) (a).................... 3.00% 02/14/31 3,200 -------------- 106,276 -------------- SOUTH AFRICA -- 2.3% 200,000 Republic of South Africa Government International Bond (USD)........ 4.85% 09/30/29 177,746 -------------- TURKEY -- 2.1% 200,000 Turkey Government International Bond (USD).......................... 4.25% 04/14/26 166,570 -------------- UNITED ARAB EMIRATES -- 2.8% 250,000 Abu Dhabi Government International Bond (USD) (c)................... 1.70% 03/02/31 214,523 -------------- URUGUAY -- 1.7% 104,000 Uruguay Government International Bond (USD)......................... 4.38% 01/23/31 106,716 25,000 Uruguay Government International Bond (USD)......................... 4.98% 04/20/55 25,220 -------------- 131,936 -------------- TOTAL FOREIGN SOVEREIGN BONDS AND NOTES........................................................ 4,786,379 (Cost $5,581,429) -------------- FOREIGN CORPORATE BONDS AND NOTES -- 34.3% ELECTRIC -- 2.4% 200,000 Eskom Holdings SOC Ltd. (USD) (c)................................... 6.35% 08/10/28 189,824 -------------- INTERNET -- 2.2% 200,000 Alibaba Group Holding Ltd. (USD).................................... 4.00% 12/06/37 168,308 -------------- MINING -- 5.9% 200,000 Freeport Indonesia PT (USD) (a)..................................... 5.32% 04/14/32 185,952 275,000 Indonesia Asahan Aluminium Persero PT (USD) (a)..................... 5.45% 05/15/30 270,248 -------------- 456,200 -------------- </TABLE> See Notes to Financial Statements Page 99 <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <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 -- 21.7% 15,000 Ecopetrol S.A. (USD)................................................ 4.63% 11/02/31 $ 11,741 30,000 Ecopetrol S.A. (USD)................................................ 5.88% 11/02/51 20,181 200,000 Gran Tierra Energy, Inc. (USD) (c).................................. 7.75% 05/23/27 164,736 200,000 KazMunayGas National Co. JSC (USD) (a).............................. 3.50% 04/14/33 158,045 200,000 Oil and Gas Holding (The) Co. BSCC (USD) (c)........................ 7.63% 11/07/24 203,605 81,000 Petroleos Mexicanos (USD)........................................... 6.63% 06/15/35 58,283 120,000 Petroleos Mexicanos (USD)........................................... 6.50% 06/02/41 76,782 149,000 Petroleos Mexicanos (USD)........................................... 7.69% 01/23/50 102,813 200,000 Qatar Energy (USD) (a).............................................. 2.25% 07/12/31 174,825 200,000 Qatar Energy (USD) (a).............................................. 3.13% 07/12/41 163,163 200,000 SA Global Sukuk Ltd. (USD) (c)...................................... 2.69% 06/17/31 182,258 225,000 Saudi Arabian Oil Co. (USD) (c)..................................... 2.25% 11/24/30 196,331 200,000 Tengizchevroil Finance Co. International Ltd. (USD) (c)............. 4.00% 08/15/26 172,670 -------------- 1,685,433 -------------- PIPELINES -- 2.1% 196,522 Galaxy Pipeline Assets Bidco Ltd. (USD) (a)......................... 2.94% 09/30/40 164,476 -------------- TOTAL FOREIGN CORPORATE BONDS AND NOTES........................................................ 2,664,241 (Cost $2,904,481) -------------- SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 3.1% <S> <C> <C> 244,275 JPMorgan 100% U.S. Treasury Securities Money Market Fund - Institutional Class - 1.87% (d)..... 244,275 (Cost $244,275) -------------- TOTAL INVESTMENTS -- 98.9%..................................................................... 7,694,895 (Cost $8,730,185) NET OTHER ASSETS AND LIABILITIES -- 1.1%....................................................... 87,002 -------------- NET ASSETS -- 100.0%........................................................................... $ 7,781,897 ============== </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., 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, 2022, securities noted as such amounted to $2,612,593 or 33.6% 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) Rate shown reflects yield as of August 31, 2022. Currency Abbreviations: USD - United States Dollar Page 100 See Notes to Financial Statements <PAGE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS ---------------- --------------- ---------------- ---------------- <S> <C> <C> <C> <C> Foreign Sovereign Bonds and Notes*................... $ 4,786,379 $ -- $ 4,786,379 $ -- Foreign Corporate Bonds and Notes**.................. 2,664,241 -- 2,664,241 -- Money Market Funds................................... 244,275 244,275 -- -- ---------------- --------------- ---------------- ---------------- Total Investments.................................... $ 7,694,895 $ 244,275 $ 7,450,620 $ -- ================ =============== ================ ================ </TABLE> * See Portfolio of Investments for country breakout. ** See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 101 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW FIRST TRUST TCW FIRST TRUST TCW OPPORTUNISTIC UNCONSTRAINED SECURITIZED EMERGING FIXED INCOME PLUS BOND PLUS MARKETS DEBT ETF ETF ETF ETF (FIXD) (UCON) (DEED) (EFIX) --------------- --------------- --------------- --------------- <S> <C> <C> <C> <C> ASSETS: Investments, at value.............................. $ 4,179,978,378 $ 1,433,106,770 $ 274,429,296 $ 7,694,895 Options contracts purchased, at value.............. 12,819 -- -- -- Swap contracts, at value........................... 7,362,896 865,964 -- -- Cash............................................... 8,850,236 -- 744,189 -- Cash segregated as collateral for open swap contracts....................................... 26,120,669 4,004,898 -- -- Cash segregated as collateral for open futures contracts....................................... 23,777,000 5,734,829 455,000 -- Unrealized appreciation on forward foreign currency contracts.............................. 262,630 133,993 161,686 -- Due from authorized participant.................... -- 38,250 -- -- Receivables: Investment securities sold...................... 482,544,524 149,887,301 61,083,017 29,267 Interest........................................ 18,766,934 7,211,802 836,116 90,965 Variation margin................................ 243,448 675,117 6,328 -- Dividends....................................... 149,633 42,989 8,453 450 Capital shares sold............................. -- 3,697,173 -- -- Reclaims........................................ -- -- 490 -- --------------- --------------- --------------- --------------- Total Assets.................................... 4,748,069,167 1,605,399,086 337,724,575 7,815,577 --------------- --------------- --------------- --------------- LIABILITIES: Due to custodian................................... -- 507,525 -- -- Options contracts written, at value................ 19,906 -- -- -- Swap contracts, at value........................... 24,639,372 3,592,734 -- -- Unrealized depreciation on forward foreign currency contracts.............................. -- -- 9,373 -- Payables: Investment securities purchased................. 1,173,287,255 331,690,584 152,103,689 27,933 Investment advisory fees........................ 1,679,656 793,705 104,188 5,747 --------------- --------------- --------------- --------------- Total Liabilities............................... 1,199,626,189 336,584,548 152,217,250 33,680 --------------- --------------- --------------- --------------- NET ASSETS......................................... $ 3,548,442,978 $ 1,268,814,538 $ 185,507,325 $ 7,781,897 =============== =============== =============== =============== NET ASSETS CONSIST OF: Paid-in capital.................................... $ 4,258,991,692 $ 1,346,571,645 $ 216,912,170 $ 10,834,139 Par value.......................................... 768,500 516,500 81,500 5,000 Accumulated distributable earnings (loss).......... (711,317,214) (78,273,607) (31,486,345) (3,057,242) --------------- --------------- --------------- --------------- NET ASSETS......................................... $ 3,548,442,978 $ 1,268,814,538 $ 185,507,325 $ 7,781,897 =============== =============== =============== =============== NET ASSET VALUE, per share......................... $ 46.17 $ 24.57 $ 22.76 $ 15.56 =============== =============== =============== =============== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)... 76,850,002 51,650,002 8,150,002 50,002 =============== =============== =============== =============== Investments, at cost............................... $ 4,497,824,224 $ 1,508,882,055 $ 287,081,488 $ 8,730,185 =============== =============== =============== =============== Premiums paid on options contracts purchased....... $ 1,113,442 $ -- $ -- $ -- =============== =============== =============== =============== Premiums received on options contracts written..... $ 1,053,958 $ -- $ -- $ -- =============== =============== =============== =============== </TABLE> Page 102 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2022 <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW FIRST TRUST TCW FIRST TRUST TCW OPPORTUNISTIC UNCONSTRAINED SECURITIZED EMERGING FIXED INCOME PLUS BOND PLUS MARKETS DEBT ETF ETF ETF ETF (FIXD) (UCON) (DEED) (EFIX) --------------- --------------- --------------- --------------- <S> <C> <C> <C> <C> INVESTMENT INCOME: Interest........................................... $ 105,545,540 $ 30,674,278 $ 6,154,581 $ 623,790 Dividends.......................................... 427,814 98,549 24,498 1,303 --------------- --------------- --------------- --------------- Total investment income......................... 105,973,354 30,772,827 6,179,079 625,093 --------------- --------------- --------------- --------------- EXPENSES: Investment advisory fees........................... 30,140,760 8,430,707 1,814,295 122,515 --------------- --------------- --------------- --------------- Total expenses.................................. 30,140,760 8,430,707 1,814,295 122,515 Less fees waived by the investment advisor...... (4,637,040) (991,848) (241,906) (12,896) --------------- --------------- --------------- --------------- Net expenses.................................... 25,503,720 7,438,859 1,572,389 109,619 --------------- --------------- --------------- --------------- NET INVESTMENT INCOME (LOSS)....................... 80,469,634 23,333,968 4,606,690 515,474 --------------- --------------- --------------- --------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments..................................... (332,384,182) (22,586,904) (18,790,631) (1,839,309) Futures contracts............................... 1,164,316 18,843,815 (1,374,033) -- Purchased swaptions contracts................... 731,036 -- -- -- Purchased options contracts..................... 1,943,723 -- -- -- Written swaptions contracts..................... 719,597 157,853 -- -- Written options contracts....................... (15,952,507) -- -- -- Forward foreign currency contracts.............. 3,093,466 237,168 386,587 -- Swap contracts.................................. (29,429) 151,921 -- -- Foreign currency transactions................... (209,608) 5,283 23,650 (3,448) --------------- --------------- --------------- --------------- Net realized gain (loss)........................... (340,923,588) (3,190,864) (19,754,427) (1,842,757) --------------- --------------- --------------- --------------- Net change in unrealized appreciation (depreciation) on: Investments..................................... (374,955,293) (81,469,903) (13,550,802) (1,096,350) Purchased swaptions contracts................... 44,321 -- -- -- Purchased options contracts..................... (1,234,771) -- -- -- Written options contracts....................... 1,011,380 -- -- -- Futures contracts............................... (490,310) 865,345 (129,613) -- Forward foreign currency contracts.............. 262,630 133,993 151,299 -- Swap contracts.................................. (16,971,575) (2,694,881) -- -- Foreign currency translation.................... (1,466) (994) (806) 140 --------------- --------------- --------------- --------------- Net change in unrealized appreciation (depreciation).................................. (392,335,084) (83,166,440) (13,529,922) (1,096,210) --------------- --------------- --------------- --------------- NET REALIZED AND UNREALIZED GAIN (LOSS)..................................... (733,258,672) (86,357,304) (33,284,349) (2,938,967) --------------- --------------- --------------- --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $ (652,789,038) $ (63,023,336) $ (28,677,659) $ (2,423,493) =============== =============== =============== =============== </TABLE> See Notes to Financial Statements Page 103 <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 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> OPERATIONS: Net investment income (loss).............................. $ 80,469,634 $ 64,284,996 $ 23,333,968 $ 6,253,847 Net realized gain (loss).................................. (340,923,588) (18,394,631) (3,190,864) 5,247,642 Net change in unrealized appreciation (depreciation)...... (392,335,084) (9,964,130) (83,166,440) (817,200) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........................................ (652,789,038) 35,926,235 (63,023,336) 10,684,289 ---------------- ---------------- ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations..................................... (82,614,627) (135,544,495) (21,248,341) (8,311,326) Return of capital......................................... -- (3,126,328) -- -- ---------------- ---------------- ---------------- ---------------- Total distributions to shareholders....................... (82,614,627) (138,670,823) (21,248,341) (8,311,326) ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold................................. 394,188,882 1,797,708,750 775,430,197 401,649,334 Cost of shares redeemed................................... (1,408,009,711) (37,801,569) (30,661,288) -- ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions.......................... (1,013,820,829) 1,759,907,181 744,768,909 401,649,334 ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets................... (1,749,224,494) 1,657,162,593 660,497,232 404,022,297 NET ASSETS: Beginning of period....................................... 5,297,667,472 3,640,504,879 608,317,306 204,295,009 ---------------- ---------------- ---------------- ---------------- End of period............................................. $ 3,548,442,978 $ 5,297,667,472 $ 1,268,814,538 $ 608,317,306 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................... 98,150,002 66,000,002 22,900,002 7,800,002 Shares sold............................................... 7,900,000 32,850,000 30,000,000 15,100,000 Shares redeemed........................................... (29,200,000) (700,000) (1,250,000) -- ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period......................... 76,850,002 98,150,002 51,650,002 22,900,002 ================ ================ ================ ================ </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. Page 104 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST TCW FIRST TRUST TCW SECURITIZED EMERGING MARKETS PLUS ETF DEBT ETF (DEED) (EFIX) ---------------------------------- ---------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED 8/31/2022 8/31/2021 8/31/2022 8/31/2021 (a) ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> $ 4,606,690 $ 790,516 $ 515,474 $ 393,399 (19,754,427) 1,584,680 (1,842,757) (111,065) (13,529,922) 204,936 (1,096,210) 60,920 ---------------- ---------------- ---------------- ---------------- (28,677,659) 2,580,132 (2,423,493) 343,254 ---------------- ---------------- ---------------- ---------------- (4,631,176) (1,603,367) (549,502) (427,501) -- -- -- -- ---------------- ---------------- ---------------- ---------------- (4,631,176) (1,603,367) (549,502) (427,501) ---------------- ---------------- ---------------- ---------------- 84,294,818 203,281,137 -- 20,034,040 (93,022,828) (2,590,248) (9,194,901) -- ---------------- ---------------- ---------------- ---------------- (8,728,010) 200,690,889 (9,194,901) 20,034,040 ---------------- ---------------- ---------------- ---------------- (42,036,845) 201,667,654 (12,167,896) 19,949,793 227,544,170 25,876,516 19,949,793 -- ---------------- ---------------- ---------------- ---------------- $ 185,507,325 $ 227,544,170 $ 7,781,897 $ 19,949,793 ================ ================ ================ ================ 8,750,002 1,000,002 1,000,002 -- 3,250,000 7,850,000 -- 1,000,002 (3,850,000) (100,000) (500,000) -- ---------------- ---------------- ---------------- ---------------- 8,150,002 8,750,002 500,002 1,000,002 ================ ================ ================ ================ </TABLE> See Notes to Financial Statements Page 105 <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, ------------------------------------------------------------------------ 2022 2021 2020 2019 2018 ------------ ------------ ------------ ------------ ------------ <S> <C> <C> <C> <C> <C> Net asset value, beginning of period................. $ 53.98 $ 55.16 $ 52.97 $ 49.40 $ 51.01 ---------- ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.88 0.76 1.06 1.39 1.15 Net realized and unrealized gain (loss).............. (7.76) (0.34) 2.85 3.63 (1.46) ---------- ---------- ---------- ---------- ---------- Total from investment operations..................... (6.88) 0.42 3.91 5.02 (0.31) ---------- ---------- ---------- ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.93) (0.81) (1.12) (1.45) (1.30) Net realized gain.................................... -- (0.75) (0.60) -- (0.00) (b) Return of capital.................................... -- (0.04) -- -- -- ---------- ---------- ---------- ---------- ---------- Total distributions.................................. (0.93) (1.60) (1.72) (1.45) (1.30) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period....................... $ 46.17 $ 53.98 $ 55.16 $ 52.97 $ 49.40 ========== ========== ========== ========== ========== TOTAL RETURN (c)..................................... (12.84)% 0.77% 7.57% 10.33% (0.57)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $3,548,443 $5,297,667 $3,640,505 $ 900,459 $ 318,605 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.65% 0.65% 0.65% 0.65% 0.65% Ratio of net expenses to average net assets.......... 0.55% 0.55% 0.55% 0.55% 0.55% Ratio of net investment income (loss) to average net assets........................................ 1.74% 1.34% 1.61% 2.69% 2.29% Portfolio turnover rate (d) (e)...................... 445% 497% 431% 246% 358% </TABLE> FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF (UCON) <TABLE> <CAPTION> PERIOD YEAR ENDED AUGUST 31, ENDED --------------------------------------------------------- ------------ 2022 2021 2020 2019 8/31/2018 (a) ------------ ------------ ------------ ------------ ------------ <S> <C> <C> <C> <C> <C> Net asset value, beginning of period................. $ 26.56 $ 26.19 $ 25.79 $ 25.12 $ 25.00 ---------- ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.55 0.53 0.75 0.77 0.17 Net realized and unrealized gain (loss).............. (2.01) 0.52 0.50 0.75 0.10 ---------- ---------- ---------- ---------- ---------- Total from investment operations..................... (1.46) 1.05 1.25 1.52 0.27 ---------- ---------- ---------- ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.52) (0.51) (0.85) (0.81) (0.15) Net realized gain.................................... (0.01) (0.17) -- (0.04) -- ---------- ---------- ---------- ---------- ---------- Total distributions.................................. (0.53) (0.68) (0.85) (0.85) (0.15) ---------- ---------- ---------- ---------- ---------- Net asset value, end of period....................... $ 24.57 $ 26.56 $ 26.19 $ 25.79 $ 25.12 ========== ========== ========== ========== ========== TOTAL RETURN (c)..................................... (5.55)% 4.04% 4.97% 6.15% 1.06% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $1,268,815 $ 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% 0.85% (f) Ratio of net expenses to average net assets.......... 0.75% 0.75% 0.75% 0.75% 0.75% (f) Ratio of net investment income (loss) to average net assets........................................ 2.35% 1.90% 2.88% 3.16% 2.68% (f) Portfolio turnover rate (d).......................... 208% (g) 190% (g) 111% (g) 40% (g) 70% </TABLE> (a) Inception date is June 4, 2018, 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 investment advisor. (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 271%, 282%, 270%, 223% and 241% for the periods ending August 31, 2022, August 31, 2021, August 31, 2020, August 31, 2019 and August 31, 2018, respectively. (f) Annualized. (g) The portfolio turnover rate not including mortgage dollar rolls was 43%, 40%, 67% and 39% for the periods ending August 31, 2022, August 31, 2021, August 31, 2020 and August 31, 2019 respectively. Page 106 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> PERIOD YEAR ENDED AUGUST 31, ENDED --------------------------- ------------ 2022 2021 8/31/2020 (a) ------------ ------------ ------------ <S> <C> <C> <C> Net asset value, beginning of period................. $ 26.01 $ 25.88 $ 25.00 ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.49 0.28 0.08 Net realized and unrealized gain (loss).............. (3.28) 0.47 0.87 ---------- ---------- ---------- Total from investment operations..................... (2.79) 0.75 0.95 ---------- ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.39) (0.29) (0.07) Net realized gain.................................... (0.07) (0.33) -- ---------- ---------- ---------- Total distributions.................................. (0.46) (0.62) (0.07) ---------- ---------- ---------- Net asset value, end of period....................... $ 22.76 $ 26.01 $ 25.88 ========== ========== ========== TOTAL RETURN (b)..................................... (10.87)% 2.93% 3.80% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $ 185,507 $ 227,544 $ 25,877 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.75% 0.75% 0.75% (c) Ratio of net expenses to average net assets.......... 0.65% 0.65% 0.65% (c) Ratio of net investment income (loss) to average net assets........................................ 1.90% 0.98% 0.94% (c) Portfolio turnover rate (d) (e)...................... 678% 678% 186% </TABLE> FIRST TRUST TCW EMERGING MARKETS DEBT ETF (EFIX) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) ------------ ------------ <S> <C> <C> Net asset value, beginning of period................. $ 19.95 $ 20.00 ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)......................... 0.70 0.40 Net realized and unrealized gain (loss).............. (4.33) (0.02) ---------- ---------- Total from investment operations..................... (3.63) 0.38 ---------- ---------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income................................ (0.76) (0.43) ---------- ---------- Net asset value, end of period....................... $ 15.56 $ 19.95 ========== ========== TOTAL RETURN (b)..................................... (18.52)% 1.93% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)................. $ 7,782 $ 19,950 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets........ 0.95% 0.95% (c) Ratio of net expenses to average net assets.......... 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets........................................ 4.00% 3.75% (c) Portfolio turnover rate (d).......................... 125% 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 272%, 299% and 21% for the periods ending August 31, 2022, August 31, 2021 and August 31, 2020, respectively. See Notes to Financial Statements Page 107 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers the four 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") 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 is to seek to provide high total return from current income and 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 debt securities issued or guaranteed by companies, financial institutions and government entities located in emerging market countries. 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: 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; Page 108 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 5) benchmark securities; 6) bids and offers; and 7) reference data including market research publications. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. 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 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 ----------------------------- (1) The terms "security" and "securities" used throughout the Notes to Financial Statements include Senior Loans. Page 109 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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. 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, 2022, is included with each Fund's Portfolio of Investments. Page 110 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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 (the "FCA"), which regulates the London Interbank Offered Rates ("LIBOR") announced on March 5, 2021 that it intended to phase-out all LIBOR reference rates, beginning December 31, 2021. Since that announcement, the FCA has ceased publication of all non-USD LIBOR reference rates and the 1-week and 2-month USD LIBOR reference rates as of December 31, 2021. The remaining USD LIBOR settings will cease to be published or no longer be representative immediately after June 30, 2023. The International Swaps and Derivatives Association, Inc. ("ISDA") confirmed that the FCA's March 5, 2021 announcement of its intention to cease providing LIBOR reference rates, 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. There is no assurance that any alternative reference rate, including SOFR, will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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, 2022, FIXD held $12,145,928 of when-issued or delayed-delivery securities. At August 31, 2022, FIXD, UCON, and DEED held $658,028,458, $172,436,837 and $85,006,447, 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, 2022, 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 111 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 <TABLE> <CAPTION> ACQUISITION PRINCIPAL CURRENT CARRYING % OF SECURITIES DATE VALUE PRICE COST VALUE NET ASSETS ------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> FIXD Endo Dac / Endo Finance LLC / Endo Finco, Inc., 6.00%, 06/30/28 08/04/2021 $ 1,859,000 $ 5.75 $1,180,465 $ 106,893 0.00%* Ruby Pipeline LLC, 8.00%, 04/01/22 12/08/2017 329,909 84.00 348,942 277,124 0.01% ------------------------------------ $1,529,407 $ 384,017 0.01% ==================================== UCON Endo Dac / Endo Finance LLC / Endo Finco, Inc., 6.00%, 07/12/2021, 06/30/28 08/19/2021 $ 637,000 $ 5.75 $ 385,845 $ 36,628 0.00%* 07/25/2018, Ruby Pipeline LLC, 8.00%, 04/01/2021, 04/01/22 08/02/2021 598,788 84.00 540,665 502,982 0.00%* ------------------------------------ $ 926,510 $ 539,610 0.00%* ==================================== DEED GS Mortgage Securities Trust, Series 2011-GC5, Class XA, IO, 0.09%, 08/10/44 05/19/2020 $ 1,827,783 $ 0.00** $ 0 $ 18 0.00%* ==================================== </TABLE> * Amount is less than 0.01%. ** Amount is less than $0.01. D. FUTURES CONTRACTS Each Fund 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 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 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 Page 112 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 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 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, 2022. 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 and UCON invest 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. Each Fund's maximum equity price risk for purchased options is limited to the premium initially paid. Page 113 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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. 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 a 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 a 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 is included in "Purchased/Written 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. Page 114 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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. K. MORTGAGE DOLLAR ROLLS Each Fund 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 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 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 year ended August 31, 2022 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 $ 88,246,752 $ -- $ -- First Trust TCW Unconstrained Plus Bond ETF 21,039,193 209,148 -- First Trust TCW Securitized Plus ETF 4,631,176 -- -- First Trust TCW Emerging Markets Debt ETF 549,502 -- -- </TABLE> 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 -- -- </TABLE> Page 115 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of August 31, 2022, 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 $ 5,406,242 $(355,844,752) $(360,878,704) First Trust TCW Unconstrained Plus Bond ETF 2,551,383 (3,077,263) (77,747,727) First Trust TCW Securitized Plus ETF 136,775 (20,439,629) (11,183,491) First Trust TCW Emerging Markets Debt ETF (17,233) (1,952,666) (1,087,343) </TABLE> M. 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. For FIXD and UCON, the taxable years ended 2019, 2020, 2021, and 2022 remain open to federal and state audit. For DEED, the taxable years ended 2020, 2021, and 2022 remain open to federal and state audit. For EFIX, the taxable years ended 2021 and 2022 remain open to federal and state audit. As of August 31, 2022, 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, 2022, 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. <TABLE> <CAPTION> Non-Expiring Capital Loss Carryforward ----------------- <S> <C> First Trust TCW Opportunistic Fixed Income ETF $ 355,844,752 First Trust TCW Unconstrained Plus Bond ETF 3,077,263 First Trust TCW Securitized Plus ETF 20,439,629 First Trust TCW Emerging Markets Debt ETF 1,952,666 </TABLE> 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, 2022, the Funds 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 $ -- $ -- First Trust TCW Unconstrained Plus Bond ETF -- -- First Trust TCW Securitized Plus ETF -- -- First Trust TCW Emerging Markets Debt ETF 17,233 -- </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 Page 116 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 year ended August 31, 2022, 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 $ 17,850,326 $ (17,850,326) $ -- First Trust TCW Unconstrained Plus Bond ETF 3,205,075 (3,205,075) -- First Trust TCW Securitized Plus ETF 622,543 (622,543) -- First Trust TCW Emerging Markets Debt ETF 10,983 (10,983) -- </TABLE> As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Net Gross Gross Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> First Trust TCW Opportunistic Fixed Income ETF $ 4,523,358,096 $ 8,861,770 $ (369,739,008) $ (360,877,238) First Trust TCW Unconstrained Plus Bond ETF 1,509,099,124 7,564,213 (85,310,946) (77,746,733) First Trust TCW Securitized Plus ETF 285,630,015 403,657 (11,586,351) (11,182,694) First Trust TCW Emerging Markets Debt ETF 8,782,238 11,318 (1,098,661) (1,087,343) </TABLE> 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, and EFIX have each agreed to pay First Trust an annual unitary management fee equal to 0.65%, 0.85%, 0.75%, and 0.95%, 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, 2022 for FIXD, UCON and DEED and February 10, 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, 2022 for FIXD, UCON and DEED and February 10, 2023 for EFIX. During the fiscal year ended August 31, 2022, the Advisor waived fees of $4,637,040, $991,848, $241,906, and $12,896, 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. Page 117 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, 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 $22,178,915,310 $23,289,270,395 Non-U.S. Government securities 1,325,852,526 1,192,879,972 FIRST TRUST TCW UNCONSTRAINED PLUS BOND ETF U.S. Government securities 1,619,400,203 1,495,480,485 Non-U.S. Government securities 955,786,955 285,785,017 FIRST TRUST TCW SECURITIZED PLUS ETF U.S. Government securities 1,991,875,227 1,986,506,895 Non-U.S. Government securities 77,038,740 65,729,122 FIRST TRUST TCW EMERGING MARKETS DEBT ETF U.S. Government securities -- -- Non-U.S. Government securities 15,869,999 24,250,406 </TABLE> For the fiscal year ended August 31, 2022, the Funds had no in-kind transactions. Page 118 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 5. DERIVATIVE TRANSACTIONS The following table presents the types of derivatives held by each Fund at August 31, 2022, 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 $ 12,819 written, at value $ 19,906 Unrealized appreciation Unrealized depreciation Forward foreign on forward foreign on forward foreign currency contracts Currency Risk currency contracts 262,630 currency contracts -- Unrealized appreciation Unrealized depreciation Futures contracts Interest Rate Risk on futures contracts* 789,558 on futures contracts* 1,273,232 Swap contracts Interest Rate Risk Swap contracts, at value 7,362,896 Swap contracts, at value 24,639,372 UCON Unrealized appreciation Unrealized depreciation Forward foreign on forward foreign on forward foreign currency contracts Currency Risk currency contracts 133,993 currency contracts -- Unrealized appreciation Unrealized depreciation Futures contracts Interest Rate Risk on futures contracts* 1,426,865 on futures contracts* 588,467 Swap contracts Interest Rate Risk Swap contracts, at value 865,964 Swap contracts, at value 3,592,734 DEED Unrealized appreciation Unrealized depreciation Forward foreign on forward foreign on forward foreign currency contracts Currency Risk currency contracts 161,686 currency contracts 9,373 Unrealized appreciation Unrealized depreciation Futures contracts Interest Rate Risk on futures contracts* 4,427 on futures contracts* 138,715 </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. Page 119 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended August 31, 2022, 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 $ 3,093,466 $ 237,168 $ 386,587 Net change in unrealized appreciation (depreciation) on forward foreign currency contracts 262,630 133,993 151,299 INTEREST RATE RISK EXPOSURE Net realized gain (loss) on: Purchased swaptions contracts 731,036 -- -- Purchased options contracts 1,943,723 -- -- Written swaptions contracts 719,597 157,853 -- Written options contracts (15,952,507) -- -- Futures contracts 1,164,316 18,843,815 (1,374,033) Swap contracts (29,429) 151,921 -- Net change in unrealized appreciation (depreciation) on: Purchased swaptions contracts 44,321 -- -- Purchased options contracts (1,234,771) -- -- Written options contracts 1,011,380 -- -- Futures contracts (490,310) 865,345 (129,613) Swap contracts (16,971,575) (2,694,881) -- </TABLE> FIXD During the fiscal year ended August 31, 2022, the premiums for purchased swaptions contracts opened were $0 and the premiums for purchased swaptions contracts closed, exercised and expired were $571,710. During the fiscal year ended August 31, 2022, the premiums for purchased options contracts opened were $4,215,058 and the premiums for purchased options contracts closed, exercised and expired were $4,493,030. During the fiscal year ended August 31, 2022, the premiums for written swaptions contracts opened were $719,597 and the premiums for purchased swaptions contracts closed, exercised and expired were $719,597. During the fiscal year ended August 31, 2022, the premiums for written options contracts opened were $14,532,229 and the premiums for written options contracts closed, exercised and expired were $14,372,693. During the fiscal year ended August 31, 2022, the notional value of forward foreign currency contracts opened and closed were $535,195,265 and $525,393,981, respectively. During the fiscal year ended August 31, 2022, the notional value of futures contracts opened and closed were $1,965,978,217 and $1,207,387,912, respectively. For the fiscal year ended August 31, 2022, the average volume of interest rate swaps was $596,517,945. UCON During the fiscal year ended August 31, 2022, the premiums for written swaptions contracts opened were $157,853 and the premiums for purchased swaptions contracts closed, exercised and expired were $157,853. During the fiscal year ended August 31, 2022, the notional value of forward foreign currency contracts opened and closed were $27,354,665 and $23,797,873, respectively. During the fiscal year ended August 31, 2022, the notional value of futures contracts opened and closed were $1,683,055,884 and $1,384,246,625, respectively. For the fiscal year ended August 31, 2022, the average volume of interest rate swaps was $90,295,534. DEED During the fiscal year ended August 31, 2022, the notional value of forward foreign currency contracts opened and closed were $31,842,594 and $29,103,105, respectively. During the fiscal year ended August 31, 2022, the notional value of futures contracts opened and closed were $196,497,780 and $157,366,791, respectively. Page 120 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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. 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, 2023. 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 121 <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, and First Trust TCW Emerging Markets Debt ETF, each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2022, the related statements of operations for the year then ended, 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, 2022, the results of their operations for the year then ended, and 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 CHANGES IN THE TRUST IN NET ASSETS FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> First Trust TCW Opportunistic For the years ended For the years ended August 31, 2022, 2021, 2020, 2019, Fixed Income ETF August 31, 2022 and 2021 and 2018 ------------------------------------------------------------------------------------------------------------------------- First Trust TCW Unconstrained For the years ended For the years ended August 31, 2022, 2021, 2020, 2019 Plus Bond ETF August 31, 2022 and 2021 and the period from June 4, 2018 (commencement of operations) through August 31, 2018 ------------------------------------------------------------------------------------------------------------------------- First Trust TCW Securitized Plus For the years ended For the years ended August 31, 2022, 2021 and for the ETF August 31, 2022 and 2021 period from April 29, 2020 (commencement of operations) through August 31, 2020 ------------------------------------------------------------------------------------------------------------------------- First Trust TCW Emerging For year ended August 31, 2022 and for the period from February 17, 2021 (commencement Markets Debt ETF of operations) through 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 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, 2022, 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, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 122 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 year ended August 31, 2022 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 year ended August 31, 2022, 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, 2022, the below Fund designated long-term capital gain distributions in the following amount. Long-Term Capital Gain Distributions --------------------- First Trust TCW Unconstrained Plus Bond ETF $ 209,148 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 123 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 124 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of a fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund's shares and result in increased market volatility. During any such events, a fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund's shares may widen. 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. Page 125 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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. VALUATION RISK. The valuation of municipal bonds or securitized assets may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally-sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by a fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that a fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to a fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE REMUNERATION First Trust Advisors L.P. ("First Trust") is authorised and regulated by the U.S. Securities and Exchange Commission and is entitled to market shares of certain First Trust Exchange-Traded Fund VIII funds it manages (the "Funds") in certain member states in the European Economic Area in accordance with the cooperation arrangements in Article 42 of the Alternative Investment Fund Managers Directive (the "Directive"). First Trust is required under the Directive to make disclosures in respect of remuneration. The following disclosures are made in line with First Trust's interpretation of currently available regulatory guidance on remuneration disclosures. During the year ended December 31, 2021, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Funds is $3,051,995. This figure is comprised of $117,443 paid (or to be paid) in fixed compensation and $2,934,552 paid (or to be paid) in variable compensation. There were a total of 24 beneficiaries of the remuneration described above. Those amounts include $1,567,304 paid (or to be paid) to senior management of First Trust Advisors L.P. and $1,484,691 paid (or to be paid) to other employees whose professional activities have a material impact on the risk profiles of First Trust Advisors L.P. or the Funds (collectively, "Code Staff"). Code Staff included in the aggregated figures disclosed above are rewarded in line with First Trust's remuneration policy (the "Remuneration Policy") which is determined and implemented by First Trust's senior management. The Remuneration Policy reflects First Trust's ethos of good governance and encapsulates the following principal objectives: i. to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure; ii. to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and iii. to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First Trust in a manner that avoids conflicts of interest. First Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure, or consider the taking of risk or failure to take risk in its remuneration of Code Staff. First Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance of First Trust. Remuneration is not based upon the performance of the Funds. The elements of remuneration are balanced between fixed and variable and the senior management sets fixed salaries at a level sufficient to ensure that variable remuneration incentivises and rewards strong individual performance but does not encourage excessive risk taking. No individual is involved in setting his or her own remuneration. Page 126 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) ADVISORY AND SUB-ADVISORY AGREEMENTS 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 FIRST TRUST TCW SECURITIZED PLUS ETF FIRST TRUST TCW EMERGING MARKETS DEBT 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 four 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) First Trust TCW Emerging Markets Debt ETF (EFIX) The Board approved the continuation of the applicable Agreements for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 FIXD, UCON and DEED, 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 indirect 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 18, 2022, 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 12-13, 2022 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 Page 127 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 18, 2022 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, 2022 for FIXD, UCON and DEED and until at least February 10, 2023 for EFIX. The Board also considered that, to the extent EFIX invests in underlying funds that are other funds in the First Trust Fund Complex, the Advisor has agreed to offset the unitary fee paid by EFIX related to EFIX's assets invested in the affiliated underlying funds. The Board received and reviewed information showing the 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 below the median total (net) expense ratio of the peer funds in its Expense Group and that the unitary fee rate for each of UCON, DEED and EFIX, 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including that the Expense Group for DEED 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 each of FIXD's and UCON's performance for the one- and three-year periods ended December 31, 2021 to the performance of the funds in its respective Performance Universe and a benchmark index and information comparing DEED's performance for the one-year period ended December 31, 2021 to the performance of the funds in its Performance Universe and a benchmark index. Based on the information provided, the Board noted that each of FIXD and UCON underperformed its respective Performance Universe median for the one-year period ended December 31, 2021, that DEED outperformed its Performance Universe median for the one-year period ended December 31, 2021, that FIXD underperformed its Performance Universe median for the three-year period ended December 31, 2021 and that UCON outperformed its Performance Universe median for the three-year period ended December 31, 2021. The Board also noted that each of FIXD, UCON and DEED outperformed its respective Page 128 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) benchmark index for the one-year period ended December 31, 2021 and that each of FIXD and UCON outperformed its respective benchmark index for the three-year period ended December 31, 2021. Because EFIX commenced operations on February 17, 2021 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 that its expenses relating to providing advisory services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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, UCON and DEED for the twelve months ended December 31, 2021 and to EFIX for the period from inception through December 31, 2021 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, 2021. 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 indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect 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 indirect 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 indirect 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 any ancillary or indirect benefits due to its relationship with the Funds, and that the Sub-Advisor's U.S./Developed Markets and Emerging Markets Fixed Income Teams do not enter into soft dollar arrangements. The Board concluded that the character and amount of potential indirect 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. Page 129 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) At the April 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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, 2022 (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 2022 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 320 South Canal Street Chicago, IL 60606 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- EquityCompass Risk Manager ETF (ERM) ---------------------------- Annual Report For the Year Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 1 Fund Performance Overview.................................................... 2 Portfolio Commentary......................................................... 4 Understanding Your Fund Expenses............................................. 7 Portfolio of Investments..................................................... 8 Statement of Assets and Liabilities.......................................... 11 Statement of Operations...................................................... 12 Statements of Changes in Net Assets.......................................... 13 Financial Highlights......................................................... 14 Notes to Financial Statements................................................ 15 Report of Independent Registered Public Accounting Firm ..................... 21 Additional Information....................................................... 22 Board of Trustees and Officers............................................... 28 Privacy Policy............................................................... 30 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 (EquityCompass Risk Manager 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-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 the Fund will achieve its investment objectives. 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. 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-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 the Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings. <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2022 Dear Shareholders: First Trust is pleased to provide you with the annual report for the EquityCompass Risk Manager ETF (the "Fund"), which contains detailed information about the Fund for the twelve months ended August 31, 2022. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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) -------------------------------------------------------------------------------- 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 TOTAL RETURNS CUMULATIVE TOTAL RETURNS 1 Year Ended 5 Years Ended Inception (4/10/17) 5 Years Ended Inception (4/10/17) 8/31/22 8/31/22 to 8/31/22 8/31/22 to 8/31/22 <S> <C> <C> <C> <C> <C> FUND PERFORMANCE NAV -13.39% 2.90% 3.15% 15.38% 18.20% Market Price -13.42% 2.90% 3.16% 15.37% 18.25% INDEX PERFORMANCE S&P 500(R) Index -11.23% 11.82% 12.07% 74.86% 84.84% Hedge Fund Research HFRI Equity Hedge Index(1) -10.14% 31.12% 5.57% 35.44% 5.85% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (1) Cumulative total return for the period April 30, 2017 through August 31, 2022. 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. 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 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. 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. 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 the 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 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 return does 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 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) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 21.2% Consumer Discretionary 12.8 Health Care 12.7 Financials 11.4 Communication Services 10.9 Industrials 9.6 Consumer Staples 8.0 Energy 4.6 Utilities 3.5 Materials 2.7 Real Estate 2.6 ------- Total 100.0% ======= ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- TechnipFMC PLC 0.9% ConocoPhillips 0.8 Ford Motor Co. 0.8 PayPal Holdings, Inc. 0.8 CF Industries Holdings, Inc. 0.8 Gartner, Inc. 0.8 Arista Networks, Inc. 0.8 Unum Group 0.8 Broadridge Financial Solutions, Inc. 0.8 Walt Disney (The) Co. 0.8 ------- Total 8.1% ======= <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 10, 2017 - AUGUST 31, 2022 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 2/29/19 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 2/28/22 13,377 20,275 8/31/22 11,820 18,484 </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> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) INVESTMENT ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to EquityCompass Risk Manager ETF ("ERM" or the "Fund"). First Trust is responsible for the selection and ongoing monitoring of the securities in the Fund's portfolio and certain other services necessary for the management of the portfolio. SUB-ADVISOR EquityCompass Investment Management, LLC ("EquityCompass Investment Management" or the "Sub-Advisor") serves as the investment sub-advisor to the Fund. PORTFOLIO MANAGEMENT ADVISOR'S INVESTMENT COMMITTEE The Advisor's Investment Committee (the "Investment Committee"), which manages the Fund's 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, CO-HEAD OF THE ALTERNATIVES INVESTMENT TEAM OF FIRST TRUST ROB A. GUTTSCHOW, CFA, SENIOR PORTFOLIO MANAGER, CO-HEAD 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 Fund, while the Sub-Advisor portfolio managers provide non-discretionary investment advice to the Investment Committee. Each portfolio manager has served as part of the portfolio management team of the Fund since 2017 and Christopher M. Mutascio has served as part of the portfolio management team of the Fund since 2020. COMMENTARY MARKET RECAP Our EquityCompass Market Outlook 2022, published at the beginning of the year, suggested the biggest risk to the economy, and subsequently the stock market, would be the ability of the Federal Reserve (the "Fed") to raise interest rates in an environment where economic growth would be decelerating. For over 40 years, the Fed raised interest rates while the economy was growing--not slowing. We noted this year would be different--threading the economic needle would be tricky in 2022. Looking back "tricky" was an understatement and perhaps "extremely challenging" would have been a better description. Not only is it extremely challenging to raise interest rates in a slowing economy, but it is occurring against a backdrop of stubbornly high inflation, coupled with a major regional war in Eastern Europe--a conflict that is amplifying inflation as it relates to food and energy. In turn, this has caused additional uncertainty as to how high interest rates should go up to help squash the rise in inflation. If interest rates keep rising, what will be the consequence to the economy? Is a recession inevitable? The combination of all three complex and intertwined events currently unfolding have left investors shaken and befuddled. In all, the last twelve months have been unlike any period in recent history dating back over 50 years. This year, the stock market narrative has been rising interest rates making long-duration assets--such as long-term bonds and growth stocks--less attractive. This is mathematically correct. The greatest amount of intrinsic value among growth stocks lies in their long-term earnings growth and, with interest rates rising, the discounted present value of future earnings growth is worth less--but not worthless. What is confusing is the selloff in growth stocks has been particularly brutal in light of a two-percentage point increase in the discount rate for determining intrinsic value. Today, we are valuing growth stocks at discount rates that were similar to Treasury yields between 2010 and Page 4 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) 2019 when growth stocks handsomely outperformed the broader markets--including value stocks. During that period, the total return of the Russell 1000(R) Value Index was 205%, the S&P 500(R) Index gained 257%, while the Russell 1000(R) Growth Index returned 312%. The question then becomes, what resets the stock market back on a pathway of rational thinking? We believe the answer is new information--incoming macroeconomic data and microeconomic financial results--new facts that work to formulate a new story to replace the old story. And it appears, based on the most recent economic data, the narrative is beginning to change. For the 12-month period ended August 31, 2022, large cap stocks, as represented by the S&P 500(R) Index, declined 11.23%. Mid-cap stocks, represented by the S&P MidCap 400(R) Index, declined 10.37% and small-cap stocks, represented by the S&P SmallCap 600(R) Index, declined 12.12%, for the same period. The disparity between the Russell 1000(R) Growth Index and the Russell 1000(R) Value Index was 12.80%, with growth stocks losing 19.06% and the value counterpart losing 6.26% over the 12-month period ended August 31, 2022. The Energy, Utilities and Consumer Staples sectors were the only advancing sectors while the Communication Services, Consumer Discretionary and Information Technology sectors were the worst performing sectors during the period. Bonds, as represented by the Bloomberg U.S. Aggregate Bond Total Return Index, fell 11.58% for the period. The Forward 12-month earnings estimate for the S&P 500(R) Index was $235.11 on August 31, 2022. ALLOCATION CHANGES The Fund was defensive approximately 30% of the time for the 12-month period ended August 31, 2022. The Fund held a partially defensive position (25% cash) during the periods: o November 30, 2021 through December 14, 2021 o March 2, 2022 through March 24, 2022 o June 20, 2022 through July 19, 2022 On each of these 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 each of these occasions stabilized fairly quickly after each of these signals. Therefore, the duration of the defensive positions through June 2022 were minimal. However, on July 19, 2022, our fundamental signal was triggered just as our technical signal rolled positive, which resulted in a more defensive position (50% cash) than the three prior periods. From July 19, 2022 through the end of the 12-month period ended August 31, 2022 (into present day), we have maintained a defensive position in the fundamental indicator. PERFORMANCE REVIEW For the 12-month period ended August 31, 2022, the Fund posted a net asset value ("NAV") return of -13.39%. The market price return for the Fund was -13.42%. The primary benchmark for the Fund is the S&P 500(R) Index (the "Benchmark"). For the period specified above, the Benchmark was down 11.23% on a total return basis, while its equal weight counterpart was down 8.35% on a total return basis. The Fund underperformed the Benchmark for the period. The greatest contributor to the active return for the Fund relative to the Benchmark was its exposure to equally weighted positions. Market breadth was wide for the period, particularly during the ascent in inflationary pressure that took the U.S. Consumer Price Index year-over-year from 5.25% (August 2021) to 8.26% (August 2022). The Fund's disproportionate exposure to smaller companies did not provide any meaningful contribution relative to the Benchmark, with the S&P 100(R) Index declining 12.23% and the S&P SmallCap 600(R) Index declining 12.12%. Three sectors provided positive contribution to active returns for the period. The sectors with the greatest contribution to the Fund's active return were Consumer Staples, Energy and Utilities. 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. Only three of the eleven Benchmark sectors produced positive returns during the period. The Energy sector (+75.77%), the Utilities sector (+11.72%), and the Consumer Staples sector (+4.08%) provided some cushion to the rest of the Benchmark. The Communication Services sector, the Consumer Discretionary sector, and the Information Technology sector were the three worst performing sectors for the period, declining 35.19%, 16.16%, and 14.35%, respectively. Page 5 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) MARKET AND FUND OUTLOOK Earnings expectations for the S&P 500(R) Index have largely risen during the 12-month period ended August 31, 2022, with nine straight months of strong earnings per share growth followed by three challenging months. The last three months have seen a challenging environment for earnings as calls for a recession become louder. The Fed has been more vocal recently about how serious their commitment is to restoring price stability and bringing inflation back to target. For the 12-month period ended August 31, 2022, earnings estimates have expanded at a rate of 10 cents per day from a low of $211.75 to a high of $239.49 intra period. The forward earnings signal did end the period lower than the high watermark, however, at $235.10. The growth in corporate profitability has seen a mostly intact trend to the upside that is broadly in line with the direction of the Benchmark. Earnings multiples on the Benchmark have declined from 21.4X in August of 2021 to 16.8X in August of 2022. This multiple compression comes as investors are looking to buy cheaper businesses and shift away from growth and into value/defensives. Looking forward, it is clear the U.S. economy is in the midst of a crossroads between the "end of easy money" and the "risk of Fed-induced recession." There is much disagreement around the nature of the Fed's ability to manufacture a "soft landing" where a recession is avoided yet inflationary pressures start to ease. 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 defensive with a 50% cash position due to the fundamental model being negative. Should earnings recover, the strategy will move to a fully long position. However, if both signals deteriorate concurrently the strategy will move to a more significant defensive position. Page 6 <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (UNAUDITED) As a shareholder of EquityCompass Risk Manager 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, 2022. 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, 2022 AUGUST 31, 2022 PERIOD (a) PERIOD (a) (b) ---------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> EQUITYCOMPASS RISK MANAGER ETF (ERM) Actual $1,000.00 $ 883.50 0.65% $3.09 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 the 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, 2022 through August 31, 2022), multiplied by 184/365 (to reflect the six-month period). Page 7 <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 49.8% AEROSPACE & DEFENSE -- 1.4% 415 Boeing (The) Co. (a) $ 66,504 300 General Dynamics Corp. 68,679 166 Lockheed Martin Corp. 69,738 688 Raytheon Technologies Corp. 61,748 ------------- 266,669 ------------- AIR FREIGHT & LOGISTICS -- 0.7% 285 FedEx Corp. 60,081 347 United Parcel Service, Inc., Class B 67,495 ------------- 127,576 ------------- AUTOMOBILES -- 1.1% 5,099 Ford Motor Co. 77,709 1,865 General Motors Co. 71,262 261 Tesla, Inc. (a) 71,934 ------------- 220,905 ------------- BANKS -- 1.6% 1,914 Bank of America Corp. 64,329 1,233 Citigroup, Inc. 60,183 559 JPMorgan Chase & Co. 63,575 1,348 U.S. Bancorp 61,482 1,491 Wells Fargo & Co. 65,172 ------------- 314,741 ------------- BEVERAGES -- 1.0% 1,026 Coca-Cola (The) Co. 63,314 1,097 Molson Coors Beverage Co., Class B 56,682 378 PepsiCo, Inc. 65,118 ------------- 185,114 ------------- BIOTECHNOLOGY -- 1.3% 427 AbbVie, Inc. 57,414 259 Amgen, Inc. 62,238 290 Biogen, Inc. (a) 56,660 1,031 Gilead Sciences, Inc. 65,438 ------------- 241,750 ------------- CAPITAL MARKETS -- 1.4% 1,468 Bank of New York Mellon (The) Corp. 60,966 102 BlackRock, Inc. 67,972 202 Goldman Sachs Group (The), Inc. 67,199 785 Morgan Stanley 66,898 ------------- 263,035 ------------- CHEMICALS -- 1.0% 738 CF Industries Holdings, Inc. 76,353 1,219 Dow, Inc. 62,169 1,137 DuPont de Nemours, Inc. 63,263 ------------- 201,785 ------------- COMMUNICATIONS EQUIPMENT -- 1.4% 615 Arista Networks, Inc. (a) 73,726 1,462 Cisco Systems, Inc. 65,381 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT (CONTINUED) 424 F5, Inc. (a) $ 66,593 2,204 Juniper Networks, Inc. 62,638 ------------- 268,338 ------------- CONSUMER FINANCE -- 0.7% 435 American Express Co. 66,120 566 Capital One Financial Corp. 59,894 ------------- 126,014 ------------- CONTAINERS & PACKAGING -- 0.3% 1,111 Sealed Air Corp. 59,783 ------------- DIVERSIFIED FINANCIAL SERVICES -- 0.3% 226 Berkshire Hathaway, Inc., Class B (a) 63,461 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.9% 3,076 AT&T, Inc. 53,953 5,767 Lumen Technologies, Inc. 57,439 1,271 Verizon Communications, Inc. 53,141 ------------- 164,533 ------------- ELECTRIC UTILITIES -- 1.7% 604 Duke Energy Corp. 64,574 1,461 Exelon Corp. 64,153 811 NextEra Energy, Inc. 68,984 910 Pinnacle West Capital Corp. 68,568 891 Southern (The) Co. 68,669 ------------- 334,948 ------------- ELECTRICAL EQUIPMENT -- 0.3% 782 Emerson Electric Co. 63,921 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.3% 651 IPG Photonics Corp. (a) 58,974 ------------- ENERGY EQUIPMENT & SERVICES -- 0.8% 1,890 Schlumberger N.V. 72,103 10,031 TechnipFMC PLC (a) 82,054 ------------- 154,157 ------------- ENTERTAINMENT -- 1.7% 507 Electronic Arts, Inc. 64,323 708 Live Nation Entertainment, Inc. (a) 63,975 319 Netflix, Inc. (a) 71,316 645 Walt Disney (The) Co. (a) 72,292 4,489 Warner Bros Discovery, Inc. (a) 59,434 ------------- 331,340 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 1.3% 250 American Tower Corp. 63,513 635 Federal Realty Investment Trust 64,306 626 Simon Property Group, Inc. 63,839 1,317 SL Green Realty Corp. 58,172 ------------- 249,830 ------------- Page 8 See Notes to Financial Statements <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD & STAPLES RETAILING -- 1.0% 124 Costco Wholesale Corp. $ 64,740 1,655 Walgreens Boots Alliance, Inc. 58,024 494 Walmart, Inc. 65,480 ------------- 188,244 ------------- FOOD PRODUCTS -- 0.7% 1,655 Kraft Heinz (The) Co. 61,897 1,046 Mondelez International, Inc., Class A 64,706 ------------- 126,603 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 0.9% 583 Abbott Laboratories 59,845 1,801 DENTSPLY SIRONA, Inc. 59,019 711 Medtronic PLC 62,511 ------------- 181,375 ------------- HEALTH CARE PROVIDERS & SERVICES -- 1.6% 661 CVS Health Corp. 64,877 732 DaVita, Inc. (a) 62,432 819 Henry Schein, Inc. (a) 60,123 121 UnitedHealth Group, Inc. 62,839 596 Universal Health Services, Inc., Class B 58,313 ------------- 308,584 ------------- HOTELS, RESTAURANTS & LEISURE -- 1.4% 35 Booking Holdings, Inc. (a) 65,653 251 McDonald's Corp. 63,322 4,969 Norwegian Cruise Line Holdings Ltd. (a) 64,995 780 Starbucks Corp. 65,575 ------------- 259,545 ------------- HOUSEHOLD DURABLES -- 0.6% 1,685 Leggett & Platt, Inc. 64,400 3,248 Newell Brands, Inc. 57,977 ------------- 122,377 ------------- HOUSEHOLD PRODUCTS -- 0.7% 828 Colgate-Palmolive Co. 64,758 444 Procter & Gamble (The) Co. 61,245 ------------- 126,003 ------------- INDUSTRIAL CONGLOMERATES -- 1.0% 485 3M Co. 60,310 964 General Electric Co. 70,796 363 Honeywell International, Inc. 68,734 ------------- 199,840 ------------- INSURANCE -- 1.7% 524 Allstate (The) Corp. 63,142 1,235 American International Group, Inc. 63,911 381 Assurant, Inc. 60,385 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- INSURANCE (CONTINUED) 1,055 MetLife, Inc. $ 67,868 1,929 Unum Group 73,013 ------------- 328,319 ------------- INTERACTIVE MEDIA & SERVICES -- 0.6% 568 Alphabet, Inc., Class A (a) 61,469 365 Meta Platforms, Inc., Class A (a) 59,469 ------------- 120,938 ------------- INTERNET & DIRECT MARKETING RETAIL -- 0.4% 543 Amazon.com, Inc. (a) 68,836 ------------- IT SERVICES -- 3.4% 229 Accenture PLC, Class A 66,057 717 Akamai Technologies, Inc. (a) 64,731 425 Broadridge Financial Solutions, Inc. 72,747 260 Gartner, Inc. (a) 74,183 493 International Business Machines Corp. 63,326 329 Jack Henry & Associates, Inc. 63,234 188 Mastercard, Inc., Class A 60,982 828 PayPal Holdings, Inc. (a) 77,368 300 Visa, Inc., Class A 59,613 3,789 Western Union (The) Co. 56,153 ------------- 658,394 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.7% 251 Danaher Corp. 67,748 120 Thermo Fisher Scientific, Inc. 65,438 ------------- 133,186 ------------- MACHINERY -- 0.7% 359 Caterpillar, Inc. 66,311 2,187 Flowserve Corp. 66,638 ------------- 132,949 ------------- MEDIA -- 2.2% 133 Charter Communications, Inc., Class A (a) 54,880 1,551 Comcast Corp., Class A 56,131 3,508 DISH Network Corp., Class A (a) 60,864 1,875 Fox Corp., Class A 64,087 2,170 Interpublic Group of Cos. (The), Inc. 59,979 3,873 News Corp., Class B 66,770 948 Omnicom Group, Inc. 63,421 ------------- 426,132 ------------- MULTILINE RETAIL -- 0.4% 419 Target Corp. 67,182 ------------- OIL, GAS & CONSUMABLE FUELS -- 1.5% 447 Chevron Corp. 70,653 732 ConocoPhillips 80,117 729 Exxon Mobil Corp. 69,685 See Notes to Financial Statements Page 9 <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) OIL, GAS & CONSUMABLE FUELS (CONTINUED) 3,718 Kinder Morgan, Inc. $ 68,114 ------------- 288,569 ------------- PHARMACEUTICALS -- 1.8% 874 Bristol-Myers Squibb Co. 58,916 196 Eli Lilly & Co. 59,041 373 Johnson & Johnson 60,180 693 Merck & Co., Inc. 59,154 1,537 Perrigo Co. PLC 57,515 1,251 Pfizer, Inc. 56,583 ------------- 351,389 ------------- PROFESSIONAL SERVICES -- 0.3% 642 Leidos Holdings, Inc. 61,022 ------------- ROAD & RAIL -- 0.3% 296 Union Pacific Corp. 66,455 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.5% 1,609 Intel Corp. 51,359 379 NVIDIA Corp. 57,206 628 Qorvo, Inc. (a) 56,382 435 QUALCOMM, Inc. 57,538 389 Texas Instruments, Inc. 64,267 ------------- 286,752 ------------- SOFTWARE -- 2.0% 166 Adobe, Inc. (a) 61,991 627 Citrix Systems, Inc. 64,437 248 Microsoft Corp. 64,844 893 Oracle Corp. 66,216 369 Salesforce, Inc. (a) 57,608 182 Tyler Technologies, Inc. (a) 67,615 ------------- 382,711 ------------- SPECIALTY RETAIL -- 1.0% 6,822 Gap (The), Inc. 62,353 214 Home Depot (The), Inc. 61,722 339 Lowe's Cos., Inc. 65,813 ------------- 189,888 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 2.0% 425 Apple, Inc. $ 66,819 4,667 Hewlett Packard Enterprise Co. 63,471 941 NetApp, Inc. 67,874 800 Seagate Technology Holdings PLC 53,568 1,323 Western Digital Corp. (a) 55,910 4,081 Xerox Holdings Corp. 67,826 ------------- 375,468 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.5% 5,677 Hanesbrands, Inc. 49,447 585 NIKE, Inc., Class B 62,273 1,032 PVH Corp. 58,050 661 Ralph Lauren Corp. 60,369 7,380 Under Armour, Inc., Class A (a) 62,140 ------------- 292,279 ------------- TOBACCO -- 0.7% 1,497 Altria Group, Inc. 67,545 705 Philip Morris International, Inc. 67,320 ------------- 134,865 ------------- TOTAL COMMON STOCKS -- 49.8% 9,574,779 (Cost $8,638,278) ------------- MONEY MARKET FUNDS -- 50.0% 9,629,372 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 9,629,372 (Cost $9,629,372) ------------- TOTAL INVESTMENTS -- 99.8% 19,204,151 (Cost $18,267,650) NET OTHER ASSETS AND LIABILITIES -- 0.2% 29,383 ------------- NET ASSETS -- 100.0% $ 19,233,534 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 9,574,779 $ 9,574,779 $ -- $ -- Money Market Funds.............................. 9,629,372 9,629,372 -- -- --------------------------------------------------------------- Total Investments............................... $ 19,204,151 $ 19,204,151 $ -- $ -- =============================================================== </TABLE> * See Portfolio of Investments for industry breakout. Page 10 See Notes to Financial Statements <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> ASSETS: Investments, at value.................................................. $ 19,204,151 Dividends receivable................................................... 40,286 ---------------- Total Assets........................................................ 19,244,437 ---------------- LIABILITIES: Investment advisory fees payable....................................... 10,903 ---------------- Total Liabilities................................................... 10,903 ---------------- NET ASSETS............................................................. $ 19,233,534 ================ NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 40,492,538 Par value.............................................................. 8,789 Accumulated distributable earnings (loss).............................. (21,267,793) ---------------- NET ASSETS............................................................. $ 19,233,534 ================ NET ASSET VALUE, per share............................................. $ 21.88 ================ Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 878,888 ---------------- Investments, at cost................................................... $ 18,267,650 ================ </TABLE> See Notes to Financial Statements Page 11 <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> INVESTMENT INCOME: Dividends.............................................................. $ 407,996 ---------------- Total investment income............................................. 407,996 ---------------- EXPENSES: Investment advisory fees............................................... 133,677 ---------------- Total expenses...................................................... 133,677 ---------------- NET INVESTMENT INCOME (LOSS)........................................... 274,319 ---------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... (1,123,519) In-kind redemptions................................................. 767,985 ---------------- Net realized gain (loss)............................................... (355,534) ---------------- Net change in unrealized appreciation (depreciation) on investments.... (2,883,922) ---------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ (3,239,456) ---------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ (2,965,137) ================ </TABLE> Page 12 See Notes to Financial Statements <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> YEAR YEAR ENDED ENDED 8/31/2022 8/31/2021 --------------- --------------- <S> <C> <C> OPERATIONS: Net investment income (loss).............................. $ 274,319 $ 144,464 Net realized gain (loss).................................. (355,534) 2,152,268 Net change in unrealized appreciation (depreciation)...... (2,883,922) 1,638,311 --------------- --------------- Net increase (decrease) in net assets resulting from operations........................................ (2,965,137) 3,935,043 --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations..................................... (236,186) (142,476) --------------- --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold................................. 2,337,928 -- Proceeds from shares acquired through reorganization...... 12,184,043 -- Cost of shares redeemed................................... (3,574,090) (4,180,754) --------------- --------------- Net increase (decrease) in net assets resulting from shareholder transactions.......................... 10,947,881 (4,180,754) --------------- --------------- Total increase (decrease) in net assets................... 7,746,558 (388,187) NET ASSETS: Beginning of period....................................... 11,486,976 11,875,163 --------------- --------------- End of period............................................. $ 19,233,534 $ 11,486,976 =============== =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................... 450,002 650,002 Shares sold............................................... 100,000 -- Shares issued through reorganization...................... 478,886 -- Shares redeemed........................................... (150,000) (200,000) --------------- --------------- Shares outstanding, end of period......................... 878,888 450,002 =============== =============== </TABLE> See Notes to Financial Statements Page 13 <PAGE> EQUITYCOMPASS RISK MANAGER ETF (ERM) FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD <TABLE> <CAPTION> YEAR ENDED AUGUST 31, ---------------------------------------------------------- 2022 2021 2020 2019 2018 ---------- ---------- ---------- ---------- ---------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period..................... $ 25.53 $ 18.27 $ 19.69 $ 23.32 $ 20.50 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................. 0.27 0.29 0.33 0.39 0.30 Net realized and unrealized gain (loss).................. (3.66) 7.24 (1.36) (3.56) 2.80 -------- -------- -------- -------- -------- Total from investment operations......................... (3.39) 7.53 (1.03) (3.17) 3.10 -------- -------- -------- -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.................................... (0.26) (0.27) (0.39) (0.46) (0.28) Net realized gain........................................ -- -- -- (0.00)(a) -- -------- -------- -------- -------- -------- Total distributions...................................... (0.26) (0.27) (0.39) (0.46) (0.28) -------- -------- -------- -------- -------- Net asset value, end of period........................... $ 21.88 $ 25.53 $ 18.27 $ 19.69 $ 23.32 ======== ======== ======== ======== ======== TOTAL RETURN (b)......................................... (13.39)% 41.52% (5.36)% (13.68)% 15.23% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..................... $ 19,234 $ 11,487 $ 11,875 $ 20,669 $ 27,988 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (c)........ 0.65% 0.65% 0.65% 0.65% 0.65% Ratio of net expenses to average net assets (c).......... 0.65% 0.65% 0.65% 0.59% 0.64% Ratio of net investment income (loss) to average net assets................................................ 1.33% 1.27% 1.61% 1.89% 1.52% Portfolio turnover rate (d).............................. 120% 79% 81% 207% 121% </TABLE> (a) Amount is less than $0.01. (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 Advisor. (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) 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 14 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers EquityCompass Risk Manager ETF (the "Fund"), which trades under the ticker "ERM" on the 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's primary investment objective is to seek to provide long term capital appreciation with capital preservation as a secondary objective. The 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 Fund's sub-advisor, EquityCompass Investment Management, LLC (the "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 Advisors L.P. ("First Trust" or the "Advisor"). 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 Pricing Committee of the Fund's 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. 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 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 Page 15 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 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, 2022, is included with the Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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, 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 Page 16 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 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. The tax character of distributions paid during the fiscal years ended August 31, 2022 and 2021 was as follows: Distributions paid from: 2022 2021 Ordinary income $ 236,186 $ 142,476 Capital gains -- -- Return of capital -- -- As of August 31, 2022, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income $ 65,881 Accumulated capital and other gain (loss) (19,839,891) Net unrealized appreciation (depreciation) (1,493,783) 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 2019, 2020, 2021, and 2022 remain open to federal and state audit. As of August 31, 2022, 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. As of August 31, 2022, the Fund had non-expiring capital loss carryforwards available for federal income tax purposes of $19,839,891. Of these losses, $4,689,721 is subject to loss limitation resulting from reorganization activity. This limitation generally reduces the utilization of these losses to a maximum of $164,868 per year. 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, 2022, the Fund 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 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, 2022, the adjustments for the Fund were as follows: Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital --------------------- --------------------- --------------------- $ -- $ (15,165,462) $ 15,165,462 Page 17 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) --------------------- --------------------- --------------------- --------------------- <S> <C> <C> <C> <C> $ 18,776,428 $ 1,652,584 $ (1,224,861) $ 427,723 </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 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 supervising the selection and 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 investment of the Fund's assets and is responsible for the expenses of the 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 Fund has agreed to pay First Trust an annual unitary management fee equal to 0.65% of its average daily net assets. In addition, the Fund incurs acquired fund fees and expenses. The total of unitary management fee and acquired fund fees and expenses represents the Fund's total annual operating expenses. The Fund and First Trust have retained the Sub-Advisor to provide recommendations to the Advisor regarding the selection and allocation of the securities in the 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 the Fund, the Sub-Advisor receives a sub-advisory fee equal to 0.25% of the Fund's average daily net assets. Pursuant to a contractual agreement between the Trust, on behalf of the Fund, 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 Fund so that the Fund 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 Fund's 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. 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 an index fund. Page 18 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 Additionally, the Lead Independent Trustee and the Chairs 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 Chairs rotate every three years. The officers and "Interested" Trustee receive no compensation from the Trust for acting in such capacities. 4. REORGANIZATION On December 7, 2020, the Board of Trustees of EquityCompass Tactical Risk Manager ETF ("TERM") and ERM approved a reorganization of ERM with TERM. The reorganization was completed on October 18, 2021. ERM was the surviving fund. Under the terms of the reorganization, which was tax-free, the assets of TERM were transferred to, and the liabilities of TERM were assumed by ERM in exchange for shares of ERM. The cost of the investments received from TERM was carried forward to ERM for U.S. GAAP and tax purposes. The ERM shares were then distributed to TERM shareholders and the separate existence of TERM ceased. The reorganization was subject to certain conditions, including that the reorganization was approved on September 13, 2021, by the shareholders of TERM. When the reorganization occurred, the transactions were based on the relative NAVs of TERM and ERM. The following table summarizes the asset transfers and conversion ratios for the reorganization. <TABLE> <CAPTION> Net Assets on Unrealized Accumulated Shares Acquiring Net Assets on Acquired Shares October 15, Appreciation Net Realized Conversion (Surviving) Shares October 15, Fund Redeemed 2021 (Depreciation) Gain (Loss) Ratio Fund Issued* 2021** ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> <C> <C> TERM 550,002 $ 12,184,063 $ 1,921,506 $(14,628,719) 0.870700 ERM 478,887 $ 11,449,161 </TABLE> * Amount includes 1 share that was distributed in lieu of cash. ** Amount reflects net assets of ERM prior to the reorganization. The following table summarizes the operations of the Acquired Fund for the period September 1, 2021 to October 15, 2021, and the operations of ERM, the Acquiring (Surviving) Fund, for the fiscal year ended August 31, 2022, as presented in the Statement of Operations and the combined Acquired and Acquiring (Surviving) Funds' pro-forma results of operations for the fiscal year ended August 31, 2022, assuming the acquisition had been completed on September 1, 2021. Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of TERM that have been included in ERM's Statement of Operations since October 15, 2021. <TABLE> <CAPTION> Net Realized and Change in Net Increase Net Unrealized (Decrease) Investment Gain (Loss) from Income on Investments Operations -------------- -------------- -------------- <S> <C> <C> <C> Acquired Fund for the period September 1, 2021 to October 15, 2021 TERM $ 17,515 $ (55,285) $ (37,770) Acquiring Fund for the fiscal year ended August 31, 2022 ERM 274,319 (3,239,456) (2,965,137) ------------ ------------ ------------ Combined Total $ 291,834 $ (3,294,741) $ (3,002,907) ============ ============ ============ </TABLE> 5. PURCHASES AND SALES OF SECURITIES For the fiscal year ended August 31, 2022, the cost of purchases and proceeds from sales of investments, excluding short-term investments and in-kind transactions, were $21,890,648 and $21,444,081, respectively. For the fiscal year ended August 31, 2022, the cost of in-kind purchases and proceeds from in-kind sales were $2,013,249 and $2,989,905, respectively. Page 19 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 6. 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 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. 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 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, 2023. 8. 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. 9. 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 20 <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 EquityCompass Risk Manager ETF (the "Fund"), a series of the First Trust Exchange-Traded Fund VIII, including the portfolio of investments, as of August 31, 2022, the related statement 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 five years in the period then ended, 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, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended 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, 2022, 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 21, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 21 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (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, 2022, 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 Received Deduction Qualified Dividend Income ---------------------------- ------------------------- 100.00% 100.00% A portion of the Fund's 2022 ordinary dividends (including short-term capital gains) paid to its shareholders during the fiscal year ended August 31, 2022, may be eligible for the Qualified Business Income Deduction (QBI) under Internal Revenue Code Section 199A for the aggregate dividends the Fund received from the underlying Real Estate Investment Trusts (REITs) it invests 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, 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 Page 22 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (UNAUDITED) 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 23 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of the Fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund's shares and result in increased market volatility. During any such events, the Fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund's shares may widen. 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. Page 24 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (UNAUDITED) 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE 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") on behalf of the EquityCompass Risk Manager 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 EquityCompass Investment Management, LLC (the "Sub-Advisor"). The Board approved the continuation of the Agreements for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 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 rate as compared to fees charged to other clients of the Sub-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 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 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 indirect 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 18, 2022, 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 12-13, 2022 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 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-Advisor manage the Fund and knowing the Fund's unitary fee. Page 25 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (UNAUDITED) In reviewing the Agreements, 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 the Fund and reviewed all of the services 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 noted that the Advisor oversees the Sub-Advisor's day-to-day management of the 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 Fund's investment portfolio, but that the Advisor executes the 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 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 18, 2022 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 Agreement, the Board noted that the 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 the Fund, including the Sub-Advisor's day-to-day management of the Fund's investments. In considering the Sub-Advisor's management of the Fund, 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 the 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 the Fund consistent with its 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 sub-advisory fee is paid by the Advisor 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 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 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 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 equal to 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and 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 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 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 and the Sub-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 periods ended December 31, 2021 to the performance of the funds in the Performance Universe and to that of a benchmark index. Based on the information provided, the Board noted that the Fund underperformed the Performance Universe median and the benchmark index for the one- and three-year periods ended December 31, 2021. On the basis of all the information provided on the unitary fee and performance of the Fund and the ongoing oversight by the Board, the Board concluded that the unitary fee for the 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 the Fund under the Agreements. Page 26 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (UNAUDITED) 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 that its expenses relating to providing advisory services to the Fund will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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, 2021 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 indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect 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 indirect 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 Fund and that the Sub-Advisor does not expect that its expenses relating to providing services to the Fund to change in the next twelve months. The Board did not review the profitability of the Sub-Advisor with respect to the Fund. The Board noted that the Advisor pays the Sub-Advisor from its 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 the potential indirect benefits to the Sub-Advisor from being associated with the Advisor and the Fund, and noted the Sub-Advisor's statements to the effect that it does not believe there will be any indirect benefits to the Sub-Advisor from its relationship with the Advisor and the Fund. The Board concluded that the character and amount of potential indirect 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 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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 27 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 28 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 29 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- EQUITYCOMPASS RISK MANAGER ETF (ERM) AUGUST 31, 2022 (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 2022 Page 30 <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 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 320 South Canal Street Chicago, IL 60606 <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 Buffered Allocation Defensive ETF (BUFT) FT Cboe Vest Buffered Allocation Growth ETF (BUFG) ---------------------------- Annual Report For the Period Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 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 Buffered Allocation Defensive ETF (BUFT)................... 27 FT Cboe Vest Buffered Allocation Growth ETF (BUFG)...................... 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 Buffered Allocation Defensive ETF (BUFT)................... 86 FT Cboe Vest Buffered Allocation Growth ETF (BUFG)...................... 87 <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 Statements of Assets and Liabilities........................................ 88 Statements of Operations.................................................... 94 Statements of Changes in Net Assets......................................... 100 Financial Highlights........................................................ 110 Notes to Financial Statements............................................... 123 Report of Independent Registered Public Accounting Firm .................... 144 Additional Information...................................................... 147 Board of Trustees and Officers ............................................. 154 Privacy Policy.............................................................. 156 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, 2022 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, 2022. Please note that some of the Funds were incepted after September 1, 2021, 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. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 14.20% (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 January 24, 2022 to January 20, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (1/15/21) (1/15/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -3.06% 4.62% 7.62% Market Price -3.20% 4.56% 7.52% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 3.02% 4.96% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 15, 2021 - AUGUST 31, 2022 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 2/28/22 11,364 11,607 8/31/22 10,762 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. ----------------------------- * Prior to January 24, 2022, the Fund's investment objective included an 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) and an Outcome Period of January 19, 2021 to January 21, 2022. 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 9.03% (before fees, expenses and taxes) and 8.18% (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 24, 2022 to January 20, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (1/15/21) (1/15/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -3.76% 1.39% 2.26% Market Price -3.51% 1.43% 2.33% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 3.02% 4.96% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 15, 2021 - AUGUST 31, 2022 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 2/28/22 10,719 11,607 8/31/22 10,226 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. ----------------------------- * Prior to January 24, 2022, the Fund's investment objective included an 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) and an Outcome Period of January 19, 2021 to January 21, 2022. 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 14.25% (before fees, expenses and taxes) and 13.40% (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, 2022 to February 17, 2023 (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 1 Year Inception Inception Ended (2/21/20) (2/21/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -5.37% 5.89% 15.55% Market Price -5.27% 5.82% 15.35% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 6.96% 18.49% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 21, 2020 - AUGUST 31, 2022 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 2/28/22 12,190 13,104 8/31/22 11,555 11,849 </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, 2022, the Fund's investment objective included an 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) and an Outcome Period of February 22, 2021 to February 18, 2022. 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 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 February 22, 2022 to February 17, 2023 (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 1 Year Inception Inception Ended (2/21/20) (2/21/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -2.08% 4.10% 10.69% Market Price -2.25% 4.03% 10.50% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 6.96% 18.49% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT FEBRUARY 21, 2020 - AUGUST 31, 2022 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 2/28/22 11,545 13,104 8/31/22 11,069 11,849 </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, 2022, the Fund's investment objective included an 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) and an Outcome Period of February 22, 2021 to February 18, 2022. 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 14.78% (before fees, expenses and taxes) and 13.93% (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 21, 2022 to March 17, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (3/19/21) (3/19/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -3.46% 3.88% 5.68% Market Price -3.40% 3.76% 5.51% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 0.74% 1.07% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2022 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 2/28/22 11,003 11,178 8/31/22 10,568 10,107 </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 March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of March 22, 2021 to March 18, 2022. 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 10.02% (before fees, expenses and taxes) and 9.17% (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 21, 2022 to March 17, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (3/19/21) (3/19/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -3.47% 1.76% 2.57% Market Price -3.19% 1.81% 2.64% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 0.74% 1.07% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2022 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 2/28/22 10,703 11,178 8/31/22 10,257 10,107 </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 March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of March 22, 2021 to March 18, 2022. 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 16.35% (before fees, expenses and taxes) and 15.48% (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 18, 2022 to April 21, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (4/16/21) (4/16/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -7.28% -1.55% -2.13% Market Price -7.18% -1.68% -2.30% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% -4.03% -5.51% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 16, 2021 - AUGUST 31, 2022 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 2/28/22 10,460 10,450 8/31/22 9,787 9,449 </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 April 18, 2022, the Fund's investment objective included an 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) and an Outcome Period of April 19, 2021 to April 14, 2022. 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 10.96% (before fees, expenses and taxes) and 10.09% (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 18, 2022 to April 21, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (4/16/21) (4/16/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -3.89% -0.41% -0.57% Market Price -3.81% -0.51% -0.70% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% -4.03% -5.51% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT APRIL 16, 2021 - AUGUST 31, 2022 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 2/28/22 10,289 10,450 8/31/22 9,943 9,449 </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 April 18, 2022, 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 April 19, 2021 to April 14, 2022. 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 20.45% (before fees, expenses and taxes) and 19.60% (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 23, 2022 to May 19, 2023 (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 1 Year Inception Inception Ended (5/15/20) (5/15/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -4.34% 7.30% 17.57% Market Price -4.35% 7.20% 17.30% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 15.10% 38.11% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MAY 15, 2020 - AUGUST 31, 2022 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 2/28/22 12,195 15,274 8/31/22 11,757 13,811 </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 23, 2022, the Fund's investment objective included an 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) and an Outcome Period of May 24, 2021 to May 20, 2022. 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 13.93% (before fees, expenses and taxes) and 13.08% (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 23, 2022 to May 19, 2023 (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 1 Year Inception Inception Ended (5/15/20) (5/15/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -7.71% 1.79% 4.15% Market Price -7.64% 1.69% 3.92% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 15.10% 38.11% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MAY 15, 2020 - AUGUST 31, 2022 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 2/28/22 11,236 15,274 8/31/22 10,415 13,811 </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 23, 2022, the Fund's investment objective included an 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) and an Outcome Period of May 24, 2021 to May 20, 2022. 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 22.20% (before fees, expenses and taxes) and 21.35% (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 June 21, 2022 to June 16, 2023 (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 1 Year Inception Inception Ended (6/19/20) (6/19/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -1.81% 8.78% 20.33% Market Price -1.87% 8.64% 20.00% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 11.74% 27.67% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 19, 2020 - AUGUST 31, 2022 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 2/28/22 12,162 14,120 8/31/22 12,033 12,767 </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, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. 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 15.59% (before fees, expenses and taxes) and 14.74% (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, 2022 to June 16, 2023 (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 1 Year Inception Inception Ended (6/19/20) (6/19/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -4.70% 3.23% 7.24% Market Price -4.83% 3.07% 6.88% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 11.74% 27.67% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 19, 2020 - AUGUST 31, 2022 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 2/28/22 11,190 14,120 8/31/22 10,724 12,767 </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, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. 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 21.30% (before fees, expenses and taxes) and 20.44% (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 18, 2022 to July 21, 2023 (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 1 Year Inception Inception Ended (7/17/20) (7/17/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -2.50% 6.75% 14.88% Market Price -2.53% 6.58% 14.48% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 10.09% 22.65% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 17, 2020 - AUGUST 31, 2022 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 2/28/22 11,620 13,564 8/31/22 11,488 12,265 </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. ----------------------------- * Prior to July 18, 2022, the Fund's investment objective included an 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) and an Outcome Period of July 19, 2021 to July 15, 2022. 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 15.02% (before fees, expenses and taxes) and 14.16% (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 18, 2022 to July 21, 2023 (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 1 Year Inception Inception Ended (7/17/20) (7/17/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> <C> FUND PERFORMANCE NAV -6.18% 1.36% 2.91% Market Price -6.31% 1.22% 2.61% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 10.09% 22.65% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 17, 2020 - AUGUST 31, 2022 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 2/28/22 10,860 13,564 8/31/22 10,291 12,265 </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. ----------------------------- * Prior to July 18, 2022, the Fund's investment objective included an 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) and an Outcome Period of July 19, 2021 to July 15, 2022. 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 20.46% (before fees, expenses and taxes) and 19.61% (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 August 22, 2022 to August 18, 2023 (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 1 Year Inception Inception Ended (11/6/19) (11/6/19) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -5.87% 5.82% 17.28% Market Price -6.26% 5.67% 16.81% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 9.32% 28.54% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 6, 2019 - AUGUST 31, 2022 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 2/28/22 12,332 14,216 8/31/22 11,728 12,854 </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 22, 2022, the Fund's investment objective included an 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) and an Outcome Period of August 23, 2021 to August 19, 2022. 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 14.47% (before fees, expenses and taxes) and 13.62% (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 22, 2022 to August 18, 2023 (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 1 Year Inception Inception Ended (11/6/19) (11/6/19) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -9.12% 1.73% 4.95% Market Price -9.31% 1.59% 4.55% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 9.32% 28.54% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 6, 2019 - AUGUST 31, 2022 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 2/28/22 11,409 14,216 8/31/22 10,495 12,854 </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 22, 2022, the Fund's investment objective included an 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) and an Outcome Period of August 23, 2021 to August 19, 2022. 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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (9/18/20) (9/18/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -3.13% 6.04% 12.13% Market Price -2.93% 6.13% 12.30% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 9.40% 19.15% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 18, 2020 - AUGUST 31, 2022 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 2/28/22 11,566 13,177 8/31/22 11,213 11,915 </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 September 20, 2021, the Fund's investment objective included an upside cap of 16.50% (before fees, expenses and taxes) and 15.65% (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 September 21, 2020 to September 17, 2021. 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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (9/18/20) (9/18/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -5.79% 1.15% 2.25% Market Price -6.02% 1.15% 2.25% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 9.40% 19.15% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 18, 2020 - AUGUST 31, 2022 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 2/28/22 10,803 13,177 8/31/22 10,225 11,915 </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 September 20, 2021, the Fund's investment objective included an upside cap of 9.25% (before fees, expenses and taxes) and 8.40% (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 September 21, 2020 to September 17, 2021. 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 11.70% (before fees, expenses and taxes) and 10.84% (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 18, 2021 to October 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 "FOCT." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (10/16/20) (10/16/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -4.39% 5.27% 10.11% Market Price -4.36% 5.26% 10.08% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 7.00% 13.53% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT OCTOBER 16, 2020 - AUGUST 31, 2022 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 2/28/22 11,453 12,555 8/31/22 11,011 11,353 </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 October 18, 2021, the Fund's investment objective included an 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) and an Outcome Period of October 19, 2020 to October 15, 2021. 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 7.22% (before fees, expenses and taxes) and 6.36% (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 18, 2021 to October 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 "DOCT." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (10/16/20) (10/16/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -5.58% 1.30% 2.44% Market Price -5.62% 1.28% 2.41% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 7.00% 13.53% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT OCTOBER 16, 2020 - AUGUST 31, 2022 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 2/28/22 10,753 12,555 8/31/22 10,244 11,353 </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 October 18, 2021, the Fund's investment objective included an 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) and an Outcome Period of October 19, 2020 to October 15, 2021. 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 12.10% (before fees, expenses and taxes) and 11.25% (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 22, 2021 to November 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 "FNOV." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (11/15/19) (11/15/19) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -7.26% 5.53% 16.23% Market Price -7.16% 5.52% 16.20% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 8.86% 26.74% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 15, 2019 - AUGUST 31, 2022 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 2/28/22 12,088 14,017 8/31/22 11,623 12,674 </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 22, 2021, the Fund's investment objective included an 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) and an Outcome Period of November 23, 2020 to November 19, 2021. 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 7.60% (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 November 22, 2021 to November 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 "DNOV." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (11/15/19) (11/15/19) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -6.26% 2.58% 7.36% Market Price -6.26% 2.58% 7.36% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 8.86% 26.74% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT NOVEMBER 15, 2019 - AUGUST 31, 2022 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 2/28/22 11,155 14,017 8/31/22 10,736 12,674 </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 22, 2021, the Fund's investment objective included an 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) and an Outcome Period of November 23, 2020 to November 19, 2021. 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 13.10% (before fees, expenses and taxes) and 12.25% (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 20, 2021 to December 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 "FDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (12/18/20) (12/18/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -6.19% 2.73% 4.69% Market Price -6.16% 2.71% 4.66% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 3.84% 6.62% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2022 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 2/28/22 11,014 11,791 8/31/22 10,469 10,662 </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 December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of December 21, 2020 to December 17, 2021. 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 8.10% (before fees, expenses and taxes) and 7.25% (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 20, 2021 to December 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 "DDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (12/18/20) (12/18/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -5.56% 0.25% 0.43% Market Price -5.59% 0.27% 0.46% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 3.84% 6.62% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2022 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 2/28/22 10,499 11,791 8/31/22 10,043 10,662 </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 December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of December 21, 2020 to December 17, 2021. Page 26 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST BUFFERED ALLOCATION DEFENSIVE ETF (BUFT) The investment objective of the FT Cboe Vest Buffered Allocation Defensive ETF (the "Fund") is to seek to provide investors with capital preservation. The Fund seeks to achieve its investment objective by investing in a portfolio of exchange-traded funds that seek to provide investors with returns (before fees and expense) based on the price return of the SPDR(R) S&P 500(R) ETF Trust ("SPY"), up to a predetermined upside cap, while providing a defined buffer against losses of SPY over a defined one-year period (the "Underlying ETFs"). Under normal market conditions, the Fund will invest substantially all of its assets in Underlying ETFs. The Fund and each Underlying ETF are advised by First Trust Advisors L.P. and sub-advised by Cboe Vest(SM) Financial LLC. PDR Services, LLC serves as SPY's sponsor. The investment objective of SPY is to seek to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500(R) Index. Unlike the Underlying ETFs, the Fund itself does not pursue a defined outcome strategy. The buffer is provided only by the Underlying ETFs and the Fund itself does not provide any stated buffer against losses. The Fund will likely not receive the full benefit of the Underlying ETF buffers and could have limited upside potential. The Fund's returns may be limited to the caps of the Underlying ETFs. 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 "BUFT." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (10/26/21) to 8/31/22 <S> <C> FUND PERFORMANCE NAV -6.75% Market Price -6.85% INDEX PERFORMANCE S&P 500(R) Index - Price Return -13.55% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT OCTOBER 26, 2021 - AUGUST 31, 2022 FT Cboe Vest Buffered S&P 500(R) Index - Allocation Defensive ETF Price Return <S> <C> <C> 10/26/21 $10,000 $10,000 2/28/22 9,865 9,561 8/31/22 9,325 8,645 </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 BUFFERED ALLOCATION GROWTH ETF (BUFG) The investment objective of the FT Cboe Vest Buffered Allocation Growth ETF (the "Fund") is to seek to provide investors with capital appreciation. The Fund seeks to achieve its investment objective by investing in a portfolio of exchange-traded funds that seek to provide investors with returns (before fees and expense) based on the price return of the SPDR(R) S&P 500(R) ETF Trust ("SPY"), up to a predetermined upside cap, while providing a defined buffer against losses of SPY over a defined one-year period (the "Underlying ETFs"). Under normal market conditions, the Fund will invest substantially all of its assets in Underlying ETFs. The Fund and each Underlying ETF are advised by First Trust Advisors L.P. and sub-advised by Cboe Vest(SM) Financial LLC. PDR Services, LLC serves as SPY's sponsor. The investment objective of SPY is to seek to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500(R) Index. Unlike the Underlying ETFs, the Fund itself does not pursue a defined outcome strategy. The buffer is provided only by the Underlying ETFs and the Fund itself does not provide any stated buffer against losses. The Fund will likely not receive the full benefit of the Underlying ETF buffers and could have limited upside potential. The Fund's returns may be limited to the caps of the Underlying ETFs. 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 "BUFG." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (10/26/21) to 8/31/22 <S> <C> FUND PERFORMANCE NAV -9.25% Market Price -9.25% INDEX PERFORMANCE S&P 500(R) Index - Price Return -13.55% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 29.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT OCTOBER 26, 2021 - AUGUST 31, 2022 FT Cboe Vest Buffered S&P 500(R) Index - Allocation Growth ETF Price Return <S> <C> <C> 10/26/21 $10,000 $10,000 2/28/22 9,690 9,561 8/31/22 9,075 8,645 </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, 2022 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to FT Cboe Vest U.S. Equity Buffer - 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 - 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 Equity U.S. Deep Buffer - April ("DAPR"), FT Cboe Vest U.S. Equity Buffer - 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 - 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 Equity U.S. Deep Buffer - August ("DAUG"), FT Cboe Vest U.S. Equity Buffer - 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 - 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 Equity U.S. Deep Buffer - December ("DDEC"), FT Cboe Vest Buffered Allocation Defensive ETF ("BUFT"), and FT Cboe Vest Buffered Allocation Growth ETF ("BUFG") (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 Vest(SM) 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 8350 Broad St., Suite 240, McLean, Virginia 22102, was founded in 2012. Cboe Vest had approximately $8.6 billion under management or committed to management as of August 31, 2022. 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 "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. BUFT and BUFG are actively managed ETFs that invest in a portfolio of exchange-traded funds (the "Underlying ETFs"). The Underlying ETFs use a "Target Outcome Buffer Strategy" to seek to provide predetermined outcomes based on the price returns (before fees and expenses) of the Reference ETF. The Underlying ETFs provide upside performance potential to a predetermined cap, while seeking to provide a defined buffer against losses of the Reference ETF over a defined one-year period. Unlike the Underlying ETFs, the funds themselves do not pursue a target outcome strategy. The buffer is only provided by the Underlying ETFs and the funds do not provide any stated buffer against losses. The funds will likely not receive the full benefit of the Underlying ETF buffers and could have limited upside potential. Each fund's returns may be limited to the caps of the Underlying ETFs. During the 12-month period ended August 31, 2022, stock markets dropped significantly as inflation surged and U.S. gross domestic product ("GDP") fell for two consecutive quarters. Page 30 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) The S&P 500(R) Index, the well-known measure of U.S. large-cap stocks, ended the period down 11.23%. Mid- and small-capitalization stocks, as measured by the S&P MidCap 400(R) Index and the Russell 2000(R) Small Cap Index, fell as well, losing 10.37% and 17.88%, respectively, during the same period. The Nasdaq-100 Index(R), a tech-heavy market measure, lost 20.63% during the same period. International markets were hit even harder than the U.S., with broad foreign market indices such as MSCI EAFE Index and MSCI Emerging Markets Index declining by 19.80% and 21.80%, respectively, during the same period. Within the S&P 500(R) Index during the 12-month period ended August 31, 2022, the market continued to see dramatic variations in returns across the major sectors of the economy. The Energy sector soared, gaining 75.77%, and outpacing all other sectors by a wide margin during the period. The only other sector to post a positive return for the same period was the Consumer Staples sector, which gained 4.08%. On the downside, the worst performing sectors for the same period were the Telecommunications sector (-35.19%), the Consumer Discretionary sector (-16.16%), and Information Technology sector (-14.35%). U.S. economic data all pointed to a slowing economy. GDP growth in the most recent four quarterly reports (the third quarter 2021 through the second quarter 2022) saw seasonally adjusted annualized rates of +2.3%, +6.9%, -1.6%, and -0.6%, sequentially. These two most recent reports thus meet the traditional definition of a recession, which is two consecutive quarterly declines in GDP. A current Bloomberg survey of economists shows a consensus projection of 1.0% GDP growth for all of 2023 (versus 2022). The U.S. unemployment rate began the 12-month period ended August 31, 2022 at 5.2% (for August 2021) and quickly dropped below 4%, where it remained for most of the period. The most recent report showed a small uptick and the rate now sits at 3.7% (for August 2022). U.S inflation levels continued to post concerningly high levels. The most recent (July 2022) Consumer Price Index report shows year-over-year inflation running at an 8.5% rate, up from 5.4% reported twelve months earlier. One component of the economy that continued to overheat was the housing market. Housing prices in the U.S. increased by 18.0% over the last twelve months, according to the most recent (June 2022) S&P Case-Shiller U.S. National Home Price Index. This was on top of an 18.1% increase in the prior 12 months, compounding to make for a stunning 24-month increase in home prices of 39.3%. Persistently higher inflation forced the Federal Reserve (the "Fed") to increase short term rates at a much more rapid pace than the market had expected at the beginning of the 12-month period ended August 31, 2022. The Fed has a stated target of 2% inflation. The Fed began their rate hike cycle in January 2022, and, as of this writing, the Fed has increased the Federal Funds target rate by 2.25%. The Fed began the period with the range being 0% to 0.25% and ended the period with the range being 2.25% to 2.50%. Market participants are factoring in additional rate hikes by the Fed by the end of 2022. MARKET AND FUND OUTLOOK Over the 12-month period ended August 31, 2022, implied volatilities in U.S. equity markets averaged about 28.5%, according to the Cboe S&P 500(R) 1-Year Volatility Index. This index is derived from option prices and estimates the market's expectation of S&P 500(R) Index volatility for the next twelve months. As of the end of the same period, the index stands at 29.3%. For comparison purposes, the historical volatility of the S&P 500(R) Index since its inception in 1957 has been about 15.7%. We anticipate that implied volatilities will decline over the coming year. Buffer strategies, such as those used in the FT Cboe Vest Funds, generally benefit from declining implied volatilities. While most fixed income securities have seen their nominal yields increase during the 12-month period ended August 31, 2022, many still have negative real yields (i.e., nominal yield less the inflation rate). This continues to bode 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 investments. 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 income investments. Page 31 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) PERFORMANCE ANALYSIS The following table provides information pertaining to recent caps (as applicable) and performance for the 12-month period ended August 31, 2022 for each Fund, as well as an attribution analysis that estimates the impact of various factors on each Fund's performance. Each Fund's cap (as applicable) 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> ------------------------------------------------------------------------------------------------------------------------------ FUND TICKER FJAN DJAN FFEB DFEB FMAR DMAR FAPR ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> <C> Annual Expense Ratio 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% Reporting Period Start Date 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 Reporting Period End Date 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 14.50% 8.20% 15.85% 8.85% 14.20% 9.30% 12.00% Cap Prior to Annual Reset (post-expenses) 13.64% 7.34% 15.00% 8.00% 13.35% 8.45% 11.15% Reset Date (prior to 8/31/22) 1/21/22 1/21/22 2/18/22 2/18/22 3/18/22 3/18/22 4/14/22 New Cap on Annual Reset Date (pre-expenses) 14.20% 9.03% 14.25% 9.30% 14.78% 10.02% 16.35% New Cap on Annual Reset Date (post-expenses) 13.35% 8.18% 13.40% 8.45% 13.93% 9.17% 15.48% PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22): Fund Performance (using NAVs) -3.06% -3.76% -5.37% -2.08% -3.46% -3.47% -7.28% Fund Performance (using Market Price) -3.20% -3.51% -5.27% -2.25% -3.40% -3.19% -7.18% Reference Asset Price Return -12.49% -12.49% -12.49% -12.49% -12.49% -12.49% -12.49% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset -5.98% -3.77% -6.75% -3.87% -6.59% -4.16% -7.48% b) Changes in other Variables* 3.77% 0.86% 2.23% 2.64% 3.98% 1.54% 1.05% c) Expenses (pro-rated annual expense ratio) -0.85% -0.85% -0.85% -0.85% -0.85% -0.85% -0.85% Attribution TOTAL -3.06% -3.76% -5.37% -2.08% -3.46% -3.47% -7.28% </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, 2022 (UNAUDITED) <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ FUND TICKER DAPR FMAY DMAY FJUN DJUN FJUL DJUL ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> <C> Annual Expense Ratio 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% Reporting Period Start Date 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 Reporting Period End Date 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 7.50% 12.50% 7.60% 11.70% 7.06% 11.70% 7.30% Cap Prior to Annual Reset (post-expenses) 6.65% 11.65% 6.75% 10.85% 6.21% 10.85% 6.45% Reset Date (prior to 8/31/22) 4/14/22 5/20/22 5/20/22 6/17/22 6/17/22 7/15/22 7/15/22 New Cap on Annual Reset Date (pre-expenses) 10.96% 20.45% 13.93% 22.20% 15.59% 21.30% 15.02% New Cap on Annual Reset Date (post-expenses) 10.09% 19.60% 13.08% 21.35% 14.74% 20.44% 14.16% PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22): Fund Performance (using NAVs) -3.89% -4.34% -7.71% -1.81% -4.70% -2.50% -6.18% Fund Performance (using Market Price) -3.81% -4.35% -7.64% -1.87% -4.83% -2.53% -6.31% Reference Asset Price Return -12.49% -12.49% -12.49% -12.49% -12.49% -12.49% -12.49% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset -4.92% -6.67% -4.59% -6.08% -4.24% -6.93% -4.33% b) Changes in other Variables* 1.88% 3.18% -2.27% 5.12% 0.39% 5.28% -1.00% c) Expenses (pro-rated annual expense ratio) -0.85% -0.85% -0.85% -0.85% -0.85% -0.85% -0.85% Attribution TOTAL -3.89% -4.34% -7.71% -1.81% -4.70% -2.50% -6.18% </TABLE> <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ FUND TICKER FAUG DAUG FSEP DSEP FOCT DOCT FNOV ------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> <C> Annual Expense Ratio 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% Reporting Period Start Date 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 Reporting Period End Date 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 11.64% 7.37% 16.50% 9.25% 16.22% 9.34% 13.72% Cap Prior to Annual Reset (post-expenses) 10.79% 6.52% 15.65% 8.40% 15.37% 8.49% 12.87% Reset Date (prior to 8/31/22) 8/19/22 8/19/22 9/16/21 9/16/21 10/15/21 10/15/21 11/19/21 New Cap on Annual Reset Date (pre-expenses) 20.46% 14.47% 12.20% 7.43% 11.70% 7.22% 12.10% New Cap on Annual Reset Date (post-expenses) 19.61% 13.62% 11.35% 6.58% 10.84% 6.36% 11.25% PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22): Fund Performance (using NAVs) -5.87% -9.12% -3.13% -5.79% -4.39% -5.58% -7.26% Fund Performance (using Market Price) -6.26% -9.31% -2.93% -6.02% -4.36% -5.62% -7.16% Reference Asset Price Return -12.49% -12.49% -12.49% -12.49% -12.49% -12.49% -12.49% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset -7.08% -4.58% -6.78% -4.32% -6.47% -4.03% -6.72% b) Changes in other Variables* 2.06% -3.69% 4.50% -0.62% 2.93% -0.70% 0.31% c) Expenses (pro-rated annual expense ratio) -0.85% -0.85% -0.85% -0.85% -0.85% -0.85% -0.85% Attribution TOTAL -5.87% -9.12% -3.13% -5.79% -4.39% -5.58% -7.26% </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, 2022 (UNAUDITED) <TABLE> <CAPTION> -------------------------------------------------------------------------------------------------------- FUND TICKER DNOV FDEC DDEC BUFT BUFG -------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> Annual Expense Ratio (includes any Acquired Fund Fees and Expenses) 0.85% 0.85% 0.85% 1.05% 1.05% Reporting Period Start Date 8/31/21 8/31/21 8/31/21 10/26/21 10/26/21 Reporting Period End Date 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 7.75% 14.00% 8.00% N/A N/A Cap Prior to Annual Reset (post-expenses) 6.90% 13.15% 7.15% N/A N/A Reset Date (prior to 8/31/22) 11/19/21 12/17/21 12/17/21 N/A N/A New Cap on Annual Reset Date (pre-expenses) 7.60% 13.10% 8.10% N/A N/A New Cap on Annual Reset Date (post-expenses) 6.75% 12.25% 7.25% N/A N/A PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22): Fund Performance (using NAVs) -6.26% -6.19% -5.56% -6.75% -9.25% Fund Performance (using Market Price) -6.26% -6.16% -5.59% -6.85% -9.25% Reference Asset Price Return -12.49% -12.49% -12.49% -13.33% -13.33% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset -3.82% -6.51% -3.85% -4.47% -8.44% b) Changes in other Variables* -1.59% 1.17% -0.86% -1.39% 0.08% c) Expenses (pro-rated annual expense ratio) -0.85% -0.85% -0.85% -0.89% -0.89% Attribution TOTAL -6.26% -6.19% -5.56% -6.75% -9.25% </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, 2022 (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 Buffered Allocation Defensive ETF or FT Cboe Vest Buffered Allocation Growth 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, 2022. 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 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) Actual $1,000.00 $ 947.00 0.85% $4.17 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 $ 954.10 0.85% $4.19 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 $ 947.90 0.85% $4.17 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 $ 958.80 0.85% $4.20 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, 2022 (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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) Actual $1,000.00 $ 960.40 0.85% $4.20 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 $ 958.30 0.85% $4.20 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) Actual $1,000.00 $ 935.70 0.85% $4.15 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 $ 966.40 0.85% $4.21 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - MAY (FMAY) Actual $1,000.00 $ 964.10 0.85% $4.21 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 $ 927.00 0.85% $4.13 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 $ 989.40 0.85% $4.26 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 $ 958.30 0.85% $4.20 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 $ 988.60 0.85% $4.26 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 $ 947.60 0.85% $4.17 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 $ 951.00 0.85% $4.18 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 $ 919.90 0.85% $4.11 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 $ 969.50 0.85% $4.22 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 $ 946.50 0.85% $4.17 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, 2022 (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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) Actual $1,000.00 $ 961.40 0.85% $4.20 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 $ 952.70 0.85% $4.18 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 $ 961.60 0.85% $4.20 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 $ 962.40 0.85% $4.20 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) Actual $1,000.00 $ 950.50 0.85% $4.18 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 $ 956.60 0.85% $4.19 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FT CBOE VEST BUFFERED ALLOCATION DEFENSIVE ETF (BUFT) (b) Actual $1,000.00 $ 945.30 0.20% $0.98 Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02 FT CBOE VEST BUFFERED ALLOCATION GROWTH ETF (BUFG) (b) Actual $1,000.00 $ 936.60 0.20% $0.98 Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02 </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, 2022 through August 31, 2022), 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. Page 37 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 1,343,489 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,343,489 (Cost $1,343,489) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 1,343,489 (Cost $1,343,489) -------------- </TABLE> <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 -- 93.6% 4,563 SPDR(R) S&P 500(R) ETF Trust....................... $ 180,320,634 $ 4.38 01/20/23 177,091,380 (Cost $194,061,728) -------------- PUT OPTIONS PURCHASED -- 11.0% 4,563 SPDR(R) S&P 500(R) ETF Trust....................... 180,320,634 437.98 01/20/23 20,851,105 (Cost $17,877,329) -------------- TOTAL PURCHASED OPTIONS........................................................................ 197,942,485 (Cost $211,939,057) -------------- WRITTEN OPTIONS -- (5.2)% CALL OPTIONS WRITTEN -- (0.0)% (4,563) SPDR(R) S&P 500(R) ETF Trust....................... (180,320,634) 500.17 01/20/23 (104,369) (Premiums received $2,427,963) -------------- PUT OPTIONS WRITTEN -- (5.2)% (4,563) SPDR(R) S&P 500(R) ETF Trust....................... (180,320,634) 394.18 01/20/23 (9,825,515) (Premiums received $10,491,388) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (9,929,884) (Premiums received $12,919,351) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (122,829) -------------- NET ASSETS -- 100.0%........................................................................... $ 189,233,261 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.7% Purchased Options 104.6 Written Options (5.2) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 38 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,343,489 $ 1,343,489 $ -- $ -- Call Options Purchased............................... 177,091,380 -- 177,091,380 -- Put Options Purchased................................ 20,851,105 -- 20,851,105 -- -------------- -------------- -------------- -------------- Total................................................ $ 199,285,974 $ 1,343,489 $ 197,942,485 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (104,369) $ -- $ (104,369) $ -- Put Options Written.................................. (9,825,515) -- (9,825,515) -- -------------- -------------- -------------- -------------- Total................................................ $ (9,929,884) $ -- $ (9,929,884) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 922,250 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 922,250 (Cost $922,250) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 922,250 (Cost $922,250) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 100.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 92.8% 3,187 SPDR(R) S&P 500(R) ETF Trust....................... $ 125,943,866 $ 4.37 01/20/23 123,324,152 (Cost $134,339,733) -------------- PUT OPTIONS PURCHASED -- 7.7% 3,187 SPDR(R) S&P 500(R) ETF Trust....................... 125,943,866 416.08 01/20/23 10,211,148 (Cost $10,493,284) -------------- TOTAL PURCHASED OPTIONS........................................................................ 133,535,300 (Cost $144,833,017) -------------- WRITTEN OPTIONS -- (1.1)% CALL OPTIONS WRITTEN -- (0.2)% (3,187) SPDR(R) S&P 500(R) ETF Trust....................... (125,943,866) 477.53 01/20/23 (226,277) (Premiums received $3,610,218) -------------- PUT OPTIONS WRITTEN -- (0.9)% (3,187) SPDR(R) S&P 500(R) ETF Trust....................... (125,943,866) 306.59 01/20/23 (1,188,751) (Premiums received $2,693,884) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (1,415,028) (Premiums received $6,304,102) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (111,735) -------------- NET ASSETS -- 100.0%........................................................................... $ 132,930,787 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.7% Purchased Options 100.5 Written Options (1.1) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 922,250 $ 922,250 $ -- $ -- Call Options Purchased............................... 123,324,152 -- 123,324,152 -- Put Options Purchased................................ 10,211,148 -- 10,211,148 -- -------------- -------------- -------------- -------------- Total................................................ $ 134,457,550 $ 922,250 $ 133,535,300 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (226,277) $ -- $ (226,277) $ -- Put Options Written.................................. (1,188,751) -- (1,188,751) -- -------------- -------------- -------------- -------------- Total................................................ $ (1,415,028) $ -- $ (1,415,028) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 41 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY (FFEB) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.8% <S> <C> <C> 2,408,572 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 2,408,572 (Cost $2,408,572) -------------- TOTAL INVESTMENTS -- 0.8%...................................................................... 2,408,572 (Cost $2,408,572) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 104.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 94.1% 7,346 SPDR(R) S&P 500(R) ETF Trust....................... $ 290,299,228 $ 4.34 02/17/23 285,182,498 (Cost $311,603,719) -------------- PUT OPTIONS PURCHASED -- 10.7% 7,346 SPDR(R) S&P 500(R) ETF Trust....................... 290,299,228 434.23 02/17/23 32,374,789 (Cost $27,421,740) -------------- TOTAL PURCHASED OPTIONS........................................................................ 317,557,287 (Cost $339,025,459) -------------- WRITTEN OPTIONS -- (5.5)% CALL OPTIONS WRITTEN -- (0.1)% (7,346) SPDR(R) S&P 500(R) ETF Trust....................... (290,299,228) 496.11 02/17/23 (379,066) (Premiums received $6,561,376) -------------- PUT OPTIONS WRITTEN -- (5.4)% (7,346) SPDR(R) S&P 500(R) ETF Trust....................... (290,299,228) 390.81 02/17/23 (16,306,657) (Premiums received $16,355,859) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (16,685,723) (Premiums received $22,917,235) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (201,316) -------------- NET ASSETS -- 100.0%........................................................................... $ 303,078,820 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.8% Purchased Options 104.8 Written Options (5.5) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 42 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - FEBRUARY (FFEB) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,408,572 $ 2,408,572 $ -- $ -- Call Options Purchased............................... 285,182,498 -- 285,182,498 -- Put Options Purchased................................ 32,374,789 -- 32,374,789 -- -------------- -------------- -------------- -------------- Total................................................ $ 319,965,859 $ 2,408,572 $ 317,557,287 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (379,066) $ -- $ (379,066) $ -- Put Options Written.................................. (16,306,657) -- (16,306,657) -- -------------- -------------- -------------- -------------- Total................................................ $ (16,685,723) $ -- $ (16,685,723) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.8% <S> <C> <C> 2,317,988 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 2,317,988 (Cost $2,317,988) -------------- TOTAL INVESTMENTS -- 0.8%...................................................................... 2,317,988 (Cost $2,317,988) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 100.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 93.2% 7,273 SPDR(R) S&P 500(R) ETF Trust....................... $ 287,414,414 $ 4.33 02/17/23 282,355,689 (Cost $308,014,946) -------------- PUT OPTIONS PURCHASED -- 7.6% 7,273 SPDR(R) S&P 500(R) ETF Trust....................... 287,414,414 412.52 02/17/23 22,954,439 (Cost $21,915,598) -------------- TOTAL PURCHASED OPTIONS........................................................................ 305,310,128 (Cost $329,930,544) -------------- WRITTEN OPTIONS -- (1.5)% CALL OPTIONS WRITTEN -- (0.4)% (7,273) SPDR(R) S&P 500(R) ETF Trust....................... (287,414,414) 474.61 02/17/23 (1,109,360) (Premiums received $10,825,575) -------------- PUT OPTIONS WRITTEN -- (1.1)% (7,273) SPDR(R) S&P 500(R) ETF Trust....................... (287,414,414) 303.96 02/17/23 (3,201,608) (Premiums received $5,820,776) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (4,310,968) (Premiums received $16,646,351) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (211,608) -------------- NET ASSETS -- 100.0%........................................................................... $ 303,105,540 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.8% Purchased Options 100.8 Written Options (1.5) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,317,988 $ 2,317,988 $ -- $ -- Call Options Purchased............................... 282,355,689 -- 282,355,689 -- Put Options Purchased................................ 22,954,439 -- 22,954,439 -- -------------- -------------- -------------- -------------- Total................................................ $ 307,628,116 $ 2,317,988 $ 305,310,128 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (1,109,360) $ -- $ (1,109,360) $ -- Put Options Written.................................. (3,201,608) -- (3,201,608) -- -------------- -------------- -------------- -------------- Total................................................ $ (4,310,968) $ -- $ (4,310,968) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 45 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 1,729,042 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,729,042 (Cost $1,729,042) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 1,729,042 (Cost $1,729,042) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 106.0% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 93.3% 4,755 SPDR(R) S&P 500(R) ETF Trust....................... $ 187,908,090 $ 4.45 03/17/23 183,955,095 (Cost $202,058,926) -------------- PUT OPTIONS PURCHASED -- 12.7% 4,755 SPDR(R) S&P 500(R) ETF Trust....................... 187,908,090 444.52 03/17/23 25,009,963 (Cost $20,421,845) -------------- TOTAL PURCHASED OPTIONS........................................................................ 208,965,058 (Cost $222,480,771) -------------- WRITTEN OPTIONS -- (6.8)% CALL OPTIONS WRITTEN -- (0.1)% (4,755) SPDR(R) S&P 500(R) ETF Trust....................... (187,908,090) 510.22 03/17/23 (212,863) (Premiums received $3,748,513) -------------- PUT OPTIONS WRITTEN -- (6.7)% (4,755) SPDR(R) S&P 500(R) ETF Trust....................... (187,908,090) 400.07 03/17/23 (13,268,268) (Premiums received $11,860,192) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (13,481,131) (Premiums received $15,608,705) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (149,260) -------------- NET ASSETS -- 100.0%........................................................................... $ 197,063,709 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.9% Purchased Options 106.0 Written Options (6.8) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 46 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - MARCH (FMAR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,729,042 $ 1,729,042 $ -- $ -- Call Options Purchased............................... 183,955,095 -- 183,955,095 -- Put Options Purchased................................ 25,009,963 -- 25,009,963 -- -------------- -------------- -------------- -------------- Total................................................ $ 210,694,100 $ 1,729,042 $ 208,965,058 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (212,863) $ -- $ (212,863) $ -- Put Options Written.................................. (13,268,268) -- (13,268,268) -- -------------- -------------- -------------- -------------- Total................................................ $ (13,481,131) $ -- $ (13,481,131) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.8% <S> <C> <C> 1,579,581 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,579,581 (Cost $1,579,581) -------------- TOTAL INVESTMENTS -- 0.8%...................................................................... 1,579,581 (Cost $1,579,581) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 101.0% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 91.8% 4,588 SPDR S&P(R) 500(R) ETF Trust....................... $ 181,308,584 $ 4.44 03/17/23 176,876,576 (Cost $195,617,692) -------------- PUT OPTIONS PURCHASED -- 9.2% 4,588 SPDR S&P(R) 500(R) ETF Trust....................... 181,308,584 422.29 03/17/23 17,801,440 (Cost $14,804,483) -------------- TOTAL PURCHASED OPTIONS........................................................................ 194,678,016 (Cost $210,422,175) -------------- WRITTEN OPTIONS -- (1.7)% CALL OPTIONS WRITTEN -- (0.2)% (4,588) SPDR S&P(R) 500(R) ETF Trust....................... (181,308,584) 489.06 03/17/23 (509,268) (Premiums received $5,122,772) -------------- PUT OPTIONS WRITTEN -- (1.5)% (4,588) SPDR S&P(R) 500(R) ETF Trust....................... (181,308,584) 311.16 03/17/23 (2,858,324) (Premiums received $3,485,299) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (3,367,592) (Premiums received $8,608,071) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (97,366) -------------- NET ASSETS -- 100.0%........................................................................... $ 192,792,639 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.8% Purchased Options 101.0 Written Options (1.7) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,579,581 $ 1,579,581 $ -- $ -- Call Options Purchased............................... 176,876,576 -- 176,876,576 -- Put Options Purchased................................ 17,801,440 -- 17,801,440 -- -------------- -------------- -------------- -------------- Total................................................ $ 196,257,597 $ 1,579,581 $ 194,678,016 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (509,268) $ -- $ (509,268) $ -- Put Options Written.................................. (2,858,324) -- (2,858,324) -- -------------- -------------- -------------- -------------- Total................................................ $ (3,367,592) $ -- $ (3,367,592) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 49 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 2,665,938 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 2,665,938 (Cost $2,665,938) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 2,665,938 (Cost $2,665,938) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 106.0% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 94.1% 6,843 SPDR(R) S&P 500(R) ETF Trust....................... $ 270,421,674 $ 4.38 04/21/23 264,754,271 (Cost $284,313,339) -------------- PUT OPTIONS PURCHASED -- 11.9% 6,843 SPDR(R) S&P 500(R) ETF Trust....................... 270,421,674 437.79 04/21/23 33,477,855 (Cost $27,401,504) -------------- TOTAL PURCHASED OPTIONS........................................................................ 298,232,126 (Cost $311,714,843) -------------- WRITTEN OPTIONS -- (6.8)% CALL OPTIONS WRITTEN -- (0.2)% (6,843) SPDR(R) S&P 500(R) ETF Trust....................... (270,421,674) 509.37 04/21/23 (541,307) (Premiums received $4,184,128) -------------- PUT OPTIONS WRITTEN -- (6.6)% (6,843) SPDR(R) S&P 500(R) ETF Trust....................... (270,421,674) 394.01 04/21/23 (18,640,047) (Premiums received $16,318,901) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (19,181,354) (Premiums received $20,503,029) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (205,643) -------------- NET ASSETS -- 100.0%........................................................................... $ 281,511,067 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.9% Purchased Options 106.0 Written Options (6.8) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 50 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - APRIL (FAPR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,665,938 $ 2,665,938 $ -- $ -- Call Options Purchased............................... 264,754,271 -- 264,754,271 -- Put Options Purchased................................ 33,477,855 -- 33,477,855 -- -------------- -------------- -------------- -------------- Total................................................ $ 300,898,064 $ 2,665,938 $ 298,232,126 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (541,307) $ -- $ (541,307) $ -- Put Options Written.................................. (18,640,047) -- (18,640,047) -- -------------- -------------- -------------- -------------- Total................................................ $ (19,181,354) $ -- $ (19,181,354) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.8% <S> <C> <C> 4,695,926 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 4,695,926 (Cost $4,695,926) -------------- TOTAL INVESTMENTS -- 1.8%...................................................................... 4,695,926 (Cost $4,695,926) -------------- </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 -- 92.5% 6,360 SPDR(R) S&P 500(R) ETF Trust....................... $ 251,334,480 $ 4.37 04/21/23 246,073,318 (Cost $257,449,296) -------------- PUT OPTIONS PURCHASED -- 8.8% 6,360 SPDR(R) S&P 500(R) ETF Trust....................... 251,334,480 415.90 04/21/23 23,314,320 (Cost $24,185,014) -------------- TOTAL PURCHASED OPTIONS........................................................................ 269,387,638 (Cost $281,634,310) -------------- WRITTEN OPTIONS -- (2.2)% CALL OPTIONS WRITTEN -- (0.5)% (6,360) SPDR(R) S&P 500(R) ETF Trust....................... (251,334,480) 485.77 04/21/23 (1,353,509) (Premiums received $5,070,012) -------------- PUT OPTIONS WRITTEN -- (1.7)% (6,360) SPDR(R) S&P 500(R) ETF Trust....................... (251,334,480) 306.45 04/21/23 (4,461,641) (Premiums received $5,879,406) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (5,815,150) (Premiums received $10,949,418) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.9)%..................................................... (2,434,952) -------------- NET ASSETS -- 100.0%........................................................................... $ 265,833,462 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 1.8% Purchased Options 101.3 Written Options (2.2) Net Other Assets and Liabilities (0.9) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 4,695,926 $ 4,695,926 $ -- $ -- Call Options Purchased............................... 246,073,318 -- 246,073,318 -- Put Options Purchased................................ 23,314,320 -- 23,314,320 -- -------------- -------------- -------------- -------------- Total................................................ $ 274,083,564 $ 4,695,926 $ 269,387,638 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (1,353,509) $ -- $ (1,353,509) $ -- Put Options Written.................................. (4,461,641) -- (4,461,641) -- -------------- -------------- -------------- -------------- Total................................................ $ (5,815,150) $ -- $ (5,815,150) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 53 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER - MAY (FMAY) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 3,438,533 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 3,438,533 (Cost $3,438,533) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 3,438,533 (Cost $3,438,533) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 104.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 97.6% 9,166 SPDR(R) S&P 500(R) ETF Trust....................... $ 362,221,988 $ 3.90 05/19/23 355,095,996 (Cost $354,362,142) -------------- PUT OPTIONS PURCHASED -- 6.8% 9,166 SPDR(R) S&P 500(R) ETF Trust....................... 362,221,988 389.63 05/19/23 24,532,099 (Cost $31,062,254) -------------- TOTAL PURCHASED OPTIONS........................................................................ 379,628,095 (Cost $385,424,396) -------------- WRITTEN OPTIONS -- (5.2)% CALL OPTIONS WRITTEN -- (1.3)% (9,166) SPDR(R) S&P 500(R) ETF Trust....................... (362,221,988) 469.31 05/19/23 (4,841,964) (Premiums received $8,106,175) -------------- PUT OPTIONS WRITTEN -- (3.9)% (9,166) SPDR(R) S&P 500(R) ETF Trust....................... (362,221,988) 350.67 05/19/23 (14,116,411) (Premiums received $18,890,893) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (18,958,375) (Premiums received $26,997,068) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (260,491) -------------- NET ASSETS -- 100.0%........................................................................... $ 363,847,762 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.9% Purchased Options 104.4 Written Options (5.2) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 54 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER - MAY (FMAY) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 3,438,533 $ 3,438,533 $ -- $ -- Call Options Purchased............................... 355,095,996 -- 355,095,996 -- Put Options Purchased................................ 24,532,099 -- 24,532,099 -- -------------- -------------- -------------- -------------- Total................................................ $ 383,066,628 $ 3,438,533 $ 379,628,095 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (4,841,964) $ -- $ (4,841,964) $ -- Put Options Written.................................. (14,116,411) -- (14,116,411) -- -------------- -------------- -------------- -------------- Total................................................ $ (18,958,375) $ -- $ (18,958,375) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 2,075,025 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 2,075,025 (Cost $2,075,025) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 2,075,025 (Cost $2,075,025) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 103.4% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 98.2% 5,727 SPDR(R) S&P 500(R) ETF Trust....................... $ 226,319,586 $ 3.89 05/19/23 221,872,784 (Cost $223,212,596) -------------- PUT OPTIONS PURCHASED -- 5.2% 5,727 SPDR(R) S&P 500(R) ETF Trust....................... 226,319,586 370.15 05/19/23 11,669,358 (Cost $14,924,092) -------------- TOTAL PURCHASED OPTIONS........................................................................ 233,542,142 (Cost $238,136,688) -------------- WRITTEN OPTIONS -- (4.2)% CALL OPTIONS WRITTEN -- (3.0)% (5,727) SPDR(R) S&P 500(R) ETF Trust....................... (226,319,586) 443.91 05/19/23 (6,769,942) (Premiums received $9,059,201) -------------- PUT OPTIONS WRITTEN -- (1.2)% (5,727) SPDR(R) S&P 500(R) ETF Trust....................... (226,319,586) 272.74 05/19/23 (2,677,723) (Premiums received $3,881,218) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (9,447,665) (Premiums received $12,940,419) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (151,088) -------------- NET ASSETS -- 100.0%........................................................................... $ 226,018,414 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.9% Purchased Options 103.4 Written Options (4.2) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,075,025 $ 2,075,025 $ -- $ -- Call Options Purchased............................... 221,872,784 -- 221,872,784 -- Put Options Purchased................................ 11,669,358 -- 11,669,358 -- -------------- -------------- -------------- -------------- Total................................................ $ 235,617,167 $ 2,075,025 $ 233,542,142 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (6,769,942) $ -- $ (6,769,942) $ -- Put Options Written.................................. (2,677,723) -- (2,677,723) -- -------------- -------------- -------------- -------------- Total................................................ $ (9,447,665) $ -- $ (9,447,665) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 57 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE (FJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.0% <S> <C> <C> 3,020,889 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 3,020,889 (Cost $3,020,889) -------------- TOTAL INVESTMENTS -- 1.0%...................................................................... 3,020,889 (Cost $3,020,889) -------------- </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 -- 100.1% 7,721 SPDR(R) S&P 500(R) ETF Trust....................... $ 305,118,478 $ 3.66 06/16/23 298,757,178 (Cost $279,467,848) -------------- PUT OPTIONS PURCHASED -- 5.3% 7,721 SPDR(R) S&P 500(R) ETF Trust....................... 305,118,478 365.86 06/16/23 15,734,828 (Cost $24,083,462) -------------- TOTAL PURCHASED OPTIONS........................................................................ 314,492,006 (Cost $303,551,310) -------------- WRITTEN OPTIONS -- (6.3)% CALL OPTIONS WRITTEN -- (3.1)% (7,721) SPDR(R) S&P 500(R) ETF Trust....................... (305,118,478) 447.08 06/16/23 (9,354,675) (Premiums received $5,913,649) -------------- PUT OPTIONS WRITTEN -- (3.2)% (7,721) SPDR(R) S&P 500(R) ETF Trust....................... (305,118,478) 329.27 06/16/23 (9,439,595) (Premiums received $14,765,755) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (18,794,270) (Premiums received $20,679,404) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (220,762) -------------- NET ASSETS -- 100.0%........................................................................... $ 298,497,863 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 1.0% Purchased Options 105.4 Written Options (6.3) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 58 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JUNE (FJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 3,020,889 $ 3,020,889 $ -- $ -- Call Options Purchased............................... 298,757,178 -- 298,757,178 -- Put Options Purchased................................ 15,734,828 -- 15,734,828 -- -------------- -------------- -------------- -------------- Total................................................ $ 317,512,895 $ 3,020,889 $ 314,492,006 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (9,354,675) $ -- $ (9,354,675) $ -- Put Options Written.................................. (9,439,595) -- (9,439,595) -- -------------- -------------- -------------- -------------- Total................................................ $ (18,794,270) $ -- $ (18,794,270) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.0% <S> <C> <C> 1,766,947 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,766,947 (Cost $1,766,947) -------------- TOTAL INVESTMENTS -- 1.0%...................................................................... 1,766,947 (Cost $1,766,947) -------------- </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 -- 101.7% 4,733 SPDR(R) S&P 500(R) ETF Trust....................... $ 187,038,694 $ 3.65 06/16/23 183,143,795 (Cost $171,711,398) -------------- PUT OPTIONS PURCHASED -- 4.2% 4,733 SPDR(R) S&P 500(R) ETF Trust....................... 187,038,694 347.57 06/16/23 7,503,955 (Cost $11,906,216) -------------- TOTAL PURCHASED OPTIONS........................................................................ 190,647,750 (Cost $183,617,614) -------------- WRITTEN OPTIONS -- (6.8)% CALL OPTIONS WRITTEN -- (5.7)% (4,733) SPDR(R) S&P 500(R) ETF Trust....................... (187,038,694) 422.90 06/16/23 (10,256,017) (Premiums received $7,195,688) -------------- PUT OPTIONS WRITTEN -- (1.1)% (4,733) SPDR(R) S&P 500(R) ETF Trust....................... (187,038,694) 256.10 06/16/23 (1,965,810) (Premiums received $3,244,227) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (12,221,827) (Premiums received $10,439,915) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (128,660) -------------- NET ASSETS -- 100.0%........................................................................... $ 180,064,210 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 1.0% Purchased Options 105.9 Written Options (6.8) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,766,947 $ 1,766,947 $ -- $ -- Call Options Purchased............................... 183,143,795 -- 183,143,795 -- Put Options Purchased................................ 7,503,955 -- 7,503,955 -- -------------- -------------- -------------- -------------- Total................................................ $ 192,414,697 $ 1,766,947 $ 190,647,750 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (10,256,017) $ -- $ (10,256,017) $ -- Put Options Written.................................. (1,965,810) -- (1,965,810) -- -------------- -------------- -------------- -------------- Total................................................ $ (12,221,827) $ -- $ (12,221,827) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 61 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.1% <S> <C> <C> 2,380,478 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 2,380,478 (Cost $2,380,478) -------------- TOTAL INVESTMENTS -- 1.1%...................................................................... 2,380,478 (Cost $2,380,478) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 105.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 98.4% 5,611 SPDR(R) S&P 500(R) ETF Trust....................... $ 221,735,498 $ 3.85 07/21/23 217,037,551 (Cost $213,408,158) -------------- PUT OPTIONS PURCHASED -- 7.1% 5,611 SPDR(R) S&P 500(R) ETF Trust....................... 221,735,498 385.13 07/21/23 15,527,818 (Cost $17,824,385) -------------- TOTAL PURCHASED OPTIONS........................................................................ 232,565,369 (Cost $231,232,543) -------------- WRITTEN OPTIONS -- (6.5)% CALL OPTIONS WRITTEN -- (2.2)% (5,611) SPDR(R) S&P 500(R) ETF Trust....................... (221,735,498) 467.16 07/21/23 (4,780,032) (Premiums received $4,416,649) -------------- PUT OPTIONS WRITTEN -- (4.3)% (5,611) SPDR(R) S&P 500(R) ETF Trust....................... (221,735,498) 346.62 07/21/23 (9,422,756) (Premiums received $11,107,276) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (14,202,788) (Premiums received $15,523,925) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (149,684) -------------- NET ASSETS -- 100.0%........................................................................... $ 220,593,375 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 1.1% Purchased Options 105.5 Written Options (6.5) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 62 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,380,478 $ 2,380,478 $ -- $ -- Call Options Purchased............................... 217,037,551 -- 217,037,551 -- Put Options Purchased................................ 15,527,818 -- 15,527,818 -- -------------- -------------- -------------- -------------- Total................................................ $ 234,945,847 $ 2,380,478 $ 232,565,369 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (4,780,032) $ -- $ (4,780,032) $ -- Put Options Written.................................. (9,422,756) -- (9,422,756) -- -------------- -------------- -------------- -------------- Total................................................ $ (14,202,788) $ -- $ (14,202,788) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.1% <S> <C> <C> 1,665,004 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,665,004 (Cost $1,665,004) -------------- TOTAL INVESTMENTS -- 1.1%...................................................................... 1,665,004 (Cost $1,665,004) -------------- </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 -- 99.0% 4,021 SPDR(R) S&P 500(R) ETF Trust....................... $ 158,901,878 $ 3.84 07/21/23 155,539,090 (Cost $154,879,884) -------------- PUT OPTIONS PURCHASED -- 5.5% 4,021 SPDR(R) S&P 500(R) ETF Trust....................... 158,901,878 365.87 07/21/23 8,691,109 (Cost $9,523,077) -------------- TOTAL PURCHASED OPTIONS........................................................................ 164,230,199 (Cost $164,402,961) -------------- WRITTEN OPTIONS -- (5.5)% CALL OPTIONS WRITTEN -- (4.1)% (4,021) SPDR(R) S&P 500(R) ETF Trust....................... (158,901,878) 442.98 07/21/23 (6,410,314) (Premiums received $6,788,748) -------------- PUT OPTIONS WRITTEN -- (1.4)% (4,021) SPDR(R) S&P 500(R) ETF Trust....................... (158,901,878) 269.59 07/21/23 (2,258,213) (Premiums received $2,539,139) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (8,668,527) (Premiums received $9,327,887) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (91,205) -------------- NET ASSETS -- 100.0%............................................................................ $ 157,135,471 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 1.1% Purchased Options 104.5 Written Options (5.5) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,665,004 $ 1,665,004 $ -- $ -- Call Options Purchased............................... 155,539,090 -- 155,539,090 -- Put Options Purchased................................ 8,691,109 -- 8,691,109 -- -------------- -------------- -------------- -------------- Total................................................ $ 165,895,203 $ 1,665,004 $ 164,230,199 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (6,410,314) $ -- $ (6,410,314) $ -- Put Options Written.................................. (2,258,213) -- (2,258,213) -- -------------- -------------- -------------- -------------- Total................................................ $ (8,668,527) $ -- $ (8,668,527) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 65 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST (FAUG) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.2% <S> <C> <C> 3,942,360 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 3,942,360 (Cost $3,942,360) -------------- TOTAL INVESTMENTS -- 1.2%...................................................................... 3,942,360 (Cost $3,942,360) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 106.2% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 95.4% 7,972 SPDR(R) S&P 500(R) ETF Trust....................... $ 315,037,496 $ 4.22 08/18/23 308,133,278 (Cost $325,641,103) -------------- PUT OPTIONS PURCHASED -- 10.8% 7,972 SPDR(R) S&P 500(R) ETF Trust....................... 315,037,496 422.14 08/18/23 34,889,677 (Cost $31,556,739) -------------- TOTAL PURCHASED OPTIONS........................................................................ 343,022,955 (Cost $357,197,842) -------------- WRITTEN OPTIONS -- (7.3)% CALL OPTIONS WRITTEN -- (0.7)% (7,972) SPDR(R) S&P 500(R) ETF Trust....................... (315,037,496) 508.51 08/18/23 (2,412,202) (Premiums received $7,091,333) -------------- PUT OPTIONS WRITTEN -- (6.6)% (7,972) SPDR(R) S&P 500(R) ETF Trust....................... (315,037,496) 379.93 08/18/23 (21,386,089) (Premiums received $18,868,192) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (23,798,291) (Premiums received $25,959,525) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (183,921) -------------- NET ASSETS -- 100.0%........................................................................... $ 322,983,103 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 1.2% Purchased Options 106.2 Written Options (7.3) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 66 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - AUGUST (FAUG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 3,942,360 $ 3,942,360 $ -- $ -- Call Options Purchased............................... 308,133,278 -- 308,133,278 -- Put Options Purchased................................ 34,889,677 -- 34,889,677 -- -------------- -------------- -------------- -------------- Total................................................ $ 346,965,315 $ 3,942,360 $ 343,022,955 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (2,412,202) $ -- $ (2,412,202) $ -- Put Options Written.................................. (21,386,089) -- (21,386,089) -- -------------- -------------- -------------- -------------- Total................................................ $ (23,798,291) $ -- $ (23,798,291) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.2% <S> <C> <C> 1,855,295 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,855,295 (Cost $1,855,295) -------------- TOTAL INVESTMENTS -- 1.2%...................................................................... 1,855,295 (Cost $1,855,295) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 102.6% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 94.2% 3,829 SPDR(R) S&P 500(R) ETF Trust....................... $ 151,314,422 $ 4.21 08/18/23 148,001,980 (Cost $156,968,600) -------------- PUT OPTIONS PURCHASED -- 8.4% 3,829 SPDR(R) S&P 500(R) ETF Trust....................... 151,314,422 401.03 08/18/23 13,223,795 (Cost $11,038,583) -------------- TOTAL PURCHASED OPTIONS........................................................................ 161,225,775 (Cost $168,007,183) -------------- WRITTEN OPTIONS -- (3.7)% CALL OPTIONS WRITTEN -- (1.6)% (3,829) SPDR(R) S&P 500(R) ETF Trust....................... (151,314,422) 483.22 08/18/23 (2,450,880) (Premiums received $5,304,045) -------------- PUT OPTIONS WRITTEN -- (2.1)% (3,829) SPDR(R) S&P 500(R) ETF Trust....................... (151,314,422) 295.50 08/18/23 (3,371,541) (Premiums received $3,054,970) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (5,822,421) (Premiums received $8,359,015) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (109,347) -------------- NET ASSETS -- 100.0%........................................................................... $ 157,149,302 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 1.2% Purchased Options 102.6 Written Options (3.7) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,855,295 $ 1,855,295 $ -- $ -- Call Options Purchased............................... 148,001,980 -- 148,001,980 -- Put Options Purchased................................ 13,223,795 -- 13,223,795 -- -------------- -------------- -------------- -------------- Total................................................ $ 163,081,070 $ 1,855,295 $ 161,225,775 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (2,450,880) $ -- $ (2,450,880) $ -- Put Options Written.................................. (3,371,541) -- (3,371,541) -- -------------- -------------- -------------- -------------- Total................................................ $ (5,822,421) $ -- $ (5,822,421) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 69 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - SEPTEMBER (FSEP) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.4% <S> <C> <C> 460,153 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 460,153 (Cost $460,153) -------------- TOTAL INVESTMENTS -- 0.4%...................................................................... 460,153 (Cost $460,153) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 102.1% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 90.8% 2,927 SPDR(R) S&P 500(R) ETF Trust....................... $ 115,669,186 $ 4.41 09/16/22 113,578,054 (Cost $127,597,260) -------------- PUT OPTIONS PURCHASED -- 11.3% 2,927 SPDR(R) S&P 500(R) ETF Trust....................... 115,669,186 441.40 09/16/22 14,174,383 (Cost $12,490,647) -------------- TOTAL PURCHASED OPTIONS........................................................................ 127,752,437 (Cost $140,087,907) -------------- WRITTEN OPTIONS -- (2.4)% CALL OPTIONS WRITTEN -- (0.0)% (2,927) SPDR(R) S&P 500(R) ETF Trust....................... (115,669,186) 495.25 09/16/22 (1,723) (Premiums received $1,319,904) -------------- PUT OPTIONS WRITTEN -- (2.4)% (2,927) SPDR(R) S&P 500(R) ETF Trust....................... (115,669,186) 397.26 09/16/22 (2,997,920) (Premiums received $5,505,114) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (2,999,643) (Premiums received $6,825,018) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (91,235) -------------- NET ASSETS -- 100.0%........................................................................... $ 125,121,712 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.4% Purchased Options 102.1 Written Options (2.4) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 70 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - SEPTEMBER (FSEP) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 460,153 $ 460,153 $ -- $ -- Call Options Purchased............................... 113,578,054 -- 113,578,054 -- Put Options Purchased................................ 14,174,383 -- 14,174,383 -- -------------- -------------- -------------- -------------- Total................................................ $ 128,212,590 $ 460,153 $ 127,752,437 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (1,723) $ -- $ (1,723) $ -- Put Options Written.................................. (2,997,920) -- (2,997,920) -- -------------- -------------- -------------- -------------- Total................................................ $ (2,999,643) $ -- $ (2,999,643) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.4% <S> <C> <C> 396,245 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 396,245 (Cost $396,245) -------------- TOTAL INVESTMENTS -- 0.4%...................................................................... 396,245 (Cost $396,245) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 99.7% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 93.3% 2,377 SPDR(R) S&P 500(R) ETF Trust....................... $ 93,934,286 $ 4.40 09/16/22 92,238,463 (Cost $100,769,499) -------------- PUT OPTIONS PURCHASED -- 6.4% 2,377 SPDR(R) S&P 500(R) ETF Trust....................... 93,934,286 419.33 09/16/22 6,373,306 (Cost $7,020,953) -------------- TOTAL PURCHASED OPTIONS........................................................................ 98,611,769 (Cost $107,790,452) -------------- WRITTEN OPTIONS -- (0.0)% CALL OPTIONS WRITTEN -- (0.0)% (2,377) SPDR(R) S&P 500(R) ETF Trust....................... (93,934,286) 474.20 09/16/22 (1,642) (Premiums received $913,645) -------------- PUT OPTIONS WRITTEN -- (0.0)% (2,377) SPDR(R) S&P 500(R) ETF Trust....................... (93,934,286) 308.98 09/16/22 (19,999) (Premiums received $694,577) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (21,641) (Premiums received $1,608,222) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (87,114) -------------- NET ASSETS -- 100.0%........................................................................... $ 98,899,259 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.4% Purchased Options 99.7 Written Options (0.0)(1) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== (1) Amount is less than 0.1%. 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 396,245 $ 396,245 $ -- $ -- Call Options Purchased............................... 92,238,463 -- 92,238,463 -- Put Options Purchased................................ 6,373,306 -- 6,373,306 -- -------------- -------------- -------------- -------------- Total................................................ $ 99,008,014 $ 396,245 $ 98,611,769 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (1,642) $ -- $ (1,642) $ -- Put Options Written.................................. (19,999) -- (19,999) -- -------------- -------------- -------------- -------------- Total................................................ $ (21,641) $ -- $ (21,641) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 73 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.5% <S> <C> <C> 685,606 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 685,606 (Cost $685,606) -------------- TOTAL INVESTMENTS -- 0.5%...................................................................... 685,606 (Cost $685,606) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 103.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 91.5% 3,442 SPDR(R) S&P 500(R) ETF Trust....................... $ 136,020,956 $ 4.46 10/21/22 133,908,366 (Cost $152,766,663) -------------- PUT OPTIONS PURCHASED -- 12.0% 3,442 SPDR(R) S&P 500(R) ETF Trust....................... 136,020,956 445.87 10/21/22 17,535,981 (Cost $11,950,876) -------------- TOTAL PURCHASED OPTIONS........................................................................ 151,444,347 (Cost $164,717,539) -------------- WRITTEN OPTIONS -- (3.9)% CALL OPTIONS WRITTEN -- (0.0)% (3,442) SPDR(R) S&P 500(R) ETF Trust....................... (136,020,956) 498.04 10/21/22 (3,275) (Premiums received $2,598,791) -------------- PUT OPTIONS WRITTEN -- (3.9)% (3,442) SPDR(R) S&P 500(R) ETF Trust....................... (136,020,956) 401.28 10/21/22 (5,649,985) (Premiums received $6,326,893) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (5,653,260) (Premiums received $8,925,684) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (108,434) -------------- NET ASSETS -- 100.0%........................................................................... $ 146,368,259 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.5% Purchased Options 103.5 Written Options (3.9) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 74 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - OCTOBER (FOCT) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 685,606 $ 685,606 $ -- $ -- Call Options Purchased............................... 133,908,366 -- 133,908,366 -- Put Options Purchased................................ 17,535,981 -- 17,535,981 -- -------------- -------------- -------------- -------------- Total................................................ $ 152,129,953 $ 685,606 $ 151,444,347 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (3,275) $ -- $ (3,275) $ -- Put Options Written.................................. (5,649,985) -- (5,649,985) -- -------------- -------------- -------------- -------------- Total................................................ $ (5,653,260) $ -- $ (5,653,260) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 2.3% <S> <C> <C> 2,846,807 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 2,846,807 (Cost $2,846,807) -------------- TOTAL INVESTMENTS -- 2.3%...................................................................... 2,846,807 (Cost $2,846,807) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 99.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 92.5% 2,946 SPDR(R) S&P 500(R) ETF Trust....................... $ 116,420,028 $ 4.45 10/21/22 114,614,800 (Cost $129,004,854) -------------- PUT OPTIONS PURCHASED -- 7.3% 2,946 SPDR(R) S&P 500(R) ETF Trust....................... 116,420,028 423.58 10/21/22 9,099,851 (Cost $8,544,587) -------------- TOTAL PURCHASED OPTIONS........................................................................ 123,714,651 (Cost $137,549,441) -------------- WRITTEN OPTIONS -- (0.2)% CALL OPTIONS WRITTEN -- (0.0)% (2,946) SPDR(R) S&P 500(R) ETF Trust....................... (116,420,028) 478.06 10/21/22 (7,914) (Premiums received $3,145,756) -------------- PUT OPTIONS WRITTEN -- (0.2)% (2,946) SPDR(R) S&P 500(R) ETF Trust....................... (116,420,028) 312.11 10/21/22 (218,472) (Premiums received $1,566,592) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (226,386) (Premiums received $4,712,348) -------------- NET OTHER ASSETS AND LIABILITIES -- (1.9)%..................................................... (2,402,096) -------------- NET ASSETS -- 100.0%........................................................................... $ 123,932,976 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 2.3% Purchased Options 99.8 Written Options (0.2) Net Other Assets and Liabilities (1.9) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,846,807 $ 2,846,807 $ -- $ -- Call Options Purchased............................... 114,614,800 -- 114,614,800 -- Put Options Purchased................................ 9,099,851 -- 9,099,851 -- -------------- -------------- -------------- -------------- Total................................................ $ 126,561,458 $ 2,846,807 $ 123,714,651 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (7,914) $ -- $ (7,914) $ -- Put Options Written.................................. (218,472) -- (218,472) -- -------------- -------------- -------------- -------------- Total................................................ $ (226,386) $ -- $ (226,386) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 77 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER (FNOV) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.6% <S> <C> <C> 1,563,857 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,563,857 (Cost $1,563,857) -------------- TOTAL INVESTMENTS -- 0.6%...................................................................... 1,563,857 (Cost $1,563,857) -------------- </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 -- 89.9% 6,040 SPDR(R) S&P 500(R) ETF Trust....................... $ 238,688,720 $ 4.69 11/18/22 234,853,320 (Cost $276,152,451) -------------- PUT OPTIONS PURCHASED -- 16.8% 6,040 SPDR(R) S&P 500(R) ETF Trust....................... 238,688,720 468.89 11/18/22 43,796,040 (Cost $24,232,788) -------------- TOTAL PURCHASED OPTIONS........................................................................ 278,649,360 (Cost $300,385,239) -------------- WRITTEN OPTIONS -- (7.2)% CALL OPTIONS WRITTEN -- (0.0)% (6,040) SPDR(R) S&P 500(R) ETF Trust....................... (238,688,720) 525.63 11/18/22 (24,160) (Premiums received $4,466,482) -------------- PUT OPTIONS WRITTEN -- (7.2)% (6,040) SPDR(R) S&P 500(R) ETF Trust....................... (238,688,720) 422.00 11/18/22 (18,887,080) (Premiums received $14,040,125) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (18,911,240) (Premiums received $18,506,607) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (244,106) -------------- NET ASSETS -- 100.0%........................................................................... $ 261,057,871 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.6% Purchased Options 106.7 Written Options (7.2) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 78 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - NOVEMBER (FNOV) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,563,857 $ 1,563,857 $ -- $ -- Call Options Purchased............................... 234,853,320 -- 234,853,320 -- Put Options Purchased................................ 43,796,040 -- 43,796,040 -- -------------- -------------- -------------- -------------- Total................................................ $ 280,213,217 $ 1,563,857 $ 278,649,360 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (24,160) $ -- $ (24,160) $ -- Put Options Written.................................. (18,887,080) -- (18,887,080) -- -------------- -------------- -------------- -------------- Total................................................ $ (18,911,240) $ -- $ (18,911,240) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.5% <S> <C> <C> 2,190,778 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 2,190,778 (Cost $2,190,778) -------------- TOTAL INVESTMENTS -- 0.5%...................................................................... 2,190,778 (Cost $2,190,778) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 100.2% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 88.7% 9,126 SPDR(R) S&P 500(R) ETF Trust....................... $ 360,641,268 $ 4.68 11/18/22 354,980,559 (Cost $391,999,895) -------------- PUT OPTIONS PURCHASED -- 11.5% 9,126 SPDR(R) S&P 500(R) ETF Trust....................... 360,641,268 445.45 11/18/22 45,781,831 (Cost $35,540,556) -------------- TOTAL PURCHASED OPTIONS........................................................................ 400,762,390 (Cost $427,540,451) -------------- WRITTEN OPTIONS -- (0.6)% CALL OPTIONS WRITTEN -- (0.0)% (9,126) SPDR(R) S&P 500(R) ETF Trust....................... (360,641,268) 504.53 11/18/22 (22,862) (Premiums received $5,930,206) -------------- PUT OPTIONS WRITTEN -- (0.6)% (9,126) SPDR(R) S&P 500(R) ETF Trust....................... (360,641,268) 328.22 11/18/22 (2,448,423) (Premiums received $6,889,359) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (2,471,285) (Premiums received $12,819,565) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (288,708) -------------- NET ASSETS -- 100.0%........................................................................... $ 400,193,175 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.5% Purchased Options 100.2 Written Options (0.6) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 2,190,778 $ 2,190,778 $ -- $ -- Call Options Purchased............................... 354,980,559 -- 354,980,559 -- Put Options Purchased................................ 45,781,831 -- 45,781,831 -- -------------- -------------- -------------- -------------- Total................................................ $ 402,953,168 $ 2,190,778 $ 400,762,390 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (22,862) $ -- $ (22,862) $ -- Put Options Written.................................. (2,448,423) -- (2,448,423) -- -------------- -------------- -------------- -------------- Total................................................ $ (2,471,285) $ -- $ (2,471,285) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 81 <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 1,263,342 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,263,342 (Cost $1,263,342) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 1,263,342 (Cost $1,263,342) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 106.3% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 91.1% 4,471 SPDR(R) S&P 500(R) ETF Trust....................... $ 176,684,978 $ 4.60 12/16/22 173,208,741 (Cost $200,834,366) -------------- PUT OPTIONS PURCHASED -- 15.2% 4,471 SPDR(R) S&P 500(R) ETF Trust....................... 176,684,978 459.87 12/16/22 28,867,388 (Cost $18,849,367) -------------- TOTAL PURCHASED OPTIONS........................................................................ 202,076,129 (Cost $219,683,733) -------------- WRITTEN OPTIONS -- (6.9)% CALL OPTIONS WRITTEN -- (0.0)% (4,471) SPDR(R) S&P 500(R) ETF Trust....................... (176,684,978) 520.11 12/16/22 (12,277) (Premiums received $2,812,224) -------------- PUT OPTIONS WRITTEN -- (6.9)% (4,471) SPDR(R) S&P 500(R) ETF Trust....................... (176,684,978) 413.88 12/16/22 (13,025,240) (Premiums received $10,461,022) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (13,037,517) (Premiums received $13,273,246) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (159,769) -------------- NET ASSETS -- 100.0%........................................................................... $ 190,142,185 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.7% Purchased Options 106.3 Written Options (6.9) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 82 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY BUFFER ETF - DECEMBER (FDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,263,342 $ 1,263,342 $ -- $ -- Call Options Purchased............................... 173,208,741 -- 173,208,741 -- Put Options Purchased................................ 28,867,388 -- 28,867,388 -- -------------- -------------- -------------- -------------- Total................................................ $ 203,339,471 $ 1,263,342 $ 202,076,129 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (12,277) $ -- $ (12,277) $ -- Put Options Written.................................. (13,025,240) -- (13,025,240) -- -------------- -------------- -------------- -------------- Total................................................ $ (13,037,517) $ -- $ (13,037,517) $ -- ============== ============== ============== ============== </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, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.6% <S> <C> <C> 1,559,037 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,559,037 (Cost $1,559,037) -------------- TOTAL INVESTMENTS -- 0.6%...................................................................... 1,559,037 (Cost $1,559,037) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 100.3% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 89.9% 5,839 SPDR(R) S&P 500(R) ETF Trust....................... $ 230,745,602 $ 4.59 12/16/22 226,211,519 (Cost $245,553,869) -------------- PUT OPTIONS PURCHASED -- 10.4% 5,839 SPDR(R) S&P 500(R) ETF Trust....................... 230,745,602 436.88 12/16/22 26,055,453 (Cost $22,172,602) -------------- TOTAL PURCHASED OPTIONS........................................................................ 252,266,972 (Cost $267,726,471) -------------- WRITTEN OPTIONS -- (0.8)% CALL OPTIONS WRITTEN -- (0.0)% (5,839) SPDR(R) S&P 500(R) ETF Trust....................... (230,745,602) 497.12 12/16/22 (57,543) (Premiums received $4,714,702) -------------- PUT OPTIONS WRITTEN -- (0.8)% (5,839) SPDR(R) S&P 500(R) ETF Trust....................... (230,745,602) 321.91 12/16/22 (2,004,891) (Premiums received $4,352,613) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (2,062,434) (Premiums received $9,067,315) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (171,536) -------------- NET ASSETS -- 100.0%........................................................................... $ 251,592,039 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Money Market Funds 0.6% Purchased Options 100.3 Written Options (0.8) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== 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, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,559,037 $ 1,559,037 $ -- $ -- Call Options Purchased............................... 226,211,519 -- 226,211,519 -- Put Options Purchased................................ 26,055,453 -- 26,055,453 -- -------------- -------------- -------------- -------------- Total................................................ $ 253,826,009 $ 1,559,037 $ 252,266,972 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (57,543) $ -- $ (57,543) $ -- Put Options Written.................................. (2,004,891) -- (2,004,891) -- -------------- -------------- -------------- -------------- Total................................................ $ (2,062,434) $ -- $ (2,062,434) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 85 <PAGE> FT CBOE VEST BUFFERED ALLOCATION DEFENSIVE ETF (BUFT) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE ----------- ------------------------------------------- ------------- EXCHANGE-TRADED FUNDS -- 100.0% CAPITAL MARKETS (a) -- 100.0% 877,243 FT Cboe Vest U.S. Equity Deep Buffer ETF - May (b) $ 27,695,088 1,025,904 FT Cboe Vest U.S. Equity Deep Buffer ETF - June (b) 33,229,031 912,419 FT Cboe Vest U.S. Equity Deep Buffer ETF -July (b) 28,339,734 1,104,296 FT Cboe Vest U.S. Equity Deep Buffer ETF - November (b) 36,265,081 963,527 FT Cboe Vest U.S. Equity Deep Buffer ETF - December (b) 29,300,856 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 100.0% 154,829,790 (Cost $155,513,131) ------------- MONEY MARKET FUNDS -- 0.0% 36,402 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (c) 36,402 (Cost $36,402) ------------- TOTAL INVESTMENTS -- 100.0% 154,866,192 (Cost $155,549,533) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (26,479) ------------- NET ASSETS -- 100.0% $ 154,839,713 ============= (a) Represents investment in affiliated funds. (b) Non-income producing security. (c) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Exchange-Traded Funds 100.0% Money Market Funds 0.0(1) Net Other Assets and Liabilities (0.0)(1) -------- Total 100.0% ======== (1) Amount is less than 0.1%. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Exchange-Traded Funds*............................... $ 154,829,790 $ 154,829,790 $ -- $ -- Money Market Funds................................... 36,402 36,402 -- -- -------------- -------------- -------------- -------------- Total Investments.................................... $ 154,866,192 $ 154,866,192 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. Page 86 See Notes to Financial Statements <PAGE> FT CBOE VEST BUFFERED ALLOCATION GROWTH ETF (BUFG) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE ----------- ------------------------------------------- ------------- EXCHANGE-TRADED FUNDS -- 100.0% CAPITAL MARKETS (A) -- 100.0% 942,600 FT Cboe Vest U.S. Equity Buffer ETF - January (b) $ 30,494,147 895,839 FT Cboe Vest U.S. Equity Buffer ETF - February (b) 31,696,575 1,037,951 FT Cboe Vest U.S. Equity Buffer ETF - March (b) 32,415,210 1,160,260 FT Cboe Vest U.S. Equity Buffer ETF - April (b) 34,030,426 989,267 FT Cboe Vest U.S. Equity Buffer ETF - August (b) 34,782,628 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 100.0% 163,418,986 (Cost $165,087,842) ------------- MONEY MARKET FUNDS -- 0.0% 27,895 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (c) 27,895 (Cost $27,895) ------------- TOTAL INVESTMENTS -- 100.0% 163,446,881 (Cost $165,115,737) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (29,092) ------------- NET ASSETS -- 100.0% $ 163,417,789 ============= (a) Represents investment in affiliated funds. (b) Non-income producing security. (c) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------ Exchange-Traded Funds 100.0% Money Market Funds 0.0(1) Net Other Assets and Liabilities (0.0)(1) -------- Total 100.0% ======== (1) Amount is less than 0.1%. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Exchange-Traded Funds*............................... $ 163,418,986 $ 163,418,986 $ -- $ -- Money Market Funds................................... 27,895 27,895 -- -- -------------- -------------- -------------- -------------- Total Investments.................................... $ 163,446,881 $ 163,446,881 $ -- $ -- ============== ============== ============== ============== </TABLE> * 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, 2022 <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............ $ 1,343,489 $ 922,250 $ 2,408,572 $ 2,317,988 Investments, at value - Affiliated.............. -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total investments, at value.................. 1,343,489 922,250 2,408,572 2,317,988 Options contracts purchased, at value........... 197,942,485 133,535,300 317,557,287 305,310,128 Cash............................................ -- -- -- -- Due from broker................................. -- 43 22 7,019 Receivables: Dividends.................................... 2,169 1,556 3,872 4,136 Capital shares sold.......................... -- 768,485 -- -- Investment securities sold................... -- 8,386 -- -- ---------------- ----------------- ----------------- ----------------- Total Assets................................. 199,288,143 135,236,020 319,969,753 307,639,271 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 9,929,884 1,415,028 16,685,723 4,310,968 Due to broker................................... -- -- -- -- Payables: Investment advisory fees..................... 124,998 94,056 205,210 222,763 Investment securities purchased.............. -- 796,149 -- -- Capital shares purchased..................... -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 10,054,882 2,305,233 16,890,933 4,533,731 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 189,233,261 $ 132,930,787 $ 303,078,820 $ 303,105,540 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 216,095,956 $ 143,946,679 $ 349,440,106 $ 341,197,615 Par value....................................... 58,500 43,250 85,500 89,250 Accumulated distributable earnings (loss)....... (26,921,195) (11,059,142) (46,446,786) (38,181,325) ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 189,233,261 $ 132,930,787 $ 303,078,820 $ 303,105,540 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 32.35 $ 30.74 $ 35.45 $ 33.96 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)................................... 5,850,002 4,325,002 8,550,002 8,925,002 ================ ================= ================= ================= Investments, at cost - Unaffiliated............. $ 1,343,489 $ 922,250 $ 2,408,572 $ 2,317,988 ================ ================= ================= ================= Investments, at cost - Affiliated............... $ -- $ -- $ -- $ -- ================ ================= ================= ================= Total investments, at cost...................... $ 1,343,489 $ 922,250 $ 2,408,572 $ 2,317,988 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 211,939,057 $ 144,833,017 $ 339,025,459 $ 329,930,544 ================ ================= ================= ================= Premiums received on options contracts written.. $ 12,919,351 $ 6,304,102 $ 22,917,235 $ 16,646,351 ================ ================= ================= ================= </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> $ 1,729,042 $ 1,579,581 $ 2,665,938 $ 4,695,926 $ 3,438,533 $ 2,075,025 -- -- -- -- -- -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,729,042 1,579,581 2,665,938 4,695,926 3,438,533 2,075,025 208,965,058 194,678,016 298,232,126 269,387,638 379,628,095 233,542,142 811,707 -- -- -- -- -- -- 1,884 -- 943 1,397 836 3,897 2,554 5,305 4,474 5,831 4,221 115 2,277,360 -- -- -- -- -- 39,495 -- -- -- -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 211,509,819 198,578,890 300,903,369 274,088,981 383,073,856 235,622,224 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 13,481,131 3,367,592 19,181,354 5,815,150 18,958,375 9,447,665 34 -- 160 -- -- -- 153,124 127,191 210,788 195,718 267,719 156,145 -- 2,291,468 -- -- -- -- 811,821 -- -- 2,244,651 -- -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 14,446,110 5,786,251 19,392,302 8,255,519 19,226,094 9,603,810 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 197,063,709 $ 192,792,639 $ 281,511,067 $ 265,833,462 $ 363,847,762 $ 226,018,414 ================= ================= ================= ================= ================= ================= $ 211,398,271 $ 207,508,740 $ 310,374,794 $ 276,331,814 $ 386,562,177 $ 238,316,012 63,000 63,500 95,750 89,000 102,000 71,500 (14,397,562) (14,779,601) (28,959,477) (10,587,352) (22,816,415) (12,369,098) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 197,063,709 $ 192,792,639 $ 281,511,067 $ 265,833,462 $ 363,847,762 $ 226,018,414 ================= ================= ================= ================= ================= ================= $ 31.28 $ 30.36 $ 29.40 $ 29.87 $ 35.67 $ 31.61 ================= ================= ================= ================= ================= ================= 6,300,002 6,350,002 9,575,002 8,900,002 10,200,002 7,150,002 ================= ================= ================= ================= ================= ================= $ 1,729,042 $ 1,579,581 $ 2,665,938 $ 4,695,926 $ 3,438,533 $ 2,075,025 ================= ================= ================= ================= ================= ================= $ -- $ -- $ -- $ -- $ -- $ -- ================= ================= ================= ================= ================= ================= $ 1,729,042 $ 1,579,581 $ 2,665,938 $ 4,695,926 $ 3,438,533 $ 2,075,025 ================= ================= ================= ================= ================= ================= $ 222,480,771 $ 210,422,175 $ 311,714,843 $ 281,634,310 $ 385,424,396 $ 238,136,688 ================= ================= ================= ================= ================= ================= $ 15,608,705 $ 8,608,071 $ 20,503,029 $ 10,949,418 $ 26,997,068 $ 12,940,419 ================= ================= ================= ================= ================= ================= </TABLE> See Notes to Financial Statements Page 89 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) AUGUST 31, 2022 <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............ $ 3,020,889 $ 1,766,947 $ 2,380,478 $ 1,665,004 Investments, at value - Affiliated.............. -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total investments, at value.................. 3,020,889 1,766,947 2,380,478 1,665,004 Options contracts purchased, at value........... 314,492,006 190,647,750 232,565,369 164,230,199 Cash............................................ -- -- -- -- Due from broker................................. 871 1,306 -- 203 Receivables: Dividends.................................... 6,915 3,060 4,442 2,434 Capital shares sold.......................... -- -- -- -- Investment securities sold................... -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total Assets................................. 317,520,681 192,419,063 234,950,289 165,897,840 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 18,794,270 12,221,827 14,202,788 8,668,527 Due to broker................................... -- -- -- -- Payables: Investment advisory fees..................... 228,548 133,026 154,126 93,842 Investment securities purchased.............. -- -- -- -- Capital shares purchased..................... -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 19,022,818 12,354,853 14,356,914 8,762,369 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 298,497,863 $ 180,064,210 $ 220,593,375 $ 157,135,471 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 312,079,405 $ 191,240,695 $ 232,581,700 $ 164,253,770 Par value....................................... 82,000 55,500 63,500 50,500 Accumulated distributable earnings (loss)....... (13,663,542) (11,231,985) (12,051,825) (7,168,799) ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 298,497,863 $ 180,064,210 $ 220,593,375 $ 157,135,471 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 36.40 $ 32.44 $ 34.74 $ 31.12 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)................................... 8,200,002 5,550,002 6,350,002 5,050,002 ================ ================= ================= ================= Investments, at cost - Unaffiliated............. $ 3,020,889 $ 1,766,947 $ 2,380,478 $ 1,665,004 ================ ================= ================= ================= Investments, at cost - Affiliated............... $ -- $ -- $ -- $ -- ================ ================= ================= ================= Total investments, at cost...................... $ 3,020,889 $ 1,766,947 $ 2,380,478 $ 1,665,004 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 303,551,310 $ 183,617,614 $ 231,232,543 $ 164,402,961 ================ ================= ================= ================= Premiums received on options contracts written.. $ 20,679,404 $ 10,439,915 $ 15,523,925 $ 9,327,887 ================ ================= ================= ================= </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> $ 3,942,360 $ 1,855,295 $ 460,153 $ 396,245 $ 685,606 $ 2,846,807 -- -- -- -- -- -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 3,942,360 1,855,295 460,153 396,245 685,606 2,846,807 343,022,955 161,225,775 127,752,437 98,611,769 151,444,347 123,714,651 -- -- -- -- -- -- 4,527 -- 479 456 -- 212 3,105 2,128 845 931 1,522 1,323 -- -- -- -- -- -- -- -- -- -- -- -- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 346,972,947 163,083,198 128,213,914 99,009,401 152,131,475 126,562,993 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 23,798,291 5,822,421 2,999,643 21,641 5,653,260 226,386 -- 92 -- -- -- -- 191,553 111,383 92,559 88,501 109,956 105,268 -- -- -- -- -- -- -- -- -- -- -- 2,298,363 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 23,989,844 5,933,896 3,092,202 110,142 5,763,216 2,630,017 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 322,983,103 $ 157,149,302 $ 125,121,712 $ 98,899,259 $ 146,368,259 $ 123,932,976 ================= ================= ================= ================= ================= ================= $ 370,539,603 $ 186,932,093 $ 131,086,631 $ 104,229,710 $ 163,630,397 $ 134,465,384 91,500 49,750 37,500 32,500 44,500 40,500 (47,648,000) (29,832,541) (6,002,419) (5,362,951) (17,306,638) (10,572,908) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 322,983,103 $ 157,149,302 $ 125,121,712 $ 98,899,259 $ 146,368,259 $ 123,932,976 ================= ================= ================= ================= ================= ================= $ 35.30 $ 31.59 $ 33.37 $ 30.43 $ 32.89 $ 30.60 ================= ================= ================= ================= ================= ================= 9,150,002 4,975,002 3,750,002 3,250,002 4,450,002 4,050,002 ================= ================= ================= ================= ================= ================= $ 3,942,360 $ 1,855,295 $ 460,153 $ 396,245 $ 685,606 $ 2,846,807 ================= ================= ================= ================= ================= ================= $ -- $ -- $ -- $ -- $ -- $ -- ================= ================= ================= ================= ================= ================= $ 3,942,360 $ 1,855,295 $ 460,153 $ 396,245 $ 685,606 $ 2,846,807 ================= ================= ================= ================= ================= ================= $ 357,197,842 $ 168,007,183 $ 140,087,907 $ 107,790,452 $ 164,717,539 $ 137,549,441 ================= ================= ================= ================= ================= ================= $ 25,959,525 $ 8,359,015 $ 6,825,018 $ 1,608,222 $ 8,925,684 $ 4,712,348 ================= ================= ================= ================= ================= ================= </TABLE> See Notes to Financial Statements Page 91 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) AUGUST 31, 2022 <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............ $ 1,563,857 $ 2,190,778 $ 1,263,342 $ 1,559,037 Investments, at value - Affiliated.............. -- -- -- -- ---------------- ----------------- ----------------- ----------------- Total investments, at value.................. 1,563,857 2,190,778 1,263,342 1,559,037 Options contracts purchased, at value........... 278,649,360 400,762,390 202,076,129 252,266,972 Cash............................................ -- -- -- -- Due from broker................................. -- -- 6 -- Receivables: Dividends.................................... 3,912 5,072 3,253 2,588 Capital shares sold.......................... 125 -- -- -- Investment securities sold................... 922,607 -- -- -- ---------------- ----------------- ----------------- ----------------- Total Assets................................. 281,139,861 402,958,240 203,342,730 253,828,597 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 18,911,240 2,471,285 13,037,517 2,062,434 Due to broker................................... 484 320 -- 915 Payables: Investment advisory fees..................... 219,642 293,460 163,028 173,209 Investment securities purchased.............. 62,672 -- -- -- Capital shares purchased..................... 887,952 -- -- -- ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 20,081,990 2,765,065 13,200,545 2,236,558 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 261,057,871 $ 400,193,175 $ 190,142,185 $ 251,592,039 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 308,801,127 $ 425,947,598 $ 212,115,434 $ 267,332,406 Par value....................................... 73,500 122,000 60,000 82,750 Accumulated distributable earnings (loss)....... (47,816,756) (25,876,423) (22,033,249) (15,823,117) ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 261,057,871 $ 400,193,175 $ 190,142,185 $ 251,592,039 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 35.52 $ 32.80 $ 31.69 $ 30.40 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)................................... 7,350,002 12,200,002 6,000,002 8,275,002 ================ ================= ================= ================= Investments, at cost - Unaffiliated............. $ 1,563,857 $ 2,190,778 $ 1,263,342 $ 1,559,037 ================ ================= ================= ================= Investments, at cost - Affiliated............... $ -- $ -- $ -- $ -- ================ ================= ================= ================= Total investments, at cost...................... $ 1,563,857 $ 2,190,778 $ 1,263,342 $ 1,559,037 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 300,385,239 $ 427,540,451 $ 219,683,733 $ 267,726,471 ================ ================= ================= ================= Premiums received on options contracts written.. $ 18,506,607 $ 12,819,565 $ 13,273,246 $ 9,067,315 ================ ================= ================= ================= </TABLE> Page 92 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST BUFFERED BUFFERED ALLOCATION ALLOCATION DEFENSIVE ETF GROWTH ETF (BUFT) (BUFG) ----------------- ----------------- <S> <C> $ 36,402 $ 27,895 154,829,790 163,418,986 ----------------- ----------------- 154,866,192 163,446,881 -- -- 5,396,648 -- -- -- 34 43 -- -- -- -- ----------------- ----------------- 160,262,874 163,446,924 ----------------- ----------------- -- -- -- -- 26,513 29,135 5,396,648 -- -- -- ----------------- ----------------- 5,423,161 29,135 ----------------- ----------------- $ 154,839,713 $ 163,417,789 ================= ================= $ 162,753,852 $ 176,832,282 83,000 90,000 (7,997,139) (13,504,493) ----------------- ----------------- $ 154,839,713 $ 163,417,789 ================= ================= $ 18.66 $ 18.16 ================= ================= 8,300,002 9,000,002 ================= ================= $ 36,402 $ 27,895 ================= ================= $ 155,513,131 $ 165,087,842 ================= ================= $ 155,549,533 $ 165,115,737 ================= ================= $ -- $ -- ================= ================= $ -- $ -- ================= ================= </TABLE> See Notes to Financial Statements Page 93 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2022 <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) ---------------- ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> <C> Dividends....................................... $ 7,618 $ 4,399 $ 14,323 $ 13,876 ---------------- ----------------- ----------------- ----------------- Total investment income...................... 7,618 4,399 14,323 13,876 ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 1,398,789 758,166 2,266,419 2,410,993 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 1,398,789 758,166 2,266,419 2,410,993 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (1,391,171) (753,767) (2,252,096) (2,397,117) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated..................... -- -- -- -- In-kind redemptions - Affiliated............. -- -- -- -- Purchased options contracts.................. (18,908,841) (4,842,724) (18,186,718) 9,120,142 Written options contracts.................... 2,616,600 (262,236) 5,297,820 6,613,945 In-kind redemptions - Purchased options contracts................................. 24,417,523 6,627,559 22,410,144 4,917,113 In-kind redemptions - Written options contracts................................. 6,137,682 1,586,707 12,288,801 3,238,302 ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ 14,262,964 3,109,306 21,810,047 23,889,502 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Investments - Affiliated..................... -- -- -- -- Purchased options contracts.................. (25,538,851) (16,034,139) (41,690,645) (52,273,743) Written options contracts.................... 4,729,761 8,183,233 3,374,301 23,032,165 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... (20,809,090) (7,850,906) (38,316,344) (29,241,578) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. (6,546,126) (4,741,600) (16,506,297) (5,352,076) ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ (7,937,297) $ (5,495,367) $ (18,758,393) $ (7,749,193) ================ ================= ================= ================= </TABLE> 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) (DMAR) (FAPR) (DAPR) (FMAY) (DMAY) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ 11,101 $ 9,447 $ 13,989 $ 12,096 $ 16,550 $ 11,104 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 11,101 9,447 13,989 12,096 16,550 11,104 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,167,116 968,430 1,524,101 1,209,285 1,561,175 987,412 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,167,116 968,430 1,524,101 1,209,285 1,561,175 987,412 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (1,156,015) (958,983) (1,510,112) (1,197,189) (1,544,625) (976,308) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- -- -- -- -- -- -- (2,794,946) (2,450,357) (17,449,231) (9,023,955) (11,240,825) (11,641,618) 2,694 (2,880,450) 954,200 2,286,204 221,688 354,010 6,268,692 5,199,069 12,890,463 8,926,358 2,528,003 4,096,366 5,537,769 5,539,946 8,255,737 4,091,904 7,895,801 5,300,346 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 9,014,209 5,408,208 4,651,169 6,280,511 (595,333) (1,890,896) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- (20,023,882) (19,542,701) (20,037,199) (16,773,593) (11,481,800) (8,366,209) 3,281,167 8,699,171 890,175 7,471,848 8,459,289 5,391,117 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (16,742,715) (10,843,530) (19,147,024) (9,301,745) (3,022,511) (2,975,092) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (7,728,506) (5,435,322) (14,495,855) (3,021,234) (3,617,844) (4,865,988) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ (8,884,521) $ (6,394,305) $ (16,005,967) $ (4,218,423) $ (5,162,469) $ (5,842,296) ================= ================= ================= ================= ================= ================= </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, 2022 <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....................................... $ 13,335 $ 8,679 $ 8,797 $ 5,973 ---------------- ----------------- ----------------- ----------------- Total investment income...................... 13,335 8,679 8,797 5,973 ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 1,321,011 791,044 1,318,922 655,537 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 1,321,011 791,044 1,318,922 655,537 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (1,307,676) (782,365) (1,310,125) (649,564) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated..................... -- -- -- -- In-kind redemptions - Affiliated............. -- -- -- -- Purchased options contracts.................. (14,385,253) (14,247,796) (16,980,388) (8,855,539) Written options contracts.................... 66,222 (42,332) 4,078,353 3,159,658 In-kind redemptions - Purchased options contracts................................. 5,524,478 3,287,306 6,973,912 871,185 In-kind redemptions - Written options contracts................................. 6,112,408 5,034,837 4,319,799 766,292 ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ (2,682,145) (5,967,985) (1,608,324) (4,058,404) ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Investments - Affiliated..................... -- -- -- -- Purchased options contracts.................. 5,069,218 4,540,663 (1,816,722) (1,893,470) Written options contracts.................... 3,224,853 (283,036) 1,539,907 1,484,938 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... 8,294,071 4,257,627 (276,815) (408,532) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. 5,611,926 (1,710,358) (1,885,139) (4,466,936) ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 4,304,250 $ (2,492,723) $ (3,195,264) $ (5,116,500) ================ ================= ================= ================= </TABLE> 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) (DSEP) (FOCT) (DOCT) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ 12,307 $ 6,650 $ 3,314 $ 2,428 $ 5,070 $ 3,710 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 12,307 6,650 3,314 2,428 5,070 3,710 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,753,459 1,210,114 1,053,459 618,470 1,251,080 879,792 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,753,459 1,210,114 1,053,459 618,470 1,251,080 879,792 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (1,741,152) (1,203,464) (1,050,145) (616,042) (1,246,010) (876,082) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- -- -- -- -- -- -- (19,189,671) (15,567,904) 927,265 1,663,740 (3,589,562) 1,338,453 269,397 5,415,213 (2,816,149) (3,011,908) (5,158,939) (4,800,780) 3,760,190 505,118 2,411,840 1,133,172 12,502,630 6,953,100 15,474,801 2,065,379 2,981,400 2,329,843 4,373,282 2,502,959 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- 314,717 (7,582,194) 3,504,356 2,114,847 8,127,411 5,993,732 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -- -- -- -- -- -- (13,861,593) (7,920,087) (14,351,091) (11,460,158) (24,008,573) (21,694,531) 282,934 2,797,291 7,705,807 5,240,592 7,329,975 9,386,756 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (13,578,659) (5,122,796) (6,645,284) (6,219,566) (16,678,598) (12,307,775) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (13,263,942) (12,704,990) (3,140,928) (4,104,719) (8,551,187) (6,314,043) ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ (15,005,094) $ (13,908,454) $ (4,191,073) $ (4,720,761) $ (9,797,197) $ (7,190,125) ================= ================= ================= ================= ================= ================= </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, 2022 <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) ---------------- ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> <C> Dividends....................................... $ 11,027 $ 13,343 $ 9,381 $ 8,302 ---------------- ----------------- ----------------- ----------------- Total investment income...................... 11,027 13,343 9,381 8,302 ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 2,206,424 1,961,598 1,475,635 1,063,427 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 2,206,424 1,961,598 1,475,635 1,063,427 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (2,195,397) (1,948,255) (1,466,254) (1,055,125) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated..................... -- -- -- -- In-kind redemptions - Affiliated............. -- -- -- -- Purchased options contracts.................. (1,923,726) 12,704,359 (3,266,605) (1,400,072) Written options contracts.................... (19,510,944) (14,793,170) (4,477,593) (6,238,970) In-kind redemptions - Purchased options contracts................................. 28,778,270 8,473,110 14,043,582 11,551,058 In-kind redemptions - Written options contracts................................. 7,900,624 582,969 4,169,743 498,362 ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ 15,244,224 6,967,268 10,469,127 4,410,378 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Investments - Affiliated..................... -- -- -- -- Purchased options contracts.................. (44,522,769) (43,056,874) (25,688,391) (23,405,351) Written options contracts.................... 9,318,978 22,768,382 1,777,650 11,788,682 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... (35,203,791) (20,288,492) (23,910,741) (11,616,669) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. (19,959,567) (13,321,224) (13,441,614) (7,206,291) ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ (22,154,964) $ (15,269,479) $ (14,907,868) $ (8,261,416) ================ ================= ================= ================= </TABLE> (a) Inception date is October 26, 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 BUFFERED BUFFERED ALLOCATION ALLOCATION DEFENSIVE ETF GROWTH ETF (BUFT) (a) (BUFG) (a) ----------------- ----------------- <S> <C> $ 146 $ 185 ----------------- ----------------- 146 185 ----------------- ----------------- 153,457 196,736 ----------------- ----------------- 153,457 196,736 ----------------- ----------------- (153,311) (196,551) ----------------- ----------------- (7,352,290) (16,411,579) 169,496 5,082,779 -- -- -- -- -- -- -- -- ----------------- ----------------- (7,182,794) (11,328,800) ----------------- ----------------- (683,341) (1,668,856) -- -- -- -- ----------------- ----------------- (683,341) (1,668,856) ----------------- ----------------- (7,866,135) (12,997,656) ----------------- ----------------- $ (8,019,446) $ (13,194,207) ================= ================= </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 U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - JANUARY JANUARY (FJAN) (DJAN) ----------------------------------- ----------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/2022 8/31/2021 (a) 8/31/2022 8/31/2021 (a) ---------------- ---------------- ---------------- ---------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (1,391,171) $ (517,448) $ (753,767) $ (337,187) Net realized gain (loss)........................ 14,262,964 221,247 3,109,306 3,003,904 Net change in unrealized appreciation (depreciation)............................... (20,809,090) 9,801,985 (7,850,906) 1,442,263 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations.............................. (7,937,297) 9,505,784 (5,495,367) 4,108,980 ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 328,102,017 133,165,845 159,018,136 134,581,825 Cost of shares redeemed......................... (257,742,698) (15,860,390) (70,102,594) (89,180,193) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 70,359,319 117,305,455 88,915,542 45,401,632 ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets......... 62,422,022 126,811,239 83,420,175 49,510,612 NET ASSETS: Beginning of period............................. 126,811,239 -- 49,510,612 -- ---------------- ---------------- ---------------- ---------------- End of period................................... $ 189,233,261 $ 126,811,239 $ 132,930,787 $ 49,510,612 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 3,800,002 -- 1,550,002 -- Shares sold..................................... 9,675,000 4,300,002 4,975,000 4,400,002 Shares redeemed................................. (7,625,000) (500,000) (2,200,000) (2,850,000) ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period............... 5,850,002 3,800,002 4,325,002 1,550,002 ================ ================ ================ ================ </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 March 19, 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 U.S. EQUITY U.S. EQUITY U.S. EQUITY BUFFER ETF - DEEP BUFFER ETF - BUFFER ETF- FEBRUARY FEBRUARY MARCH (FFEB) (DFEB) (FMAR) ----------------------------------- ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED 8/31/2022 8/31/2021 8/31/2022 8/31/2021 8/31/2022 8/31/2021 (b) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> <C> $ (2,252,096) $ (2,051,083) $ (2,397,117) $ (3,281,965) $ (1,156,015) $ (248,208) 21,810,047 39,681,194 23,889,502 80,777,145 9,014,209 (11,373) (38,316,344) 7,240,170 (29,241,578) (37,234,562) (16,742,715) 5,354,576 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (18,758,393) 44,870,281 (7,749,193) 40,260,618 (8,884,521) 5,094,995 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 352,535,376 373,472,561 165,534,703 471,709,089 312,117,345 85,226,492 (289,151,113) (370,815,309) (137,313,869) (763,611,447) (188,778,497) (7,712,105) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 63,384,263 2,657,252 28,220,834 (291,902,358) 123,338,848 77,514,387 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 44,625,870 47,527,533 20,471,641 (251,641,740) 114,454,327 82,609,382 258,452,950 210,925,417 282,633,899 534,275,639 82,609,382 -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 303,078,820 $ 258,452,950 $ 303,105,540 $ 282,633,899 $ 197,063,709 $ 82,609,382 ================ ================ ================ ================ ================ ================ 6,900,002 6,700,002 8,150,002 17,100,002 2,550,002 -- 9,425,000 11,200,000 4,725,000 14,700,000 9,650,000 2,800,002 (7,775,000) (11,000,000) (3,950,000) (23,650,000) (5,900,000) (250,000) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 8,550,002 6,900,002 8,925,002 8,150,002 6,300,002 2,550,002 ================ ================ ================ ================ ================ ================ </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 DEEP BUFFER ETF - BUFFER ETF - MARCH APRIL (DMAR) (FAPR) ----------------------------------- ----------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/2022 8/31/2021 (b) 8/31/2022 8/31/2021 (c) ---------------- ---------------- ---------------- ---------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (958,983) $ (214,653) $ (1,510,112) $ (334,180) Net realized gain (loss)........................ 5,408,208 2,840,305 4,651,169 3,484 Net change in unrealized appreciation (depreciation)............................... (10,843,530) 339,850 (19,147,024) 6,985,982 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations.............................. (6,394,305) 2,965,502 (16,005,967) 6,655,286 ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 264,607,946 91,038,951 416,433,966 141,902,180 Cost of shares redeemed......................... (131,473,973) (27,951,482) (253,668,242) (13,806,156) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 133,133,973 63,087,469 162,765,724 128,096,024 ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets......... 126,739,668 66,052,971 146,759,757 134,751,310 NET ASSETS: Beginning of period............................. 66,052,971 -- 134,751,310 -- ---------------- ---------------- ---------------- ---------------- End of period................................... $ 192,792,639 $ 66,052,971 $ 281,511,067 $ 134,751,310 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 2,100,002 -- 4,250,002 -- Shares sold..................................... 8,425,000 3,000,002 13,375,000 4,700,002 Shares redeemed................................. (4,175,000) (900,000) (8,050,000) (450,000) ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period............... 6,350,002 2,100,002 9,575,002 4,250,002 ================ ================ ================ ================ </TABLE> (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. 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 DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF- APRIL MAY MAY (DAPR) (FMAY) (DMAY) ----------------------------------- ----------------------------------- ----------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 8/31/2022 8/31/2021 (c) 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> <C> $ (1,197,189) $ (293,956) $ (1,544,625) $ (603,241) $ (976,308) $ (243,030) 6,280,511 1,893,188 (595,333) 6,819,624 (1,890,896) 1,159,456 (9,301,745) 2,189,341 (3,022,511) 2,540,824 (2,975,092) 1,372,998 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (4,218,423) 3,788,573 (5,162,469) 8,757,207 (5,842,296) 2,289,424 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 345,991,375 146,182,323 466,357,686 182,819,078 335,159,808 77,943,486 (169,165,052) (56,745,334) (209,223,301) (118,187,369) (166,669,713) (28,116,886) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 176,826,323 89,436,989 257,134,385 64,631,709 168,490,095 49,826,600 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 172,607,900 93,225,562 251,971,916 73,388,916 162,647,799 52,116,024 93,225,562 -- 111,875,846 38,486,930 63,370,615 11,254,591 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 265,833,462 $ 93,225,562 $ 363,847,762 $ 111,875,846 $ 226,018,414 $ 63,370,615 ================ ================ ================ ================ ================ ================ 3,000,002 -- 3,000,002 1,150,002 1,850,002 350,002 11,300,000 4,850,002 13,125,000 5,200,000 10,500,000 2,350,000 (5,400,000) (1,850,000) (5,925,000) (3,350,000) (5,200,000) (850,000) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 8,900,002 3,000,002 10,200,002 3,000,002 7,150,002 1,850,002 ================ ================ ================ ================ ================ ================ </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 BUFFER ETF - DEEP BUFFER ETF - JUNE JUNE (FJUN) (DJUN) ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (1,307,676) $ (535,737) $ (782,365) $ (199,732) Net realized gain (loss)........................ (2,682,145) 8,204,605 (5,967,985) 1,881,474 Net change in unrealized appreciation (depreciation)............................... 8,294,071 1,204,882 4,257,627 194,237 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations.............................. 4,304,250 8,873,750 (2,492,723) 1,875,979 ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 334,243,119 137,956,049 265,756,218 57,855,267 Cost of shares redeemed......................... (153,124,271) (82,599,741) (129,150,213) (34,330,998) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 181,118,848 55,356,308 136,606,005 23,524,269 ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets......... 185,423,098 64,230,058 134,113,282 25,400,248 NET ASSETS: Beginning of period............................. 113,074,765 48,844,707 45,950,928 20,550,680 ---------------- ---------------- ---------------- ---------------- End of period................................... $ 298,497,863 $ 113,074,765 $ 180,064,210 $ 45,950,928 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 3,050,002 1,500,002 1,350,002 650,002 Shares sold..................................... 9,450,000 3,900,000 8,275,000 1,750,000 Shares redeemed................................. (4,300,000) (2,350,000) (4,075,000) (1,050,000) ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period............... 8,200,002 3,050,002 5,550,002 1,350,002 ================ ================ ================ ================ </TABLE> Page 104 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 - JULY JULY AUGUST (FJUL) (DJUL) (FAUG) ----------------------------------- ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 8/31/2022 8/31/2021 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> <C> $ (1,310,125) $ (351,194) $ (649,564) $ (172,669) $ (1,741,152) $ (797,507) (1,608,324) 4,419,554 (4,058,404) 1,207,182 314,717 13,839,939 (276,815) 2,003,769 (408,532) 680,378 (13,578,659) 1,184,195 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (3,195,264) 6,072,129 (5,116,500) 1,714,891 (15,005,094) 14,226,627 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 256,049,793 140,264,490 138,113,236 64,560,989 505,209,564 255,932,223 (156,983,382) (54,808,830) (30,595,982) (23,925,407) (322,863,018) (150,763,677) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 99,066,411 85,455,660 107,517,254 40,635,582 182,346,546 105,168,546 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 95,871,147 91,527,789 102,400,754 42,350,473 167,341,452 119,395,173 124,722,228 33,194,439 54,734,717 12,384,244 155,641,651 36,246,478 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 220,593,375 $ 124,722,228 $ 157,135,471 $ 54,734,717 $ 322,983,103 $ 155,641,651 ================ ================ ================ ================ ================ ================ 3,500,002 1,050,002 1,650,002 400,002 4,150,002 1,100,002 7,450,000 4,100,000 4,375,000 2,000,000 13,750,000 7,200,000 (4,600,000) (1,650,000) (975,000) (750,000) (8,750,000) (4,150,000) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 6,350,002 3,500,002 5,050,002 1,650,002 9,150,002 4,150,002 ================ ================ ================ ================ ================ ================ </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 DEEP BUFFER ETF - BUFFER ETF - AUGUST SEPTEMBER (DAUG) (FSEP) ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED 8/31/2022 8/31/2021 8/31/2022 8/31/2021 (d) ---------------- ---------------- ---------------- ---------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (1,203,464) $ (967,283) $ (1,050,145) $ (197,943) Net realized gain (loss)........................ (7,582,194) 10,568,579 3,504,356 5,253,628 Net change in unrealized appreciation (depreciation)............................... (5,122,796) (169,096) (6,645,284) (1,864,811) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations.............................. (13,908,454) 9,432,200 (4,191,073) 3,190,874 ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 139,069,655 110,399,422 170,863,306 70,091,179 Cost of shares redeemed......................... (58,381,894) (162,893,118) (82,894,617) (31,937,957) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 80,687,761 (52,493,696) 87,968,689 38,153,222 ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets......... 66,779,307 (43,061,496) 83,777,616 41,344,096 NET ASSETS: Beginning of period............................. 90,369,995 133,431,491 41,344,096 -- ---------------- ---------------- ---------------- ---------------- End of period................................... $ 157,149,302 $ 90,369,995 $ 125,121,712 $ 41,344,096 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 2,600,002 4,150,002 1,200,002 -- Shares sold..................................... 4,150,000 3,300,000 5,000,000 2,150,002 Shares redeemed................................. (1,775,000) (4,850,000) (2,450,000) (950,000) ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period............... 4,975,002 2,600,002 3,750,002 1,200,002 ================ ================ ================ ================ </TABLE> (d) 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. (e) 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 106 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 DEEP BUFFER ETF - BUFFER ETF - DEEP BUFFER ETF - SEPTEMBER OCTOBER OCTOBER (DSEP) (FOCT) (DOCT) ----------------------------------- ----------------------------------- ----------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED 8/31/2022 8/31/2021 (d) 8/31/2022 8/31/2021 (e) 8/31/2022 8/31/2021 (e) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> <C> $ (616,042) $ (200,274) $ (1,246,010) $ (426,374) $ (876,082) $ (257,031) 2,114,847 3,712,900 8,127,411 1,818,298 5,993,732 284,354 (6,219,566) (1,372,536) (16,678,598) 6,677,830 (12,307,775) 2,958,947 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (4,720,761) 2,140,090 (9,797,197) 8,069,754 (7,190,125) 2,986,270 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 123,483,254 61,367,325 221,146,291 80,609,489 157,311,288 55,024,234 (45,704,144) (37,666,505) (135,510,246) (18,149,832) (66,698,871) (17,499,820) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 77,779,110 23,700,820 85,636,045 62,459,657 90,612,417 37,524,414 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 73,058,349 25,840,910 75,838,848 70,529,411 83,422,292 40,510,684 25,840,910 -- 70,529,411 -- 40,510,684 -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 98,899,259 $ 25,840,910 $ 146,368,259 $ 70,529,411 $ 123,932,976 $ 40,510,684 ================ ================ ================ ================ ================ ================ 800,002 -- 2,050,002 -- 1,250,002 -- 3,925,000 2,000,002 6,400,000 2,600,002 4,900,000 1,800,002 (1,475,000) (1,200,000) (4,000,000) (550,000) (2,100,000) (550,000) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 3,250,002 800,002 4,450,002 2,050,002 4,050,002 1,250,002 ================ ================ ================ ================ ================ ================ </TABLE> See Notes to Financial Statements Page 107 <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 YEAR ENDED YEAR ENDED YEAR ENDED 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................... $ (2,195,397) $ (1,452,873) $ (1,948,255) $ (920,733) Net realized gain (loss)........................ 15,244,224 26,834,660 6,967,268 24,507,324 Net change in unrealized appreciation (depreciation)............................... (35,203,791) 143,688 (20,288,492) (14,364,371) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations.............................. (22,154,964) 25,525,475 (15,269,479) 9,222,220 ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold....................... 371,618,707 268,015,815 419,849,301 110,679,599 Cost of shares redeemed......................... (232,021,535) (288,058,581) (95,354,206) (174,946,705) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions................ 139,597,172 (20,042,766) 324,495,095 (64,267,106) ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets......... 117,442,208 5,482,709 309,225,616 (55,044,886) NET ASSETS: Beginning of period............................. 143,615,663 138,132,954 90,967,559 146,012,445 ---------------- ---------------- ---------------- ---------------- End of period................................... $ 261,057,871 $ 143,615,663 $ 400,193,175 $ 90,967,559 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period......... 3,750,002 4,200,002 2,600,002 4,550,002 Shares sold..................................... 9,775,000 7,800,000 12,425,000 3,400,000 Shares redeemed................................. (6,175,000) (8,250,000) (2,825,000) (5,350,000) ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period............... 7,350,002 3,750,002 12,200,002 2,600,002 ================ ================ ================ ================ </TABLE> (f) 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. (g) Inception date is October 26, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 108 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY U.S. EQUITY BUFFERED BUFFERED BUFFER ETF - DEEP BUFFER ETF - ALLOCATION ALLOCATION DECEMBER DECEMBER DEFENSIVE ETF GROWTH ETF (FDEC) (DDEC) (BUFT) (BUFG) ----------------------------------- ----------------------------------- ---------------- ---------------- YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED 8/31/2022 8/31/2021 (f) 8/31/2022 8/31/2021 (f) 8/31/2022 (g) 8/31/2022 (g) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> <C> <C> $ (1,466,254) $ (362,338) $ (1,055,125) $ (328,334) $ (153,311) $ (196,551) 10,469,127 567,487 4,410,378 530,775 (7,182,794) (11,328,800) (23,910,741) 6,538,866 (11,616,669) 3,162,051 (683,341) (1,668,856) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (14,907,868) 6,744,015 (8,261,416) 3,364,492 (8,019,446) (13,194,207) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 309,044,897 112,246,925 293,161,831 101,213,467 184,494,161 402,524,414 (174,937,879) (48,047,905) (92,853,883) (45,032,452) (21,635,002) (225,912,418) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 134,107,018 64,199,020 200,307,948 56,181,015 162,859,159 176,611,996 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 119,199,150 70,943,035 192,046,532 59,545,507 154,839,713 163,417,789 70,943,035 -- 59,545,507 -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 190,142,185 $ 70,943,035 $ 251,592,039 $ 59,545,507 $ 154,839,713 $ 163,417,789 ================ ================ ================ ================ ================ ================ 2,100,002 -- 1,850,002 -- -- -- 9,175,000 3,600,002 9,325,000 3,300,002 9,400,002 21,000,002 (5,275,000) (1,500,000) (2,900,000) (1,450,000) (1,100,000) (12,000,000) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 6,000,002 2,100,002 8,275,002 1,850,002 8,300,002 9,000,002 ================ ================ ================ ================ ================ ================ </TABLE> See Notes to Financial Statements Page 109 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - JANUARY (FJAN) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 33.37 $ 30.06 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.19) (0.14) Net realized and unrealized gain (loss)........................ (0.83) 3.45 -------- -------- Total from investment operations............................... (1.02) 3.31 -------- -------- Net asset value, end of period................................. $ 32.35 $ 33.37 ======== ======== TOTAL RETURN (b)............................................... (3.06)% 11.01% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $189,233 $126,811 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 - JANUARY (DJAN) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.94 $ 30.06 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.04) (0.22) Net realized and unrealized gain (loss)........................ (1.16) 2.10 -------- -------- Total from investment operations............................... (1.20) 1.88 -------- -------- Net asset value, end of period................................. $ 30.74 $ 31.94 ======== ======== TOTAL RETURN (b)............................................... (3.76)% 6.25% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $132,931 $ 49,511 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 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 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 110 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 ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 37.46 $ 31.48 $ 30.68 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.22) (0.30) (0.08) Net realized and unrealized gain (loss)........................ (1.79) 6.28 0.88 -------- -------- -------- Total from investment operations............................... (2.01) 5.98 0.80 -------- -------- -------- Net asset value, end of period................................. $ 35.45 $ 37.46 $ 31.48 ======== ======== ======== TOTAL RETURN (b)............................................... (5.37)% 19.00% 2.61% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $303,079 $258,453 $210,925 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - FEBRUARY (DFEB) YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 34.68 $ 31.24 $ 30.68 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.25) (0.52) (0.11) Net realized and unrealized gain (loss)........................ (0.47) 3.96 0.67 -------- -------- -------- Total from investment operations............................... (0.72) 3.44 0.56 -------- -------- -------- Net asset value, end of period................................. $ 33.96 $ 34.68 $ 31.24 ======== ======== ======== TOTAL RETURN (b)............................................... (2.08)% 11.01% 1.83% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $303,106 $282,634 $534,276 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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 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 - MARCH (FMAR) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.40 $ 29.60 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.13) (0.10) Net realized and unrealized gain (loss)........................ (0.99) 2.90 -------- -------- Total from investment operations............................... (1.12) 2.80 -------- -------- Net asset value, end of period................................. $ 31.28 $ 32.40 ======== ======== TOTAL RETURN (b)............................................... (3.46)% 9.46% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $197,064 $ 82,609 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.... (0.84)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MARCH (DMAR) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.45 $ 29.60 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.09) (0.10) Net realized and unrealized gain (loss)........................ (1.00) 1.95 -------- -------- Total from investment operations............................... (1.09) 1.85 -------- -------- Net asset value, end of period................................. $ 30.36 $ 31.45 ======== ======== TOTAL RETURN (b)............................................... (3.47)% 6.25% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $192,793 $ 66,053 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.... (0.84)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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 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 - APRIL (FAPR) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.71 $ 30.04 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.12) (0.08) Net realized and unrealized gain (loss)........................ (2.19) 1.75 -------- -------- Total from investment operations............................... (2.31) 1.67 -------- -------- Net asset value, end of period................................. $ 29.40 $ 31.71 ======== ======== TOTAL RETURN (b)............................................... (7.28)% 5.56% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $281,511 $134,751 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.... (0.84)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - APRIL (DAPR) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 31.08 $ 30.04 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.07) (0.10) Net realized and unrealized gain (loss)........................ (1.14) 1.14 -------- -------- Total from investment operations............................... (1.21) 1.04 -------- -------- Net asset value, end of period................................. $ 29.87 $ 31.08 ======== ======== TOTAL RETURN (b)............................................... (3.89)% 3.46% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $265,833 $ 93,226 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.... (0.84)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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 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 - MAY (FMAY) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 37.29 $ 33.47 $ 30.34 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.05) (0.16) (0.07) Net realized and unrealized gain (loss)........................ (1.57) 3.98 3.20 -------- -------- -------- Total from investment operations............................... (1.62) 3.82 3.13 -------- -------- -------- Net asset value, end of period................................. $ 35.67 $ 37.29 $ 33.47 ======== ======== ======== TOTAL RETURN (b)............................................... (4.34)% 11.41% 10.32% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $363,848 $111,876 $ 38,487 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - MAY (DMAY) YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 34.25 $ 32.16 $ 30.35 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.05) (0.08) (0.07) Net realized and unrealized gain (loss)........................ (2.59) 2.17 1.88 -------- -------- -------- Total from investment operations............................... (2.64) 2.09 1.81 -------- -------- -------- Net asset value, end of period................................. $ 31.61 $ 34.25 $ 32.16 ======== ======== ======== TOTAL RETURN (b)............................................... (7.71)% 6.50% 5.96% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $226,018 $ 63,371 $ 11,255 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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 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 - JUNE (FJUN) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 37.07 $ 32.56 $ 30.25 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (0.15) (0.05) Net realized and unrealized gain (loss)........................ (0.59) (b) 4.66 2.36 -------- -------- -------- Total from investment operations............................... (0.67) 4.51 2.31 -------- -------- -------- Net asset value, end of period................................. $ 36.40 $ 37.07 $ 32.56 ======== ======== ======== TOTAL RETURN (c)............................................... (1.81)% 13.85% 7.64% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $298,498 $113,075 $ 48,845 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (d) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (d) Portfolio turnover rate (e).................................... 0% 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JUNE (DJUN) YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 34.04 $ 31.62 $ 30.25 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.07) (0.13) (0.04) Net realized and unrealized gain (loss)........................ (1.53) 2.55 1.41 -------- -------- -------- Total from investment operations............................... (1.60) 2.42 1.37 -------- -------- -------- Net asset value, end of period................................. $ 32.44 $ 34.04 $ 31.62 ======== ======== ======== TOTAL RETURN (c)............................................... (4.70)% 7.65% 4.53% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $180,064 $ 45,951 $ 20,551 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (d) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (d) Portfolio turnover rate (e).................................... 0% 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) The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund share sales and repurchases in relation to market value fluctuation of the underlying investments. (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, 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 EACH PERIOD FT CBOE VEST U.S. EQUITY BUFFER ETF - JULY (FJUL) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 35.63 $ 31.61 $ 30.24 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.17) (0.09) (0.02) Net realized and unrealized gain (loss)........................ (0.72) 4.11 1.39 -------- -------- -------- Total from investment operations............................... (0.89) 4.02 1.37 -------- -------- -------- Net asset value, end of period................................. $ 34.74 $ 35.63 $ 31.61 ======== ======== ======== TOTAL RETURN (b)............................................... (2.50)% 12.72% 4.53% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $220,593 $124,722 $ 33,194 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - JULY (DJUL) YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 33.17 $ 30.96 $ 30.24 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (0.09) (0.02) Net realized and unrealized gain (loss)........................ (1.97) 2.30 0.74 -------- -------- -------- Total from investment operations............................... (2.05) 2.21 0.72 -------- -------- -------- Net asset value, end of period................................. $ 31.12 $ 33.17 $ 30.96 ======== ======== ======== TOTAL RETURN (b)............................................... (6.18)% 7.14% 2.38% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $157,135 $ 54,735 $ 12,384 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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 116 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 ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 37.50 $ 32.95 $ 30.10 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.12) (0.13) (0.08) Net realized and unrealized gain (loss)........................ (2.08) 4.68 2.93 -------- -------- -------- Total from investment operations............................... (2.20) 4.55 2.85 -------- -------- -------- Net asset value, end of period................................. $ 35.30 $ 37.50 $ 32.95 ======== ======== ======== TOTAL RETURN (b)............................................... (5.87)% 13.81% 9.47% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $322,983 $155,642 $ 36,246 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.83)% (c) Portfolio turnover rate (d).................................... 0% 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - AUGUST (DAUG) YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 34.76 $ 32.15 $ 30.10 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.14) (0.49) (0.19) Net realized and unrealized gain (loss)........................ (3.03) 3.10 2.24 -------- -------- -------- Total from investment operations............................... (3.17) 2.61 2.05 -------- -------- -------- Net asset value, end of period................................. $ 31.59 $ 34.76 $ 32.15 ======== ======== ======== TOTAL RETURN (b)............................................... (9.12)% 8.12% 6.81% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $157,149 $ 90,370 $133,431 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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 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 - SEPTEMBER (FSEP) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 34.45 $ 29.76 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.17) (0.16) Net realized and unrealized gain (loss)........................ (0.91) 4.85 -------- -------- Total from investment operations............................... (1.08) 4.69 -------- -------- Net asset value, end of period................................. $ 33.37 $ 34.45 ======== ======== TOTAL RETURN (b)............................................... (3.13)% 15.76% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $125,122 $ 41,344 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 - SEPTEMBER (DSEP) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.30 $ 29.76 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.27) (e) (0.25) Net realized and unrealized gain (loss)........................ (1.60) 2.79 -------- -------- Total from investment operations............................... (1.87) 2.54 -------- -------- Net asset value, end of period................................. $ 30.43 $ 32.30 ======== ======== TOTAL RETURN (b)............................................... (5.79)% 8.53% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 98,899 $ 25,841 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 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 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. (e) Based on average shares outstanding. Page 118 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 - OCTOBER (FOCT) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 34.40 $ 29.87 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.17) (0.21) Net realized and unrealized gain (loss)........................ (1.34) 4.74 -------- -------- Total from investment operations............................... (1.51) 4.53 -------- -------- Net asset value, end of period................................. $ 32.89 $ 34.40 ======== ======== TOTAL RETURN (b)............................................... (4.39)% 15.17% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $146,368 $ 70,529 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 - OCTOBER (DOCT) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.41 $ 29.87 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (0.21) Net realized and unrealized gain (loss)........................ (1.73) 2.75 -------- -------- Total from investment operations............................... (1.81) 2.54 -------- -------- Net asset value, end of period................................. $ 30.60 $ 32.41 ======== ======== TOTAL RETURN (b)............................................... (5.58)% 8.50% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $123,933 $ 40,511 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 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 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 119 <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 ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 38.30 $ 32.89 $ 30.56 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.05) (0.40) (0.10) Net realized and unrealized gain (loss)........................ (2.73) 5.81 2.43 -------- -------- -------- Total from investment operations............................... (2.78) 5.41 2.33 -------- -------- -------- Net asset value, end of period................................. $ 35.52 $ 38.30 $ 32.89 ======== ======== ======== TOTAL RETURN (b)............................................... (7.26)% 16.45% 7.62% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $261,058 $143,616 $138,133 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.85)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - NOVEMBER (DNOV) YEAR ENDED AUGUST 31, PERIOD ------------------------------ ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 34.99 $ 32.09 $ 30.55 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.28) (e) (0.43) (0.10) Net realized and unrealized gain (loss)........................ (1.91) 3.33 1.64 -------- -------- -------- Total from investment operations............................... (2.19) 2.90 1.54 -------- -------- -------- Net asset value, end of period................................. $ 32.80 $ 34.99 $ 32.09 ======== ======== ======== TOTAL RETURN (b)............................................... (6.26)% 9.04% 5.04% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $400,193 $ 90,968 $146,012 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (c) Ratio of net investment income (loss) to average net assets.... (0.84)% (0.85)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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. (e) Based on average shares outstanding. Page 120 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 - DECEMBER (FDEC) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 33.78 $ 30.27 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.28) (b) (0.17) Net realized and unrealized gain (loss)........................ (1.81) 3.68 -------- -------- Total from investment operations............................... (2.09) 3.51 -------- -------- Net asset value, end of period................................. $ 31.69 $ 33.78 ======== ======== TOTAL RETURN (c)............................................... (6.19)% 11.60% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $190,142 $ 70,943 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.... (0.84)% (0.85)% (d) Portfolio turnover rate (e).................................... 0% 0% FT CBOE VEST U.S. EQUITY DEEP BUFFER ETF - DECEMBER (DDEC) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 32.19 $ 30.27 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.26) (b) (0.18) Net realized and unrealized gain (loss)........................ (1.53) 2.10 -------- -------- Total from investment operations............................... (1.79) 1.92 -------- -------- Net asset value, end of period................................. $ 30.40 $ 32.19 ======== ======== TOTAL RETURN (c)............................................... (5.56)% 6.34% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $251,592 $ 59,546 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.... (0.84)% (0.85)% (d) Portfolio turnover rate (e).................................... 0% 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) Based on average shares outstanding. (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, derivatives and in-kind transactions. See Notes to Financial Statements Page 121 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST BUFFERED ALLOCATION DEFENSIVE ETF (BUFT) <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.01 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.02) Net realized and unrealized gain (loss)........................ (1.33) -------- Total from investment operations............................... (1.35) -------- Net asset value, end of period................................. $ 18.66 ======== TOTAL RETURN (b)............................................... (6.75)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $154,840 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).................................... 445% FT CBOE VEST BUFFERED ALLOCATION GROWTH ETF (BUFG) PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.01 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.02) Net realized and unrealized gain (loss)........................ (1.83) -------- Total from investment operations............................... (1.85) -------- Net asset value, end of period................................. $ 18.16 ======== TOTAL RETURN (b)............................................... (9.25)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $163,418 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).................................... 411% </TABLE> (a) Inception date is October 26, 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) 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 122 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six 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") FT Cboe Vest U.S. Equity Deep Buffer ETF - January - (ticker "DJAN") 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") FT Cboe Vest U.S. Equity Deep Buffer ETF - March - (ticker "DMAR") FT Cboe Vest U.S. Equity Buffer ETF - April - (ticker "FAPR") FT Cboe Vest U.S. Equity Deep Buffer ETF - April - (ticker "DAPR") 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") FT Cboe Vest U.S. Equity Deep Buffer ETF - September - (ticker "DSEP") FT Cboe Vest U.S. Equity Buffer ETF - October - (ticker "FOCT") FT Cboe Vest U.S. Equity Deep Buffer ETF - October - (ticker "DOCT") 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") FT Cboe Vest U.S. Equity Deep Buffer ETF - December - (ticker "DDEC") FT Cboe Vest Buffered Allocation Defensive ETF - (ticker "BUFT")(1) FT Cboe Vest Buffered Allocation Growth ETF - (ticker "BUFG")(1) (1) Commenced investment operations on October 26, 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 ("ETF"). 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 14.20% (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 January 24, 2022 to January 20, 2023. Prior to January 24, 2022, the Fund's investment objective included an 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) and an Outcome Period of 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 9.03% (before fees, expenses and taxes) and 8.18% (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 24, 2022 to Page 123 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 January 20, 2023. Prior to January 24, 2022, the Fund's investment objective included an 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) and an Outcome Period of January 19, 2021 to January 21, 2022. 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 14.25% (before fees, expenses and taxes) and 13.40% (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, 2022 to February 17, 2023. Prior to February 22, 2022, the Fund's investment objective included an 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) and an Outcome Period of February 22, 2021 to February 18, 2022. 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 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 February 22, 2022 to February 17, 2023. Prior to February 22, 2022, the Fund's investment objective included an 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) and an Outcome Period of February 22, 2021 to February 18, 2022. 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 14.78% (before fees, expenses and taxes) and 13.93% (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 21, 2022 to March 17, 2023. Prior to March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of 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 10.02% (before fees, expenses and taxes) and 9.17% (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 21, 2022 to March 17, 2023. Prior to March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of 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 16.35% (before fees, expenses and taxes) and 15.48% (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 18, 2022 to April 21, 2023. Prior to April 18, 2022, the Fund's investment objective included an 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) and an Outcome Period of 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 10.96% (before fees, expenses and taxes) and 10.09% (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 18, 2022 to April 21, 2023. Prior to April 18, 2022, 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 April 19, 2021 to April 14, 2022. Page 124 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 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 20.45% (before fees, expenses and taxes) and 19.60% (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 23, 2022 to May 19, 2023. Prior to May 23, 2022, the Fund's investment objective included an 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) and an Outcome Period of May 24, 2021 to May 20, 2022. 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 13.93% (before fees, expenses and taxes) and 13.08% (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 23, 2022 to May 19, 2023. Prior to May 23, 2022, the Fund's investment objective included an 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) and an Outcome Period of May 24, 2021 to May 20, 2022. 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 22.20% (before fees, expenses and taxes) and 21.35% (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 June 21, 2022 to June 16, 2023. Prior to June 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. 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 15.59% (before fees, expenses and taxes) and 14.74% (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, 2022 to June 16, 2023. Prior to June 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. 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 21.30% (before fees, expenses and taxes) and 20.44% (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 18, 2022 to July 21, 2023. Prior to July 18, 2022, the Fund's investment objective included an 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) and an Outcome Period of July 19, 2021 to July 15, 2022. 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 15.02% (before fees, expenses and taxes) and 14.16% (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 18, 2022 to July 21, 2023. Prior to July 18, 2022, the Fund's investment objective included an 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) and an Outcome Period of July 19, 2021 to July 15, 2022. 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 20.46% (before fees, expenses and taxes) and 19.61% (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 August 22, 2022 to August 18, 2023. Prior to August 22, 2022, the Fund's investment objective included an 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) and an Outcome Period of August 23, 2021 to August 19, 2022. Page 125 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 14.47% (before fees, expenses and taxes) and 13.62% (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 22, 2022 to August 18, 2023. Prior to August 22, 2022, the Fund's investment objective included an 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) and an Outcome Period of August 23, 2021 to August 19, 2022. 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. Prior to September 20, 2021, the Fund's investment objective included an upside cap of 16.50% (before fees, expenses and taxes) and 15.65% (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 September 21, 2020 to September 17, 2021. 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. Prior to September 20, 2021, the Fund's investment objective included an upside cap of 9.25% (before fees, expenses and taxes) and 8.40% (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 September 21, 2020 to September 17, 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 11.70% (before fees, expenses and taxes) and 10.84% (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 18, 2021 to October 21, 2022. Prior to October 18, 2021, the Fund's investment objective included an 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) and an Outcome Period of 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 7.22% (before fees, expenses and taxes) and 6.36% (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 18, 2021 to October 21, 2022. Prior to October 18, 2021, the Fund's investment objective included an 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) and an Outcome Period of 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 12.10% (before fees, expenses and taxes) and 11.25% (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 22, 2021 to November 18, 2022. Prior to November 22, 2021, the Fund's investment objective included an 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) and an Outcome Period of November 23, 2020 to November 19, 2021. Page 126 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 7.60% (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 November 22, 2021 to November 18, 2022. Prior to November 22, 2021, the Fund's investment objective included an 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) and an Outcome Period of November 23, 2020 to November 19, 2021. 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 13.10% (before fees, expenses and taxes) and 12.25% (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 20, 2021 to December 16, 2022. Prior to December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of 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 8.10% (before fees, expenses and taxes) and 7.25% (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 20, 2021 to December 16, 2022. Prior to December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of December 21, 2020 to December 17, 2021. Under normal market conditions, each Fund, except BUFT and BUFG, 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 BUFT is to seek to provide investors with capital preservation. BUFT seeks to achieve its investment objective by investing in a portfolio of ETFs that seek to provide investors with returns (before fees and expenses) based on the price return of the SPDR(R) S&P 500(R) ETF Trust ("SPY"), up to a predetermined cap, while providing a defined buffer against losses of SPY over a defined one-year period ("SPY Underlying ETFs"). Under normal market conditions, BUFT will invest substantially all of its assets in SPY Underlying ETFs. Unlike the SPY Underlying ETFs, BUFT itself does not pursue a defined outcome strategy. The buffer is only provided by the SPY Underlying ETFs and BUFT itself does not provide any stated buffer against losses. In order to understand BUFT's strategy and risks, it is important to understand the strategies and risks of the SPY Underlying ETFs. The investment objective of BUFG is to seek to provide investors with capital appreciation. BUFG seeks to achieve its investment objective by investing in a portfolio of ETFs that seek to provide investors with returns (before fees and expenses) based on the price return of the SPY, up to a predetermined cap, while providing a defined buffer against losses of SPY over a defined one-year period. Under normal market conditions, BUFG will invest substantially all of its assets in SPY Underlying ETFs. Unlike the SPY Underlying ETFs, BUFG itself does not pursue a defined outcome strategy. The buffer is only provided by the SPY Underlying ETFs and BUFG itself does not provide any stated buffer against losses. BUFG simply seeks to provide diversified exposure to all the ETFs in a single investment. In order to understand BUFG's strategy and risks, it is important to understand the strategies and risks of the SPY Underlying 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. Page 127 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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; 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. Page 128 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2022, is included with each Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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, if any, 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 BUFT and BUFG, 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 August 31, 2022 are FLEX Options. D. AFFILIATED TRANSACTIONS BUFT and BUFG 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 129 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 Amounts related to these investments in BUFT at August 31, 2022 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 8/31/2022 10/26/2021 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2022 INCOME ---------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January -- $ -- $ 8,445,573 $ (8,453,641) $ -- $ 8,068 $ -- $ -- FT Cboe Vest U.S. Equity Deep Buffer ETF - January -- -- 35,678,826 (34,798,968) -- (879,858) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - February -- -- 45,119,108 (44,060,786) -- (1,058,322) -- -- FT Cboe Vest U.S. Equity Buffer ETF - March -- -- 12,545,990 (12,367,434) -- (178,556) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March -- -- 43,901,712 (42,453,153) -- (1,448,559) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - April -- -- 9,750,360 (9,493,939) -- (256,421) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - May 877,243 -- 84,952,151 (56,576,056) (561,439) (119,568) 27,695,088 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - June 1,025,904 -- 65,052,074 (31,052,413) 510,511 (1,281,141) 33,229,031 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - July 912,419 -- 28,951,995 (55,148) (557,155) 42 28,339,734 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - August -- -- 37,383,362 (36,952,149) -- (431,213) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - September -- -- 43,010,669 (42,808,704) -- (201,965) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - October -- -- 36,657,117 (35,831,815) -- (825,302) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - November 1,104,296 -- 65,870,976 (29,080,315) (26,079) (499,501) 36,265,081 -- FT Cboe Vest U.S. Equity Buffer ETF - December -- -- 7,452,643 (7,437,687) -- (14,956) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - December 963,527 -- 30,063,604 (718,027) (49,179) 4,458 29,300,856 -- -------------------------------------------------------------------------------------------------- $ -- $554,836,160 $(392,140,235) $ (683,341) $ (7,182,794) $154,829,790 $ -- ================================================================================================== </TABLE> Page 130 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 Amounts related to these investments in BUFG at August 31, 2022 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 8/31/2022 10/26/2021 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2022 INCOME ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 942,600 $ -- $102,262,054 $ (68,952,314) $ (868,884) $ (1,946,709) $ 30,494,147 $ -- FT Cboe Vest U.S. Equity Buffer ETF - February 895,839 -- 99,683,865 (66,418,567) (1,004,477) (564,246) 31,696,575 -- FT Cboe Vest U.S. Equity Buffer ETF - March 1,037,951 -- 81,950,459 (46,126,639) (22,462) (3,386,148) 32,415,210 -- FT Cboe Vest U.S. Equity Buffer ETF - April 1,160,260 -- 83,101,964 (45,610,717) (87,382) (3,373,439) 34,030,426 -- FT Cboe Vest U.S. Equity Buffer ETF - July -- -- 61,732,192 (63,157,383) -- 1,425,191 -- -- FT Cboe Vest U.S. Equity Buffer ETF - August 989,267 -- 110,952,102 (75,976,651) 314,349 (507,172) 34,782,628 -- FT Cboe Vest U.S. Equity Buffer ETF - September -- -- 69,032,304 (68,956,456) -- (75,848) -- -- FT Cboe Vest U.S. Equity Buffer ETF - October -- -- 45,625,515 (45,380,142) -- (245,373) -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - October -- -- 5,043,001 (5,035,678) -- (7,323) -- -- FT Cboe Vest U.S. Equity Buffer ETF - November -- -- 93,891,019 (92,825,554) -- (1,065,465) -- -- FT Cboe Vest U.S. Equity Buffer ETF - December -- -- 82,040,127 (80,457,859) -- (1,582,268) -- -- -------------------------------------------------------------------------------------------------- $ -- $835,314,602 $(658,897,960) $ (1,668,856) $ (11,328,800) $163,418,986 $ -- ================================================================================================== </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 BUFT and BUFG which 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 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 2021 or 2022. Page 131 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of the applicable taxable year end, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Taxable Ordinary Other Appreciation Year End Income Gain (Loss) (Depreciation) ------------- -------------- ------------- -------------- <S> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 31-Jan-22 $ (113,056) $ (15,497,262) $ 4,128,224 FT Cboe Vest U.S. Equity Deep Buffer ETF - January 31-Jan-22 (44,122) (5,006,751) 635,400 FT Cboe Vest U.S. Equity Buffer ETF - February 28-Feb-22 (335,864) (30,356,328) 984,142 FT Cboe Vest U.S. Equity Deep Buffer ETF - February 28-Feb-22 (342,052) (25,392,305) 395,740 FT Cboe Vest U.S. Equity Buffer ETF - March 31-Mar-22 (209,934) -- 1,338,253 FT Cboe Vest U.S. Equity Deep Buffer ETF - March 31-Mar-22 (193,187) (5,303,110) 599,452 FT Cboe Vest U.S. Equity Buffer ETF - April 30-Apr-22 (431,763) (16,407,792) (7,138,172) FT Cboe Vest U.S. Equity Deep Buffer ETF - April 30-Apr-22 (266,079) (6,121,884) (3,248,145) FT Cboe Vest U.S. Equity Buffer ETF - May 31-May-22 (481,257) (25,588,792) 9,273,448 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 31-May-22 (321,459) (14,162,654) 3,263,795 FT Cboe Vest U.S. Equity Buffer ETF - June 30-Jun-22 (537,815) (26,423,868) 3,048,407 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 30-Jun-22 (373,396) (16,876,921) 981,036 FT Cboe Vest U.S. Equity Buffer ETF - July 31-Jul-22 (763,527) (14,357,861) 8,661,196 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 31-Jul-22 (382,679) (7,649,376) 3,820,154 FT Cboe Vest U.S. Equity Buffer ETF - August 31-Aug-22 (1,180,725) (34,453,622) (12,013,653) FT Cboe Vest U.S. Equity Deep Buffer ETF - August 31-Aug-22 (843,218) (24,672,642) (4,316,681) FT Cboe Vest U.S. Equity Buffer ETF - September 30-Sep-21 (190,914) (1,636,302) (536,323) FT Cboe Vest U.S. Equity Deep Buffer ETF - September 30-Sep-21 (152,862) (505,434) (301,100) FT Cboe Vest U.S. Equity Buffer ETF - October 31-Oct-21 (460,448) (6,876,924) 1,823,307 FT Cboe Vest U.S. Equity Deep Buffer ETF - October 31-Oct-21 (269,814) (3,105,136) 650,888 FT Cboe Vest U.S. Equity Buffer ETF - November 30-Nov-21 (1,357,803) (23,533,670) (4,236,888) FT Cboe Vest U.S. Equity Deep Buffer ETF - November 30-Nov-21 (739,974) (9,691,342) (1,254,397) FT Cboe Vest U.S. Equity Buffer ETF - December 31-Dec-21 -- (5,909,553) 2,475,112 FT Cboe Vest U.S. Equity Deep Buffer ETF - December 31-Dec-21 -- (7,120,867) 976,931 FT Cboe Vest Buffered Allocation Defensive ETF 31-Aug-22 (145,364) (5,394,632) (2,457,143) FT Cboe Vest Buffered Allocation Growth ETF 31-Aug-22 (185,676) (5,105,775) (8,213,042) </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, and DNOV, the taxable years ended 2020, 2021, and 2022 remain open to federal and state audit. For FJAN, DJAN, FMAR, DMAR, FAPR, DAPR, FSEP, DSEP, FOCT, DOCT, FDEC, and DDEC, the taxable years ended 2021 and 2022 remain open to federal and state audit. For BUFT and BUFG, the taxable year ended 2022 remains open to federal and state audit. As of August 31, 2022, 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, 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. Page 132 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 <TABLE> <CAPTION> Non-Expiring Taxable Capital Loss Year End Carryforward ------------------- ------------------ <S> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 31-Jan-22 $ 15,497,262 FT Cboe Vest U.S. Equity Deep Buffer ETF - January 31-Jan-22 5,006,751 FT Cboe Vest U.S. Equity Buffer ETF - February 28-Feb-22 30,356,328 FT Cboe Vest U.S. Equity Deep Buffer ETF - February 28-Feb-22 25,392,305 FT Cboe Vest U.S. Equity Buffer ETF - March 31-Mar-22 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March 31-Mar-22 5,303,110 FT Cboe Vest U.S. Equity Buffer ETF - April 30-Apr-22 16,407,792 FT Cboe Vest U.S. Equity Deep Buffer ETF - April 30-Apr-22 6,121,884 FT Cboe Vest U.S. Equity Buffer ETF - May 31-May-22 25,588,792 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 31-May-22 14,162,654 FT Cboe Vest U.S. Equity Buffer ETF - June 30-Jun-22 26,423,868 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 30-Jun-22 16,876,921 FT Cboe Vest U.S. Equity Buffer ETF - July 31-Jul-22 14,357,861 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 31-Jul-22 7,649,376 FT Cboe Vest U.S. Equity Buffer ETF - August 31-Aug-22 34,453,622 FT Cboe Vest U.S. Equity Deep Buffer ETF - August 31-Aug-22 24,672,642 FT Cboe Vest U.S. Equity Buffer ETF - September 30-Sep-21 1,636,302 FT Cboe Vest U.S. Equity Deep Buffer ETF - September 30-Sep-21 505,434 FT Cboe Vest U.S. Equity Buffer ETF - October 31-Oct-21 6,876,924 FT Cboe Vest U.S. Equity Deep Buffer ETF - October 31-Oct-21 3,105,136 FT Cboe Vest U.S. Equity Buffer ETF - November 30-Nov-21 23,533,670 FT Cboe Vest U.S. Equity Deep Buffer ETF - November 30-Nov-21 9,691,342 FT Cboe Vest U.S. Equity Buffer ETF - December 31-Dec-21 5,909,553 FT Cboe Vest U.S. Equity Deep Buffer ETF - December 31-Dec-21 7,120,867 FT Cboe Vest Buffered Allocation Defensive ETF 31-Aug-22 5,394,632 FT Cboe Vest Buffered Allocation Growth ETF 31-Aug-22 5,105,775 </TABLE> During the applicable taxable year end, the Fund listed below utilized non-expiring capital loss carryforwards in the following amount: Capital Loss Carryforward Utilized --------------------- FT Cboe Vest U.S. Equity Deep Buffer ETF - February $ 17,964,075 Page 133 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 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-22 $ 113,056 $ -- FT Cboe Vest U.S. Equity Deep Buffer ETF - January 31-Jan-22 44,122 -- FT Cboe Vest U.S. Equity Buffer ETF - February 28-Feb-22 335,864 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - February 28-Feb-22 342,052 -- FT Cboe Vest U.S. Equity Buffer ETF - March 31-Mar-22 209,934 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March 31-Mar-22 193,187 -- FT Cboe Vest U.S. Equity Buffer ETF - April 30-Apr-22 431,763 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - April 30-Apr-22 266,079 -- FT Cboe Vest U.S. Equity Buffer ETF - May 31-May-22 481,257 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - May 31-May-22 321,459 -- FT Cboe Vest U.S. Equity Buffer ETF - June 30-Jun-22 537,815 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - June 30-Jun-22 373,396 -- FT Cboe Vest U.S. Equity Buffer ETF - July 31-Jul-22 763,527 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - July 31-Jul-22 382,679 -- FT Cboe Vest U.S. Equity Buffer ETF - August 31-Aug-22 1,180,725 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - August 31-Aug-22 843,218 -- FT Cboe Vest U.S. Equity Buffer ETF - September 30-Sep-21 190,914 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - September 30-Sep-21 152,862 -- FT Cboe Vest U.S. Equity Buffer ETF - October 31-Oct-21 460,448 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - October 31-Oct-21 269,814 -- FT Cboe Vest U.S. Equity Buffer ETF - November 30-Nov-21 1,357,803 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - November 30-Nov-21 739,974 -- FT Cboe Vest U.S. Equity Buffer ETF - December 31-Dec-21 -- -- FT Cboe Vest U.S. Equity Deep Buffer ETF - December 31-Dec-21 -- -- FT Cboe Vest Buffered Allocation Defensive ETF 31-Aug-22 145,364 -- FT Cboe Vest Buffered Allocation Growth ETF 31-Aug-22 185,676 -- </TABLE> Page 134 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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-22 $ 907,754 $ (29,401,571) $ 28,493,817 FT Cboe Vest U.S. Equity Deep Buffer ETF - January 31-Jan-22 483,824 (10,161,595) 9,677,771 FT Cboe Vest U.S. Equity Buffer ETF - February 28-Feb-22 2,123,986 (37,014,821) 34,890,835 FT Cboe Vest U.S. Equity Deep Buffer ETF - February 28-Feb-22 2,593,611 (7,489,979) 4,896,368 FT Cboe Vest U.S. Equity Buffer ETF - March 31-Mar-22 497,984 (11,112,372) 10,614,388 FT Cboe Vest U.S. Equity Deep Buffer ETF - March 31-Mar-22 414,516 (11,773,586) 11,359,070 FT Cboe Vest U.S. Equity Buffer ETF - April 30-Apr-22 724,138 (20,340,842) 19,616,704 FT Cboe Vest U.S. Equity Deep Buffer ETF - April 30-Apr-22 564,025 (10,730,384) 10,166,359 FT Cboe Vest U.S. Equity Buffer ETF - May 31-May-22 770,826 (9,088,259) 8,317,433 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 31-May-22 403,376 (5,901,636) 5,498,260 FT Cboe Vest U.S. Equity Buffer ETF - June 30-Jun-22 734,446 (10,830,303) 10,095,857 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 30-Jun-22 285,713 (7,364,878) 7,079,165 FT Cboe Vest U.S. Equity Buffer ETF - July 31-Jul-22 642,936 (10,757,667) 10,114,731 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 31-Jul-22 300,610 (1,154,197) 853,587 FT Cboe Vest U.S. Equity Buffer ETF - August 31-Aug-22 1,110,780 (19,183,946) 18,073,166 FT Cboe Vest U.S. Equity Deep Buffer ETF - August 31-Aug-22 920,236 (2,568,051) 1,647,815 FT Cboe Vest U.S. Equity Buffer ETF - September 30-Sep-21 42,604 (5,045,966) 5,003,362 FT Cboe Vest U.S. Equity Deep Buffer ETF - September 30-Sep-21 65,029 (2,850,662) 2,785,633 FT Cboe Vest U.S. Equity Buffer ETF - October 31-Oct-21 71,989 (15,657,071) 15,585,082 FT Cboe Vest U.S. Equity Deep Buffer ETF - October 31-Oct-21 49,450 (6,421,364) 6,371,914 FT Cboe Vest U.S. Equity Buffer ETF - November 30-Nov-21 820,589 (39,559,134) 38,738,545 FT Cboe Vest U.S. Equity Deep Buffer ETF - November 30-Nov-21 825,528 (8,808,118) 7,982,590 FT Cboe Vest U.S. Equity Buffer ETF - December 31-Dec-21 582,432 (14,455,992) 13,873,560 FT Cboe Vest U.S. Equity Deep Buffer ETF - December 31-Dec-21 492,196 (11,421,035) 10,928,839 FT Cboe Vest Buffered Allocation Defensive ETF 31-Aug-22 7,947 14,360 (22,307) FT Cboe Vest Buffered Allocation Growth ETF 31-Aug-22 10,875 (321,161) 310,286 </TABLE> Page 135 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January $ 200,680,514 $ 6,693,109 $ (18,017,533) $ (11,324,424) FT Cboe Vest U.S. Equity Deep Buffer ETF - January 139,505,757 5,589,866 (12,053,101) (6,463,235) FT Cboe Vest U.S. Equity Buffer ETF - February 318,673,800 12,024,910 (27,418,574) (15,393,664) FT Cboe Vest U.S. Equity Deep Buffer ETF - February 315,711,724 13,836,775 (26,231,351) (12,394,576) FT Cboe Vest U.S. Equity Buffer ETF - March 211,306,917 6,546,046 (20,639,994) (14,093,948) FT Cboe Vest U.S. Equity Deep Buffer ETF - March 203,406,516 8,941,248 (19,457,759) (10,516,511) FT Cboe Vest U.S. Equity Buffer ETF - April 294,018,867 10,444,639 (22,746,796) (12,302,157) FT Cboe Vest U.S. Equity Deep Buffer ETF - April 275,420,852 8,812,093 (15,964,531) (7,152,438) FT Cboe Vest U.S. Equity Buffer ETF - May 361,865,861 12,962,746 (10,720,354) 2,242,392 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 227,282,837 6,277,134 (7,390,469) (1,113,335) FT Cboe Vest U.S. Equity Buffer ETF - June 285,900,735 24,970,018 (12,152,128) 12,817,890 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 174,946,677 13,202,828 (7,956,635) 5,246,193 FT Cboe Vest U.S. Equity Buffer ETF - July 218,089,096 8,034,675 (5,380,712) 2,653,963 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 156,740,078 5,272,944 (4,786,346) 486,598 FT Cboe Vest U.S. Equity Buffer ETF - August 335,180,677 8,012,069 (20,025,722) (12,013,653) FT Cboe Vest U.S. Equity Deep Buffer ETF - August 161,575,330 5,002,443 (9,319,124) (4,316,681) FT Cboe Vest U.S. Equity Buffer ETF - September 133,782,032 5,908,240 (14,477,325) (8,569,085) FT Cboe Vest U.S. Equity Deep Buffer ETF - September 106,580,340 1,688,465 (9,282,432) (7,593,967) FT Cboe Vest U.S. Equity Buffer ETF - October 156,824,574 8,772,422 (19,120,303) (10,347,881) FT Cboe Vest U.S. Equity Deep Buffer ETF - October 135,734,655 5,260,885 (14,660,468) (9,399,583) FT Cboe Vest U.S. Equity Buffer ETF - November 283,747,104 24,008,517 (46,453,644) (22,445,127) FT Cboe Vest U.S. Equity Deep Buffer ETF - November 416,990,809 21,226,844 (37,735,770) (16,508,926) FT Cboe Vest U.S. Equity Buffer ETF - December 208,046,475 12,682,174 (30,426,695) (17,744,521) FT Cboe Vest U.S. Equity Deep Buffer ETF - December 260,271,376 12,856,530 (21,364,331) (8,507,801) FT Cboe Vest Buffered Allocation Defensive ETF 157,323,335 681,595 (3,138,738) (2,457,143) FT Cboe Vest Buffered Allocation Growth ETF 171,659,923 537,596 (8,750,638) (8,213,042) </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 BUFT and BUFG which each pay an annual unitary management fee of 0.20%. In addition, BUFT and BUFG 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. Cboe VestSM 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 BUFT Page 136 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 and BUFG), 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 BUFT and BUFG, 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 BUFT and BUFG'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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, the Funds, except BUFT and BUFG, had no purchases or sales of investments, excluding short-term investments and in-kind transactions. Each Fund, except BUFT and BUFG, 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, 2022, the cost of purchases and proceeds from sales of investments for BUFT and BUFG, excluding short-term investments and in-kind transactions, were as follows: <TABLE> <CAPTION> Purchases Sales -------------- -------------- <S> <C> <C> FT Cboe Vest Buffered Allocation Defensive ETF $ 372,663,987 $ 370,535,179 FT Cboe Vest Buffered Allocation Growth ETF 435,392,776 433,293,985 </TABLE> Page 137 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 For the fiscal period ended August 31, 2022, 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 $ 10,046,481 $ 195,324,464 FT Cboe Vest U.S. Equity Deep Buffer ETF - January 1,588,335 52,318,111 FT Cboe Vest U.S. Equity Buffer ETF - February 5,605,159 199,661,287 FT Cboe Vest U.S. Equity Deep Buffer ETF - February -- 63,272,533 FT Cboe Vest U.S. Equity Buffer ETF - March 8,104,787 106,611,160 FT Cboe Vest U.S. Equity Deep Buffer ETF - March 1,580,271 118,676,883 FT Cboe Vest U.S. Equity Buffer ETF - April 7,935,796 168,687,388 FT Cboe Vest U.S. Equity Deep Buffer ETF - April 1,537,733 123,332,158 FT Cboe Vest U.S. Equity Buffer ETF - May 9,373,475 182,494,814 FT Cboe Vest U.S. Equity Deep Buffer ETF - May 1,725,323 143,473,693 FT Cboe Vest U.S. Equity Buffer ETF - June 7,436,374 102,861,762 FT Cboe Vest U.S. Equity Deep Buffer ETF - June 1,692,240 101,612,069 FT Cboe Vest U.S. Equity Buffer ETF - July 10,610,878 127,288,344 FT Cboe Vest U.S. Equity Deep Buffer ETF - July 3,330,307 13,212,140 FT Cboe Vest U.S. Equity Buffer ETF - August 18,225,364 261,598,664 FT Cboe Vest U.S. Equity Deep Buffer ETF - August 16,887,238 33,329,496 FT Cboe Vest U.S. Equity Buffer ETF - September 41,087,725 59,405,757 FT Cboe Vest U.S. Equity Deep Buffer ETF - September 14,595,362 39,453,732 FT Cboe Vest U.S. Equity Buffer ETF - October 45,356,128 92,318,020 FT Cboe Vest U.S. Equity Deep Buffer ETF - October 19,245,353 52,710,582 FT Cboe Vest U.S. Equity Buffer ETF - November 30,340,307 171,629,119 FT Cboe Vest U.S. Equity Deep Buffer ETF - November 6,858,468 45,202,005 FT Cboe Vest U.S. Equity Buffer ETF - December 8,474,649 111,664,584 FT Cboe Vest U.S. Equity Deep Buffer ETF - December -- 56,519,503 FT Cboe Vest Buffered Allocation Defensive ETF 182,172,173 21,605,056 FT Cboe Vest Buffered Allocation Growth ETF 399,921,826 225,603,975 </TABLE> 5. DERIVATIVE TRANSACTIONS The following table presents the types of derivatives held by each Fund at August 31, 2022, 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 $197,942,485 written, at value $ 9,929,884 DJAN Options contracts Options contracts Options Equity Risk purchased, at value 133,535,300 written, at value 1,415,028 FFEB Options contracts Options contracts Options Equity Risk purchased, at value 317,557,287 written, at value 16,685,723 DFEB Options contracts Options contracts Options Equity Risk purchased, at value 305,310,128 written, at value 4,310,968 </TABLE> Page 138 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 <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 $208,965,058 written, at value $ 13,481,131 DMAR Options contracts Options contracts Options Equity Risk purchased, at value 194,678,016 written, at value 3,367,592 FAPR Options contracts Options contracts Options Equity Risk purchased, at value 298,232,126 written, at value 19,181,354 DAPR Options contracts Options contracts Options Equity Risk purchased, at value 269,387,638 written, at value 5,815,150 FMAY Options contracts Options contracts Options Equity Risk purchased, at value 379,628,095 written, at value 18,958,375 DMAY Options contracts Options contracts Options Equity Risk purchased, at value 233,542,142 written, at value 9,447,665 FJUN Options contracts Options contracts Options Equity Risk purchased, at value 314,492,006 written, at value 18,794,270 DJUN Options contracts Options contracts Options Equity Risk purchased, at value 190,647,750 written, at value 12,221,827 FJUL Options contracts Options contracts Options Equity Risk purchased, at value 232,565,369 written, at value 14,202,788 DJUL Options contracts Options contracts Options Equity Risk purchased, at value 164,230,199 written, at value 8,668,527 FAUG Options contracts Options contracts Options Equity Risk purchased, at value 343,022,955 written, at value 23,798,291 DAUG Options contracts Options contracts Options Equity Risk purchased, at value 161,225,775 written, at value 5,822,421 FSEP Options contracts Options contracts Options Equity Risk purchased, at value 127,752,437 written, at value 2,999,643 DSEP Options contracts Options contracts Options Equity Risk purchased, at value 98,611,769 written, at value 21,641 </TABLE> Page 139 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 <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 $151,444,347 written, at value $ 5,653,260 DOCT Options contracts Options contracts Options Equity Risk purchased, at value 123,714,651 written, at value 226,386 FNOV Options contracts Options contracts Options Equity Risk purchased, at value 278,649,360 written, at value 18,911,240 DNOV Options contracts Options contracts Options Equity Risk purchased, at value 400,762,390 written, at value 2,471,285 FDEC Options contracts Options contracts Options Equity Risk purchased, at value 202,076,129 written, at value 13,037,517 DDEC Options contracts Options contracts Options Equity Risk purchased, at value 252,266,972 written, at value 2,062,434 </TABLE> The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended August 31, 2022, 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 $ 5,508,682 $ 1,784,835 $ 4,223,426 $ 14,037,255 $ 3,473,746 $ 2,748,712 Written options contracts 8,754,282 1,324,471 17,586,621 9,852,247 5,540,463 2,659,496 Net change in unrealized appreciation (depreciation) on: Purchased options contracts (25,538,851) (16,034,139) (41,690,645) (52,273,743) (20,023,882) (19,542,701) Written options contracts 4,729,761 8,183,233 3,374,301 23,032,165 3,281,167 8,699,171 </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 $ (4,558,768) $ (97,597) $ (8,712,822) $ (7,545,252) $ (8,860,775) $(10,960,490) Written options contracts 9,209,937 6,378,108 8,117,489 5,654,356 6,178,630 4,992,505 Net change in unrealized appreciation (depreciation) on: Purchased options contracts (20,037,199) (16,773,593) (11,481,800) (8,366,209) 5,069,218 4,540,663 Written options contracts 890,175 7,471,848 8,459,289 5,391,117 3,224,853 (283,036) </TABLE> Page 140 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 <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 $(10,006,476) $ (7,984,354) $(15,429,481) $(15,062,786) $ 3,339,105 $ 2,796,912 Written options contracts 8,398,152 3,925,950 15,744,198 7,480,592 165,251 (682,065) Net change in unrealized appreciation (depreciation) on: Purchased options contracts (1,816,722) (1,893,470) (13,861,593) (7,920,087) (14,351,091) (11,460,158) Written options contracts 1,539,907 1,484,938 282,934 2,797,291 7,705,807 5,240,592 </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 $ 8,913,068 $ 8,291,553 $ 26,854,544 $ 21,177,469 $ 10,776,977 $ 10,150,986 Written options contracts (785,657) (2,297,821) (11,610,320) (14,210,201) (307,850) (5,740,608) Net change in unrealized appreciation (depreciation) on: Purchased options contracts (24,008,573) (21,694,531) (44,522,769) (43,056,874) (25,688,391) (23,405,351) Written options contracts 7,329,975 9,386,756 9,318,978 22,768,382 1,777,650 11,788,682 </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 year ended August 31, 2022, 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 $ 497,487,780 $ 410,715,244 $ 36,094,702 $ 31,986,897 DJAN 231,381,102 137,670,001 15,873,281 12,882,610 FFEB 597,655,323 509,895,482 31,467,579 25,969,890 DFEB 428,061,917 378,848,154 22,955,251 23,083,934 FMAR 409,870,553 269,022,790 21,699,992 11,026,843 DMAR 356,605,297 214,619,034 14,422,845 8,982,204 FAPR 573,225,415 395,933,612 26,550,143 13,724,370 DAPR 445,215,105 257,717,907 17,422,176 10,278,043 FMAY 690,184,580 417,086,600 31,059,502 10,691,741 DMAY 443,393,010 269,186,191 19,523,266 9,538,435 FJUN 495,404,084 306,351,834 26,652,757 12,918,849 DJUN 371,731,098 235,037,073 15,078,365 6,994,333 FJUL 461,462,621 358,558,200 23,663,396 15,885,399 DJUL 244,171,789 135,728,656 11,478,044 4,806,200 FAUG 768,299,452 575,311,278 34,203,569 20,047,153 DAUG 299,354,566 224,618,131 11,980,655 8,324,608 FSEP 218,514,202 124,644,272 13,218,633 9,526,385 DSEP 152,835,719 74,918,907 4,516,850 5,645,870 FOCT 317,288,421 220,800,542 20,254,946 15,955,930 DOCT 203,415,757 106,142,206 10,340,638 8,492,044 FNOV 547,761,215 386,274,385 43,207,219 33,650,556 DNOV 514,222,632 178,053,376 20,662,753 12,494,800 FDEC 407,684,942 257,149,038 27,771,960 19,567,387 DDEC 363,447,038 155,564,894 18,409,990 13,081,380 </TABLE> Page 141 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2023 for FJAN, DJAN, FFEB, DFEB, FMAR, DMAR, FAPR, DAPR, FMAY, DMAY, FJUN, DJUN, FJUL, DJUL, FAUG, DAUG, FSEP, DSEP, FOCT, DOCT, FNOV, DNOV, FDEC, and DDEC, and October 25, 2023 for BUFT and BUFG. 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 142 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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: As of September 19, 2022, the investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - September changed to include an upside cap of 23.41% (before fees, expenses and taxes) and 22.56% (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 September 19, 2022 to September 15, 2023. As of September 19, 2022, the investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - September changed to include an upside cap of 16.98% (before fees, expenses and taxes) and 16.13% (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 September 19, 2022 to September 15, 2023. As of October 24, 2022, the investment objective of the FT Cboe Vest U.S. Equity Buffer ETF - October changed to include an upside cap of 27.12% (before fees, expenses and taxes) and 26.27% (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 October 24, 2022 to October 20, 2023. As of October 24, 2022, the investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - October changed to include an upside cap of 19.20% (before fees, expenses and taxes) and 18.35% (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 October 24, 2022 to October 20, 2023. Page 143 <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 Buffered Allocation Defensive ETF, and FT Cboe Vest Buffered Allocation Growth ETF (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2022, 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, 2022, 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 year ended For the year ended August 31, 2022 and for the period from ETF - January August 31, 2022 January 15, 2021 (commencement of operations) 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 years ended For the year ended August 31, ETF - February August 31, 2022 August 31, 2022 and 2021 2022 and 2021, and for the period from February 21, 2020 FT Cboe Vest U.S. Equity Deep (commencement of operations) Buffer ETF - February through August 31, 2020 --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2022 and for the period from ETF - March August 31, 2022 March 19, 2021 (commencement of operations) through August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - March --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2022 and for the period from ETF - April August 31, 2022 April 16, 2021 (commencement of operations) 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 years ended For the year ended August 31, ETF - May August 31, 2022 August 31, 2022 and 2021 2022 and 2021, and for the period from May 15, 2020 FT Cboe Vest U.S. Equity Deep (commencement of operations) Buffer ETF - May through August 31, 2020 --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer For the year ended For the years ended For the year ended August 31, ETF - June August 31, 2022 August 31, 2022 and 2021 2022 and 2021, and for the period from June 19, 2020 FT Cboe Vest U.S. Equity Deep (commencement of operations) Buffer ETF - June through August 31, 2020 --------------------------------------------------------------------------------------------------------------------------------- </TABLE> Page 144 <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 years ended For the years ended August 31, ETF - July August 31, 2022 August 31, 2022 and 2021 2022 and 2021, and for the period from July 17, 2020 FT Cboe Vest U.S. Equity Deep (commencement of operations) Buffer ETF - July through August 31, 2020 --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer For the year ended For the years ended For the year ended August 31, ETF - August August 31, 2022 August 31, 2022 and 2021 2022 and 2021, and for the period from November 6, 2019 FT Cboe Vest U.S. Equity Deep (commencement of operations) Buffer ETF - August through August 31, 2020 --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2022, and for the period from ETF - September August 31, 2022 September 18, 2020 (commencement of operations) through August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - September --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2022, and for the period from ETF - October August 31, 2022 October 16, 2020 (commencement of operations) through 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 years ended For the year ended August 31, ETF - November August 31, 2022 August 31, 2022 and 2021 2022 and 2021, and for the period from November 15, 2019 FT Cboe Vest U.S. Equity Deep (commencement of operations) Buffer ETF - November through August 31, 2020 --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest U.S. Equity Buffer For the year ended For the year ended August 31, 2022, and for the period from ETF - December August 31, 2022 December 18, 2020 (commencement of operations) through August 31, 2021 FT Cboe Vest U.S. Equity Deep Buffer ETF - December --------------------------------------------------------------------------------------------------------------------------------- FT Cboe Vest Buffered For the period from October 26, 2021 (commencement of operations) through Allocation Defensive ETF August 31, 2022 FT Cboe Vest Buffered Allocation Growth 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 145 <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, 2022, 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 24, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 146 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 was 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 147 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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 148 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of the Fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund's shares and result in increased market volatility. During any such events, the Fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. 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 Page 149 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT AND INVESTMENT SUB-ADVISORY AGREEMENT FOR 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 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 twenty-four series of the Trust (each a "Fund" and collectively, the "Funds"): 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 BufferETF - 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) Page 150 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) The Board approved the continuation of the Agreements for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 FFEB, DFEB, FMAY, DMAY, FJUN, DJUN, FJUL, DJUL, FAUG, DAUG, FSEP, DSEP, FOCT, DOCT, FNOV, DNOV, FDEC and DDEC, 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 indirect 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 18, 2022, 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 12-13, 2022 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 18, 2022 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. In addition to the written materials provided by the Sub-Advisor, at the June 12-13, 2022 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. Page 151 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and 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 FFEB, DFEB, FMAY, DMAY, FJUN, DJUN, FJUL, DJUL, FAUG, DAUG, FSEP, DSEP, FOCT, DOCT, FNOV, DNOV, FDEC and DDEC for the one-year period ended December 31, 2021 to the performance of the funds in the Fund's respective Performance Universe and a benchmark index. Because each of FJAN, DJAN, FMAR, DMAR, FAPR and DAPR commenced operations in 2021 and therefore has a limited performance history, comparative performance information for the Fund was not reviewed. 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(R) S&P 500 ETF(R) 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 FJAN's, DJAN's, FFEB's, DFEB's, FMAR's, DMAR's, FMAY's, DMAY's, FJUN's, DJUN's, FJUL's, DJUL's, FAUG's, DAUG's, FSEP's, DSEP's, FOCT's, DOCT's, FNOV's,7 DNOV's, FDEC's and DDEC's performance during its respective target outcome period that ended between April 1, 2021 and March 31, 2022 and noted that each Fund delivered on its target outcome objective. The initial target outcome period for FAPR and DAPR ended after March 31, 2022. 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 that its expenses relating to providing advisory services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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 FFEB, DFEB, FMAY, DMAY, FJUN, DJUN, FJUL, DJUL, FAUG, DAUG, FSEP, DSEP, FOCT, DOCT, FNOV, DNOV, FDEC and DDEC for the twelve months ended December 31, 2021 and to each of FJAN, DJAN, FMAR, DMAR, FAPR and DAPR for the period from inception through December 31, 2021 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, 2021. 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 indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect 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 indirect benefits to the Advisor from such ownership interest. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable. Page 152 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 indirect 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 indirect benefits from its relationship with the Funds. The Board also considered the potential indirect 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 indirect 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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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, including the 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 153 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 154 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 155 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 2022 Page 156 <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(SM) Financial LLC 8350 Broad Street, Suite 240 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 320 South Canal Street Chicago, IL 60606 <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 - September (YSEP) FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT) FT Cboe Vest International Equity Buffer ETF - December (YDEC) FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC) FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC) ---------------------------- Annual Report For the Period Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 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 - September (YSEP)........... 8 FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT).................. 9 FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 10 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 11 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC).. 12 Notes to Fund Performance Overview........................................... 13 Portfolio Commentary......................................................... 14 Understanding Your Fund Expenses............................................. 18 Portfolio of Investments FT Cboe Vest International Equity Buffer ETF - March (YMAR)............... 20 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR)...................... 22 FT Cboe Vest International Equity Buffer ETF - June (YJUN)................ 24 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN)....................... 26 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)...... 28 FT Cboe Vest International Equity Buffer ETF - September (YSEP)........... 30 FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (QSPT).................. 32 FT Cboe Vest International Equity Buffer ETF - December (YDEC)............ 34 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC)................... 36 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC).. 38 Statements of Assets and Liabilities......................................... 40 Statements of Operations..................................................... 42 Statements of Changes in Net Assets.......................................... 44 Financial Highlights......................................................... 48 Notes to Financial Statements................................................ 54 Report of Independent Registered Public Accounting Firm...................... 65 Additional Information....................................................... 67 Board of Trustees and Officers............................................... 74 Privacy Policy............................................................... 76 <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 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, 2022 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, 2022. Please note that some of the Funds were incepted after September 1, 2021, 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. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 that match the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a predetermined upside cap of 20.70% (before fees and expenses) and 19.80% (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 and expenses) against the first 10% of Underlying ETF losses, over the period from March 21, 2022 to March 17, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (3/19/21) (3/19/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -15.00% -7.17% -10.24% Market Price -15.06% -7.31% -10.44% INDEX PERFORMANCE MSCI EAFE Index - Price Return -21.89% -12.42% -17.52% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2022 FT Cboe Vest International Nasdaq 100 Stock Equity Buffer ETF - March Index - Price Return <S> <C> <C> 3/19/21 $10,000 $10,000 8/31/21 10,559 10,560 2/28/22 9,900 9,766 8/31/22 8,976 8,248 </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 March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of March 22, 2021 to March 18, 2022. 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 that match the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a predetermined upside cap of 17.25% (before fees and expenses) and 16.35% (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 (before fees, expenses and taxes) against the first 10% of Underlying ETF losses, over the period from March 21, 2022 to March 17, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (3/19/21) (3/19/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -8.69% 0.86% 1.25% Market Price -8.96% 0.62% 0.90% INDEX PERFORMANCE Nasdaq-100 Index(R) - Price Return -21.24% -3.21% -4.62% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MARCH 19, 2021 - AUGUST 31, 2022 FT Cboe Vest Nasdaq-100(R) Nasdaq-100 Index(R) - Buffer ETF - March Price Return <S> <C> <C> 3/19/21 $10,000 $10,000 8/31/21 11,088 12,110 2/28/22 10,958 11,065 8/31/22 10,125 9,538 </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 March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of March 22, 2021 to March 18, 2022. 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 24.20% (before fees, expenses and taxes) and 23.31% (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, 2022 to June 16, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (6/18/21) (6/18/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -14.68% -10.58% -12.58% Market Price -14.22% -10.62% -12.63% INDEX PERFORMANCE MSCI EAFE Index - Price Return -21.89% -17.17% -20.27% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 18, 2021 - AUGUST 31, 2022 FT Cboe Vest International MSCI EAFEE Index - Equity Buffer ETF - June Price Return <S> <C> <C> 6/16/21 $10,000 $10,000 8/31/21 10,246 10,207 2/28/22 9,664 9,439 8/31/22 8,742 7,973 </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, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. 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 25.19% (before fees, expenses and taxes) and 24.30% (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, 2022 to June 16, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (6/18/21) (6/18/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -10.35% -4.54% -5.44% Market Price -10.41% -4.67% -5.59% INDEX PERFORMANCE Nasdaq-100 Index(R) - Price Return -21.24% -10.64% -12.65% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JUNE 18, 2021 - AUGUST 31, 2022 FT Cboe Vest Growth-100(R) Nasdaq-100 Index(R) - Buffer ETF - June Price Return <S> <C> <C> 6/18/21 $10,000 $10,000 8/31/21 10,549 11,091 2/28/22 10,211 10,134 8/31/22 9,456 8,735 </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, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. 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 approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 14.80% (before fees, expenses and taxes) and 13.95% (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 June 21, 2022 to June 16, 2023 (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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (7/12/21) (7/12/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV 0.66% 1.74% 1.99% Market Price 0.77% 1.63% 1.85% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% -8.67% -9.80% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 12, 2021 - AUGUST 31, 2022 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer S&P 500(R) Index - ETF - June Price Return <S> <C> <C> 7/12/21 $10,000 $10,000 8/31/21 10,131 10,315 2/28/22 10,098 9,976 8/31/22 10,199 9,020 </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, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 13, 2021 to June 17, 2022. Page 7 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP) The investment objective of the FT Cboe Vest International Equity Buffer ETF - September (the "Fund") is to seek to provide investors with returns that match the price return of the iShares MSCI EAFE ETF (the "Underlying ETF"), up to a predetermined upside cap of 12.93% (before fees, expenses and taxes) and 12.03% (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 through 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. 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 result 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 "YSEP." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (9/17/21) to 8/31/22 <S> <C> FUND PERFORMANCE NAV -13.93% Market Price -14.13% INDEX PERFORMANCE MSCI EAFE Index - Price Return -21.63% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 17, 2021 - AUGUST 31, 2022 FT Cboe Vest International MSCI EAFE Index - Equity Buffer ETF - September Price Return <S> <C> <C> 9/17/21 $10,000 $10,000 2/28/22 9,509 9,279 8/31/22 8,607 7,837 </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 - SEPTEMBER (QSPT) The investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (the "Fund") is to seek to provide investors with returns that match the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying ETF"), up to a predetermined upside cap of 13.65% (before fees, expenses and taxes) and 12.75% (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 the first 10% (before fees, expenses and taxes) of Underlying ETF losses, over the period from September 20, 2021 through 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. 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 result 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 "QSPT." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (9/17/21) to 8/31/22 <S> <C> FUND PERFORMANCE NAV -10.75% Market Price -10.70% INDEX PERFORMANCE Nasdaq-100 Index(R) - Price Return -19.97% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 17, 2021 - AUGUST 31, 2022 FT Cboe Vest Nasdaq-100(R) Nasdaq-100 Index(R) - Buffer ETF - September Price Return <S> <C> <C> 9/17/21 $10,000 $10,000 2/28/22 9,648 9,285 8/31/22 8,925 8,003 </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 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 10.75% (before fees, expenses and taxes) and 9.85% (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 December 20, 2021 to December 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 "YDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (12/18/20) (12/18/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -14.74% -4.25% -7.13% Market Price -14.80% -4.37% -7.33% INDEX PERFORMANCE MSCI EAFE Index - Price Return -21.89% -8.27% -13.66% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2022 FT Cboe Vest International MSCI EAFE Index - Equity Buffer ETF - December Price Return <S> <C> <C> 12/18/20 $10,000 $10,000 2/28/21 10,184 10,175 8/31/21 10,892 11,055 2/28/22 10,134 10,224 8/31/22 9,287 8,634 </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 December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of December 21, 2020 to December 17, 2021. Page 10 <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 15.89% (before fees, expenses and taxes) and 14.99% (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 20, 2021 to December 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 "QDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Inception Inception Ended (12/18/20) (12/18/20) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -11.79% 0.18% 0.30% Market Price -11.68% 0.15% 0.25% INDEX PERFORMANCE Nasdaq-100 Index(R) - Price Return -21.24% -2.17% -3.66% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 18, 2020 - AUGUST 31, 2022 FT Cboe Vest Nasdaq-100(R) Nasdaq-100 Index(R) - Buffer ETF - December Price Return <S> <C> <C> 12/18/20 $10,000 $10,000 2/28/21 10,111 10,134 8/31/21 11,371 12,233 2/28/22 10,978 11,177 8/31/22 10,030 9,634 </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 December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of December 21, 2020 to December 17, 2021. Page 11 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC) The investment objective of the FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December (the "Fund") is to seek to provide investors with returns of approximately twice any positive price return of the SPDR(R) S&P 500(R) ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 8.58% (before fees, expenses and taxes) and 7.73% (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 15% (before fees, expenses and taxes) of Underlying ETF losses, over the period from December 20, 2021 through December 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. 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 result 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 "XDEC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (12/17/21) to 8/31/22 <S> <C> FUND PERFORMANCE NAV -4.98% Market Price -5.01% INDEX PERFORMANCE S&P 500(R) Index - Price Return -14.41% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 13.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT DECEMBER 17, 2021 - AUGUST 31, 2022 FT Cboe Vest U.S. Equity Enhance & Moderate S&P 500(R) Index - Buffer ETF - December Price Return <S> <C> <C> 12/17/21 $10,000 $10,000 2/28/22 9,839 9,466 8/31/22 9,502 8,559 </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> -------------------------------------------------------------------------------- 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 13 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (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 - September ("YSEP"), FT Cboe Vest Nasdaq-100(R) Buffer ETF - September ("QSPT"), FT Cboe Vest International Equity Buffer ETF - December ("YDEC"), FT Cboe Vest Nasdaq-100(R) Buffer ETF - December ("QDEC"), and FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December ("XDEC") (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 Vest(SM) 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 8350 Broad St., Suite 240, McLean, Virginia 22102, was founded in 2012. Cboe Vest had approximately $8.6 billion under management or committed to management as of August 31, 2022. PORTFOLIO MANAGEMENT TEAM KARAN SOOD, MANAGING DIRECTOR OF CBOE VEST HOWARD RUBIN, MANAGING DIRECTOR OF CBOE VEST 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 exchange-traded fund ("ETF"), either the SPDR(R) S&P 500(R) ETF Trust, the Invesco QQQ Trust(SM), Series 1, 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 12-month period ended August 31, 2022, stock markets dropped significantly as inflation surged and U.S. gross domestic product ("GDP") fell for two consecutive quarters. The S&P 500(R) Index, the well-known measure of U.S. large-cap stocks, ended the period down 11.23%. Mid- and small-capitalization stocks, as measured by the S&P MidCap 400(R) Index and the Russell 2000(R) Small Cap Index, fell as well, losing 10.37% and 17.88%, respectively, during the same period. The Nasdaq-100 Index(R), a tech-heavy market measure, lost 20.63% during the same period. International markets were hit even harder than the U.S., with broad foreign market indices such as MSCI EAFE Index and MSCI Emerging Markets Index declining by 19.80% and 21.80%, respectively, during the same period. Within the S&P 500(R) Index during the 12-month period ended August 31, 2022, the market continued to see dramatic variations in returns across the major sectors of the economy. The Energy sector soared, gaining 75.77%, and outpacing all other sectors by a wide margin during the period. The only other sector to post a positive return for the same period was the Consumer Staples sector, which gained 4.08%. On the downside, the worst performing sectors for the same period were the Telecommunications sector (-35.19%), the Consumer Discretionary sector (-16.16%), and Information Technology sector (-14.35%). U.S. economic data all pointed to a slowing economy. GDP growth in the most recent four quarterly reports (the third quarter 2021 through the second quarter 2022) saw seasonally adjusted annualized rates of +2.3%, +6.9%, -1.6%, and -0.6%, sequentially. These two most recent reports thus meet the traditional definition of a recession, which is two consecutive quarterly declines in GDP. A current Bloomberg survey of economists shows a consensus projection of 1.0% GDP growth for all of 2023 (versus 2022). Page 14 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) The U.S. unemployment rate began the 12-month period ended August 31, 2022 at 5.2% (for August 2021) and quickly dropped below 4%, where it remained for most of the period. The most recent report showed a small uptick and the rate now sits at 3.7% (for August 2022). U.S inflation levels continued to post concerningly high levels. The most recent (July 2022) Consumer Price Index report shows year-over-year inflation running at an 8.5% rate, up from 5.4% reported twelve months earlier. One component of the economy that continued to overheat was the housing market. Housing prices in the U.S. increased by 18.0% over the last twelve months, according to the most recent (June 2022) S&P Case-Shiller U.S. National Home Price Index. This was on top of an 18.1% increase in the prior 12 months, compounding to make for a stunning 24-month increase in home prices of 39.3%. Persistently higher inflation forced the Federal Reserve (the "Fed") to increase short term rates at a much more rapid pace than the market had expected at the beginning of the 12-month period ended August 31, 2022. The Fed has a stated target of 2% inflation. The Fed began their rate hike cycle in January 2022, and, as of this writing, the Fed has increased the Federal Funds target rate by 2.25%. The Fed began the period with the range being 0% to 0.25% and ended the period with the range being 2.25% to 2.50%. Market participants are factoring in additional rate hikes by the Fed by the end of 2022. MARKET AND FUND OUTLOOK Over the 12-month period ended August 31, 2022, implied volatilities in U.S. equity markets averaged about 28.5%, according to the Cboe S&P 500(R) 1-Year Volatility Index. This index is derived from option prices and estimates the market's expectation of S&P 500(R) Index volatility for the next twelve months. As of the end of the same period, the index stands at 29.3%. For comparison purposes, the historical volatility of the S&P 500(R) Index since its inception in 1957 has been about 15.7%. We anticipate that implied volatilities will decline over the coming year. Buffer strategies, such as those used in the FT Cboe Vest Funds, generally benefit from declining implied volatilities. While most fixed income securities have seen their nominal yields increase during the 12-month period ended August 31, 2022, many still have negative real yields (i.e., nominal yield less the inflation rate). This continues to bode 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 investments. 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 income investments. PERFORMANCE ANALYSIS The following table provides information pertaining to recent caps and performance for the 12-month period ended August 31, 2022 for each 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 that 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. Page 15 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) The impact from these factors for the period are shown in the table under "Estimated Performance Attribution." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------- FUND TICKER YMAR QMAR YJUN QJUN XJUN YSEP QSPT ------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> Annual Expense Ratio 0.90% 0.90% 0.90% 0.90% 0.85% 0.90% 0.90% Reporting Period Start Date 8/31/21 8/31/21 8/31/21 8/31/21 8/31/21 9/17/21 9/17/21 Reporting Period End Date 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 8/31/22 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 14.18% 15.51% 11.81% 13.00% 6.16% N/A N/A Cap Prior to Annual Reset (post-expenses) 13.29% 14.61% 10.91% 12.10% 5.37% N/A N/A Reset Date (prior to 8/31/22) 3/18/22 3/18/22 6/17/22 6/17/22 6/17/22 N/A N/A New Cap on Annual Reset Date (pre-expenses) 20.70% 17.25% 24.20% 25.19% 14.80% 12.93% 13.65% New Cap on Annual Reset Date (post-expenses) 19.80% 16.35% 23.31% 24.30% 13.95% 12.03% 12.75% PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22): Fund Performance (using NAVs) -15.00% -8.69% -14.68% -10.35% 0.66% -13.93% -10.75% Fund Performance (using Market Price) -15.06% -8.96% -14.22% -10.41% 0.77% -14.13% -10.70% Reference Asset Price Return -23.49% -21.23% -23.49% -21.23% -12.49% -23.35% -19.94% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset -15.58% -11.09% -15.14% -10.82% -4.38% -17.13% -13.47% b) Changes in other Variables* 1.48% 3.31% 1.36% 1.37% 5.89% 4.06% 3.58% c) Expenses (pro-rated annual expense ratio) -0.90% -0.90% -0.90% -0.90% -0.85% -0.86% -0.86% Attribution TOTAL -15.00% -8.69% -14.68% -10.35% 0.66% -13.93% -10.75% </TABLE> * Includes changes in a) Reference Asset's dividends, b) interest rates, c) implied volatility, and d) time to option expiration. Page 16 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> ---------------------------------------------------------------------------------- FUND TICKER YDEC QDEC XDEC ---------------------------------------------------------------------------------- <S> <C> <C> <C> Annual Expense Ratio 0.90% 0.90% 0.85% Reporting Period Start Date 8/31/21 8/31/21 12/17/21 Reporting Period End Date 8/31/22 8/31/22 8/31/22 CAP INFORMATION: Cap Prior to Annual Reset (pre-expenses) 13.79% 17.04% N/A Cap Prior to Annual Reset (post-expenses) 12.89% 16.14% N/A Reset Date (prior to 8/31/22) 12/17/21 12/17/21 N/A New Cap on Annual Reset Date (pre-expenses) 10.75% 15.89% 8.58% New Cap on Annual Reset Date (post-expenses) 9.85% 14.99% 7.73% PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22): Fund Performance (using NAVs) -14.74% -11.79% -4.98% Fund Performance (using Market Price) -14.80% -11.68% -5.01% Reference Asset Price Return -23.49% -21.23% -14.07% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to: a) Changes in Reference Asset -15.82% -12.69% -7.17% b) Changes in other Variables* 1.99% 1.80% 2.79% c) Expenses (pro-rated annual expense ratio) -0.90% -0.90% -0.60% Attribution TOTAL -14.74% -11.79% -4.98% </TABLE> * Includes changes in a) Reference Asset's dividends, b) interest rates, c) implied volatility, and d) time to option expiration. Page 17 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (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 - September, FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, FT Cboe Vest International Equity Buffer ETF - December, FT Cboe Vest Nasdaq-100(R) Buffer ETF - December or FT Cboe Vest U.S. Equity Enhance & Moderate 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 and held through the six-month period ended August 31, 2022. 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 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) --------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) Actual $1,000.00 $ 906.70 0.90% $4.33 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 $ 924.00 0.90% $4.36 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) Actual $1,000.00 $ 904.60 0.90% $4.32 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 $ 926.10 0.90% $4.37 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) Actual $1,000.00 $1,010.00 0.85% $4.31 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 </TABLE> Page 18 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES (CONTINUED) AUGUST 31, 2022 (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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) --------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP) Actual $1,000.00 $ 905.20 0.90% $4.32 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT) Actual $1,000.00 $ 925.10 0.90% $4.37 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) Actual $1,000.00 $ 916.40 0.90% $4.35 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 $ 913.70 0.90% $4.34 Hypothetical (5% return before expenses) $1,000.00 $1,020.67 0.90% $4.58 FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC) Actual $1,000.00 $ 965.80 0.85% $4.21 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, 2022 through August 31, 2022), multiplied by 184/365 (to reflect the six-month period). Page 19 <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.0% <S> <C> 392,904 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 392,904 (Cost $392,904) -------------- TOTAL INVESTMENTS -- 1.0%...................................................................... 392,904 (Cost $392,904) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 108.1% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 90.4% 5,658 iShares MSCI EAFE ETF.............................. $ 34,909,860 $ 0.74 03/17/23 34,112,352 (Cost $40,299,916) -------------- PUT OPTIONS PURCHASED -- 17.7% 5,658 iShares MSCI EAFE ETF.............................. 34,909,860 73.77 03/17/23 6,673,414 (Cost $3,648,275) -------------- TOTAL PURCHASED OPTIONS........................................................................ 40,785,766 (Cost $43,948,191) -------------- WRITTEN OPTIONS -- (9.0)% CALL OPTIONS WRITTEN -- (0.0)% (5,658) iShares MSCI EAFE ETF.............................. (34,909,860) 89.04 03/17/23 (20,669) (Premiums received $592,650) -------------- PUT OPTIONS WRITTEN -- (9.0)% (5,658) iShares MSCI EAFE ETF.............................. (34,909,860) 66.39 03/17/23 (3,398,445) (Premiums received $1,837,434) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (3,419,114) (Premiums received $2,430,084) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (29,072) -------------- NET ASSETS -- 100.0%........................................................................... $ 37,730,484 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 1.0% Purchased Options 108.1 Written Options (9.0) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 20 See Notes to Financial Statements <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 392,904 $ 392,904 $ -- $ -- Call Options Purchased............................... 34,112,352 -- 34,112,352 -- Put Options Purchased................................ 6,673,414 -- 6,673,414 -- -------------- -------------- -------------- -------------- Total................................................ $ 41,178,670 $ 392,904 $ 40,785,766 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (20,669) $ -- $ (20,669) $ -- Put Options Written.................................. (3,398,445) -- (3,398,445) -- -------------- -------------- -------------- -------------- Total................................................ $ (3,419,114) $ -- $ (3,419,114) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 21 <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 433,380 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 433,380 (Cost $433,380) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 433,380 (Cost $433,380) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 109.3% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 92.4% 1,461 Invesco QQQ Trust(SM), Series 1.................... $ 43,723,347 $ 3.52 03/17/23 43,092,733 (Cost $49,951,548) -------------- PUT OPTIONS PURCHASED -- 16.9% 1,461 Invesco QQQ Trust(SM), Series 1.................... 43,723,347 351.50 03/17/23 7,881,022 (Cost $5,619,419) -------------- TOTAL PURCHASED OPTIONS........................................................................ 50,973,755 (Cost $55,570,967) -------------- WRITTEN OPTIONS -- (10.1)% CALL OPTIONS WRITTEN -- (0.3)% (1,461) Invesco QQQ Trust(SM), Series 1.................... (43,723,347) 412.13 03/17/23 (151,704) (Premiums received $1,211,443) -------------- PUT OPTIONS WRITTEN -- (9.8)% (1,461) Invesco QQQ Trust(SM), Series 1.................... (43,723,347) 316.35 03/17/23 (4,562,997) (Premiums received $3,071,068) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (4,714,701) (Premiums received $4,282,511) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (34,983) -------------- NET ASSETS -- 100.0%........................................................................... $ 46,657,451 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 0.9% Purchased Options 109.3 Written Options (10.1) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 22 See Notes to Financial Statements <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 433,380 $ 433,380 $ -- $ -- Call Options Purchased............................... 43,092,733 -- 43,092,733 -- Put Options Purchased................................ 7,881,022 -- 7,881,022 -- -------------- -------------- -------------- -------------- Total................................................ $ 51,407,135 $ 433,380 $ 50,973,755 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (151,704) $ -- $ (151,704) $ -- Put Options Written.................................. (4,562,997) -- (4,562,997) -- -------------- -------------- -------------- -------------- Total................................................ $ (4,714,701) $ -- $ (4,714,701) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 23 <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.2% <S> <C> <C> 346,714 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 346,714 (Cost $346,714) -------------- TOTAL INVESTMENTS -- 1.2%...................................................................... 346,714 (Cost $346,714) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 103.6% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 96.4% 4,827 iShares MSCI EAFE ETF.............................. $ 29,782,590 $ 0.61 06/16/23 28,590,321 (Cost $28,835,982) -------------- PUT OPTIONS PURCHASED -- 7.2% 4,827 iShares MSCI EAFE ETF.............................. 29,782,590 61.48 06/16/23 2,128,707 (Cost $2,286,304) -------------- TOTAL PURCHASED OPTIONS........................................................................ 30,719,028 (Cost $31,122,286) -------------- WRITTEN OPTIONS -- (4.8)% CALL OPTIONS WRITTEN -- (0.7)% (4,827) iShares MSCI EAFE ETF.............................. (29,782,590) 76.36 06/16/23 (193,080) (Premiums received $289,160) -------------- PUT OPTIONS WRITTEN -- (4.1)% (4,827) iShares MSCI EAFE ETF.............................. (29,782,590) 55.33 06/16/23 (1,206,750) (Premiums received $1,314,019) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (1,399,830) (Premiums received $1,603,179) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.0)%..................................................... (11,653) -------------- NET ASSETS -- 100.0%........................................................................... $ 29,654,259 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 1.2% Purchased Options 103.6 Written Options (4.8) Net Other Assets and Liabilities (0.0)* -------- Total 100.0% ======== * Amount is less than 0.1%. Page 24 See Notes to Financial Statements <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 346,714 $ 346,714 $ -- $ -- Call Options Purchased............................... 28,590,321 -- 28,590,321 -- Put Options Purchased................................ 2,128,707 -- 2,128,707 -- -------------- -------------- -------------- -------------- Total................................................ $ 31,065,742 $ 346,714 $ 30,719,028 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (193,080) $ -- $ (193,080) $ -- Put Options Written.................................. (1,206,750) -- (1,206,750) -- -------------- -------------- -------------- -------------- Total................................................ $ (1,399,830) $ -- $ (1,399,830) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 25 <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 1.0% <S> <C> <C> 919,208 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 919,208 (Cost $919,208) -------------- TOTAL INVESTMENTS -- 1.0%...................................................................... 919,208 (Cost $919,208) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 107.9% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 101.7% 3,167 Invesco QQQ Trust(SM), Series 1.................... $ 94,778,809 $ 2.76 06/16/23 93,579,501 (Cost $89,426,241) -------------- PUT OPTIONS PURCHASED -- 6.2% 3,167 Invesco QQQ Trust(SM), Series 1.................... 94,778,809 274.70 06/16/23 5,709,746 (Cost $7,865,298) -------------- TOTAL PURCHASED OPTIONS........................................................................ 99,289,247 (Cost $97,291,539) -------------- WRITTEN OPTIONS -- (8.8)% CALL OPTIONS WRITTEN -- (4.9)% (3,167) Invesco QQQ Trust(SM), Series 1.................... (94,778,809) 343.92 06/16/23 (4,521,249) (Premiums received $4,033,377) -------------- PUT OPTIONS WRITTEN -- (3.9)% (3,167) Invesco QQQ Trust(SM), Series 1.................... (94,778,809) 247.23 06/16/23 (3,576,134) (Premiums received $5,016,483) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (8,097,383) (Premiums received $9,049,860) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (62,596) -------------- NET ASSETS -- 100.0%........................................................................... $ 92,048,476 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 1.0% Purchased Options 107.9 Written Options (8.8) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 26 See Notes to Financial Statements <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 919,208 $ 919,208 $ -- $ -- Call Options Purchased............................... 93,579,501 -- 93,579,501 -- Put Options Purchased................................ 5,709,746 -- 5,709,746 -- -------------- -------------- -------------- -------------- Total................................................ $ 100,208,455 $ 919,208 $ 99,289,247 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (4,521,249) $ -- $ (4,521,249) $ -- Put Options Written.................................. (3,576,134) -- (3,576,134) -- -------------- -------------- -------------- -------------- Total................................................ $ (8,097,383) $ -- $ (8,097,383) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 27 <PAGE> FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.9% <S> <C> <C> 1,033,098 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 1,033,098 (Cost $1,033,098) -------------- TOTAL INVESTMENTS -- 0.9%...................................................................... 1,033,098 (Cost $1,033,098) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 121.5% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 116.1% 2,905 SPDR(R) S&P 500(R) ETF Trust....................... $ 114,799,790 $ 3.67 06/16/23 112,403,549 2,905 SPDR(R) S&P 500(R) ETF Trust....................... 114,799,790 365.87 06/16/23 16,073,831 -------------- TOTAL CALL OPTIONS PURCHASED................................................................... 128,477,380 (Cost $123,774,126) -------------- PUT OPTIONS PURCHASED -- 5.4% 2,905 SPDR(R) S&P 500(R) ETF Trust....................... 114,799,790 365.87 06/16/23 5,920,976 (Cost $7,575,471) -------------- TOTAL PURCHASED OPTIONS........................................................................ 134,398,356 (Cost $131,349,597) -------------- WRITTEN OPTIONS -- (22.3)% CALL OPTIONS WRITTEN -- (19.9)% (5,810) SPDR(R) S&P 500(R) ETF Trust....................... (229,599,580) 392.93 06/16/23 (21,989,751) (Premiums received $20,165,266) -------------- PUT OPTIONS WRITTEN -- (2.4)% (2,905) SPDR(R) S&P 500(R) ETF Trust....................... (114,799,790) 310.98 06/16/23 (2,721,596) (Premiums received $3,663,411) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (24,711,347) (Premiums received $23,828,677) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (73,050) -------------- NET ASSETS -- 100.0%........................................................................... $ 110,647,057 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 0.9% Purchased Options 121.5 Written Options (22.3) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 28 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 1,033,098 $ 1,033,098 $ -- $ -- Call Options Purchased............................... 128,477,380 -- 128,477,380 -- Put Options Purchased................................ 5,920,976 -- 5,920,976 -- -------------- -------------- -------------- -------------- Total................................................ $ 135,431,454 $ 1,033,098 $ 134,398,356 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (21,989,751) $ -- $ (21,989,751) $ -- Put Options Written.................................. (2,721,596) -- (2,721,596) -- -------------- -------------- -------------- -------------- Total................................................ $ (24,711,347) $ -- $ (24,711,347) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 29 <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.6% <S> <C> <C> 34,347 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 34,347 (Cost $34,347) -------------- TOTAL INVESTMENTS -- 0.6%...................................................................... 34,347 (Cost $34,347) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 114.9% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 87.9% 868 iShares MSCI EAFE ETF.............................. $ 5,355,560 $ 0.81 09/16/22 5,284,513 (Cost $6,712,937) -------------- PUT OPTIONS PURCHASED -- 27.0% 868 iShares MSCI EAFE ETF.............................. 5,355,560 80.50 09/16/22 1,623,801 (Cost $576,167) -------------- TOTAL PURCHASED OPTIONS........................................................................ 6,908,314 (Cost $7,289,104) -------------- WRITTEN OPTIONS -- (15.4)% CALL OPTIONS WRITTEN -- (0.0)% (868) iShares MSCI EAFE ETF.............................. (5,355,560) 90.91 09/16/22 0 (Premiums received $32,613) -------------- PUT OPTIONS WRITTEN -- (15.4)% (868) iShares MSCI EAFE ETF.............................. (5,355,560) 72.45 09/16/22 (925,961) (Premiums received $257,358) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (925,961) (Premiums received $289,971) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (5,371) -------------- NET ASSETS -- 100.0%........................................................................... $ 6,011,329 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 0.6% Purchased Options 114.9 Written Options (15.4) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 30 See Notes to Financial Statements <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - SEPTEMBER (YSEP) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 34,347 $ 34,347 $ -- $ -- Call Options Purchased............................... 5,284,513 -- 5,284,513 -- Put Options Purchased................................ 1,623,801 -- 1,623,801 -- -------------- -------------- -------------- -------------- Total................................................ $ 6,942,661 $ 34,347 $ 6,908,314 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ --* $ -- $ --* $ -- Put Options Written.................................. (925,961) -- (925,961) -- -------------- -------------- -------------- -------------- Total................................................ $ (925,961) $ -- $ (925,961) $ -- ============== ============== ============== ============== </TABLE> * Investment is valued at $0. See Notes to Financial Statements Page 31 <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.4% <S> <C> <C> 98,092 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 98,092 (Cost $98,092) -------------- TOTAL INVESTMENTS -- 0.4%...................................................................... 98,092 (Cost $98,092) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 110.8% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 88.6% 729 Invesco QQQ Trust(SM), Series 1.................... $ 21,816,783 $ 3.74 09/16/22 21,538,487 (Cost $26,504,400) -------------- PUT OPTIONS PURCHASED -- 22.2% 729 Invesco QQQ Trust(SM), Series 1.................... 21,816,783 373.83 09/16/22 5,406,937 (Cost $2,805,897) -------------- TOTAL PURCHASED OPTIONS........................................................................ 26,945,424 (Cost $29,310,297) -------------- WRITTEN OPTIONS -- (11.1)% CALL OPTIONS WRITTEN -- (0.0)% (729) Invesco QQQ Trust(SM), Series 1.................... (21,816,783) 424.86 09/16/22 (1) (Premiums received $681,619) -------------- PUT OPTIONS WRITTEN -- (11.1)% (729) Invesco QQQ Trust(SM), Series 1.................... (21,816,783) 336.45 09/16/22 (2,694,389) (Premiums received $1,484,503) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (2,694,390) (Premiums received $2,166,122) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (19,312) -------------- NET ASSETS -- 100.0%........................................................................... $ 24,329,814 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 0.4% Purchased Options 110.8 Written Options (11.1) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 32 See Notes to Financial Statements <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - SEPTEMBER (QSPT) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 98,092 $ 98,092 $ -- $ -- Call Options Purchased............................... 21,538,487 -- 21,538,487 -- Put Options Purchased................................ 5,406,937 -- 5,406,937 -- -------------- -------------- -------------- -------------- Total................................................ $ 27,043,516 $ 98,092 $ 26,945,424 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (1) $ -- $ (1) $ -- Put Options Written.................................. (2,694,389) -- (2,694,389) -- -------------- -------------- -------------- -------------- Total................................................ $ (2,694,390) $ -- $ (2,694,390) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 33 <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.8% <S> <C> <C> 93,122 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 93,122 (Cost $93,122) -------------- TOTAL INVESTMENTS -- 0.8%...................................................................... 93,122 (Cost $93,122) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 110.6% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 88.6% 1,643 iShares MSCI EAFE ETF.............................. $ 10,137,310 $ 0.77 12/16/22 9,894,690 (Cost $12,163,142) -------------- PUT OPTIONS PURCHASED -- 22.0% 1,643 iShares MSCI EAFE ETF.............................. 10,137,310 76.65 12/16/22 2,460,280 (Cost $1,197,235) -------------- TOTAL PURCHASED OPTIONS........................................................................ 12,354,970 (Cost $13,360,377) -------------- WRITTEN OPTIONS -- (11.3)% CALL OPTIONS WRITTEN -- (0.0)% (1,643) iShares MSCI EAFE ETF.............................. (10,137,310) 84.89 12/16/22 (747) (Premiums received $166,684) -------------- PUT OPTIONS WRITTEN -- (11.3)% (1,643) iShares MSCI EAFE ETF.............................. (10,137,310) 68.99 12/16/22 (1,261,073) (Premiums received $560,909) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (1,261,820) (Premiums received $727,593) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (9,127) -------------- NET ASSETS -- 100.0%........................................................................... $ 11,177,145 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 0.8% Purchased Options 110.6 Written Options (11.3) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 34 See Notes to Financial Statements <PAGE> FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 93,122 $ 93,122 $ -- $ -- Call Options Purchased............................... 9,894,690 -- 9,894,690 -- Put Options Purchased................................ 2,460,280 -- 2,460,280 -- -------------- -------------- -------------- -------------- Total................................................ $ 12,448,092 $ 93,122 $ 12,354,970 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (747) $ -- $ (747) $ -- Put Options Written.................................. (1,261,073) -- (1,261,073) -- -------------- -------------- -------------- -------------- Total................................................ $ (1,261,820) $ -- $ (1,261,820) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 35 <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 525,173 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 525,173 (Cost $525,173) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 525,173 (Cost $525,173) -------------- </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 -- 88.8% 2,156 Invesco QQQ Trust(SM), Series 1.................... $ 64,522,612 $ 3.85 12/16/22 63,581,299 (Cost $81,848,527) -------------- PUT OPTIONS PURCHASED -- 25.0% 2,156 Invesco QQQ Trust(SM), Series 1.................... 64,522,612 384.91 12/16/22 17,930,839 (Cost $8,210,770) -------------- TOTAL PURCHASED OPTIONS........................................................................ 81,512,138 (Cost $90,059,297) -------------- WRITTEN OPTIONS -- (14.4)% CALL OPTIONS WRITTEN -- (0.0)% (2,156) Invesco QQQ Trust(SM), Series 1.................... (64,522,612) 446.07 12/16/22 (10,480) (Premiums received $2,745,662) -------------- PUT OPTIONS WRITTEN -- (14.4)% (2,156) Invesco QQQ Trust(SM), Series 1.................... (64,522,612) 346.42 12/16/22 (10,339,780) (Premiums received $5,112,682) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (10,350,260) (Premiums received $7,858,344) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (57,891) -------------- NET ASSETS -- 100.0%........................................................................... $ 71,629,160 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 0.7% Purchased Options 113.8 Written Options (14.4) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 36 See Notes to Financial Statements <PAGE> FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 525,173 $ 525,173 $ -- $ -- Call Options Purchased............................... 63,581,299 -- 63,581,299 -- Put Options Purchased................................ 17,930,839 -- 17,930,839 -- -------------- -------------- -------------- -------------- Total................................................ $ 82,037,311 $ 525,173 $ 81,512,138 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (10,480) $ -- $ (10,480) $ -- Put Options Written.................................. (10,339,780) -- (10,339,780) -- -------------- -------------- -------------- -------------- Total................................................ $ (10,350,260) $ -- $ (10,350,260) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 37 <PAGE> FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE -------------- ----------------------------------------------------------------------------------------------- -------------- MONEY MARKET FUNDS -- 0.7% <S> <C> <C> 524,746 Dreyfus Government Cash Management Fund, Institutional Shares - 2.11% (a)...................... $ 524,746 (Cost $524,746) -------------- TOTAL INVESTMENTS -- 0.7%...................................................................... 524,746 (Cost $524,746) -------------- </TABLE> <TABLE> <CAPTION> NUMBER OF NOTIONAL EXERCISE EXPIRATION CONTRACTS DESCRIPTION AMOUNT PRICE DATE VALUE -------------- --------------------------------------------------- ------------- ----------- ----------- -------------- PURCHASED OPTIONS -- 103.6% <S> <C> <C> <C> <C> <C> CALL OPTIONS PURCHASED -- 88.8% 1,781 SPDR(R) S&P 500(R) ETF Trust....................... $ 70,381,558 $ 4.61 12/16/22 68,995,052 1,781 SPDR(R) S&P 500(R) ETF Trust....................... 70,381,558 459.88 12/16/22 170,741 -------------- TOTAL CALL OPTIONS PURCHASED................................................................... 69,165,793 (Cost $78,241,447) -------------- PUT OPTIONS PURCHASED -- 14.8% 1,781 SPDR(R) S&P 500(R) ETF Trust....................... 70,381,558 459.88 12/16/22 11,500,837 (Cost $8,629,176) -------------- TOTAL PURCHASED OPTIONS........................................................................ 80,666,630 (Cost $86,870,623) -------------- WRITTEN OPTIONS -- (4.2)% CALL OPTIONS WRITTEN -- (0.1)% (3,562) SPDR(R) S&P 500(R) ETF Trust....................... (140,763,116) 479.60 12/16/22 (101,396) (Premiums received $4,091,776) -------------- PUT OPTIONS WRITTEN -- (4.1)% (1,781) SPDR(R) S&P 500(R) ETF Trust....................... (70,381,558) 390.89 12/16/22 (3,184,441) (Premiums received $3,574,615) -------------- TOTAL WRITTEN OPTIONS.......................................................................... (3,285,837) (Premiums received $7,666,391) -------------- NET OTHER ASSETS AND LIABILITIES -- (0.1)%..................................................... (50,479) -------------- NET ASSETS -- 100.0%........................................................................... $ 77,855,060 ============== </TABLE> (a) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS ------------------------------------------------------------------- Money Market Funds 0.7% Purchased Options 103.6 Written Options (4.2) Net Other Assets and Liabilities (0.1) -------- Total 100.0% ======== Page 38 See Notes to Financial Statements <PAGE> FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Money Market Funds................................... $ 524,746 $ 524,746 $ -- $ -- Call Options Purchased............................... 69,165,793 -- 69,165,793 -- Put Options Purchased................................ 11,500,837 -- 11,500,837 -- -------------- -------------- -------------- -------------- Total................................................ $ 81,191,376 $ 524,746 $ 80,666,630 $ -- ============== ============== ============== ============== LIABILITIES TABLE LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- Call Options Written................................. $ (101,396) $ -- $ (101,396) $ -- Put Options Written.................................. (3,184,441) -- (3,184,441) -- -------------- -------------- -------------- -------------- Total................................................ $ (3,285,837) $ -- $ (3,285,837) $ -- ============== ============== ============== ============== </TABLE> See Notes to Financial Statements Page 39 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER ETF - MARCH ETF - MARCH ETF - JUNE ETF - JUNE (YMAR) (QMAR) (YJUN) (QJUN) ---------------- ----------------- ----------------- ----------------- ASSETS: <S> <C> <C> <C> <C> Investments, at value........................... $ 392,904 $ 433,380 $ 346,714 $ 919,208 Options contracts purchased, at value........... 40,785,766 50,973,755 30,719,028 99,289,247 Due from broker................................. -- 7 412 -- Receivables: Dividends.................................... 697 745 599 3,160 Capital shares sold.......................... -- -- 872,922 -- Investment securities sold................... -- -- 40,810 -- ---------------- ----------------- ----------------- ----------------- Total Assets................................. 41,179,367 51,407,887 31,980,485 100,211,615 ---------------- ----------------- ----------------- ----------------- LIABILITIES: Options contracts written, at value............. 3,419,114 4,714,701 1,399,830 8,097,383 Payables: Investment advisory fees..................... 29,769 35,735 22,339 65,756 Investment securities purchased.............. -- -- 904,057 -- ---------------- ----------------- ----------------- ----------------- Total Liabilities............................ 3,448,883 4,750,436 2,326,226 8,163,139 ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 37,730,484 $ 46,657,451 $ 29,654,259 $ 92,048,476 ================ ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital................................. $ 43,817,323 $ 51,701,648 $ 32,846,939 $ 97,520,034 Par value....................................... 21,000 23,000 17,000 49,000 Accumulated distributable earnings (loss)....... (6,107,839) (5,067,197) (3,209,680) (5,520,558) ---------------- ----------------- ----------------- ----------------- NET ASSETS...................................... $ 37,730,484 $ 46,657,451 $ 29,654,259 $ 92,048,476 ================ ================= ================= ================= NET ASSET VALUE, per share...................... $ 17.97 $ 20.29 $ 17.44 $ 18.79 ================ ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)............................. 2,100,002 2,300,002 1,700,002 4,900,002 ================ ================= ================= ================= Investments, at cost............................ $ 392,904 $ 433,380 $ 346,714 $ 919,208 ================ ================= ================= ================= Premiums paid on options contracts purchased.... $ 43,948,191 $ 55,570,967 $ 31,122,286 $ 97,291,539 ================ ================= ================= ================= Premiums received on options contracts written.. $ 2,430,084 $ 4,282,511 $ 1,603,179 $ 9,049,860 ================ ================= ================= ================= </TABLE> Page 40 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST U.S. EQUITY FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY ENHANCE & INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) ENHANCE & MODERATE BUFFER EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER MODERATE BUFFER ETF - JUNE ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER ETF - DECEMBER ETF - DECEMBER (XJUN) (YSEP) (QSPT) (YDEC) (QDEC) (XDEC) ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ 1,033,098 $ 34,347 $ 98,092 $ 93,122 $ 525,173 $ 524,746 134,398,356 6,908,314 26,945,424 12,354,970 81,512,138 80,666,630 -- -- -- -- 13 -- 1,719 68 503 172 1,432 1,567 -- -- -- -- -- -- -- -- -- -- -- -- ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 135,433,173 6,942,729 27,044,019 12,448,264 82,038,756 81,192,943 ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 24,711,347 925,961 2,694,390 1,261,820 10,350,260 3,285,837 74,769 5,439 19,815 9,299 59,336 52,046 -- -- -- -- -- -- ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 24,786,116 931,400 2,714,205 1,271,119 10,409,596 3,337,883 ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- $ 110,647,057 $ 6,011,329 $ 24,329,814 $ 11,177,145 $ 71,629,160 $ 77,855,060 ================== ================= ================= ================== ================= ================= $ 111,055,693 $ 7,108,300 $ 27,025,176 $ 13,477,376 $ 91,539,751 $ 79,974,963 36,500 3,500 13,500 6,000 36,000 27,000 (445,136) (1,100,471) (2,708,862) (2,306,231) (19,946,591) (2,146,903) ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- $ 110,647,057 $ 6,011,329 $ 24,329,814 $ 11,177,145 $ 71,629,160 $ 77,855,060 ================== ================= ================= ================== ================= ================= $ 30.31 $ 17.18 $ 18.02 $ 18.63 $ 19.90 $ 28.84 ================== ================= ================= ================== ================= ================= 3,650,002 350,002 1,350,002 600,002 3,600,002 2,700,002 ================== ================= ================= ================== ================= ================= $ 1,033,098 $ 34,347 $ 98,092 $ 93,122 $ 525,173 $ 524,746 ================== ================= ================= ================== ================= ================= $ 131,349,597 $ 7,289,104 $ 29,310,297 $ 13,360,377 $ 90,059,297 $ 86,870,623 ================== ================= ================= ================== ================= ================= $ 23,828,677 $ 289,971 $ 2,166,122 $ 727,593 $ 7,858,344 $ 7,666,391 ================== ================= ================= ================== ================= ================= </TABLE> See Notes to Financial Statements Page 41 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2022 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER ETF - MARCH ETF - MARCH ETF - JUNE ETF - JUNE (YMAR) (QMAR) (YJUN) (QJUN) ---------------- ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> <C> Dividends....................................... $ 2,342 $ 2,444 $ 1,599 $ 4,966 ---------------- ----------------- ----------------- ----------------- Total investment income...................... 2,342 2,444 1,599 4,966 ---------------- ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................ 235,583 261,218 144,716 336,606 ---------------- ----------------- ----------------- ----------------- Total expenses............................... 235,583 261,218 144,716 336,606 ---------------- ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS).................... (233,241) (258,774) (143,117) (331,640) ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Purchased options contracts.................. (1,933,140) (359,750) (2,124,301) (6,028,071) Written options contracts.................... 162,039 (134,370) (795,919) (2,195,992) In-kind redemptions - Purchased options contracts................................. 627,889 913,228 1,295,982 3,908,349 In-kind redemptions - Written options contracts................................. 505,812 1,558,375 185,882 1,620,585 ---------------- ----------------- ----------------- ----------------- Net realized gain (loss)........................ (637,400) 1,977,483 (1,438,356) (2,695,129) ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Purchased options contracts.................. (3,220,026) (6,346,502) (554,049) 488,810 Written options contracts.................... (1,182,049) 34,267 104,733 1,387,396 ---------------- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............................... (4,402,075) (6,312,235) (449,316) 1,876,206 ---------------- ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).................................. (5,039,475) (4,334,752) (1,887,672) (818,923) ---------------- ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ (5,272,716) $ (4,593,526) $ (2,030,789) $ (1,150,563) ================ ================= ================= ================= </TABLE> (a) Inception date is September 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 December 17, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 42 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST U.S. EQUITY FT CBOE VEST FT CBOE VEST FT CBOE VEST FT CBOE VEST U.S. EQUITY ENHANCE & INTERNATIONAL NASDAQ-100(R) INTERNATIONAL NASDAQ-100(R) ENHANCE & MODERATE BUFFER EQUITY BUFFER BUFFER EQUITY BUFFER BUFFER MODERATE BUFFER ETF - JUNE ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER ETF - DECEMBER ETF - DECEMBER (XJUN) (YSEP) (a) (QSPT) (a) (YDEC) (QDEC) (XDEC) (b) ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ 3,076 $ 227 $ 1,365 $ 542 $ 4,035 $ 2,678 ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 3,076 227 1,365 542 4,035 2,678 ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 201,538 55,222 211,256 110,223 743,983 279,820 ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 201,538 55,222 211,256 110,223 743,983 279,820 ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- (198,462) (54,995) (209,891) (109,681) (739,948) (277,142) ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- (2,398,504) -- (207,262) (989,447) (6,950,524) (327,495) (30,759) -- 142,994 6,944 (2,097,495) 280,280 1,013,495 28,329 272,852 804,333 13,512,549 -- 1,304,291 (57,616) 183,681 610,135 4,501,722 -- ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- (111,477) (29,287) 392,265 431,965 8,966,252 (47,215) ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 2,824,486 (380,790) (2,364,873) (1,385,393) (17,058,775) (6,203,993) (728,364) (635,990) (528,268) (860,571) (2,843,260) 4,380,554 ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 2,096,122 (1,016,780) (2,893,141) (2,245,964) (19,902,035) (1,823,439) ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- 1,984,645 (1,046,067) (2,500,876) (1,813,999) (10,935,783) (1,870,654) ------------------ ----------------- ----------------- ------------------ ----------------- ----------------- $ 1,786,183 $ (1,101,062) $ (2,710,767) $ (1,923,680) $ (11,675,731) $ (2,147,796) ================== ================= ================= ================== ================= ================= </TABLE> See Notes to Financial Statements Page 43 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST INTERNATIONAL EQUITY NASDAQ-100(R) BUFFER ETF - MARCH BUFFER ETF - MARCH (YMAR) (QMAR) ------------------------------------- -------------------------------------- YEAR PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED 8/31/22 8/31/21 (a) 8/31/22 8/31/21 (a) ---------------- ----------------- ----------------- ----------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss)................... $ (233,241) $ (25,017) $ (258,774) $ (52,940) Net realized gain (loss)....................... (637,400) -- 1,977,483 (9,582) Net change in unrealized appreciation (depreciation).............................. (4,402,075) 250,620 (6,312,235) 1,282,833 ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............................. (5,272,716) 225,603 (4,593,526) 1,220,311 ---------------- ----------------- ----------------- ----------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold...................... 61,307,344 12,460,962 65,393,273 22,902,662 Cost of shares redeemed........................ (30,990,709) -- (33,026,951) (5,238,318) ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from shareholder transactions............... 30,316,635 12,460,962 32,366,322 17,664,344 ---------------- ----------------- ----------------- ----------------- Total increase (decrease) in net assets........ 25,043,919 12,686,565 27,772,796 18,884,655 NET ASSETS: Beginning of period............................ 12,686,565 -- 18,884,655 -- ---------------- ----------------- ----------------- ----------------- End of period.................................. $ 37,730,484 $ 12,686,565 $ 46,657,451 $ 18,884,655 ================ ================= ================= ================= CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period........ 600,002 -- 850,002 -- Shares sold.................................... 3,100,000 600,002 3,050,000 1,100,002 Shares redeemed................................ (1,600,000) -- (1,600,000) (250,000) ---------------- ----------------- ----------------- ----------------- Shares outstanding, end of period.............. 2,100,002 600,002 2,300,002 850,002 ================ ================= ================= ================= </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. Page 44 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST INTERNATIONAL EQUITY NASDAQ-100(R) U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE BUFFER ETF - JUNE BUFFER ETF - JUNE (YJUN) (QJUN) (XJUN) ------------------------------------- -------------------------------------- -------------------------------------- YEAR PERIOD YEAR PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED ENDED ENDED 8/31/22 8/31/21 (b) 8/31/22 8/31/21 (b) 8/31/22 8/31/21 (c) ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- <S> <C> <C> <C> <C> <C> $ (143,117) $ (13,034) $ (331,640) $ (40,287) $ (198,462) $ (5,184) (1,438,356) -- (2,695,129) -- (111,477) -- (449,316) 249,407 1,876,206 1,073,979 2,096,122 69,967 ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- (2,030,789) 236,373 (1,150,563) 1,033,692 1,786,183 64,783 ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- 39,951,781 13,048,208 116,883,507 32,499,272 118,349,822 5,958,020 (21,551,314) -- (57,217,432) -- (15,511,751) -- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- 18,400,467 13,048,208 59,666,075 32,499,272 102,838,071 5,958,020 ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- 16,369,678 13,284,581 58,515,512 33,532,964 104,624,254 6,022,803 13,284,581 -- 33,532,964 -- 6,022,803 -- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- $ 29,654,259 $ 13,284,581 $ 92,048,476 $ 33,532,964 $ 110,647,057 $ 6,022,803 ================ ================= ================= ================= ================= ================= 650,002 -- 1,600,002 -- 200,002 -- 2,200,000 650,002 6,300,000 1,600,002 3,975,000 200,002 (1,150,000) -- (3,000,000) -- (525,000) -- ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- 1,700,002 650,002 4,900,002 1,600,002 3,650,002 200,002 ================ ================= ================= ================= ================= ================= </TABLE> See Notes to Financial Statements Page 45 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST INTERNATIONAL NASDAQ-100(R) INTERNATIONAL EQUITY BUFFER BUFFER EQUITY BUFFER ETF - SEPTEMBER ETF - SEPTEMBER ETF - DECEMBER (YSEP) (QSPT) (YDEC) ---------------- ----------------- -------------------------------------- PERIOD PERIOD YEAR PERIOD ENDED ENDED ENDED ENDED 8/31/22 (d) 8/31/22 (d) 8/31/22 8/31/21 (e) ---------------- ----------------- ----------------- ----------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss)................... $ (54,995) $ (209,891) $ (109,681) $ (52,205) Net realized gain (loss)....................... (29,287) 392,265 431,965 -- Net change in unrealized appreciation (depreciation).............................. (1,016,780) (2,893,141) (2,245,964) 706,330 ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............................. (1,101,062) (2,710,767) (1,923,680) 654,125 ---------------- ----------------- ----------------- ----------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold...................... 9,899,510 45,487,054 25,417,773 11,362,368 Cost of shares redeemed........................ (2,787,119) (18,446,473) (24,333,441) -- ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from shareholder transactions............... 7,112,391 27,040,581 1,084,332 11,362,368 ---------------- ----------------- ----------------- ----------------- Total increase (decrease) in net assets........ 6,011,329 24,329,814 (839,348) 12,016,493 NET ASSETS: Beginning of period............................ -- -- 12,016,493 -- ---------------- ----------------- ----------------- ----------------- End of period.................................. $ 6,011,329 $ 24,329,814 $ 11,177,145 $ 12,016,493 ================ ================= ================= ================= CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period........ -- -- 550,002 -- Shares sold.................................... 500,002 2,300,002 1,200,000 550,002 Shares redeemed................................ (150,000) (950,000) (1,150,000) -- ---------------- ----------------- ----------------- ----------------- Shares outstanding, end of period.............. 350,002 1,350,002 600,002 550,002 ================ ================= ================= ================= </TABLE> (d) Inception date is September 17, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (e) 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. (f) Inception date is December 17, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 46 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST U.S. EQUITY ENHANCE NASDAQ-100(R) & MODERATE BUFFER BUFFER ETF - DECEMBER ETF - DECEMBER (QDEC) (XDEC) ------------------------------------- ----------------- YEAR PERIOD PERIOD ENDED ENDED ENDED 8/31/22 8/31/21 (e) 8/31/22 (f) ---------------- ----------------- ----------------- <S> <C> <C> $ (739,948) $ (442,607) $ (277,142) 8,966,252 809,586 (47,215) (19,902,035) 8,862,960 (1,823,439) ---------------- ----------------- ----------------- (11,675,731) 9,229,939 (2,147,796) ---------------- ----------------- ----------------- 110,993,722 89,195,903 93,120,893 (106,641,208) (19,473,465) (13,118,037) ---------------- ----------------- ----------------- 4,352,514 69,722,438 80,002,856 ---------------- ----------------- ----------------- (7,323,217) 78,952,377 77,855,060 78,952,377 -- -- ---------------- ----------------- ----------------- $ 71,629,160 $ 78,952,377 $ 77,855,060 ================ ================= ================= 3,500,002 -- -- 4,900,000 4,400,002 3,150,002 (4,800,000) (900,000) (450,000) ---------------- ----------------- ----------------- 3,600,002 3,500,002 2,700,002 ================ ================= ================= </TABLE> See Notes to Financial Statements Page 47 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH (YMAR) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 21.14 $ 20.02 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (0.04) Net realized and unrealized gain (loss)........................ (3.09) 1.16 -------- -------- Total from investment operations............................... (3.17) 1.12 -------- -------- Net asset value, end of period................................. $ 17.97 $ 21.14 ======== ======== TOTAL RETURN (b)............................................... (15.00)% 5.59% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 37,730 $ 12,687 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH (QMAR) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 22.22 $ 20.04 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.07) (0.06) Net realized and unrealized gain (loss)........................ (1.86) 2.24 -------- -------- Total from investment operations............................... (1.93) 2.18 -------- -------- Net asset value, end of period................................. $ 20.29 $ 22.22 ======== ======== TOTAL RETURN (b)............................................... (8.69)% 10.88% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 46,657 $ 18,885 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c) Portfolio turnover rate (d).................................... 0% 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 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 48 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 INTERNATIONAL EQUITY BUFFER ETF - JUNE (YJUN) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 20.44 $ 19.95 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.07) (0.02) Net realized and unrealized gain (loss)........................ (2.93) 0.51 -------- -------- Total from investment operations............................... (3.00) 0.49 -------- -------- Net asset value, end of period................................. $ 17.44 $ 20.44 ======== ======== TOTAL RETURN (b)............................................... (14.68)% 2.46% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 29,654 $ 13,285 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE (QJUN) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 20.96 $ 19.87 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.05) (0.03) Net realized and unrealized gain (loss)........................ (2.12) 1.12 -------- -------- Total from investment operations............................... (2.17) 1.09 -------- -------- Net asset value, end of period................................. $ 18.79 $ 20.96 ======== ======== TOTAL RETURN (b)............................................... (10.35)% 5.49% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 92,048 $ 33,533 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.89)% (0.90)% (c) Portfolio turnover rate (d).................................... 0% 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 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 49 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE (XJUN) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 30.11 $ 29.72 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.03) (0.03) Net realized and unrealized gain (loss)........................ 0.23 0.42 -------- -------- Total from investment operations............................... 0.20 0.39 -------- -------- Net asset value, end of period................................. $ 30.31 $ 30.11 ======== ======== TOTAL RETURN (b)............................................... 0.66% 1.31% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $110,647 $ 6,023 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.... (0.84)% (0.85)% (c) Portfolio turnover rate (d).................................... 0% 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 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 50 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 - SEPTEMBER (YSEP) <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 19.96 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.16) Net realized and unrealized gain (loss)........................ (2.62) -------- Total from investment operations............................... (2.78) -------- Net asset value, end of period................................. $ 17.18 ======== TOTAL RETURN (b)............................................... (13.93)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 6,011 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 - SEPTEMBER (QSPT) PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.19 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.16) Net realized and unrealized gain (loss)........................ (2.01) -------- Total from investment operations............................... (2.17) -------- Net asset value, end of period................................. $ 18.02 ======== TOTAL RETURN (b)............................................... (10.75)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 24,330 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.... (0.89)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is September 17, 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 51 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER (YDEC) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 21.85 $ 20.06 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.18) (0.09) Net realized and unrealized gain (loss)........................ (3.04) 1.88 -------- -------- Total from investment operations............................... (3.22) 1.79 -------- -------- Net asset value, end of period................................. $ 18.63 $ 21.85 ======== ======== OTAL RETURN (b)............................................... (14.74)% 8.92% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 11,177 $ 12,016 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (0.90)% (c) Portfolio turnover rate (d).................................... 0% 0% FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER (QDEC) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 22.56 $ 19.84 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.20) (0.13) Net realized and unrealized gain (loss)........................ (2.46) 2.85 -------- -------- Total from investment operations............................... (2.66) 2.72 -------- -------- Net asset value, end of period................................. $ 19.90 $ 22.56 ======== ======== TOTAL RETURN (b)............................................... (11.79)% 13.71% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 71,629 $ 78,952 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.90% 0.90% (c) Ratio of net investment income (loss) to average net assets.... (0.90)% (0.90)% (c) Portfolio turnover rate (d).................................... 0% 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 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 52 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 ENHANCE & MODERATE BUFFER ETF - DECEMBER (XDEC) <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 30.35 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.10) Net realized and unrealized gain (loss)........................ (1.41) -------- Total from investment operations............................... (1.51) -------- Net asset value, end of period................................. $ 28.84 ======== TOTAL RETURN (b)............................................... (4.98)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 77,855 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.... (0.84)% (c) Portfolio turnover rate (d).................................... 0% </TABLE> (a) Inception date is December 17, 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 53 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers the ten 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") FT Cboe Vest Nasdaq-100(R) Buffer ETF - March - (ticker "QMAR") FT Cboe Vest International Equity Buffer ETF - June - (ticker "YJUN") FT Cboe Vest Nasdaq-100(R) Buffer ETF - June - (ticker "QJUN") FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June - (ticker "XJUN") FT Cboe Vest International Equity Buffer ETF - September - (ticker "YSEP")(1) FT Cboe Vest Nasdaq-100(R) Buffer ETF - September - (ticker "QSPT")(1) FT Cboe Vest International Equity Buffer ETF - December - (ticker "YDEC") FT Cboe Vest Nasdaq-100(R) Buffer ETF - December - (ticker "QDEC") FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December - (ticker "XDEC")(2) (1) Commenced investment operations on September 17, 2021. (2) Commenced investment operations on December 17, 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 YMAR is to seek to provide investors with returns that match the price return of the iShares MSCI EAFE ETF (the "Underlying MSCI ETF"), up to a predetermined upside cap of 20.70% (before fees and expenses) and 19.80% (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 and expenses) against the first 10% of Underlying MSCI ETF losses, over the period from March 21, 2022 to March 17, 2023. Prior to March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of March 22, 2021 to March 18, 2022. The investment objective of QMAR is to seek to provide investors with returns that match the price return of the Invesco QQQ Trust(SM), Series 1 (the "Underlying Invesco ETF"), up to a predetermined upside cap of 17.25% (before fees and expenses) and 16.35% (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 (before fees, expenses and taxes) against the first 10% of Underlying Invesco ETF losses, over the period from March 21, 2022 to March 17, 2023. Prior to March 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of March 22, 2021 to March 18, 2022. The investment objective of YJUN is to seek to provide investors with returns that match the price return of the Underlying MSCI ETF, up to a predetermined upside cap of 24.20% (before fees and expenses) and 23.31% (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 and expenses) against the first 10% of Underlying MSCI ETF losses, over the period from June 21, 2022 to June 16, 2023. Prior to June 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. The investment objective of QJUN is to seek to provide investors with returns that match the price return of the Underlying Invesco ETF, up to a predetermined upside cap of 25.19% (before fees and expenses) and 24.30% (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 and expenses) against the first 10% of Underlying Invesco ETF losses, over the period from June 21, 2022 to June 16, 2023. Prior to June 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. Page 54 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 The investment objective of XJUN is to seek to provide investors with returns 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 14.80% (before fees and expenses) and 13.95% (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 and expenses) against the first 15% of Underlying SPDR ETF losses, over the period from June 21, 2022 to June 16, 2023. Prior to June 21, 2022, the Fund's investment objective included an 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) and an Outcome Period of June 21, 2021 to June 17, 2022. The investment objective of YSEP is to seek to provide investors with returns that match the price return of the Underlying MSCI ETF, up to a predetermined upside cap of 12.93% (before fees, expenses and taxes) and 12.03% (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 September 20, 2021 through September 16, 2022. The investment objective of QSPT is to seek to provide investors with returns that match the price return of the Underlying Invesco ETF, up to a predetermined upside cap of 13.65% (before fees, expenses and taxes) and 12.75% (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 the first 10% (before fees, expenses and taxes) of Underlying Invesco ETF losses, over the period from September 20, 2021 through September 16, 2022. The investment objective of YDEC is to seek to provide investors with returns (before fees and expenses) that match the price return of the Underlying MSCI ETF, up to a predetermined upside cap of 10.75% (before fees and expenses) and 9.85% (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 and expenses) of Underlying MSCI ETF losses, over the period from December 20, 2021 to December 16, 2022. Prior to December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of December 21, 2020 to December 17, 2021. The investment objective of QDEC is to seek to provide investors with returns (before fees and expenses) that match the price return of the Underlying Invesco ETF, up to a predetermined upside cap of 15.89% (before fees and expenses) and 14.99% (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 and expenses) of Underlying Invesco ETF losses, over the period from December 20, 2021 to December 16, 2022. Prior to December 20, 2021, the Fund's investment objective included an 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) and an Outcome Period of December 21, 2020 to December 17, 2021. The investment objective of XDEC is to seek to provide investors with returns of approximately twice any positive price return of the Underlying SPDR ETF, up to a predetermined upside cap of 8.58% (before fees, expenses and taxes) and 7.73% (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 15% (before fees, expenses and taxes) of Underlying SPDR ETF losses, over the period from December 20, 2021 through December 16, 2022. 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 Trust(SM), Series 1, 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. Page 55 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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; 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. Page 56 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2022, is included with each Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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 August 31, 2022 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. 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 2021 or 2022. Page 57 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of the applicable taxable year end, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Net Undistributed Capital and Unrealized Taxable Ordinary Other Appreciation Year End Income Gain (Loss) (Depreciation) ------------- ------------- ------------- -------------- <S> <C> <C> <C> <C> FT Cboe Vest International Equity Buffer ETF - March 31-Mar-22 $ (34,532) $ (1,528,181) $ 50,392 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 (37,327) (157,975) 317,284 FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 (54,107) (2,915,490) 167,652 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 (129,139) (8,388,555) 325,422 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 30-Jun-22 (54,220) (2,446,792) 106,384 FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 -- -- (23,732) FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 -- -- (221,745) FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 -- (969,608) 100,945 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 -- (6,990,447) 1,647,303 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December 31-Dec-21 -- -- 60,382 </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. The taxable years ended 2021 and 2022 remain open to federal and state audit. As of August 31, 2022, 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, 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 Carryforward -------------- -------------- <S> <C> <C> FT Cboe Vest International Equity Buffer ETF - March 31-Mar-22 $ 1,528,181 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 157,975 FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 2,915,490 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 8,388,555 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 30-Jun-22 2,446,792 FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 -- FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 969,608 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 6,990,447 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December 31-Dec-21 -- </TABLE> Page 58 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 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 International Equity Buffer ETF - March 31-Mar-22 $ 34,532 $ -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 37,327 -- FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 54,107 -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 129,139 -- FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 30-Jun-22 54,220 -- FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 -- -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 -- -- FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 -- -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 -- -- FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December 31-Dec-21 -- -- </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 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 International Equity Buffer ETF - March 31-Mar-22 $ 60,442 $ (1,121,887) $ 1,061,445 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 31-Mar-22 100,983 (1,796,330) 1,695,347 FT Cboe Vest International Equity Buffer ETF - June 30-Jun-22 61,370 (1,477,134) 1,415,764 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 30-Jun-22 123,506 (5,528,935) 5,405,429 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 30-Jun-22 21,684 (2,317,786) 2,296,102 FT Cboe Vest International Equity Buffer ETF - September 30-Sep-21 591 -- (591) FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 30-Sep-21 1,905 -- (1,905) FT Cboe Vest International Equity Buffer ETF - December 31-Dec-21 87,232 (1,124,878) 1,037,646 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 31-Dec-21 657,631 (18,161,689) 17,504,058 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December 31-Dec-21 893 -- (893) </TABLE> Page 59 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Net Gross Gross Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> FT Cboe Vest International Equity Buffer ETF - March $ 41,911,011 $ 3,597,119 $ (7,748,574) $ (4,151,455) FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 51,946,411 3,300,017 (8,553,994) (5,253,977) FT Cboe Vest International Equity Buffer ETF - June 29,865,821 324,068 (523,977) (199,909) FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 89,160,887 7,576,609 (4,626,424) 2,950,185 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June 108,554,018 9,196,208 (7,030,119) 2,166,089 FT Cboe Vest International Equity Buffer ETF - September 7,033,480 1,080,248 (2,097,028) (1,016,780) FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 27,263,632 3,361,986 (6,276,492) (2,914,506) FT Cboe Vest International Equity Buffer ETF - December 12,731,263 1,428,982 (2,973,973) (1,544,991) FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 82,998,233 12,203,720 (23,514,902) (11,311,182) FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December 79,797,565 8,250,367 (10,142,393) (1,892,026) </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 and XDEC which pay an annual unitary management fee of 0.85%. First Trust and Cboe Vest(SM) 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 an index fund. Page 60 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, 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, 2022, 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 $ -- $ 21,126,775 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March -- 21,439,796 FT Cboe Vest International Equity Buffer ETF - June 1,021,655 14,498,437 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June -- 31,033,910 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June -- 11,723,904 FT Cboe Vest International Equity Buffer ETF - September 1,987,077 2,764,985 FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 8,035,517 1,989,759 FT Cboe Vest International Equity Buffer ETF - December -- 15,791,154 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December -- 67,144,168 FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - December -- -- </TABLE> 5. DERIVATIVE TRANSACTIONS The following table presents the types of derivatives held by each Fund at August 31, 2022, 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 $ 40,785,766 written, at value $ 3,419,114 QMAR Options contracts Options contracts Options Equity Risk purchased, at value 50,973,755 written, at value 4,714,701 YJUN Options contracts Options contracts Options Equity Risk purchased, at value 30,719,028 written, at value 1,399,830 QJUN Options contracts Options contracts Options Equity Risk purchased, at value 99,289,247 written, at value 8,097,383 XJUN Options contracts Options contracts Options Equity Risk purchased, at value 134,398,356 written, at value 24,711,347 </TABLE> Page 61 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 <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> YSEP Options contracts Options contracts Options Equity Risk purchased, at value $ 6,908,314 written, at value $ 925,961 QSPT Options contracts Options contracts Options Equity Risk purchased, at value 26,945,424 written, at value 2,694,390 YDEC Options contracts Options contracts Options Equity Risk purchased, at value 12,354,970 written, at value 1,261,820 QDEC Options contracts Options contracts Options Equity Risk purchased, at value 81,512,138 written, at value 10,350,260 XDEC Options contracts Options contracts Options Equity Risk purchased, at value 80,666,630 written, at value 3,285,837 </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, 2022, 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 $(1,305,251) $ 553,478 $ (828,319) $ (2,119,722) $(1,385,009) Written options contracts 667,851 1,424,005 (610,037) (575,407) 1,273,532 Net change in unrealized appreciation (depreciation) on: Purchased options contracts (3,220,026) (6,346,502) (554,049) 488,810 2,824,486 Written options contracts (1,182,049) 34,267 104,733 1,387,396 (728,364) </TABLE> <TABLE> <CAPTION> EQUITY RISK ------------------------------------------------------------------- STATEMENTS OF OPERATIONS LOCATION YSEP QSPT YDEC QDEC XDEC ------------------------------------- ------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> Net realized gain (loss) on: Purchased options contracts $ 28,329 $ 65,590 $ (185,114) $ 6,562,025 $ (327,495) Written options contracts (57,616) 326,675 617,079 2,404,227 280,280 Net change in unrealized appreciation (depreciation) on: Purchased options contracts (380,790) (2,364,873) (1,385,393) (17,058,775) (6,203,993) Written options contracts (635,990) (528,268) (860,571) (2,843,260) 4,380,554 </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. Page 62 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2022, 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 $ 80,141,948 $ 49,021,832 $ 3,684,615 $ 1,749,210 QMAR 85,509,578 49,058,370 6,313,876 3,674,316 YJUN 50,270,010 32,702,196 3,041,509 2,095,072 QJUN 153,912,699 91,551,412 13,567,554 7,283,701 XJUN 154,094,502 29,393,661 25,292,142 2,217,287 YSEP 10,263,447 2,974,343 470,042 180,071 QSPT 49,228,510 19,918,213 4,156,740 1,990,618 YDEC 38,994,674 37,428,004 1,304,642 1,128,018 QDEC 195,799,559 182,280,263 17,059,217 15,989,498 XDEC 97,179,032 10,308,409 8,518,732 852,341 </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 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. Page 63 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2023 for YMAR, QMAR, YJUN, QJUN, XJUN, YDEC and QDEC, September 1, 2023 for YSEP and QSPT, and December 10, 2023 for XDEC. 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: As of September 19, 2022, the investment objective of the FT Cboe Vest International Equity Buffer ETF - September changed to include an upside cap of 25.00% (before fees, expenses and taxes) and 24.10% (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 September 19, 2022 to September 15, 2023. As of September 19, 2022, the investment objective of the FT Cboe Vest Nasdaq-100(R) Buffer ETF - September changed to include an upside cap of 27.27% (before fees, expenses and taxes) and 26.37% (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 September 19, 2022 to September 15, 2023. Page 64 <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 - September, FT Cboe Vest Nasdaq-100(R) Buffer ETF - September, FT Cboe Vest International Equity Buffer ETF - December, FT Cboe Vest Nasdaq-100(R) Buffer ETF - December, and FT Cboe Vest U.S. Equity Enhance & Moderate 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, 2022, 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, 2022, 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 year ended For the year ended August 31, 2022 and for the period Buffer ETF - March August 31, 2022 from March 19, 2021 (commencement of operations) through August 31, 2021 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March ------------------------------------------------------------------------------------------------------------------------ FT Cboe Vest International Equity For the year ended For the year ended August 31, 2022 and for the period Buffer ETF - June August 31, 2022 from June 18, 2021 (commencement of operations) through August 31, 2021 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June ------------------------------------------------------------------------------------------------------------------------ FT Cboe Vest U.S. Equity Enhance & For the year ended For the year ended August 31, 2022 and for the period Moderate Buffer ETF - June August 31, 2022 from July 12, 2021 (commencement of operations) through August 31, 2021 ------------------------------------------------------------------------------------------------------------------------ FT Cboe Vest International Equity For the period from September 17, 2021 (commencement of operations) through Buffer ETF - September August 31, 2022 FT Cboe Vest Nasdaq-100(R) Buffer ETF - September ------------------------------------------------------------------------------------------------------------------------ FT Cboe Vest International Equity For the year ended For the year ended August 31, 2022 and for the period Buffer ETF - December August 31, 2022 from December 18, 2020 (commencement of operations) through August 31, 2021 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December ------------------------------------------------------------------------------------------------------------------------ FT Cboe Vest U.S. Equity Enhance & For the period from December 17, 2021 (commencement of operations) through Moderate Buffer ETF - December August 31, 2022 ------------------------------------------------------------------------------------------------------------------------ </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. Page 65 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED) -------------------------------------------------------------------------------- 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, 2022, 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 24, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 66 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 was 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 67 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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 68 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of the Fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund's shares and result in increased market volatility. During any such events, the Fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE 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. Page 69 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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. ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT AND INVESTMENT SUB-ADVISORY AGREEMENT FOR FT CBOE VEST NASDAQ-100(R) BUFFER ETF - MARCH FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - MARCH FT CBOE VEST NASDAQ-100(R) BUFFER ETF - JUNE FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - JUNE FT CBOE VEST U.S. EQUITY ENHANCE & MODERATE BUFFER ETF - JUNE FT CBOE VEST NASDAQ-100(R) BUFFER ETF - DECEMBER FT CBOE VEST INTERNATIONAL EQUITY BUFFER ETF - DECEMBER 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 seven series of the Trust (each a "Fund" and collectively, the "Funds"): FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (QMAR) FT Cboe Vest International Equity Buffer ETF - March (YMAR) FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (QJUN) FT Cboe Vest International Equity Buffer ETF - June (YJUN) FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN) FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (QDEC) FT Cboe Vest International Equity Buffer ETF - December (YDEC) The Board approved the continuation of the Agreements for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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, Page 70 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) including, for each of QDEC and YDEC, 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 indirect 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 18, 2022, 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 12-13, 2022 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 18, 2022 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. In addition to the written materials provided by the Sub-Advisor, at the June 12-13, 2022 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 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and 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. Page 71 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 QDEC and YDEC for the one-year period ended December 31, 2021 to the performance of the funds in the Fund's respective Performance Universe and a benchmark index. Because each of QMAR, YMAR, QJUN, YJUN and XJUN commenced operations in 2021 and therefore has a limited performance history, comparative performance information for the Fund was not reviewed. The Board noted that QMAR, QJUN and QDEC 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 Invesco QQQ Trust(SM), Series 1 ("QQQ"), up to a predetermined cap, while providing a buffer against certain losses on the price return of QQQ. The Board noted that YMAR, YJUN and YDEC 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 iShares MSCI EAFE ETF ("EFA"), up to a predetermined cap, while providing a buffer against certain losses on the price return of EFA. The Board noted that XJUN is a target outcome ETF that seeks to provide investors with returns (before fees and expenses) over a defined period of time (typically one year) of approximately twice any positive price return of the SPDR(R) S&P 500(R) 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 QMAR's, YMAR's, QDEC's and YDEC's performance during its respective target outcome period that ended between April 1, 2021 and March 31, 2022 and noted that each Fund delivered on its target outcome objective. The initial target outcome period for each of QJUN, YJUN and XJUN ended after March 31, 2022. 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 that its expenses relating to providing advisory services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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 QDEC and YDEC for the twelve months ended December 31, 2021 and to each of QMAR, YMAR, QJUN, YJUN and XJUN for the period from inception through December 31, 2021 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, 2021. 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 indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect 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 indirect benefits to the Advisor from such ownership interest. The Board concluded that the character and amount of potential indirect 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 indirect 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 indirect benefits from its relationship with the Funds. The Board also considered the potential indirect 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 indirect 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 72 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 73 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 74 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 75 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 2022 Page 76 <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(SM) Financial LLC 8350 Broad Street, Suite 240 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 320 South Canal Street Chicago, IL 60606 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- FT Cboe Vest Fund of Buffer ETFs (BUFR) FT Cboe Vest Fund of Deep Buffer ETFs (BUFD) FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs (BUFQ) ---------------------------- Annual Report For the Period Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 1 Fund Performance Overview FT Cboe Vest Fund of Buffer ETFs (BUFR).................................. 2 FT Cboe Vest Fund of Deep Buffer ETFs (BUFD)............................. 3 FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs (BUFQ).................... 4 Notes to Fund Performance Overview........................................... 5 Portfolio Commentary......................................................... 6 Understanding Your Fund Expenses............................................. 9 Portfolio of Investments FT Cboe Vest Fund of Buffer ETFs (BUFR).................................. 10 FT Cboe Vest Fund of Deep Buffer ETFs (BUFD)............................. 11 FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs (BUFQ).................... 12 Statements of Assets and Liabilities......................................... 13 Statements of Operations..................................................... 14 Statements of Changes in Net Assets.......................................... 15 Financial Highlights......................................................... 17 Notes to Financial Statements................................................ 19 Report of Independent Registered Public Accounting Firm...................... 28 Additional Information....................................................... 29 Board of Trustees and Officers............................................... 38 Privacy Policy............................................................... 40 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> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2022 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, 2022. Please note that one of the Funds was incepted after September 1, 2021, the start of the reporting period, so information in this letter and the report prior to the inception date will not apply to that Fund. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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) -------------------------------------------------------------------------------- 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 attempting to limit 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. Unlike the Underlying ETFs, the Fund itself does not pursue a defined outcome strategy. The buffer is only provided by the Underlying ETFs and the Fund itself does not provide any stated buffer against losses. 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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -4.68% 5.10% 10.77% Market Price -4.97% 5.05% 10.67% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 8.24% 17.69% -------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 5.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT AUGUST 10, 2020 - AUGUST 31, 2022 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 2/28/22 11,551 13,016 8/31/22 11,077 11,769 </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 2 <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") 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 attempting to limit 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 deep buffer against losses between -5% and -30% (before fees, expenses and taxes) of SPY, over a defined one-year period. Unlike the Underlying ETFs, the Fund itself does not pursue a defined outcome strategy. The buffer is only provided by the Underlying ETFs and the Fund itself does not provide any stated buffer against losses. 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 -------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (1/20/21) (1/20/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -5.40% -0.87% -1.40% Market Price -5.63% -0.87% -1.40% INDEX PERFORMANCE S&P 500(R) Index - Price Return -12.55% 1.65% 2.68% -------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 5.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 20, 2021 - AUGUST 31, 2022 FT Cboe Vest Fund of S&P 500(R) Index - 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 2/28/22 10,384 11,355 8/31/22 9,860 10,268 </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 FUND OF NASDAQ-100(R) BUFFER ETFS (BUFQ) The investment objective of the FT Cboe Vest Fund of Nasdaq-100(R) 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 large-cap equity market exposure while attempting to limit downside risk through a laddered portfolio of four FT Cboe Vest Nasdaq-100(R) Buffer ETFs (the "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 Invesco QQQ Trust(SM), Series 1 ("QQQ"), up to a predetermined upside cap, while providing a buffer against the first 10% (before fees, expenses and taxes) of QQQ losses, over a defined one-year period. Unlike the Underlying ETFs, the Fund itself does not pursue a target outcome strategy. The buffer is only provided by the Underlying ETFs and the Fund itself does not provide any stated buffer against losses. 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 "BUFQ." <TABLE> <CAPTION> -------------------------------------------------------------------------------------------------------------------- PERFORMANCE -------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (6/15/22) to 8/31/22 <S> <C> FUND PERFORMANCE NAV 4.84% Market Price 4.69% INDEX PERFORMANCE Nasdaq-100 Index(R) - Price Return 5.85% -------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 5.) <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 20, 2021 - AUGUST 31, 2022 FT Cboe Vest Fund of Nasdaq-100 Index(R) - Nasdaq-100(R) Buffer ETFs Price Return <S> <C> <C> 6/15/22 $10,000 $10,000 8/31/22 10,484 10,585 </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> -------------------------------------------------------------------------------- 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 5 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to FT Cboe Vest of Buffer ETFs ("BUFR"), FT Cboe Vest Fund of Deep Buffer ETFs ("BUFD") and FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs ("BUFQ") (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 administrative services necessary for the management of the Funds. SUB-ADVISOR Cboe Vest(SM) 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 8350 Broad St., Suite 240, McLean, Virginia 22102, was founded in 2012. Cboe Vest had approximately $8.6 billion under management or committed to management as of August 31, 2022. PORTFOLIO MANAGEMENT TEAM KARAN SOOD, MANAGING DIRECTOR OF CBOE VEST HOWARD RUBIN, MANAGING DIRECTOR OF CBOE VEST MARKET RECAP The investment objective of BUFR 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. The investment objective of BUFD 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 Deep Buffer ETFs. The investment objective of BUFQ is to seek to provide investors with capital appreciation. The Fund seeks to achieve its investment objective by providing investors with large-cap equity market exposure while attempting to limit downside risk through a laddered portfolio of four FT Cboe Vest Nasdaq-100(R) Buffer ETFs. During the 12-month period ended August 31, 2022, stock markets dropped significantly as inflation surged and U.S. gross domestic product ("GDP") fell for two consecutive quarters. The S&P 500(R) Index, the well-known measure of U.S. large-cap stocks, ended the period down 11.23%. Mid- and small-capitalization stocks, as measured by the S&P MidCap 400(R) Index and the Russell 2000(R) Small Cap Index, fell as well, losing 10.37% and 17.88%, respectively, during the same period. The Nasdaq-100 Index(R), a tech-heavy market measure, lost 20.63% during the same period. International markets were hit even harder than the U.S., with broad foreign market indices such as MSCI EAFE Index and MSCI Emerging Markets Index declining by 19.80% and 21.80%, respectively, during the same period. Within the S&P 500(R) Index during the 12-month period ended August 31, 2022, the market continued to see dramatic variations in returns across the major sectors of the economy. The Energy sector soared, gaining 75.77%, and outpacing all other sectors by a wide margin during the period. The only other sector to post a positive return for the same period was the Consumer Staples sector, which gained 4.08%. On the downside, the worst performing sectors for the same period were the Telecommunications sector (-35.19%), the Consumer Discretionary sector (-16.16%), and Information Technology sector (-14.35%). U.S. economic data all pointed to a slowing economy. GDP growth in the most recent four quarterly reports (the third quarter 2021 through the second quarter 2022) saw seasonally adjusted annualized rates of +2.3%, +6.9%, -1.6%, and -0.6%, sequentially. These two most recent reports thus meet the traditional definition of a recession, which is two consecutive quarterly declines in GDP. A current Bloomberg survey of economists shows a consensus projection of 1.0% GDP growth for all of 2023 (versus 2022). Page 6 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) The U.S. unemployment rate began the 12-month period ended August 31, 2022 at 5.2% (for August 2021) and quickly dropped below 4%, where it remained for most of the period. The most recent report showed a small uptick and the rate now sits at 3.7% (for August 2022). U.S inflation levels continued to post concerningly high levels. The most recent (July 2022) Consumer Price Index report shows year-over-year inflation running at an 8.5% rate, up from 5.4% reported twelve months earlier. One component of the economy that continued to overheat was the housing market. Housing prices in the U.S. increased by 18.0% over the last twelve months, according to the most recent (June 2022) S&P Case-Shiller U.S. National Home Price Index. This was on top of an 18.1% increase in the prior 12 months, compounding to make for a stunning 24-month increase in home prices of 39.3%. Persistently higher inflation forced the Federal Reserve (the "Fed") to increase short term rates at a much more rapid pace than the market had expected at the beginning of the 12-month period ended August 31, 2022. The Fed has a stated target of 2% inflation. The Fed began their rate hike cycle in January 2022, and, as of this writing, the Fed has increased the Federal Funds target rate by 2.25%. The Fed began the period with the range being 0% to 0.25% and ended the period with the range being 2.25% to 2.50%. Market participants are factoring in additional rate hikes by the Fed by the end of 2022. MARKET AND FUND OUTLOOK Over the 12-month period ended August 31, 2022, implied volatilities in U.S. equity markets averaged about 28.5%, according to the Cboe S&P 500(R) 1-Year Volatility Index. This index is derived from option prices and estimates the market's expectation of S&P 500(R) Index volatility for the next twelve months. As of the end of the same period, the index stands at 29.3%. For comparison purposes, the historical volatility of the S&P 500(R) Index since its inception in 1957 has been about 15.7%. We anticipate that implied volatilities will decline over the coming year. Buffer strategies, such as those used in the underlying FT Cboe Vest Funds, generally benefit from declining implied volatilities. While most fixed income securities have seen their nominal yields increase during the 12-month period ended August 31, 2022, many still have negative real yields (i.e., nominal yield less the inflation rate). This continues to bode 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 investments. The FT Cboe Vest Funds are an alternative that these investors should consider. The underlying FT Cboe Vest Funds are designed to protect investors against varying levels of downside movements in their Reference ETF (e.g., SPY or QQQ), 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 income investments. PERFORMANCE ANALYSIS The following table provides information pertaining to performance for the 12-month period ended August 31, 2022 for each Fund, as well as an attribution analysis that estimates the impact of various factors on each Fund's performance. 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 7 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> -------------------------------------------------------------------------------- FUND TICKER BUFR BUFD BUFQ -------------------------------------------------------------------------------- <S> <C> <C> <C> Annual Expense Ratio 1.05% 1.05% 1.10% Reporting Period Start Date 8/31/21 8/31/21 6/15/22 Reporting Period End Date 8/31/22 8/31/22 8/31/22 PERFORMANCE (LATER OF 8/31/21 OR INCEPTION DATE, TO 8/31/22): Fund Performance (using NAVs) -4.68% -5.40% 4.84% Fund Performance (using Market Price) -4.97% -5.63% 4.69% Reference Asset Price Return -12.49% -12.49% 5.82% ESTIMATED PERFORMANCE ATTRIBUTION Fund NAV Performance Attributed to a) Changes in Reference Asset -6.67% -4.21% 3.36% b) Changes in other Variables* 3.04% -0.15% 1.72% c) Expenses (pro-rated annual expense ratio) -1.05% -1.05% -0.24% Attribution TOTAL -4.68% -5.40% 4.84% </TABLE> * Includes changes in a) Reference Asset's dividends, b) interest rates, c) implied volatility, and d) time to option expiration. Page 8 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (UNAUDITED) As a shareholder of FT Cboe Vest Fund of Buffer ETFs, FT Cboe Vest Fund of Deep Buffer ETFs or FT Cboe Vest Fund of Nasdaq-100(R) 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, 2022. 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, 2022 AUGUST 31, 2022 PERIOD (a) PERIOD (a) (b) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST FUND OF BUFFER ETFS (BUFR) Actual $1,000.00 $ 959.00 0.20% $0.99 Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02 FT CBOE VEST FUND OF DEEP BUFFER ETFS (BUFD) Actual $1,000.00 $ 949.60 0.20% $0.98 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 JUNE 15, 2022 (c) ACCOUNT VALUE ACCOUNT VALUE NUMBER OF DAYS TO JUNE 15, 2022 (c) AUGUST 31, 2022 IN THE PERIOD (a) AUGUST 31, 2022 (a) (d) ------------------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FT CBOE VEST FUND OF NASDAQ-100(R) BUFFER ETFS (BUFQ) Actual $1,000.00 $1,048.40 0.20% $0.44 Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02 </TABLE> (a) Annualized expense ratio and expenses paid during the six-month (or shorter) period do not include fees and expenses of the underlying funds in which the 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, 2022 through August 31, 2022), 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 (June 15, 2022 through August 31, 2022), multiplied by 78/365. Hypothetical expenses are assumed for the most recent six-month period. Page 9 <PAGE> FT CBOE VEST FUND OF BUFFER ETFS (BUFR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE ------------ ---------------------------------------- ------------- EXCHANGE-TRADED FUNDS -- 100.0% CAPITAL MARKETS -- 100.0% 1,875,751 FT Cboe Vest U.S. Equity Buffer ETF - January (a) (b) $ 60,682,608 1,707,918 FT Cboe Vest U.S. Equity Buffer ETF - February (a) (b) 60,429,555 1,936,857 FT Cboe Vest U.S. Equity Buffer ETF - March (a) (b) 60,488,044 2,056,490 FT Cboe Vest U.S. Equity Buffer ETF - April (a) (b) 60,316,852 1,699,844 FT Cboe Vest U.S. Equity Buffer ETF - May (a) (b) 60,582,440 1,671,132 FT Cboe Vest U.S. Equity Buffer ETF - June (a) (b) 60,628,669 1,749,052 FT Cboe Vest U.S. Equity Buffer ETF - July (a) (b) 60,622,142 1,716,014 FT Cboe Vest U.S. Equity Buffer ETF - August (a) (b) 60,335,052 1,836,272 FT Cboe Vest U.S. Equity Buffer ETF - September (a) (b) 61,411,730 1,859,315 FT Cboe Vest U.S. Equity Buffer ETF - October (a) (b) 61,195,449 1,712,001 FT Cboe Vest U.S. Equity Buffer ETF - November (a) (b) 60,870,709 1,917,166 FT Cboe Vest U.S. Equity Buffer ETF - December (a) (b) 60,870,020 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 100.0% 728,433,270 (Cost $760,192,984) ------------- SHARES DESCRIPTION VALUE ------------ ---------------------------------------- ------------- MONEY MARKET FUNDS -- 0.0% 261,671 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (c) $ 261,671 (Cost $261,671) ------------- TOTAL INVESTMENTS -- 100.0% 728,694,941 (Cost $760,454,655) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (131,144) ------------- NET ASSETS -- 100.0% $ 728,563,797 ============= (a) Investment in an affiliated fund. (b) Non-income producing security. (c) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS --------------------------------------------------------------------- Exchange-Traded Funds 100.0% Money Market Funds 0.0(1) Net Other Assets and Liabilities 0.0(1) -------- Total 100.0% ======== (1) Amount is less than 0.1%. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Exchange-Traded Funds*............................... $ 728,433,270 $ 728,433,270 $ -- $ -- Money Market Funds................................... 261,671 261,671 -- -- -------------- -------------- -------------- -------------- Total Investments.................................... $ 728,694,941 $ 728,694,941 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. Page 10 See Notes to Financial Statements <PAGE> FT CBOE VEST FUND OF DEEP BUFFER ETFS (BUFD) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE ------------ ---------------------------------------- ------------- EXCHANGE-TRADED FUNDS -- 100.0% CAPITAL MARKETS -- 100.0% 1,458,926 FT Cboe Vest U.S. Equity Deep Buffer ETF - January (a) (b) $ 44,934,921 1,324,768 FT Cboe Vest U.S. Equity Deep Buffer ETF - February (a) (b) 44,918,776 1,476,336 FT Cboe Vest U.S. Equity Deep Buffer ETF - March (a) (b) 44,895,378 1,502,479 FT Cboe Vest U.S. Equity Deep Buffer ETF - April (a) (b) 44,818,949 1,427,561 FT Cboe Vest U.S. Equity Deep Buffer ETF - May (a) (b) 45,068,957 1,394,956 FT Cboe Vest U.S. Equity Deep Buffer ETF - June (a) (b) 45,182,625 1,449,238 FT Cboe Vest U.S. Equity Deep Buffer ETF - July (a) (b) 45,013,332 1,423,581 FT Cboe Vest U.S. Equity Deep Buffer ETF - August (a) (b) 44,842,801 1,490,389 FT Cboe Vest U.S. Equity Deep Buffer ETF - September (a) (b) 45,397,249 1,479,176 FT Cboe Vest U.S. Equity Deep Buffer ETF - October (a) (b) 45,259,383 1,386,309 FT Cboe Vest U.S. Equity Deep Buffer ETF - November (a) (b) 45,526,388 1,486,873 FT Cboe Vest U.S. Equity Deep Buffer ETF - December (a) (b) 45,215,808 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 100.0% 541,074,567 (Cost $565,098,431) ------------- SHARES DESCRIPTION VALUE ------------ ---------------------------------------- ------------- MONEY MARKET FUNDS -- 0.0% 145,580 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (c) $ 145,580 (Cost $145,580) ------------- TOTAL INVESTMENTS -- 100.0% 541,220,147 (Cost $565,244,011) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (87,655) ------------- Net Assets -- 100.0% $ 541,132,492 ============= (a) Investment in an affiliated fund. (b) Non-income producing security. (c) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS --------------------------------------------------------------------- Exchange-Traded Funds 100.0% Money Market Funds 0.0(1) Net Other Assets and Liabilities 0.0(1) -------- Total 100.0% ======== (1) Amount is less than 0.1%. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Exchange-Traded Funds*............................... $ 541,074,567 $ 541,074,567 $ -- $ -- Money Market Funds................................... 145,580 145,580 -- -- -------------- -------------- -------------- -------------- Total Investments.................................... $ 541,220,147 $ 541,220,147 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 11 <PAGE> FT CBOE VEST FUND OF NASDAQ-100(R) BUFFER ETFS (BUFQ) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE ------------ ---------------------------------------- ------------- EXCHANGE-TRADED FUNDS -- 99.9% CAPITAL MARKETS -- 99.9% 131,580 FT Cboe Vest Nasdaq-100(R) Buffer ETF - March (a) (b) $ 2,664,074 140,950 FT Cboe Vest Nasdaq-100(R) Buffer ETF - June (a) (b) 2,648,451 149,990 FT Cboe Vest Nasdaq-100(R) Buffer ETF - September (a) (b) 2,709,359 135,660 FT Cboe Vest Nasdaq-100(R) Buffer ETF - December (a) (b) 2,702,076 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 99.9% 10,723,960 (Cost $10,968,293) ------------- SHARES DESCRIPTION VALUE ------------ ---------------------------------------- ------------- MONEY MARKET FUNDS -- 0.1% 6,981 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (c) $ 6,981 (Cost $6,981) ------------- TOTAL INVESTMENTS -- 100.0% 10,730,941 (Cost $10,975,274) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (1,329) ------------- NET ASSETS -- 100.0% $ 10,729,612 ============= (a) Investment in an affiliated fund. (b) Non-income producing security. (c) Rate shown reflects yield as of August 31, 2022. FUND ALLOCATION % OF NET ASSETS --------------------------------------------------------------------- Exchange-Traded Funds 99.9% Money Market Funds 0.1 Net Other Assets and Liabilities 0.0(1) -------- Total 100.0% ======== (1) Amount is less than 0.1%. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Exchange-Traded Funds*............................... $ 10,723,960 $ 10,723,960 $ -- $ -- Money Market Funds................................... 6,981 6,981 -- -- -------------- -------------- -------------- -------------- Total Investments.................................... $ 10,730,941 $ 10,730,941 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. Page 12 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FUND OF FUND OF FUND OF NASDAQ-100(R) BUFFER ETFS DEEP BUFFER ETFS BUFFER ETFS (BUFR) (BUFD) (BUFQ) ----------------- ----------------- ----------------- ASSETS: <S> <C> <C> <C> Investments, at value - Affiliated................................. $ 728,433,270 $ 541,074,567 $ 10,723,960 Investments, at value - Unaffiliated............................... 261,671 145,580 6,981 ----------------- ----------------- ----------------- Total investments, at value..................................... 728,694,941 541,220,147 10,730,941 Cash............................................................... 1,061,809 -- -- Receivables: Capital shares sold............................................. 5,553,077 1,982,779 -- Dividends....................................................... 107 53 9 ----------------- ----------------- ----------------- Total Assets.................................................... 735,309,934 543,202,979 10,730,950 ----------------- ----------------- ----------------- LIABILITIES: Payables: Investment securities purchased................................. 6,613,896 1,982,547 -- Investment advisory fees........................................ 132,241 87,940 1,338 ----------------- ----------------- ----------------- Total Liabilities............................................... 6,746,137 2,070,487 1,338 ----------------- ----------------- ----------------- NET ASSETS......................................................... $ 728,563,797 $ 541,132,492 $ 10,729,612 ================= ================= ================= NET ASSETS CONSIST OF: Paid-in capital.................................................... $ 761,359,185 $ 565,715,106 $ 10,968,945 Par value.......................................................... 328,000 273,500 5,000 Accumulated distributable earnings (loss).......................... (33,123,388) (24,856,114) (244,333) ----------------- ----------------- ----------------- NET ASSETS......................................................... $ 728,563,797 $ 541,132,492 $ 10,729,612 ================= ================= ================= NET ASSET VALUE, per share......................................... $ 22.21 $ 19.79 $ 21.46 ================= ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).......................... 32,800,002 27,350,002 500,002 ================= ================= ================= Investments, at cost - Affiliated.................................. $ 760,192,984 $ 565,098,431 $ 10,968,293 ================= ================= ================= Investments, at cost - Unaffiliated................................ $ 261,671 $ 145,580 $ 6,981 ================= ================= ================= Total investments, at cost......................................... $ 760,454,655 $ 565,244,011 $ 10,975,274 ================= ================= ================= </TABLE> See Notes to Financial Statements Page 13 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2022 <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FT CBOE VEST FUND OF FUND OF FUND OF NASDAQ-100(R) BUFFER ETFS DEEP BUFFER ETFS BUFFER ETFS (BUFR) (BUFD) (BUFQ) (a) ----------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> Dividends.......................................................... $ 589 $ 226 $ 11 ----------------- ----------------- ----------------- Total investment income......................................... 589 226 11 ----------------- ----------------- ----------------- EXPENSES: Investment advisory fees........................................... 1,237,843 714,342 1,863 ----------------- ----------------- ----------------- Total expenses.................................................. 1,237,843 714,342 1,863 ----------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS)....................................... (1,237,254) (714,116) (1,852) ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Affiliated........................................ (436,416) (269,405) -- In-kind redemptions - Affiliated................................ 4,421,636 1,971,617 -- ----------------- ----------------- ----------------- Net realized gain (loss)........................................... 3,985,220 1,702,212 -- ----------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on investments - Affiliated........................................ (39,802,887) (26,289,634) (244,333) ----------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS)............................ (35,817,667) (24,587,422) (244,333) ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................. $ (37,054,921) $ (25,301,538) $ (246,185) ================= ================= ================= </TABLE> (a) Inception date is June 15, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 14 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FT CBOE VEST FT CBOE VEST FUND OF FUND OF BUFFER ETFS DEEP BUFFER ETFS (BUFR) (BUFD) ------------------------------------- -------------------------------------- YEAR YEAR YEAR PERIOD ENDED ENDED ENDED ENDED 8/31/2022 8/31/2021 8/31/2022 8/31/2021 (a) ---------------- ----------------- ----------------- ----------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss).................. $ (1,237,254) $ (250,042) $ (714,116) $ (90,593) Net realized gain (loss)...................... 3,985,220 8,720,929 1,702,212 817,234 Net change in unrealized appreciation (depreciation)............................. (39,802,887) 7,988,398 (26,289,634) 2,265,770 ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............................ (37,054,921) 16,459,285 (25,301,538) 2,992,411 ---------------- ----------------- ----------------- ----------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold..................... 609,077,785 417,166,735 472,088,210 216,796,683 Cost of shares redeemed....................... (145,221,514) (137,987,462) (66,763,156) (58,680,118) ---------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from shareholder transactions.............. 463,856,271 279,179,273 405,325,054 158,116,565 ---------------- ----------------- ----------------- ----------------- Total increase (decrease) in net assets....... 426,801,350 295,638,558 380,023,516 161,108,976 NET ASSETS: Beginning of period........................... 301,762,447 6,123,889 161,108,976 -- ---------------- ----------------- ----------------- ----------------- End of period................................. $ 728,563,797 $ 301,762,447 $ 541,132,492 $ 161,108,976 ================ ================= ================= ================= CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period....... 12,950,002 300,002 7,700,002 -- Shares sold................................... 26,200,000 18,750,000 22,900,000 10,550,002 Shares redeemed............................... (6,350,000) (6,100,000) (3,250,000) (2,850,000) ---------------- ----------------- ----------------- ----------------- Shares outstanding, end of period............. 32,800,002 12,950,002 27,350,002 7,700,002 ================ ================= ================= ================= </TABLE> (a) 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. See Notes to Financial Statements Page 15 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) <TABLE> <CAPTION> FT CBOE VEST FUND OF NASDAQ-100(R) BUFFER ETFS (BUFQ) ---------------- PERIOD ENDED 8/31/2022 (b) ---------------- OPERATIONS: <S> <C> Net investment income (loss).................. $ (1,852) Net realized gain (loss)...................... -- Net change in unrealized appreciation (depreciation)............................. (244,333) ---------------- Net increase (decrease) in net assets resulting from operations............................ (246,185) ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold..................... 10,975,797 Cost of shares redeemed....................... -- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions.............. 10,975,797 ---------------- Total increase (decrease) in net assets....... 10,729,612 NET ASSETS: Beginning of period........................... -- ---------------- End of period................................. $ 10,729,612 ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period....... -- Shares sold................................... 500,002 Shares redeemed............................... -- ---------------- Shares outstanding, end of period............. 500,002 ================ </TABLE> (b) Inception date is June 15, 2022, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 16 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FT CBOE VEST FUND OF BUFFER ETFS (BUFR) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ------------------------------- ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 23.30 $ 20.41 $ 20.05 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.03) (0.02) -- Net realized and unrealized gain (loss)........................ (1.06) 2.91 0.36 -------- -------- -------- Total from investment operations............................... (1.09) 2.89 0.36 -------- -------- -------- Net asset value, end of period................................. $ 22.21 $ 23.30 $ 20.41 ======== ======== ======== TOTAL RETURN (b)............................................... (4.68)% 14.16% 1.80% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $728,564 $301,762 $ 6,124 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.... (0.20)% (0.20)% (0.20)% (d) Portfolio turnover rate (e).................................... 2% 1% 0% </TABLE> FT CBOE VEST FUND OF DEEP BUFFER ETFS (BUFD) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 20.92 $ 20.07 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.03) (0.01) Net realized and unrealized gain (loss)........................ (1.10) 0.86 -------- -------- Total from investment operations............................... (1.13) 0.85 -------- -------- Net asset value, end of period................................. $ 19.79 $ 20.92 ======== ======== TOTAL RETURN (b)............................................... (5.40)% 4.24% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $541,132 $161,109 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).................................... 2% 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. The 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. See Notes to Financial Statements Page 17 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS (CONTINUED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FT CBOE VEST FUND OF NASDAQ-100(R) BUFFER ETFS (BUFQ) <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.47 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.00) (b) Net realized and unrealized gain (loss)........................ 0.99 (c) -------- Total from investment operations............................... 0.99 -------- Net asset value, end of period................................. $ 21.46 ======== TOTAL RETURN (d)............................................... 4.84% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 10,730 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (e).............. 0.20% (f) Ratio of net investment income (loss) to average net assets.... (0.20)% (f) Portfolio turnover rate (g).................................... 0% </TABLE> (a) Inception date is June 15, 2022, which is consistent with commencement of investment operations and is the date the initial creation units were established. (b) Amount is less than $0.01. (c) The per share amount does not correlate with the aggregate realized and unrealized gain (loss) due to the timing of the Fund share sales and repurchases in relation to market value fluctuation of the underlying investments. (d) 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. (e) The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund invests. The ratio does not include these indirect fees and expenses. (f) Annualized. (g) 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 18 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers the three 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 Fund of Buffer ETFs - (ticker "BUFR") FT Cboe Vest Fund of Deep Buffer ETFs - (ticker "BUFD") FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs - (ticker "BUFQ")(1) (1) Commenced investment operations on June 15, 2022. 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 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 attempting to limit 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. Unlike the FT ETFs, BUFR itself does not pursue a defined outcome strategy. The buffer is only provided by the FT ETFs and BUFR itself does not provide any stated buffer against losses. 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 attempting to limit 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 losses between -5% and -30% (before fees, expenses and taxes) of SPY, over a defined one-year period. Unlike the FT DB ETFs, BUFD itself does not pursue a defined outcome strategy. The buffer is only provided by the FT DB ETFs and BUFD itself does not provide any stated buffer against losses. In order to understand BUFD's strategy and risks, it is important to understand the strategies and risks of the FT DB ETFs. The investment objective of BUFQ is to seek to provide investors with capital appreciation. BUFQ seeks to achieve its investment objective by providing investors with large-cap equity market exposure while attempting to limit downside risk through a laddered portfolio of four FT Cboe Vest Nasdaq-100(R) Buffer ETFs ("Nasdaq ETFs"). Under normal market conditions, the BUFQ will invest substantially all of its assets in the Nasdaq ETFs, which seek to provide investors with returns (before fees, expenses and taxes) that match the price return of the Invesco QQQ Trust(SM), Series 1 ("QQQ"), up to a predetermined upside cap, while providing a buffer against the first 10% (before fees, expenses and taxes) of QQQ losses, over a defined one-year period. Unlike the Nasdaq ETFs, BUFQ itself does not pursue a target outcome strategy. The buffer is only provided by the Nasdaq ETFs and the BUFQ itself does not provide any stated buffer against losses. In order to understand the BUFQ's strategy and risks, it is important to understand the strategies and risks of the Nasdaq 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. Page 19 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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. 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; 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. Page 20 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2022, is included with each Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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. AFFILIATED TRANSACTIONS Each of the funds invests 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. Amounts related to these investments in BUFQ at August 31, 2022 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 8/31/2022 6/15/2021 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2022 INCOME ----------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> FT Cboe Vest Nasdaq-100(R) Buffer ETF - March 131,580 $ -- $ 2,728,253 $ -- $ (64,179) $ -- $ 2,664,074 $ -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - June 140,950 -- 2,697,425 -- (48,974) -- 2,648,451 -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - September 149,990 -- 2,780,203 -- (70,844) -- 2,709,359 -- FT Cboe Vest Nasdaq-100(R) Buffer ETF - December 135,660 -- 2,762,412 -- (60,336) -- 2,702,076 -- ------------------------------------------------------------------------------------------------ $ -- $ 10,968,293 $ -- $ (244,333) $ -- $ 10,723,960 $ -- ================================================================================================ </TABLE> Page 21 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 Amounts related to these investments in BUFR at August 31, 2022 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 8/31/2022 6/15/2021 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2022 INCOME ----------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Buffer ETF - January 1,875,751 $ 25,142,439 $ 51,781,383 $ (13,872,416) $ (2,722,812) $ 354,014 $ 60,682,608 $ -- FT Cboe Vest U.S. Equity Buffer ETF - February 1,707,918 25,402,513 51,913,638 (13,432,384) (4,053,937) 599,725 60,429,555 -- FT Cboe Vest U.S. Equity Buffer ETF - March 1,936,857 25,206,024 51,522,354 (13,738,920) (2,792,411) 290,997 60,488,044 -- FT Cboe Vest U.S. Equity Buffer ETF - April 2,056,490 25,234,357 52,126,549 (12,372,583) (5,018,575) 347,104 60,316,852 -- FT Cboe Vest U.S. Equity Buffer ETF - May 1,699,844 25,232,697 50,816,723 (12,711,257) (3,219,128) 463,405 60,582,440 -- FT Cboe Vest U.S. Equity Buffer ETF - June 1,671,132 25,188,007 50,966,454 (14,248,474) (1,668,381) 391,063 60,628,669 -- FT Cboe Vest U.S. Equity Buffer ETF - July 1,749,052 25,254,902 51,015,603 (14,147,746) (1,790,279) 289,662 60,622,142 -- FT Cboe Vest U.S. Equity Buffer ETF - August 1,716,014 25,175,010 51,744,730 (12,557,099) (4,290,678) 263,089 60,335,052 -- FT Cboe Vest U.S. Equity Buffer ETF - September 1,836,272 24,842,175 51,301,054 (12,417,957) (2,524,322) 210,780 61,411,730 -- FT Cboe Vest U.S. Equity Buffer ETF - October 1,859,315 24,921,718 51,496,948 (12,218,608) (3,233,403) 228,794 61,195,449 -- FT Cboe Vest U.S. Equity Buffer ETF - November 1,712,001 25,053,554 52,273,052 (12,295,728) (4,439,990) 279,821 60,870,709 -- FT Cboe Vest U.S. Equity Buffer ETF - December 1,917,166 24,997,377 51,802,592 (12,147,744) (4,048,971) 266,766 60,870,020 -- ------------------------------------------------------------------------------------------------ $301,650,773 $618,761,080 $(156,160,916) $ (39,802,887) $ 3,985,220 $728,433,270 $ -- ================================================================================================ </TABLE> Page 22 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 Amounts related to these investments in BUFD at August 31, 2022 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 8/31/2022 6/15/2021 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2022 INCOME ----------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> FT Cboe Vest U.S. Equity Deep Buffer ETF - January 1,458,926 $ 13,402,138 $ 39,401,072 $ (6,461,803) $ (1,574,807) $ 168,321 $ 44,934,921 $ -- FT Cboe Vest U.S. Equity Deep Buffer ETF - February 1,324,768 13,421,030 39,469,105 (6,925,573) (1,242,867) 197,081 44,918,776 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - March 1,476,336 13,452,408 39,497,594 (6,712,343) (1,500,627) 158,346 44,895,378 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - April 1,502,479 13,464,511 39,476,749 (6,585,736) (1,698,280) 161,705 44,818,949 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - May 1,427,561 13,465,196 40,382,460 (5,915,125) (3,052,706) 189,132 45,068,957 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - June 1,394,956 13,396,029 39,598,356 (6,093,969) (1,878,876) 161,085 45,182,625 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - July 1,449,238 13,441,726 39,606,254 (5,685,246) (2,486,503) 137,101 45,013,332 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - August 1,423,581 13,434,043 40,703,849 (5,570,949) (3,811,209) 87,067 44,842,801 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - September 1,490,389 13,351,278 39,975,135 (5,554,750) (2,480,405) 105,991 45,397,249 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - October 1,479,176 13,394,736 39,930,524 (5,870,453) (2,301,669) 106,245 45,259,383 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - November 1,386,309 13,392,943 39,868,258 (5,727,054) (2,110,948) 103,189 45,526,388 -- FT Cboe Vest U.S. Equity Deep Buffer ETF - December 1,486,873 13,422,261 39,645,471 (5,828,136) (2,150,737) 126,949 45,215,808 -- ------------------------------------------------------------------------------------------------ $161,038,299 $477,554,827 $ (72,931,137) $ (26,289,634) $ 1,702,212 $541,074,567 $ -- ================================================================================================ </TABLE> Page 23 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 D. 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 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 2021 or 2022. As of August 31, 2022, 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 Fund of Buffer ETFs $ (938,038) $ -- $ (32,185,350) FT Cboe Vest Fund of Deep Buffer ETFs (558,235) -- (24,297,879) FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs -- -- (244,333) </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 BUFR, the taxable years ended 2020, 2021, and 2022 remain open to federal and state audit. For BUFD, the taxable years ended 2021 and 2022 remain open to federal and state audit. For BUFQ, the taxable year ended 2022 remains open to federal and state audit. As of August 31, 2022, 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, 2022, the Funds had no capital loss carryforwards for federal income tax purposes. 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 August 31, 2022, 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 Fund of Buffer ETFs 31-Aug-22 $ 938,038 $ -- FT Cboe Vest Fund of Deep Buffer ETFs 31-Aug-22 558,235 -- FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs 31-Aug-22 -- -- </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 Page 24 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2022, the adjustments for each Fund 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 Fund of Buffer ETFs 31-Aug-22 $ 528,207 $ (4,409,409) $ 3,881,202 FT Cboe Vest Fund of Deep Buffer ETFs 31-Aug-22 155,881 (1,969,024) 1,813,143 FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs 31-Aug-22 1,852 -- (1,852) </TABLE> As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Net Gross Gross Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> FT Cboe Vest Fund of Buffer ETFs $ 760,880,291 $ 347,959 $ (32,533,309) $ (32,185,350) FT Cboe Vest Fund of Deep Buffer ETFs 565,518,026 345,694 (24,643,573) (24,297,879) FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs 10,975,274 100,043 (344,376) (244,333) </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 0.20% of each Fund's average daily net assets. In addition, each Fund incurs 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. Cboe VestSM 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, 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 Fund'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. Page 25 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, 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> FT Cboe Vest Fund of Buffer ETFs $ 9,686,947 $ 10,943,082 FT Cboe Vest Fund of Deep Buffer ETFs 5,472,036 6,164,106 FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs -- -- </TABLE> For the fiscal period ended August 31, 2022, 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 Fund of Buffer ETFs $ 609,074,133 $ 145,217,834 FT Cboe Vest Fund of Deep Buffer ETFs 472,082,791 66,767,031 FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs 10,968,293 -- </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. Page 26 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2023 for BUFR and BUFD and June 14, 2024 for BUFQ. 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 no events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 27 <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 FT Cboe Vest Fund of Buffer ETFs, FT Cboe Vest Fund of Deep Buffer ETFs, and FT Cboe Vest Fund of Nasdaq-100(R) Buffer ETFs, each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2022, 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, 2022, 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 Fund of Buffer ETFs For the year ended For the years ended For the years ended August 31, 2022 August 31, 2022 and 2021 August 31, 2022 and 2021, and for the period from August 10, 2020 (commencement of operations) through August 31, 2020 ------------------------------------------------------------------------------------------------------------------------------ FT Cboe Vest Fund of Deep Buffer ETFs For the year ended For the year ended August 31, 2022, and for the period August 31, 2022 from from January 20, 2021 (commencement of operations) through August 31, 2021 ------------------------------------------------------------------------------------------------------------------------------ FT Cboe Vest Fund of Nasdaq-100(R) For the period from June 15, 2022 (commencement of operations) through Buffer ETFs August 31, 2022 ------------------------------------------------------------------------------------------------------------------------------ </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 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, 2022, 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 24, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 28 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 was 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 29 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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 30 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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 insecurities 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of a fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund's shares and result in increased market volatility. During any such events, a fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE REMUNERATION First Trust Advisors L.P. ("First Trust") is authorised and regulated by the U.S. Securities and Exchange Commission and is entitled to market shares of certain First Trust Exchange-Traded Fund VIII funds it manages (the "Funds") in certain member states in the European Economic Area in accordance with the cooperation arrangements in Article 42 of the Alternative Investment Fund Managers Directive (the "Directive"). First Trust is required under the Directive to make disclosures in respect of remuneration. The following disclosures are made in line with First Trust's interpretation of currently available regulatory guidance on remuneration disclosures. Page 31 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) During the year ended December 31, 2021, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Funds is $79,789. This figure is comprised of $3,070 paid (or to be paid) in fixed compensation and $76,719 paid (or to be paid) in variable compensation. There were a total of 24 beneficiaries of the remuneration described above. Those amounts include $40,974 paid (or to be paid) to senior management of First Trust Advisors L.P. and $38,815 paid (or to be paid) to other employees whose professional activities have a material impact on the risk profiles of First Trust Advisors L.P. or the Funds (collectively, "Code Staff"). Code Staff included in the aggregated figures disclosed above are rewarded in line with First Trust's remuneration policy (the "Remuneration Policy") which is determined and implemented by First Trust's senior management. The Remuneration Policy reflects First Trust's ethos of good governance and encapsulates the following principal objectives: i. to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure; ii. to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and iii. to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First Trust in a manner that avoids conflicts of interest. First Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure, or consider the taking of risk or failure to take risk in its remuneration of Code Staff. First Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance of First Trust. Remuneration is not based upon the performance of the Funds. The elements of remuneration are balanced between fixed and variable and the senior management sets fixed salaries at a level sufficient to ensure that variable remuneration incentivises and rewards strong individual performance but does not encourage excessive risk taking. No individual is involved in setting his or her own remuneration. ADVISORY AGREEMENT AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS REGARDING APPROVAL OF CONTINUATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS FT CBOE VEST FUND OF BUFFER ETFS FT CBOE VEST FUND OF DEEP BUFFER ETFS 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 two series of the Trust (each a "Fund" and collectively, the "Funds"): FT Cboe Vest Fund of Buffer ETFs (BUFR) FT Cboe Vest Fund of Deep Buffer ETFs (BUFD) The Board approved the continuation of the Agreements for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 Page 32 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 BUFR, comparisons of the 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 indirect 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 18, 2022, 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 12-13, 2022 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 18, 2022 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. In addition to the written materials provided by the Sub-Advisor, at the June 12-13, 2022 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, 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 ETFs in the First Trust Fund Complex, it incurs acquired fund fees and expenses, which are not payable out of the unitary fee. The Board received and reviewed information showing the 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 equal to 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 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, as applicable) of the peer funds in Page 33 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) its Expense Group. With respect to the Expense Groups, the Board, at the April 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including the limited number of actively-managed ETFs following a fund-of-funds options arbitrage/options strategy, 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 BUFR for the one-year period ended December 31, 2021 to the performance of the funds in the Fund's respective Performance Universe and a benchmark index. Based on the information provided, the Board noted that BUFR outperformed its Performance Universe median for the one-year period ended December 31, 2021 and underperformed its benchmark index for the one-year period ended December 31, 2021. The Board also noted that BUFR invests substantially all of its assets in multiple target outcome ETFs in the First Trust Fund Complex sub-advised by the Sub-Advisor 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 and considered that the investment strategy of the underlying ETFs limits the comparability of BUFR's performance to that of the funds in its Performance Universe and its benchmark index. Because BUFD commenced operations on January 20, 2021 and therefore has a limited performance history, comparative performance information for the Fund was not reviewed. 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 that its expenses relating to providing advisory services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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 BUFR for the twelve months ended December 31, 2021 and to BUFD for the period from inception through December 31, 2021 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, 2021. 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 indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect 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 indirect benefits to the Advisor from such ownership interest. In addition, the Board considered that the Advisor, as the investment advisor to the underlying ETFs in which each Fund invests, will recognize additional revenue from the underlying ETFs if investment by the Funds causes the assets of the underlying ETFs to grow. The Board concluded that the character and amount of potential indirect 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 indirect 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 indirect benefits from its relationship with the Funds. The Board also considered the potential indirect benefits to the Sub-Advisor from FTCP's Page 34 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) controlling ownership interest in the Sub-Advisor's parent company. In addition, the Board considered that the Sub-Advisor, as the investment sub-advisor to the underlying ETFs in which each Fund invests, will recognize additional revenue from the underlying ETFs if investment by the Funds causes the assets of the underlying ETFs to grow. The Board concluded that the character and amount of potential indirect 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. BOARD CONSIDERATIONS REGARDING APPROVAL OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS FT CBOE VEST FUND OF NASDAQ-100(R) BUFFER ETFS 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 Fund of Nasdaq-100(R) Buffer ETFs (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 Cboe Vest Financial LLC (the "Sub-Advisor"), for an initial two-year term at a meeting held on June 13, 2022. 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 indirect 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 13, 2022 meeting, the Board also received a presentation from representatives of the Sub-Advisor, who discussed 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 Fund would invest substantially all of its assets in multiple defined-outcome ETFs in the First Trust Fund Complex sub-advised by the Sub-Advisor. Because the Fund had yet to commence investment operations, the Page 35 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 0.20% 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 noted that, because the Fund will invest in underlying ETFs in the First Trust Fund Complex, it will incur acquired fund fees and expenses, which are not payable out of the unitary fee. The Board received and reviewed information showing the 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 below the median total (net) expense ratio (excluding acquired fund fees and expenses, as applicable) of the peer funds in the Expense Group. The Board also noted that the Fund's total (net) expense ratio (including the estimated 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 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 most comparable to three other ETFs in the First Trust Fund Complex that invest in underlying ETFs, including ETFs in the First Trust Fund Complex, each of which pays a unitary fee equal to an annual rate of 0.20% of its average daily net assets, two of which are ETFs managed by the Advisor and the Sub-Advisor that also invest substantially all of their respective assets in multiple defined-outcome ETFs in the First Trust Fund Complex 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 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 build infrastructure and add new staff 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 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 indirect 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 indirect benefits to the Advisor from such ownership interest. The Board also considered that the Advisor had identified as an indirect 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 noted that the Advisor will be responsible for trade execution for the Fund and will not utilize soft dollars in connection with the Fund. The Board also considered the potential indirect 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 statement that it does not foresee any indirect benefits from its relationship with the Fund. In addition, the Board considered that the Advisor and the Sub-Advisor, as the investment advisor and the investment sub-advisor, respectively, to the underlying ETFs in which the Fund would invest, will recognize additional revenue from such underlying ETFs if the Fund's investment causes their assets to grow. The Board concluded that the character and amount of potential indirect 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. Page 36 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 37 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 38 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 39 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 2022 Page 40 <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 8350 Broad Street, Suite 240 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 320 South Canal Street Chicago, IL 60606 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust Income Opportunities ETF (FCEF) (formerly known as First Trust CEF Income Opportunity ETF) First Trust Flexible Municipal High Income ETF (MFLX) (formerly known as First Trust Municipal CEF Income Opportunity ETF (MCEF)) 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) ---------------------------- Annual Report For the Year Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 2 Fund Performance Overview First Trust Income Opportunities ETF (FCEF)............................... 3 First Trust Flexible Municipal High Income ETF (MFLX)..................... 5 First Trust Low Duration Strategic Focus ETF (LDSF)....................... 7 First Trust Active Factor Large Cap ETF (AFLG)............................ 9 First Trust Active Factor Mid Cap ETF (AFMC).............................. 11 First Trust Active Factor Small Cap ETF (AFSM)............................ 13 Notes to Fund Performance Overview........................................... 15 Portfolio Commentary......................................................... 16 Understanding Your Fund Expenses............................................. 25 Portfolio of Investments First Trust Income Opportunities ETF (FCEF)............................... 26 First Trust Flexible Municipal High Income ETF (MFLX)..................... 28 First Trust Low Duration Strategic Focus ETF (LDSF)....................... 31 First Trust Active Factor Large Cap ETF (AFLG)............................ 32 First Trust Active Factor Mid Cap ETF (AFMC).............................. 36 First Trust Active Factor Small Cap ETF (AFSM)............................ 41 Statements of Assets and Liabilities......................................... 46 Statements of Operations..................................................... 48 Statements of Changes in Net Assets.......................................... 50 Financial Highlights......................................................... 53 Notes to Financial Statements................................................ 56 Report of Independent Registered Public Accounting Firm...................... 65 Additional Information....................................................... 67 Board of Trustees and Officers............................................... 78 Privacy Policy............................................................... 80 <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 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 benchmark(s). 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, 2022 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, 2022. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 INCOME OPPORTUNITIES ETF (FCEF) The First Trust Income Opportunities 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 in a portfolio of closed-end investment companies and exchange-traded funds that are listed and traded in the United States on registered exchanges. The Fund may invest in closed-end funds and/or ETFs that utilize leverage. 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 5 Years Ended Inception (9/27/16) 5 Years Ended Inception (9/27/16) 8/31/22 8/31/22 to 8/31/22 8/31/22 to 8/31/22 <S> <C> <C> <C> <C> <C> FUND PERFORMANCE NAV -14.62% 4.59% 6.11% 25.18% 42.07% Market Price -14.39% 4.56% 6.11% 24.95% 42.06% INDEX PERFORMANCE Russell 3000(R) Index -13.28% 11.29% 12.28% 70.69% 98.63% Blended Benchmark (1) -14.38% 3.90% 5.38% 21.10% 36.44% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 15.) ----------------------------- (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 3 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST INCOME OPPORTUNITIES ETF (FCEF) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Eaton Vance Tax-Advantaged Global Dividend Income Fund 4.6% Cohen & Steers REIT and Preferred and Income Fund, Inc. 4.5 Eaton Vance Tax-Advantaged Dividend Income Fund 4.3 Tekla Healthcare Investors 3.6 John Hancock Tax-Advantaged Dividend Income Fund 3.6 Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund 3.5 Tekla Healthcare Opportunities Fund 3.5 Ares Dynamic Credit Allocation Fund, Inc. 3.5 Gabelli Dividend & Income Trust (The) 3.3 Source Capital, Inc. 3.2 -------- Total 37.6% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM WORLD REGIONS INVESTMENTS ---------------------------------------------------------- North America 81.6% Europe 12.9 Asia 5.5 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM MARKET CAPITALIZATION INVESTMENTS ---------------------------------------------------------- Mega 24.3% Large 38.4 Mid 27.0 Small 7.2 Micro 3.1 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM CREDIT QUALITY (2) INVESTMENTS ---------------------------------------------------------- AAA 5.1% AA 0.1 A 0.7 BBB 16.5 BB 27.3 B 33.3 CCC-D 9.7 NR 7.3 -------- Total 100.0% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 27, 2016 - AUGUST 31, 2022 First Trust Income Russell 3000(R) Blended Opportunities 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 2/28/22 15,317 21,932 14,733 8/31/22 14,205 19,862 13,645 </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 provided by Morningstar 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 4 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME ETF (MFLX) The First Trust Flexible Municipal High Income 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 (plus any investment borrowings) in municipal debt securities that pay interest that is exempt from regular federal income taxes. The Fund may invest in municipal debt securities of any duration, maturity or credit quality, but will focus on longer duration, higher yielding municipal debt securities, including municipal debt securities that are rated below investment grade or unrated and determined by the Fund's investment advisor, to be of comparable quality, also known as "junk" bonds. In addition, the Fund may invest up to 10% of its net assets in 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 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 "MFLX." <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended 5 Years Ended Inception (9/27/16) 5 Years Ended Inception (9/27/16) 8/31/22 8/31/22 to 8/31/22 8/31/22 to 8/31/22 <S> <C> <C> <C> <C> <C> FUND PERFORMANCE NAV -18.91% 0.87% 0.60% 4.44% 3.60% Market Price -19.16% 0.78% 0.54% 3.96% 3.22% INDEX PERFORMANCE Bloomberg Municipal Long Bond (22+) Index (1) -14.09% 1.02% 1.03% 5.18% 6.29% Blended Benchmark (2) -9.35% 2.41% 2.30% 12.64% 14.45% Bloomberg Municipal Bond Index -8.63% 1.28% 1.29% 6.55% 7.91% First Trust Municipal Closed-End Fund Index (3) -20.78% 0.99% 0.80% 5.05% 4.82% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 15.) ----------------------------- (1) The Bloomberg Municipal Long Bond (22+) Index will serve as the Fund's new primary benchmark index. The Fund's investment advisor has determined that the Bloomberg Municipal Long Bond (22+) Index provides a more appropriate comparison to Fund returns. (2) The Blended Benchmark returns are a 50/50 split between the Bloomberg Municipal High Yield Bond Index and the Bloomberg Municipal Bond Index. (3) The First Trust Municipal Closed-End Fund Index is a cap-weighted index (based on NAV) designed to provide a broad representation of the taxable fixed income closed-end fund universe. The index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. The Fund's investment advisor has determined that the First Trust Municipal Closed-End Fund Index no longer serves as an appropriate comparison to Fund returns, and therefore, intends to remove it as a benchmark index for the Fund. Page 5 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME ETF (MFLX) (CONTINUED) ---------------------------------------------------------- % OF FUND ALLOCATION NET ASSETS ---------------------------------------------------------- Municipal Bonds 90.2% Closed-End Funds 6.2 Net Other Assets and Liabilities 3.6 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL INVESTMENTS CREDIT QUALITY (4) (INCLUDING CASH) ---------------------------------------------------------- AAA 0.4% AA 20.0 A 27.9 BBB 16.4 BB 6.3 B 3.2 CCC-D 0.0* NR 24.8 Cash 1.0 -------- Total 100.0% ======== *Amount is less than 0.1%. <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 27, 2016 - AUGUST 31, 2022 First Trust Flexible Bloomberg Municipal Bloomberg First Trust Municipal Municipal High Long Bond (22+) Blended Municipal Closed-End Fund Income ETF Index Benchmark Bond Index Index <S> <C> <C> <C> <C> <C> 9/28/16 $10,000 $10,000 $10,000 $10,000 $10,000 2/28/17 9,433 9,614 9,765 9,758 9,359 8/31/17 9,919 10,105 10,161 10,128 9,978 2/28/18 9,415 10,027 10,118 10,003 9,399 8/31/18 9,613 10,235 10,497 10,178 9,693 2/28/19 9,889 10,235 10,679 10,416 10,017 8/31/19 10,858 11,375 11,470 11,066 11,182 2/29/20 11,086 11,875 11,950 11,402 11,415 8/31/20 10,977 11,722 11,722 11,424 11,273 2/28/21 11,636 11,884 12,102 11,522 11,971 8/31/21 12,775 12,372 12,625 11,813 13,231 2/28/22 11,446 11,939 12,270 11,448 11,818 8/31/22 10,360 10,629 11,445 10,791 10,482 </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. Performance in municipal bond investment strategies can be impacted from the benefits of purchasing odd lot positions. The impact of these investments can be particularly meaningful when funds have limited assets under management and may not be a sustainable source of performance as a fund grows in size. 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. (4) This represents the municipal and closed-end fund holdings in the Fund. The ratings for the Municipal Bond portion of the Fund are by S&P Global Ratings, 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 highest ratings are used. The ratings for the CEF portion of the fund are provided by Morningstar. 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 6 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- 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 "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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -4.98% 0.81% 2.99% Market Price -4.99% 0.79% 2.93% INDEX PERFORMANCE Blended Benchmark(1) -6.72% 1.47% 5.48% Bloomberg 1-5 Year Government/Credit Index -5.85% 0.87% 3.21% ------------------------------------------------------------------------------------------------------------------------------------ </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 7 <PAGE> -------------------------------------------------------------------------------- FUND PERFORMANCE OVERVIEW (UNAUDITED) (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) (CONTINUED) ---------------------------------------------------------- % OF FUND ALLOCATION NET ASSETS ---------------------------------------------------------- Municipal Bonds 90.2% Closed-End Funds 6.2 Net Other Assets and Liabilities 3.6 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL INVESTMENTS CREDIT QUALITY (4) (INCLUDING CASH) ---------------------------------------------------------- AAA 0.4% AA 20.0 A 27.9 BBB 16.4 BB 6.3 B 3.2 CCC-D 0.0* NR 24.8 Cash 1.0 -------- Total 100.0% ======== *Amount is less than 0.1%. <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JANUARY 3, 2019 - AUGUST 31, 2022 First Trust Low Duration Strategic Blended Bloomberg 1-5 Year 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 11,309 10,962 2/28/22 10,655 11,012 10,683 8/31/22 10,299 10,548 10,321 </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. Page 8 <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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -11.18% 7.51% 21.98% Market Price -11.22% 7.47% 21.88% INDEX PERFORMANCE S&P 500(R) Index -11.23% 11.16% 33.67% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 25.6% Health Care 13.7 Financials 10.9 Industrials 10.1 Consumer Discretionary 9.5 Communication Services 6.3 Consumer Staples 5.4 Energy 5.1 Utilities 4.8 Materials 4.7 Real Estate 3.9 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Apple, Inc. 6.7% Microsoft Corp. 3.8 Alphabet, Inc., Class A 3.0 Berkshire Hathaway, Inc., Class B 2.3 Exxon Mobil Corp. 1.8 Pfizer, Inc. 1.4 Amazon.com, Inc. 1.4 Chevron Corp. 1.3 NVR, Inc. 1.1 General Dynamics Corp. 1.1 -------- Total 23.9% ======== Page 9 <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, 2022 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 2/28/22 13,311 14,663 8/31/22 12,198 13,367 </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 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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -14.04% 5.19% 14.91% Market Price -14.01% 5.19% 14.91% INDEX PERFORMANCE S&P MidCap 400(R) Index -10.37% 9.31% 27.64% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Industrials 19.0% Information Technology 13.6 Financials 13.2 Consumer Discretionary 12.3 Health Care 11.6 Materials 7.4 Real Estate 7.2 Consumer Staples 4.4 Energy 4.4 Utilities 4.4 Communication Services 2.5 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Steel Dynamics, Inc. 1.8% Reliance Steel & Aluminum Co. 1.5 Builders FirstSource, Inc. 1.4 AutoNation, Inc. 1.3 Molina Healthcare, Inc. 1.3 United Therapeutics Corp. 1.3 Dick's Sporting Goods, Inc. 1.2 Omega Healthcare Investors, Inc. 1.1 Carlisle Cos., Inc. 1.0 UGI Corp. 1.0 -------- Total 12.9% ======== Page 11 <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, 2022 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 2/28/22 12,705 13,857 8/31/22 11,491 12,764 </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 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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -13.52% 5.85% 16.90% Market Price -13.46% 5.84% 16.85% INDEX PERFORMANCE Russell 2000(R) Index -17.88% 6.54% 18.98% ------------------------------------------------------------------------------------------------------------------------------------ </TABLE> (See Notes to Fund Performance Overview on page 15.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Health Care 18.6% Industrials 14.6 Financials 14.2 Information Technology 13.8 Consumer Discretionary 11.2 Energy 6.9 Consumer Staples 6.0 Real Estate 5.6 Materials 4.6 Utilities 2.7 Communication Services 1.8 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Weis Markets, Inc. 1.2% Lantheus Holdings, Inc. 1.0 Mueller Industries, Inc. 1.0 Amphastar Pharmaceuticals, Inc. 1.0 Otter Tail Corp. 0.9 SpartanNash Co. 0.9 Ingles Markets, Inc., Class A 0.9 Encore Wire Corp. 0.9 Boise Cascade Co. 0.9 Louisiana-Pacific Corp. 0.9 -------- Total 9.6% ======== Page 13 <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, 2022 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 2/28/22 12,977 13,118 8/31/22 11,690 11,898 </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. 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 15 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to the First Trust Income Opportunities ETF (the "Fund") and is responsible for the selection and ongoing monitoring of the securities in the Fund's portfolio and certain other services necessary for the management of the portfolio. PORTFOLIO MANAGEMENT Ken Fincher, Senior Vice President of First Trust, is the Fund's portfolio manager and has responsibility for the day-to-day management of the 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. COMMENTARY MARKET RECAP Equity and taxable fixed income closed-end funds, while initially enjoying strong returns during the first few months of the 12-month period ended August 31, 2022, turned lower on rising geo-political and economic risks. The Russian invasion of Ukraine in February 2022, along with soaring inflation, caused investors to rethink their investment outlook. Beginning in March 2022, the Federal Open Market Committee ("FOMC") moved quickly, in an effort to fight inflation, by beginning to raise short-term interest rates. Over the next four FOMC meetings, they raised rates four times by a total of 225 basis points ("bps") through the end of the 12-month period ended August 31, 2022. The action by the Fed to fight inflation, along with other news, caused early gains by closed-end funds to be quickly erased. Both share prices and underlying net asset values were hit as investor confidence was shaken but the selloff in share price would outpace that of net asset value thus causing overall discounts to net asset value for the funds to widen. Discounts to net asset value ("NAV") overall widened over 12-month period ended August 31, 2022. The Fund did experience a slight narrowing of discounts in the equity-focused holding, to -5.01% on average from -5.23% (as of August 31, 2021). Taxable Fixed Income closed-end funds in the portfolio saw the average premium to NAV they held at the end of the last fiscal year move to an average discount of -3.97% by the end of fiscal year 2022. The Fund's overall discount expanded during the same period from -3.94% to -5.36%. PERFORMANCE ANALYSIS On a NAV basis for the 12-month period ended August 31, 2022, the Fund provided a total return of -14.62%. 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 -14.38% over the same period. The Fund's broad based benchmark, the Russell 3000(R) Index, returned -13.28% during the same period. The Fund's NAV total return for the same period underperformed the total return of both the Blended Benchmark and the Russell 3000(R) Index by 24 bps and 134 bps, respectively. The Fund's share price return of -14.39% underperformed the total return of both the Blended Benchmark and the Russell 3000(R) Index by 1 basis point and 111 bps, respectively, for the same period. The primary factor resulting in the slight underperformance relative to the Blended Benchmark was the security selection within the equity closed-end fund space. As the market turned, the Fund's overweight position in growth sectors, namely the Information Technology and Health Care sectors, were a drag on absolute performance as well as performance versus the Blended Benchmark. During the 12-month period ended August 31, 2022, the Fund continued to make a conscious effort to pay out more of the distributions received from the underlying holdings and was able to raise the distribution three times during the same period (+11.90%). MARKET AND FUND OUTLOOK In the short-term, we believe the closed-end fund market is going to be hard pressed to find a sense of direction based on three outstanding issues. First, it appears the FOMC will continue to aggressively raise interest rates until they are able to tamp inflation down to more manageable levels. Next, the slowing of the economy brought about by the raising of interest rates may ultimately push the economy into a recession; the duration and severity of which are still up for debate. And finally, the health of the global supply chain is still an issue. The question remains when will shortages begin to dissipate? Page 16 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) We believe that until we get more clarity regarding these three issues, the closed-end fund markets, like markets in general, will struggle with direction. We will continue to experience periods of weakness as well as periods of strength. We believe the key is to take advantage of the down days and put money to work, albeit slowly, consistent with a long-term investment outlook. While these periods of malaise can be trying for many retail investors as share prices fall and discounts widen, we believe the closed-end fund strategy does produce an attractive level of income which may hold many investors over until better days become more common, in our opinion. We expect the Fund to carry a larger allocation to cash and short-term investments in the months ahead. While this may not be a good long-term strategy, we believe for the short term it may afford more dry powder to take advantage of investment opportunities. During these uncertain times, it is important to stay active in managing closed-end fund exposure. Page 17 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust serves as the investment advisor to the First Trust Flexible Municipal High Income 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. JOHNATHAN N. WILHELM, SENIOR VICE PRESIDENT AND SENIOR PORTFOLIO MANAGER OF FIRST TRUST KEN FINCHER, SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER OF FIRST TRUST TOM BYRON, SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER OF FIRST TRUST The portfolio managers are primarily and jointly responsible for the day-to-day management of the Fund. Ken Fincher has served as part of the portfolio management team of the Fund since 2016 and Johnathan Wilhelm and Tom Byron have each served as part of the portfolio management team of the Fund since 2022. COMMENTARY The First Trust Flexible Municipal High Income ETF is an actively managed exchange-traded fund ("ETF"). The Fund's investment objective is to seek 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 (plus any investment borrowings) in municipal debt securities that pay interest that is exempt from regular federal income taxes. The Fund may invest in municipal debt securities of any duration, maturity or credit quality, but will focus on longer duration, higher yielding municipal debt securities, including municipal debt securities that are rated below investment grade or unrated and determined by the Fund's investment advisor, to be of comparable quality, also known as "junk" bonds. In addition, the Fund may invest up to 10% of its net assets in 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. On April 12, 2022, First Trust Advisors L.P. announced that the shareholders of First Trust Municipal CEF Income Opportunity ETF (Nasdaq: MCEF) ("MCEF"), a series of First Trust Exchange-Traded Fund VIII (the "Trust"), voted at a shareholder meeting to approve certain changes to MCEF's principal investment strategies. MCEF converted from its then 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 has the ability to invest up to 10% of its net assets in closed-end investment companies that invest primarily in municipal debt securities. Furthermore, MCEF was renamed "First Trust Flexible Municipal High Income ETF" and MCEF's ticker symbol was changed to "MFLX." The portfolio management team began to purchase individual municipal bonds on April 14, 2022 and completed the initial transition into a predominantly individual municipal bond portfolio on May 20, 2022. MARKET RECAP For the 12-month period ended August 31, 2022, municipal bonds generated a total return of -8.63% as measured by the Bloomberg Municipal Bond Index. During the same period, the Bloomberg Municipal Long Bond (22+) Index (the "Benchmark") produced a total return of -14.09%. By comparison, the Bloomberg U.S. Treasury Index generated a total return of -10.81% during the same period. The following were major factors in explaining the municipal bond market's performance: o Over the past year, U.S. Treasury rates increased all along the yield curve and municipal interest rates followed U.S. Treasury yields higher. During the 12-month period ended August 31, 2022, 10-Year and 30-Year U.S. Treasury yields increased by approximately 191 basis points ("bps") and 138 bps, respectively. o Large industry-wide mutual fund and exchange-traded fund ("ETF") outflows resulted in funds selling municipal bonds to meet redemptions, which put additional pressure on municipal bond prices. For the 12-month period ended August 31, 2022, municipal fund outflows totaled approximately $86.7 billion. Page 18 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) o According to data from Municipal Market Analytics, Inc., the number of municipal bond defaults was lower year-to-date compared to a year ago while the par value of defaulted bonds rose modestly. Through August 31, 2022, the number and par value of municipal bond defaults totaled 31 and $2.67 billion, respectively, compared with 48 defaults and $2.38 billion for the same period a year ago. o New issue municipal bond supply has been lower year-to-date compared to figures from a year ago. Through August 31, 2022, year-to-date issuance was $273.7 billion, down approximately 14% compared to the same period a year ago. o As a result of these factors, municipal bond yields rose, credit spreads widened, and municipal bond prices declined. PERFORMANCE ANALYSIS The Fund's net asset value ("NAV") and market performance for the 12-month period ended August 31, 2022, was -18.91% and -19.16%, respectively, compared with the Benchmark's return of -14.09%, the Bloomberg Municipal Bond Index total return of -8.63%, the Blended Benchmark total return of -9.35%, and the First Trust Municipal Closed-End Fund Index of -20.78%. As of August 31, 2022, the Fund's market price of $16.67 represented a discount of 0.71% to its NAV of $16.79. The market value of the Fund's shares fluctuates from time to time and may be higher or lower than the Fund's NAV. The distribution paid on August 31, 2022, of $0.054, represents a tax-exempt annualized distribution rate of 3.89% based on the Fund's closing market price of $16.67 on August 31, 2022. The Fund's distribution rate is not constant and is subject to change over time based on the performance of the Fund. As noted above, since the Fund converted from investing primarily in municipal closed-end funds ("municipal CEFs") to a fund investing in individual municipal bonds and an opportunistic sleeve of up to 10% municipal CEFs on April 14, 2022, the performance discussion below will focus on performance since the transition. From April 14, 2022, to August 31, 2022, relative to the Benchmark, the Fund's underweight allocation to bonds with an average maturity of 18+ years was a positive contributor to Fund performance. The Fund's underweight allocation to bonds with an effective duration of 10+ years was also a positive contributor to Fund performance. During the reporting period from April 14, 2022 to August 31, 2022, in regard to the Fund's maturity allocation and duration apportionments, there were no negative contributors to the Fund's performance. Regarding credit rating allocation, the Fund's selection of bonds in the AA, A, and BBB credit rating categories were all positive contributors to Fund performance relative to the Benchmark. In addition, to a smaller degree, the Fund's allocation and selection to BB and non-rated bonds was a positive contributor to Fund performance relative to the Benchmark. No credit rating categories were a negative contributor to Fund performance relative to the Benchmark. MARKET OUTLOOK According to Fed Funds Futures (Bloomberg WIRP function), as of August 31, 2022, approximately 6.4 interest rate hikes are expected from September 21, 2022, through March 22, 2023. During the remainder of 2022 and first quarter of 2023, we expect longer U.S. Treasury rates to become range-bound, in our opinion. For example, regarding the 10-Year U.S. Treasury, we expect the bond to trade within a range of 3.25%-3.75% and would not be surprised if the yield curve inverts more significantly, whereby 2-year yields are significantly higher than 10-year yields. We believe the Federal Reserve will raise rates by 75 bps at the September 21 meeting, and another 50 bps at both the November and December 2022 meetings. If these rate increases occur, the Federal Funds rate will end the year at approximately 4.00%-4.25%. Thus, we believe short term U.S. Treasury rates will be significantly higher than 10-Year Treasury rates by year-end. Regarding municipal bonds, rates have also increased dramatically during the first eight months of 2022. As of August 31, 2022, AAA 5-Year, 10-Year, and 30-Year municipal rates have increased by approximately 173 bps, 156 bps, and 180 bps, to 2.32%, 2.59% and 3.29%, respectively. During the remainder of 2022, we believe municipal rates will become range-bound, or even rally, if two key events occur: (1) U.S. Treasury rates do in fact stabilize within a reasonably tight range; and (2) mutual fund/ETF outflows moderate. We believe that municipal rates and taxable equivalent yields are now attractive for high wage earners. If we see rates stabilize, we believe retail investors will begin purchasing municipal bonds more aggressively and fund outflows will moderate. For the fourth quarter of 2022 and first half of 2023, in our opinion, we do expect the municipal market to produce positive total returns, as we expect interest rates to become broadly stable or range-bound, and the additional coupon income generated from higher interest rates and coupon payments to offset any relatively small declines in municipal bond prices. We especially like "A" rated municipal bonds in certain sectors which have seen distinct credit spread widening, including hospitals, airports and gas bonds. Page 19 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) Credit quality remains healthy in the municipal bond market. Defaults and credit rating downgrades remain favorable. Therefore, credits spreads widening or narrowing should be, in our opinion, primarily driven by the direction of U.S. Treasury rates and municipal mutual fund/ETF fund flows. However, given an expected slowdown in the U.S. economy, we anticipate focusing on municipal credits with leading market positions, growing utilization statistics, and healthy balance sheets. Within the high yield municipal universe, we plan to focus on higher credit quality securities and reduce exposure to lower rated high yield borrowers. With this in mind, we continue to practice the discipline of our investment process where we perform fundamental credit analysis and quantitative total return scenario analysis on individual bonds and the portfolio as a whole, looking for bonds that can provide both high income and attractive total return potential over time. Page 20 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust 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 MARKET RECAP Over the last 12 months, persistently high inflation, the Federal Reserve's (the "Fed") pivot from monetary accommodation and the Russian invasion of Ukraine in February 2022 resulted in a shift in the markets focus from economic growth to concern that recession risk may be meaningfully pulled forward. Interest rates were higher across the board and the U.S. Treasury yield curve inverted between the 2-Year and 10-Year Treasuries. On August 31, 2021, the 2-Year U.S. Treasury yield was 0.21% and by August 31, 2022, it had increased to 3.48% while the 10-Year U.S. Treasury increased from 1.31% to 3.19%. Over the last 12 months, the Fed increased the target range for the Federal Funds rate from 0 - 0.25% to 2.25 - 2.50%. Higher rates were a headwind for broad based fixed income assets as the Bloomberg US Aggregate Bond Index returned -11.52% and high yield bonds, reflected in the ICE BofA US High Yield Constrained Index, declined -10.43% as high yield spreads increased from 322 basis points ("bps") to 505. In the fourth quarter of 2021, the Fed moved on from its belief that inflation would be transitory, conceding that while it initially may have been limited to areas related to the reopening of the economy and supply chain, it had broadened and accelerated. At the December 2021 Federal Open Market Committee ("FOMC") meeting, they announced an accelerated pace of asset purchase tapering and a more hawkish path for increasing its policy rate. In February 2022, the Russian invasion of Ukraine sent a shockwave through global risk markets, including a spike in oil and commodity prices, further exacerbating inflationary pressure. In response, the Fed increased the target range for the Federal Funds rate by a quarter percentage point at the March 2022 FOMC meeting and indicated additional rate hikes would be forthcoming throughout the year. Through the second quarter of 2022, the curve continued to flatten and ultimately 2-Year and 10-Year Treasuries inverted. By mid-summer 2022, inflation remained at the highest levels in decades inducing the Fed to hike the Federal Funds rate 75 bps at the June 2022 FOMC meeting. Amidst a backdrop of slowing growth and very high inflation with a significant Fed response, risk assets tumbled in the second quarter of 2022 as high yield bond spreads widened 245 bps and the S&P 500(R) Index declined -16.10%. PERFORMANCE ANALYSIS For the 12-month period ended August 31, 2022, the Fund returned -4.98% based on net asset value ("NAV") and -4.99% based on market price, while the Bloomberg 1-5 Year Government/Credit Index, the Fund's primary benchmark (the "Benchmark") returned -5.85%. The Fund's NAV return outperformed the Blended Benchmark (80% Bloomberg 1-5 Year Government/Credit Index and 20% ICE BofA US High Yield Constrained Index), by 174 bps (-4.98% versus -6.72%). The Fund's share price return outperformed by 173 bps over the same period. The negative returns for the Fund reflected the impact higher interest rates had on fixed income assets while the relative outperformance was largely driven by the Fund's lower duration relative to the Benchmark. The Benchmark is a broad based, non-securitized component of the Bloomberg US Aggregate Bond Index with securities that have maturities between 1 and 5 years. Over the period, the Fund's duration profile was, on average, 60% lower than the Benchmark's duration, benefitting relative performance as market rates rose. Page 21 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) Exposure to ultra short securities and senior loans contributed to outperformance as the First Trust Enhanced Short Maturity ETF returned -0.17% and the Fund's holding in the First Trust Senior Loan Fund ("FTSL") returned -1.04% on a NAV basis, performing better than the Benchmark. The floating nature of senior loan coupon structures enabled FTSL to hold up well relative to longer duration asset types as interest rates moved higher. The Fund's largest holding, the First Trust Low Duration Opportunities ETF, which has been defensively positioned in low duration mortgage-backed securities, also outperformed the Benchmark, returning -2.84% over the period. Exposure to emerging market debt was a drag on performance as U.S. Dollar strength weighed on the sector. The U.S. Dollar Index rose from 92.63 on August 31, 2021 to 104.69 on June 30, 2022 when the Fund exited the position in the emerging market debt fund, the First Trust Emerging Markets Local Currency Bond ETF, which was down -19.48% over the same period. The Fund's position in the First Trust Tactical High Yield ETF ("HYLS"), which holds high yield bonds and senior loans, was down -10.66% over the 12-month period ended August 31, 2022. Much of this negative performance in HYLS occurred during the second quarter of 2022 when risk assets sold off sharply. High yield credit spreads widened 245 bps during the second quarter of 2022 as the market started to price in the risk of a recession and HYLS was also negatively impacted by its use of leverage in the second quarter of 2022. MARKET AND FUND OUTLOOK Due to persistently high inflation, the Fed has continued to reiterate its commitment to lowering inflation to its 2% target. The Federal Funds rate was increased by 75 bps in each of the last three FOMC meetings, moving the upper bound target rate to 3.25%. We expect the Fed to continue to raise rates into the next year, stabilizing the Federal Funds terminal rate around 4.5% before pausing further rate increases and observing the implications of such a dramatic move in interest rates over such a short period of time. Importantly, given that the Fed's dual mandate centers on inflation and employment, both of which are typically lagging indicators with respect to overall economic activity, we believe the risk of a policy error by the Fed that results in recession has increased dramatically for 2023. Therefore, as the Fed continues to raise the Federal Funds rate, we continue to favor duration profiles short of the Benchmark, but, due to more balanced risks and rising recession risk, we believe duration extension is warranted. Furthermore, given the potential for a shorter business cycle and increasing recession risk in 2023, we believe it is prudent to increase credit quality. Page 22 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust 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 ERIK RUSSO, VICE PRESIDENT OF FRIST 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 member of the portfolio management team since 2021, and Erik Russo, who has served as a member of the portfolio management team since 2022. COMMENTARY MARKET RECAP Equity markets lost ground over the 12-month period ended August 31, 2022, as tightening monetary policy, flagging earnings and reduced sentiment sent shares lower. With inflation levels touching over 9% and near 40-year highs, the Federal Reserve (the "Fed") raised short-term interest rates from near zero to 2.5% as of August 31, 2022. The twin threats of inflation and higher rates have overwhelmed market sentiment despite a low unemployment rate, cash-rich consumer balance sheets, and a significant return of demand for consumer services. It's now obvious that the U.S. stock market is pricing in a significant risk of a recession after only a modest probability at the beginning of 2022. The S&P 500(R) Index profits are still expected to grow close to 10% in 2022; however, expectations have started to move lower as the economy slows and many corporations see lower margins due to persistent inflation. Energy sector stocks were by far the top sector performers within the S&P 500(R) Index during the 12-month period ended August 31, 2022, with a couple defensive sectors also posting positive returns. The Energy sector benefited from a reopening economy and a lack of supply, which drove prices and profit margins higher, while the Utilities and Consumer Staples sectors outperformed due to a risk-off environment which led to more market demand for these stocks. By contrast, the Communication Services, Consumer Discretionary, and Information Technology sectors all lagged the broader market. All three sectors favor long-duration equities that were hampered by rising rates and faced difficult comparisons to the one year-ago period as the trend to digitization sped up during the coronavirus pandemic. On a size basis, the S&P 500(R) Index, generally a proxy for large capitalization stocks, outpaced the Russell 2000(R) Index, a small cap proxy, during the 12-month period ended August 31, 2022, with a return of -11.23%, while the Russell 2000(R) Index returned -17.88% over the same period. The S&P Midcap 400(R) Index performed the best with a return of -10.37% over the same period. FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (THE "FUND" OR "AFLG") FUND PERFORMANCE The Fund returned -11.18% on a net asset value ("NAV") basis and -11.22% on a market price basis over the 12-month period ended August 31, 2022. The S&P 500(R) Index (the "Benchmark") returned -11.23% over the same period. The Fund paid total distributions of $0.2715 per share over the period. The inline performance can be attributed to a mixed year for factor returns with value and low volatility stocks benefiting the Fund's performance, while stocks with momentum and quality factors were headwinds for Fund performance. The momentum factor lagged by a wide margin as the market continued to search for leadership. Sharp reversals in the market tend to lead to poor performance for the momentum factor. Despite its defensive nature, the quality factor lagged the broader market as investors favored more defensive sectors over strong balance Page 23 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) sheets and high profitability. On the positive side, the value factor showed strong performance as more expensive stocks lagged the broader market. Investors flocked to the low volatility factor as a safety trade given fears of recession. Single stock selection was a drag on relative performance, while industry allocation was a benefit to the Fund's performance. FIRST TRUST ACTIVE FACTOR MID CAP ETF (THE "FUND" OR "AFMC") FUND PERFORMANCE The Fund returned -14.04% on a NAV basis and -14.01% on a market price basis over the 12-month period ended August 31, 2022. The S&P Midcap 400(R) Index (the "Benchmark") returned -10.37% over the same period. The Fund paid total distributions of $0.2798 per share over the period. The underperformance can be attributed to a mixed year for factor returns with value and low volatility benefiting performance, while the momentum and quality factors were headwinds for Fund performance. The momentum factor lagged by a wide margin as the market continued to search for leadership. Sharp reversals in the market tend to lead to poor performance for the momentum factor. Despite its defensive nature, the quality factor lagged the broader market as investors favored more defensive sectors over strong balance sheets and high profitability. On the positive side, the value factor showed strong performance as more expensive stocks lagged the broader market. Investors flocked to the low volatility factor as a safety trade given fears of recession. Another reason for the underperformance was poor single-stock selection, especially in the information technology sector. The Fund did not hold a few of the biggest technology gainers in the Benchmark over the period. Industry allocation was also a drag on overall performance. FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (THE "FUND" OR "AFSM") FUND PERFORMANCE The Fund returned -13.52% on a NAV basis and -13.46% on a market price basis over the 12-month period ended August 31, 2022. The Russell 2000(R) Index (the "Benchmark") returned -17.88% over the same period. The Fund paid total distributions of $0.1813 per share over the period. The outperformance can be attributed to strong factor performance for small caps with value and low volatility stocks benefiting performance, while stocks with the momentum factor remained weak. The momentum factor lagged by a wide margin as the market continued to search for leadership. Sharp reversals in the market tend to lead to poor performance for the momentum factor. The quality factor outperformed in small caps as a more speculative universe versus larger peers benefited names with positive earnings. The value factor showed strong performance as more expensive stocks lagged the broader market. Investors flocked to the low volatility factor as a safety trade given fears of recession. Single stock selection was a drag on relative performance, while industry allocation was a benefit. MARKET AND FUND OUTLOOK We believe market risk is more balanced in the near term due to uncertainty across several spectrums, including quantitative tightening, geopolitical tensions, and slowing corporate profits that could possibly decline. We remain constructive on equities for the long-term but future returns are likely to be lower than the last decade with stocks trading at close to a historic average multiple, in our view. While the last year again proved to be a difficult environment for factor investing, we believe a more normalized environment could lead to better conditions for the Active Factor suite, especially given an exit from a zero interest rate environment. 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 24 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (UNAUDITED) As a shareholder of First Trust Income Opportunities ETF, First Trust Flexible Municipal High Income ETF, First Trust Low Duration Strategic Focus ETF, First Trust Active Factor Large Cap ETF, First Trust Active Factor Mid Cap ETF or First Trust Active Factor Small Cap 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, 2022. 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST INCOME OPPORTUNITIES ETF (FCEF) (B) Actual $1,000.00 $ 927.40 0.85% $4.13 Hypothetical (5% return before expenses) $1,000.00 $1,020.92 0.85% $4.33 FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME ETF (MFLX) (b) Actual $1,000.00 $ 905.10 0.60% $2.88 Hypothetical (5% return before expenses) $1,000.00 $1,022.18 0.60% $3.06 FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) (B) Actual $1,000.00 $ 966.60 0.20% $0.99 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 $ 916.30 0.55% $2.66 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 $ 904.40 0.65% $3.12 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 $ 900.80 0.75% $3.59 Hypothetical (5% return before expenses) $1,000.00 $1,021.42 0.75% $3.82 </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, 2022 through August 31, 2022), 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. Page 25 <PAGE> FIRST TRUST INCOME OPPORTUNITIES ETF (FCEF) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CLOSED-END FUNDS -- 92.6% CAPITAL MARKETS -- 92.6% 15,413 abrdn Global Infrastructure Income Fund $ 288,069 20,671 Adams Natural Resources Fund, Inc. 446,080 5,572 Advent Convertible and Income Fund 73,105 14,854 Angel Oak Financial Strategies Income Term Trust 212,264 18,626 Apollo Tactical Income Fund, Inc. 242,324 69,436 Ares Dynamic Credit Allocation Fund, Inc. 906,834 10,623 Barings Global Short Duration High Yield Fund 145,960 35,417 BlackRock Corporate High Yield Fund, Inc. 339,295 12,681 BlackRock Health Sciences Trust II 206,827 13,625 BlackRock Multi-Sector Income Trust 220,861 14,091 BlackRock Resources & Commodities Strategy Trust 132,314 19,146 BlackRock Science & Technology Trust 671,450 300 BlackRock Utilities Infrastructure & Power Opportunities Trust 7,050 55,124 Blackstone Strategic Credit Fund 654,322 15,086 Central Securities Corp. 544,454 25,082 Cohen & Steers Infrastructure Fund, Inc. 668,435 50,176 Cohen & Steers REIT and Preferred and Income Fund, Inc. 1,180,140 28,260 DoubleLine Income Solutions Fund 352,685 9,795 Eaton Vance Enhanced Equity Income Fund 151,920 38,493 Eaton Vance Short Duration Diversified Income Fund 428,427 45,762 Eaton Vance Tax-Advantaged Dividend Income Fund 1,124,830 71,391 Eaton Vance Tax-Advantaged Global Dividend Income Fund 1,215,789 39,309 Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund 930,837 41,014 Gabelli Dividend & Income Trust (The) 869,907 16,068 General American Investors Co., Inc. 595,641 39,204 John Hancock Tax-Advantaged Dividend Income Fund 942,464 11,639 Lazard Global Total Return and Income Fund, Inc. 188,203 34,104 Macquarie Global Infrastructure Total Return Fund, Inc. 834,184 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CAPITAL MARKETS (CONTINUED) 39,308 MainStay CBRE Global Infrastructure Megatrends Fund $ 618,315 129,441 Nuveen Credit Strategies Income Fund 697,687 40,241 Nuveen Floating Rate Income Fund 348,487 5,178 Nuveen Multi-Asset Income Fund 70,317 77,201 Nuveen Preferred & Income Opportunities Fund 613,748 31,787 Nuveen Real Asset Income and Growth Fund 421,178 25,632 Nuveen Variable Rate Preferred & Income Fund 492,775 59,580 PGIM Global High Yield Fund, Inc. 701,257 26,415 PIMCO Dynamic Income Fund 572,149 43,702 PIMCO Dynamic Income Opportunities Fund 651,160 16,317 PIMCO Energy & Tactical Credit Opportunities Fund 247,692 29,533 Principal Real Estate Income Fund 387,768 6,550 Reaves Utility Income Fund 208,355 14,965 Royce Micro-Cap Trust, Inc. 135,433 35,977 Royce Value Trust, Inc. 546,131 22,859 Source Capital, Inc. 847,840 50,766 Tekla Healthcare Investors 944,248 47,782 Tekla Healthcare Opportunities Fund 927,926 17,714 Tekla Life Sciences Investors 255,790 28,859 Tri-Continental Corp. 797,951 8,638 Virtus Convertible & Income 2024 Target Term Fund 77,137 12,284 Virtus Equity & Convertible Income Fund 274,302 47,530 Western Asset High Income Opportunity Fund, Inc. 189,645 33,037 Western Asset Inflation-Linked Opportunities & Income Fund 338,960 ------------- TOTAL CLOSED-END FUNDS -- 92.6% 25,940,922 (Cost $28,640,232) ------------- EXCHANGE-TRADED FUNDS -- 1.0% CAPITAL MARKETS -- 1.0% 2,049 Financial Select Sector SPDR Fund 67,719 1,334 PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund 69,195 7,089 ProShares Short 20+ Year Treasury (a) 145,112 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 1.0% 282,026 (Cost $293,518) ------------- Page 26 See Notes to Financial Statements <PAGE> FIRST TRUST INCOME OPPORTUNITIES ETF (FCEF) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- MONEY MARKET FUNDS -- 6.2% 1,738,830 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) $ 1,738,830 (Cost $1,738,830) ------------- TOTAL INVESTMENTS -- 99.8% 27,961,778 (Cost $30,672,580) NET OTHER ASSETS AND LIABILITIES -- 0.2% 43,559 ------------- NET ASSETS -- 100.0% $ 28,005,337 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Closed-End Funds*............................... $ 25,940,922 $ 25,940,922 $ -- $ -- Exchange-Traded Funds*.......................... 282,026 282,026 -- -- Money Market Funds.............................. 1,738,830 1,738,830 -- -- --------------------------------------------------------------- Total Investments............................... $ 27,961,778 $ 27,961,778 $ -- $ -- =============================================================== </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 27 <PAGE> FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME ETF (MFLX) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE ------------ ------------------------------------------------------------------- ------------ ------------ ------------ MUNICIPAL BONDS -- 90.2% <S> <C> <C> <C> <C> ALABAMA -- 1.7% $ 250,000 Southeast Energy Auth A Cooperative Dist, Ser B (Mandatory put 12/01/31)................................................... 4.00% 12/01/51 $ 246,133 ------------ CALIFORNIA -- 13.4% 250,000 CA Muni Fin Auth, Ser A............................................ 5.00% 10/01/44 257,172 300,000 City of Long Beach CA Arpt System Rev, Ser A, AGM.................. 5.00% 06/01/37 335,598 250,000 Elk Grove Fin Auth................................................. 4.00% 09/01/50 217,522 250,000 San Francisco City & Cnty Arpt Comm-San Francisco Intl Arpt, Ser 2020, AMT................................................... 5.00% 05/01/37 266,372 300,000 San Francisco City & Cnty Pub Util Commn Pwr Rev, Ser B............ 4.00% 11/01/42 294,457 250,000 St of CA........................................................... 5.00% 11/01/39 275,926 245,000 Tobacco Securitization Auth of Southern CA......................... 5.00% 06/01/35 264,064 ------------ 1,911,111 ------------ COLORADO -- 1.4% 200,000 City & Cnty of Denver CO, AMT...................................... 5.00% 10/01/32 199,992 ------------ FLORIDA -- 13.1% 250,000 Babcock Ranch Cmnty Indep Spl Dist, Ser 2022....................... 4.13% 05/01/27 250,873 250,000 Black Creek Cmnty Dev Dist......................................... 5.13% 06/15/32 253,245 265,000 Cnty of Miami-Dade FL Aviation Rev, Ser B, AMT..................... 5.00% 10/01/40 274,467 250,000 North Sumter Cnty Util Dependent Dist, AGM......................... 4.00% 10/01/41 241,698 365,000 Palm Beach Cnty Hlth Facs Auth, Ser A.............................. 5.00% 11/01/41 371,249 250,000 Ridge At Apopka Cmnty Dev Dist..................................... 5.38% 05/01/42 251,855 250,000 Sawyers Landing Cmnty Dev Dist..................................... 4.25% 05/01/53 222,205 ------------ 1,865,592 ------------ GEORGIA -- 1.8% 250,000 Main Street Nat Gas, Inc., Ser C (Mandatory put 12/01/28).......... 4.00% 05/01/52 249,396 ------------ GUAM -- 1.8% 250,000 Territory of Guam, Ser F........................................... 5.00% 01/01/28 263,451 ------------ ILLINOIS -- 7.7% 300,000 Chicago Brd of Edu, Ser B.......................................... 5.00% 12/01/30 321,289 250,000 IL Fin Auth, Ser A................................................. 5.00% 10/01/34 276,765 250,000 IL Fin Auth, Ser A................................................. 5.00% 08/15/47 266,072 250,000 St of IL, Ser B.................................................... 4.00% 12/01/37 236,735 ------------ 1,100,861 ------------ IOWA -- 1.8% 250,000 IA Fin Auth (Mandatory put 12/01/42)............................... 5.00% 12/01/50 256,435 ------------ KANSAS -- 3.6% 250,000 Wyandotte Cnty-Kansas City Unif Govt (a)........................... 5.75% 09/01/39 247,068 250,000 Wyandotte Cnty-Kansas City Unif Govt Util Sys Rev, Ser A........... 5.00% 09/01/40 259,378 ------------ 506,446 ------------ KENTUCKY -- 2.1% 300,000 KY Public Energy Auth, Ser A (Mandatory put 06/01/26).............. 4.00% 12/01/50 302,237 ------------ MASSACHUSETTS -- 1.8% 250,000 MA Bay Transprtn Auth Sales Tax Rev, Ser A......................... 5.00% 07/01/45 262,291 ------------ MISSOURI -- 1.8% 250,000 Hlth & Eductnl Facs Auth of The St of MO........................... 5.00% 02/01/42 257,026 ------------ </TABLE> Page 28 See Notes to Financial Statements <PAGE> FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME ETF (MFLX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> PRINCIPAL STATED STATED VALUE DESCRIPTION COUPON MATURITY VALUE ------------ ------------------------------------------------------------------- ------------ ------------ ------------ MUNICIPAL BONDS (CONTINUED) NEW YORK -- 5.5% <S> <C> <C> <C> <C> $ 250,000 NY St Dorm Auth.................................................... 5.00% 05/01/38 $ 269,620 250,000 NY St Urban Dev Corp............................................... 5.00% 03/15/44 267,988 250,000 NY Transprtn Dev Corp., AMT........................................ 4.00% 10/01/30 246,636 ------------ 784,244 ------------ NORTH CAROLINA -- 1.4% 250,000 NC Med Care Commn.................................................. 4.00% 03/01/41 204,286 ------------ OHIO -- 10.7% 250,000 Buckeye Tobacco Stlmt Fing Auth, Ser B-2........................... 5.00% 06/01/55 238,120 300,000 Cnty of Montgomery OH.............................................. 4.00% 08/01/41 289,005 250,000 OH Air Quality Dev Auth, AMT (Mandatory put 10/01/24).............. 2.10% 07/01/28 241,584 250,000 OH Air Quality Dev Auth, AMT (Mandatory put 06/01/27).............. 4.25% 11/01/39 255,231 250,000 OH Air Quality Dev Auth, AMT (a)................................... 5.00% 07/01/49 236,912 250,000 OH Higher Eductnl Fac Commn........................................ 5.00% 02/01/35 272,511 ------------ 1,533,363 ------------ OREGON -- 5.7% 250,000 Clackamas Cnty Hosp Facs Auth, Ser A............................... 5.38% 11/15/55 241,904 300,000 OR St Facs Auth, Ser A............................................. 5.00% 06/01/52 315,260 250,000 Union Cnty Hosp Facs Auth.......................................... 5.00% 07/01/41 255,548 ------------ 812,712 ------------ PUERTO RICO -- 3.4% 250,000 Commonwealth of Puerto Rico, Ser A1................................ 4.00% 07/01/35 229,863 250,000 Puerto Rico Sales Tax Fing Corp. Sales Tax Rev, Ser A-1............ 4.55% 07/01/40 249,998 ------------ 479,861 ------------ SOUTH CAROLINA -- 1.6% 250,000 SC Jobs-Econ Dev Auth.............................................. 4.00% 11/15/32 225,909 ------------ TENNESSEE -- 0.7% 100,000 TN Energy Acquisition Corp. (Mandatory put 11/01/31)............... 5.00% 05/01/52 104,608 ------------ TEXAS -- 3.6% 250,000 City of Austin TX Arpt Sys Rev, AMT................................ 5.00% 11/15/41 265,493 250,000 North Parkway Muni Mgmt Dis No 1 (a)............................... 5.00% 09/15/51 246,162 ------------ 511,655 ------------ VERMONT -- 1.8% 300,000 VT Econ Dev Auth................................................... 4.00% 05/01/37 256,990 ------------ VIRGINIA -- 2.0% 250,000 Fairfax Cnty Econ Dev Auth......................................... 5.00% 10/01/39 282,357 ------------ WEST VIRGINIA -- 1.8% 250,000 West Virginia Econ Dev Auth, AMT (Mandatory put 07/01/25).......... 5.00% 07/01/45 252,335 ------------ TOTAL MUNICIPAL BONDS.......................................................................... 12,869,291 (Cost $12,955,494) ------------ </TABLE> <TABLE> <CAPTION> SHARES DESCRIPTION VALUE ------------ ----------------------------------------------------------------------------------------------- ------------ CLOSED-END FUNDS -- 6.2% <S> <C> <C> CAPITAL MARKETS -- 6.2% 2,995 BlackRock Municipal Income Fund, Inc........................................................... 35,551 3,183 BlackRock Municipal Income Quality Trust....................................................... 39,724 6,642 BlackRock MuniHoldings Fund, Inc............................................................... 84,686 </TABLE> See Notes to Financial Statements Page 29 <PAGE> FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME ETF (MFLX) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 <TABLE> <CAPTION> SHARES DESCRIPTION VALUE ------------ ----------------------------------------------------------------------------------------------- ------------ CLOSED-END FUNDS (CONTINUED) <S> <C> <C> CAPITAL MARKETS (CONTINUED) 3,125 BlackRock MuniHoldings Quality Fund II, Inc.................................................... $ 34,906 2,925 BlackRock MuniYield Quality Fund II, Inc....................................................... 34,720 7,360 BlackRock MuniYield Quality Fund III, Inc...................................................... 85,082 3,479 Eaton Vance Municipal Bond Fund................................................................ 36,843 3,374 Eaton Vance Municipal Income Trust............................................................. 37,215 7,427 Invesco Municipal Trust........................................................................ 74,938 7,390 Invesco Quality Municipal Income Trust......................................................... 74,565 3,576 Invesco Trust for Investment Grade Municipals.................................................. 37,083 2,587 Nuveen AMT-Free Municipal Credit Income Fund................................................... 35,804 6,775 Nuveen AMT-Free Quality Municipal Income Fund.................................................. 81,165 2,745 Nuveen Municipal Credit Income Fund............................................................ 35,548 6,711 Nuveen Quality Municipal Income Fund........................................................... 82,545 6,681 Pioneer Municipal High Income Opportunities Fund, Inc.......................................... 80,239 ------------ TOTAL CLOSED-END FUNDS......................................................................... 890,614 (Cost $1,099,043) ------------ TOTAL INVESTMENTS -- 96.4%..................................................................... 13,759,905 (Cost $14,054,537) NET OTHER ASSETS AND LIABILITIES -- 3.6%....................................................... 512,320 ------------ NET ASSETS -- 100.0%........................................................................... $ 14,272,225 ============ </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, 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, 2022, securities noted as such amounted to $730,142 or 5.1% of net assets. AGM - Assured Guaranty Municipal Corp AMT - Alternative Minimum Tax ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Municipal Bonds*................................ $ 12,869,291 $ -- $ 12,869,291 $ -- Closed-End Funds**.............................. 890,614 890,614 -- -- --------------------------------------------------------------- Total Investments............................... $ 13,759,905 $ 890,614 $ 12,869,291 $ -- =============================================================== </TABLE> * See Portfolio of Investments for state breakout. ** See Portfolio of Investments for industry breakout. Page 30 See Notes to Financial Statements <PAGE> FIRST TRUST LOW DURATION STRATEGIC FOCUS ETF (LDSF) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- EXCHANGE-TRADED FUNDS -- 100.0% CAPITAL MARKETS -- 100.0% 440,244 First Trust Enhanced Short Maturity ETF (a) $ 26,154,896 1,735,219 First Trust Low Duration Opportunities ETF (a) 83,828,430 806,714 First Trust Tactical High Yield ETF (a) 32,671,917 1,065,484 First Trust TCW Unconstrained Plus Bond ETF (a) 26,306,800 863,651 iShares 0-5 Year Investment Grade Corporate Bond ETF 41,748,889 ------------- TOTAL EXCHANGE-TRADED FUNDS -- 100.0% 210,710,932 (Cost $221,758,020) ------------- MONEY MARKET FUNDS -- 0.0% 38,219 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 38,219 (Cost $38,219) ------------- TOTAL INVESTMENTS -- 100.0% 210,749,151 (Cost $221,796,239) NET OTHER ASSETS AND LIABILITIES -- 0.0% 8,124 ------------- NET ASSETS -- 100.0% $ 210,757,275 ============= (a) Investment in an affiliated fund. (b) Rate shown reflects yield as of August 31, 2022. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Exchange-Traded Funds*.......................... $ 210,710,932 $ 210,710,932 $ -- $ -- Money Market Funds.............................. 38,219 38,219 -- -- --------------------------------------------------------------- Total Investments............................... $ 210,749,151 $ 210,749,151 $ -- $ -- =============================================================== </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 31 <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.8% AEROSPACE & DEFENSE -- 4.0% 216 General Dynamics Corp. $ 49,449 72 HEICO Corp. 10,966 357 Howmet Aerospace, Inc. 12,649 28 L3Harris Technologies, Inc. 6,389 68 Lockheed Martin Corp. 28,567 72 Northrop Grumman Corp. 34,415 309 Raytheon Technologies Corp. 27,733 297 Textron, Inc. 18,527 ------------- 188,695 ------------- AIR FREIGHT & LOGISTICS -- 1.4% 132 C.H. Robinson Worldwide, Inc. 15,068 116 Expeditors International of Washington, Inc. 11,935 56 FedEx Corp. 11,806 128 United Parcel Service, Inc., Class B 24,897 ------------- 63,706 ------------- BANKS -- 1.7% 196 Comerica, Inc. 15,739 140 M&T Bank Corp. 25,449 575 Regions Financial Corp. 12,460 240 Wells Fargo & Co. 10,491 305 Zions Bancorp N.A. 16,784 ------------- 80,923 ------------- BIOTECHNOLOGY -- 2.8% 244 AbbVie, Inc. 32,808 40 Amgen, Inc. 9,612 12 Biogen, Inc. (a) 2,345 464 Gilead Sciences, Inc. 29,450 20 Moderna, Inc. (a) 2,645 44 Regeneron Pharmaceuticals, Inc. (a) 25,567 100 Vertex Pharmaceuticals, Inc. (a) 28,176 ------------- 130,603 ------------- BUILDING PRODUCTS -- 0.9% 204 A.O. Smith Corp. 11,516 76 Carlisle Cos., Inc. 22,470 64 Carrier Global Corp. 2,504 36 Fortune Brands Home & Security, Inc. 2,211 48 Johnson Controls International PLC 2,599 ------------- 41,300 ------------- CAPITAL MARKETS -- 1.2% 64 Ameriprise Financial, Inc. 17,153 240 Bank of New York Mellon (The) Corp. 9,967 20 FactSet Research Systems, Inc. 8,667 88 LPL Financial Holdings, Inc. 19,477 ------------- 55,264 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CHEMICALS -- 2.1% 224 CF Industries Holdings, Inc. $ 23,175 436 Corteva, Inc. 26,784 440 Dow, Inc. 22,440 252 LyondellBasell Industries N.V., Class A 20,916 128 Mosaic (The) Co. 6,895 ------------- 100,210 ------------- COMMERCIAL SERVICES & SUPPLIES -- 0.1% 8 Cintas Corp. 3,255 68 Rollins, Inc. 2,295 ------------- 5,550 ------------- COMMUNICATIONS EQUIPMENT -- 2.1% 84 Arista Networks, Inc. (a) 10,070 809 Cisco Systems, Inc. 36,178 56 F5, Inc. (a) 8,795 905 Juniper Networks, Inc. 25,720 48 Motorola Solutions, Inc. 11,684 20 Ubiquiti, Inc. 6,208 ------------- 98,655 ------------- CONSUMER FINANCE -- 1.1% 369 Ally Financial, Inc. 12,251 212 Capital One Financial Corp. 22,434 48 Discover Financial Services 4,823 345 Synchrony Financial 11,299 ------------- 50,807 ------------- CONTAINERS & PACKAGING -- 0.8% 712 Amcor PLC 8,551 540 International Paper Co. 22,475 165 Sealed Air Corp. 8,878 ------------- 39,904 ------------- DISTRIBUTORS -- 0.6% 104 Genuine Parts Co. 16,225 235 LKQ Corp. 12,507 ------------- 28,732 ------------- DIVERSIFIED FINANCIAL SERVICES -- 2.3% 377 Berkshire Hathaway, Inc., Class B (a) 105,862 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.2% 1,600 AT&T, Inc. 28,064 962 Lumen Technologies, Inc. 9,581 406 Verizon Communications, Inc. 16,975 ------------- 54,620 ------------- ELECTRIC UTILITIES -- 3.3% 320 Constellation Energy Corp. 26,109 216 Evergy, Inc. 14,802 1,093 Exelon Corp. 47,994 301 FirstEnergy Corp. 11,905 Page 32 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ELECTRIC UTILITIES (CONTINUED) 748 NRG Energy, Inc. $ 30,877 752 PPL Corp. 21,868 44 Southern (The) Co. 3,391 ------------- 156,946 ------------- ELECTRICAL EQUIPMENT -- 0.3% 164 Emerson Electric Co. 13,405 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.6% 56 CDW Corp. 9,559 28 Keysight Technologies, Inc. (a) 4,589 120 TE Connectivity Ltd. 15,145 ------------- 29,293 ------------- ENTERTAINMENT -- 0.5% 292 Liberty Media Corp.-Liberty Formula One, Class C (a) 18,594 350 Warner Bros Discovery, Inc. (a) 4,634 ------------- 23,228 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 3.4% 104 Extra Space Storage, Inc. 20,668 232 Gaming and Leisure Properties, Inc. 11,199 395 Iron Mountain, Inc. 20,781 44 Mid-America Apartment Communities, Inc. 7,290 64 Public Storage 21,173 369 Regency Centers Corp. 22,450 8 SBA Communications Corp. 2,602 464 VICI Properties, Inc. 15,307 775 Weyerhaeuser Co. 26,474 140 WP Carey, Inc. 11,764 ------------- 159,708 ------------- FOOD & STAPLES RETAILING -- 3.2% 720 Albertsons Cos., Inc., Class A 19,807 72 Costco Wholesale Corp. 37,591 921 Kroger (The) Co. 44,153 361 Walgreens Boots Alliance, Inc. 12,657 288 Walmart, Inc. 38,174 ------------- 152,382 ------------- FOOD PRODUCTS -- 1.1% 176 General Mills, Inc. 13,517 112 J.M. Smucker (The) Co. 15,679 313 Tyson Foods, Inc., Class A 23,594 ------------- 52,790 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 0.6% 384 Hologic, Inc. (a) 25,943 ------------- HEALTH CARE PROVIDERS & SERVICES -- 6.3% 76 AmerisourceBergen Corp. 11,139 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES (CONTINUED) 188 Cardinal Health, Inc. $ 13,295 28 Centene Corp. (a) 2,513 68 Cigna Corp. 19,275 436 CVS Health Corp. 42,793 100 Elevance Health, Inc. 48,511 333 Henry Schein, Inc. (a) 24,445 96 Laboratory Corp. of America Holdings 21,626 72 McKesson Corp. 26,424 172 Quest Diagnostics, Inc. 21,553 92 UnitedHealth Group, Inc. 47,778 152 Universal Health Services, Inc., Class B 14,872 ------------- 294,224 ------------- HOTELS, RESTAURANTS & LEISURE -- 0.8% 8 Booking Holdings, Inc. (a) 15,007 80 Marriott International, Inc., Class A 12,299 40 McDonald's Corp. 10,091 ------------- 37,397 ------------- HOUSEHOLD DURABLES -- 1.9% 32 D.R. Horton, Inc. 2,277 160 Lennar Corp., Class A 12,392 64 Mohawk Industries, Inc. (a) 7,063 12 NVR, Inc. (a) 49,681 180 PulteGroup, Inc. 7,319 76 Whirlpool Corp. 11,901 ------------- 90,633 ------------- HOUSEHOLD PRODUCTS -- 0.1% 32 Colgate-Palmolive Co. 2,503 ------------- INDUSTRIAL CONGLOMERATES -- 0.5% 196 3M Co. 24,373 ------------- INSURANCE -- 4.6% 484 Aflac, Inc. 28,759 80 Allstate (The) Corp. 9,640 232 American International Group, Inc. 12,006 28 Aon PLC, Class A 7,819 68 Arthur J. Gallagher & Co. 12,347 16 Assurant, Inc. 2,536 32 Chubb Ltd. 6,050 160 CNA Financial Corp. 6,154 32 Globe Life, Inc. 3,110 176 Hartford Financial Services Group (The), Inc. 11,319 288 Loews Corp. 15,929 92 Marsh & McLennan Cos., Inc. 14,846 88 MetLife, Inc. 5,661 236 Progressive (The) Corp. 28,945 260 Prudential Financial, Inc. 24,895 20 Travelers (The) Cos., Inc. 3,233 See Notes to Financial Statements Page 33 <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) INSURANCE (CONTINUED) 364 W.R. Berkley Corp. $ 23,587 ------------- 216,836 ------------- INTERACTIVE MEDIA & SERVICES -- 3.4% 1,306 Alphabet, Inc., Class A (a) 141,335 120 Meta Platforms, Inc., Class A (a) 19,552 ------------- 160,887 ------------- INTERNET & DIRECT MARKETING RETAIL -- 1.4% 511 Amazon.com, Inc. (a) 64,780 40 eBay, Inc. 1,765 ------------- 66,545 ------------- IT SERVICES -- 4.5% 60 Accenture PLC, Class A 17,308 60 Automatic Data Processing, Inc. 14,664 365 Cognizant Technology Solutions Corp., Class A 23,057 72 Gartner, Inc. (a) 20,543 260 International Business Machines Corp. 33,397 168 Jack Henry & Associates, Inc. 32,290 32 Mastercard, Inc., Class A 10,380 208 Paychex, Inc. 25,655 216 SS&C Technologies Holdings, Inc. 12,044 1,492 Western Union (The) Co. 22,111 ------------- 211,449 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.2% 24 Waters Corp. (a) 7,166 ------------- MACHINERY -- 1.9% 124 Cummins, Inc. 26,706 36 Fortive Corp. 2,280 100 Ingersoll Rand, Inc. 4,737 12 Nordson Corp. 2,726 32 Otis Worldwide Corp. 2,311 52 Pentair PLC 2,314 140 Snap-on, Inc. 30,500 76 Stanley Black & Decker, Inc. 6,696 100 Westinghouse Air Brake Technologies Corp. 8,765 ------------- 87,035 ------------- MEDIA -- 1.2% 468 Comcast Corp., Class A 16,937 260 DISH Network Corp., Class A (a) 4,511 420 Fox Corp., Class A 14,356 161 Interpublic Group of (The) Cos., Inc. 4,450 684 News Corp., Class A 11,573 52 Omnicom Group, Inc. 3,479 ------------- 55,306 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- METALS & MINING -- 1.7% 100 Alcoa Corp. $ 4,948 297 Nucor Corp. 39,483 420 Steel Dynamics, Inc. 33,903 ------------- 78,334 ------------- MULTILINE RETAIL -- 0.8% 32 Dollar General Corp. 7,597 64 Dollar Tree, Inc. (a) 8,684 120 Target Corp. 19,241 ------------- 35,522 ------------- MULTI-UTILITIES -- 1.4% 388 CenterPoint Energy, Inc. 12,233 377 Consolidated Edison, Inc. 36,848 20 DTE Energy Co. 2,607 96 Sempra Energy 15,837 ------------- 67,525 ------------- OIL, GAS & CONSUMABLE FUELS -- 5.1% 168 Antero Resources Corp. (a) 6,733 52 APA Corp. 2,034 120 Chesapeake Energy Corp. 12,059 396 Chevron Corp. 62,592 148 ConocoPhillips 16,198 607 Coterra Energy, Inc. 18,762 285 Devon Energy Corp. 20,127 280 EQT Corp. 13,384 869 Exxon Mobil Corp. 83,068 168 Marathon Oil Corp. 4,299 24 Marathon Petroleum Corp. 2,418 ------------- 241,674 ------------- PHARMACEUTICALS -- 3.9% 660 Bristol-Myers Squibb Co. 44,491 132 Eli Lilly & Co. 39,762 172 Johnson & Johnson 27,750 1,469 Pfizer, Inc. 66,443 545 Viatris, Inc. 5,205 ------------- 183,651 ------------- PROFESSIONAL SERVICES -- 0.6% 116 Booz Allen Hamilton Holding Corp. 11,101 225 Robert Half International, Inc. 17,318 ------------- 28,419 ------------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.5% 305 CBRE Group, Inc., Class A (a) 24,083 ------------- ROAD & RAIL -- 0.1% 12 Old Dominion Freight Line, Inc. 3,257 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 4.3% 60 Advanced Micro Devices, Inc. (a) 5,092 188 Applied Materials, Inc. 17,685 60 Broadcom, Inc. 29,947 Page 34 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (CONTINUED) 24 Enphase Energy, Inc. (a) $ 6,875 763 Intel Corp. 24,355 56 KLA Corp. 19,271 20 Lam Research Corp. 8,758 176 Micron Technology, Inc. 9,949 8 Monolithic Power Systems, Inc. 3,625 228 ON Semiconductor Corp. (a) 15,680 164 Qorvo, Inc. (a) 14,724 108 QUALCOMM, Inc. 14,285 72 Skyworks Solutions, Inc. 7,096 100 Teradyne, Inc. 8,464 100 Texas Instruments, Inc. 16,521 ------------- 202,327 ------------- SOFTWARE -- 5.8% 112 Aspen Technology, Inc. (a) 23,587 104 Cadence Design Systems, Inc. (a) 18,072 12 Intuit, Inc. 5,181 684 Microsoft Corp. 178,846 588 NortonLifeLock, Inc. 13,283 20 Palo Alto Networks, Inc. (a) 11,136 64 Synopsys, Inc. (a) 22,145 ------------- 272,250 ------------- SPECIALTY RETAIL -- 3.2% 40 Advance Auto Parts, Inc. 6,746 20 AutoZone, Inc. (a) 42,384 128 Bath & Body Works, Inc. 4,778 228 Best Buy Co., Inc. 16,117 112 Gap (The), Inc. 1,024 88 Home Depot (The), Inc. 25,381 48 Lowe's Cos., Inc. 9,319 12 O'Reilly Automotive, Inc. (a) 8,365 76 Tractor Supply Co. 14,071 8 Ulta Beauty, Inc. (a) 3,359 140 Victoria's Secret & Co. (a) 4,682 96 Williams-Sonoma, Inc. 14,280 ------------- 150,506 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 8.2% 1,998 Apple, Inc. 314,126 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS (CONTINUED) 1,292 HP, Inc. $ 37,093 172 NetApp, Inc. 12,406 205 Seagate Technology Holdings PLC 13,727 567 Xerox Holdings Corp. 9,424 ------------- 386,776 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 0.7% 172 Ralph Lauren Corp. 15,709 468 Tapestry, Inc. 16,254 244 Under Armour, Inc., Class A (a) 2,054 ------------- 34,017 ------------- TOBACCO -- 1.0% 404 Altria Group, Inc. 18,228 301 Philip Morris International, Inc. 28,743 ------------- 46,971 ------------- TRADING COMPANIES & DISTRIBUTORS -- 0.4% 48 Fastenal Co. 2,416 28 W.W. Grainger, Inc. 15,538 ------------- 17,954 ------------- TOTAL COMMON STOCKS -- 99.8% 4,686,146 (Cost $4,854,190) ------------- MONEY MARKET FUNDS -- 0.0% 2,300 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 2,300 (Cost $2,300) ------------- TOTAL INVESTMENTS -- 99.8% 4,688,446 (Cost $4,856,490) NET OTHER ASSETS AND LIABILITIES -- 0.2% 9,127 ------------- NET ASSETS -- 100.0% $ 4,697,573 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 4,686,146 $ 4,686,146 $ -- $ -- Money Market Funds.............................. 2,300 2,300 -- -- --------------------------------------------------------------- Total Investments............................... $ 4,688,446 $ 4,688,446 $ -- $ -- =============================================================== </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 35 <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.9% AEROSPACE & DEFENSE -- 1.2% 44 Curtiss-Wright Corp. $ 6,476 17 Huntington Ingalls Industries, Inc. 3,915 69 Parsons Corp. (a) 2,855 ------------- 13,246 ------------- AUTOMOBILES -- 0.5% 73 Thor Industries, Inc. 5,914 ------------- BANKS -- 2.9% 172 Bank OZK 6,971 149 Cathay General Bancorp 6,249 33 Comerica, Inc. 2,650 34 Commerce Bancshares, Inc. 2,338 68 Popular, Inc. 5,251 51 Prosperity Bancshares, Inc. 3,615 152 United Bankshares, Inc. 5,639 ------------- 32,713 ------------- BEVERAGES -- 0.5% 20 Celsius Holdings, Inc. (a) 2,070 53 National Beverage Corp. 2,939 ------------- 5,009 ------------- BIOTECHNOLOGY -- 2.9% 1 Emergent BioSolutions, Inc. (a) 24 425 Exelixis, Inc. (a) 7,539 116 Halozyme Therapeutics, Inc. (a) 4,725 5 Karuna Therapeutics, Inc. (a) 1,275 40 Neurocrine Biosciences, Inc. (a) 4,185 64 United Therapeutics Corp. (a) 14,504 ------------- 32,252 ------------- BUILDING PRODUCTS -- 4.2% 20 Advanced Drainage Systems, Inc. 2,714 257 Builders FirstSource, Inc. (a) 15,063 38 Carlisle Cos., Inc. 11,235 119 Owens Corning 9,726 98 UFP Industries, Inc. 7,780 ------------- 46,518 ------------- CAPITAL MARKETS -- 1.3% 18 FactSet Research Systems, Inc. 7,800 193 Federated Hermes, Inc. 6,574 ------------- 14,374 ------------- CHEMICALS -- 2.4% 36 Ashland, Inc. 3,663 44 Cabot Corp. 3,167 160 Chemours (The) Co. 5,397 146 Huntsman Corp. 4,091 109 Olin Corp. 5,958 18 RPM International, Inc. 1,677 32 Westlake Corp. 3,156 ------------- 27,109 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES -- 0.2% 211 GEO Group (The), Inc. (a) $ 1,726 16 HNI Corp. 512 ------------- 2,238 ------------- COMMUNICATIONS EQUIPMENT -- 2.7% 41 Calix, Inc. (a) 2,413 149 Ciena Corp. (a) 7,560 4 F5, Inc. (a) 628 274 Juniper Networks, Inc. 7,787 37 Lumentum Holdings, Inc. (a) 3,092 273 NetScout Systems, Inc. (a) 8,665 ------------- 30,145 ------------- CONSTRUCTION & ENGINEERING -- 3.3% 62 AECOM 4,535 59 Dycom Industries, Inc. (a) 6,615 48 EMCOR Group, Inc. 5,708 206 Fluor Corp. (a) 5,447 41 MasTec, Inc. (a) 3,301 142 MDU Resources Group, Inc. 4,281 26 Valmont Industries, Inc. 7,197 ------------- 37,084 ------------- CONSUMER FINANCE -- 1.3% 41 Bread Financial Holdings, Inc. 1,576 4 Credit Acceptance Corp. (a) 2,128 384 Navient Corp. 5,910 14 OneMain Holdings, Inc. 489 249 SLM Corp. 3,805 ------------- 13,908 ------------- DIVERSIFIED CONSUMER SERVICES -- 1.2% 7 Grand Canyon Education, Inc. (a) 570 187 H&R Block, Inc. 8,415 62 Service Corp. International 3,826 ------------- 12,811 ------------- DIVERSIFIED FINANCIAL SERVICES -- 0.9% 161 Voya Financial, Inc. 9,906 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.6% 232 EchoStar Corp., Class A (a) 4,271 283 Lumen Technologies, Inc. 2,819 ------------- 7,090 ------------- ELECTRIC UTILITIES -- 1.8% 69 Hawaiian Electric Industries, Inc. 2,699 137 NRG Energy, Inc. 5,656 194 OGE Energy Corp. 7,865 66 Portland General Electric Co. 3,410 ------------- 19,630 ------------- Page 36 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ELECTRICAL EQUIPMENT -- 2.0% 20 Acuity Brands, Inc. $ 3,279 68 Atkore, Inc. (a) 5,740 381 GrafTech International Ltd. 2,240 28 Hubbell, Inc. 5,776 169 nVent Electric PLC 5,570 ------------- 22,605 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 4.0% 90 Arrow Electronics, Inc. (a) 9,433 183 Avnet, Inc. 8,032 48 Belden, Inc. 3,143 64 II-VI, Inc. (a) 3,023 22 IPG Photonics Corp. (a) 1,993 80 Jabil, Inc. 4,824 88 National Instruments Corp. 3,499 34 TD SYNNEX Corp. 3,273 328 Vishay Intertechnology, Inc. 6,452 23 Vontier Corp. 504 2 Zebra Technologies Corp., Class A (a) 603 ------------- 44,779 ------------- ENERGY EQUIPMENT & SERVICES -- 0.1% 37 Helmerich & Payne, Inc. 1,582 ------------- ENTERTAINMENT -- 0.6% 99 World Wrestling Entertainment, Inc., Class A 6,733 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 6.6% 272 Brixmor Property Group, Inc. 5,843 20 Camden Property Trust 2,570 303 Corporate Office Properties Trust 7,829 203 Cousins Properties, Inc. 5,451 81 First Industrial Realty Trust, Inc. 4,105 169 Highwoods Properties, Inc. 5,139 157 Hudson Pacific Properties, Inc. 2,074 115 Iron Mountain, Inc. 6,050 59 Kilroy Realty Corp. 2,877 227 Medical Properties Trust, Inc. 3,316 87 National Retail Properties, Inc. 3,906 386 Omega Healthcare Investors, Inc. 12,607 164 PotlatchDeltic Corp. 7,613 86 Rayonier, Inc. 3,055 9 SL Green Realty Corp. 398 ------------- 72,833 ------------- FOOD & STAPLES RETAILING -- 1.1% 149 Albertsons Cos., Inc., Class A 4,099 288 Sprouts Farmers Market, Inc. (a) 8,323 ------------- 12,422 ------------- FOOD PRODUCTS -- 2.0% 212 Flowers Foods, Inc. 5,788 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- FOOD PRODUCTS (CONTINUED) 31 J.M. Smucker (The) Co. $ 4,340 91 Post Holdings, Inc. (a) 8,077 77 TreeHouse Foods, Inc. (a) 3,588 ------------- 21,793 ------------- GAS UTILITIES -- 2.1% 130 National Fuel Gas Co. 9,265 38 ONE Gas, Inc. 2,974 273 UGI Corp. 10,784 ------------- 23,023 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 2.8% 129 DENTSPLY SIRONA, Inc. 4,227 240 Envista Holdings Corp. (a) 8,902 46 Haemonetics Corp. (a) 3,451 10 Inspire Medical Systems, Inc. (a) 1,915 20 iRhythm Technologies, Inc. (a) 2,949 48 Lantheus Holdings, Inc. (a) 3,782 43 QuidelOrtho Corp. (a) 3,408 10 Shockwave Medical, Inc. (a) 2,969 ------------- 31,603 ------------- HEALTH CARE PROVIDERS & SERVICES -- 5.2% 10 Amedisys, Inc. (a) 1,184 67 AMN Healthcare Services, Inc. (a) 6,877 63 Cardinal Health, Inc. 4,455 6 Chemed Corp. 2,857 6 DaVita, Inc. (a) 512 13 Encompass Health Corp. 631 6 Enhabit, Inc. (a) 100 132 Henry Schein, Inc. (a) 9,690 43 Molina Healthcare, Inc. (a) 14,507 225 Option Care Health, Inc. (a) 6,966 39 Patterson Cos., Inc. 1,088 168 Premier, Inc., Class A 5,920 28 Universal Health Services, Inc., Class B 2,740 ------------- 57,527 ------------- HOUSEHOLD DURABLES -- 2.3% 61 Meritage Homes Corp. (a) 4,779 18 Mohawk Industries, Inc. (a) 1,987 140 PulteGroup, Inc. 5,692 228 Taylor Morrison Home Corp. (a) 5,725 67 Toll Brothers, Inc. 2,934 102 Tri Pointe Homes, Inc. (a) 1,768 20 Whirlpool Corp. 3,132 ------------- 26,017 ------------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.5% 75 Clearway Energy, Inc., Class C 2,782 106 Vistra Corp. 2,624 ------------- 5,406 ------------- See Notes to Financial Statements Page 37 <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) INSURANCE -- 4.9% 71 American Financial Group, Inc. $ 9,065 28 Assurant, Inc. 4,438 69 Brighthouse Financial, Inc. (a) 3,281 73 CNA Financial Corp. 2,808 304 CNO Financial Group, Inc. 5,597 13 Erie Indemnity Co., Class A 2,794 13 Kinsale Capital Group, Inc. 3,296 143 Loews Corp. 7,909 66 Mercury General Corp. 2,105 157 Old Republic International Corp. 3,429 254 Unum Group 9,614 ------------- 54,336 ------------- INTERNET & DIRECT MARKETING RETAIL -- 0.2% 786 Qurate Retail, Inc., Series A 2,437 ------------- IT SERVICES -- 1.2% 40 ExlService Holdings, Inc. (a) 6,708 46 Genpact Ltd. 2,161 3 Maximus, Inc. 182 249 Western Union (The) Co. 3,690 ------------- 12,741 ------------- LEISURE PRODUCTS -- 0.6% 287 Mattel, Inc. (a) 6,348 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.2% 4 Bio-Rad Laboratories, Inc., Class A (a) 1,940 ------------- MACHINERY -- 2.9% 35 AGCO Corp. 3,805 51 Crane Holdings Co. 4,812 21 Flowserve Corp. 640 7 Franklin Electric Co., Inc. 608 114 Kennametal, Inc. 2,672 36 Lincoln Electric Holdings, Inc. 4,921 33 Snap-on, Inc. 7,189 78 Terex Corp. 2,591 56 Timken (The) Co. 3,528 11 Watts Water Technologies, Inc., Class A 1,524 ------------- 32,290 ------------- MEDIA -- 1.3% 57 Interpublic Group of (The) Cos., Inc. 1,575 46 John Wiley & Sons, Inc., Class A 2,117 36 Nexstar Media Group, Inc. 6,888 167 TEGNA, Inc. 3,574 ------------- 14,154 ------------- METALS & MINING -- 4.3% 75 Alcoa Corp. 3,711 144 Cleveland-Cliffs, Inc. (a) 2,487 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- METALS & MINING (CONTINUED) 86 Reliance Steel & Aluminum Co. $ 16,166 252 Steel Dynamics, Inc. 20,342 212 United States Steel Corp. 4,848 ------------- 47,554 ------------- MULTILINE RETAIL -- 1.1% 28 Dillard's, Inc., Class A 8,295 204 Macy's, Inc. 3,533 ------------- 11,828 ------------- OIL, GAS & CONSUMABLE FUELS -- 4.3% 51 Chesapeake Energy Corp. 5,125 5 Chord Energy Corp. 708 294 Coterra Energy, Inc. 9,087 20 Denbury, Inc. (a) 1,779 153 EQT Corp. 7,313 77 HF Sinclair Corp. 4,052 42 Magnolia Oil & Gas Corp., Class A 1,003 405 Marathon Oil Corp. 10,364 34 PDC Energy, Inc. 2,309 94 Range Resources Corp. (a) 3,089 99 World Fuel Services Corp. 2,554 ------------- 47,383 ------------- PAPER & FOREST PRODUCTS -- 0.7% 142 Louisiana-Pacific Corp. 7,701 ------------- PERSONAL PRODUCTS -- 0.9% 75 Edgewell Personal Care Co. 2,922 169 Nu Skin Enterprises, Inc., Class A 6,919 ------------- 9,841 ------------- PHARMACEUTICALS -- 0.5% 72 Organon & Co. 2,054 70 Prestige Consumer Healthcare, Inc. (a) 3,541 ------------- 5,595 ------------- PROFESSIONAL SERVICES -- 2.6% 42 ASGN, Inc. (a) 4,061 5 CACI International, Inc., Class A (a) 1,404 29 FTI Consulting, Inc. (a) 4,657 32 Insperity, Inc. 3,489 76 KBR, Inc. 3,671 78 ManpowerGroup, Inc. 5,719 21 Robert Half International, Inc. 1,616 10 Science Applications International Corp. 911 37 TriNet Group, Inc. (a) 3,049 ------------- 28,577 ------------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.6% 40 Jones Lang LaSalle, Inc. (a) 6,920 ------------- Page 38 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ROAD & RAIL -- 1.5% 157 Knight-Swift Transportation Holdings, Inc. $ 7,930 45 Ryder System, Inc. 3,440 116 Schneider National, Inc., Class B 2,652 76 Werner Enterprises, Inc. 3,024 ------------- 17,046 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.1% 118 Amkor Technology, Inc. 2,375 99 Cirrus Logic, Inc. (a) 7,592 85 Lattice Semiconductor Corp. (a) 4,582 58 MKS Instruments, Inc. 5,778 26 Qorvo, Inc. (a) 2,334 6 Silicon Laboratories, Inc. (a) 752 ------------- 23,413 ------------- SOFTWARE -- 2.8% 18 Aspen Technology, Inc. (a) 3,791 204 Box, Inc., Class A (a) 5,253 30 CommVault Systems, Inc. (a) 1,629 5 Consensus Cloud Solutions, Inc. (a) 252 28 Dropbox, Inc., Class A (a) 599 4 Fair Isaac Corp. (a) 1,798 46 InterDigital, Inc. 2,307 42 Manhattan Associates, Inc. (a) 5,933 50 NortonLifeLock, Inc. 1,129 26 Qualys, Inc. (a) 3,949 18 SPS Commerce, Inc. (a) 2,198 65 Teradata Corp. (a) 2,139 ------------- 30,977 ------------- SPECIALTY RETAIL -- 5.8% 184 Aaron's (The) Co., Inc. 2,190 6 Advance Auto Parts, Inc. 1,012 118 AutoNation, Inc. (a) 14,703 40 Bath & Body Works, Inc. 1,493 121 Dick's Sporting Goods, Inc. 12,871 148 Foot Locker, Inc. 5,452 27 Murphy USA, Inc. 7,834 64 Penske Automotive Group, Inc. 7,546 81 Victoria's Secret & Co. (a) 2,709 60 Williams-Sonoma, Inc. 8,925 ------------- 64,735 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 0.7% 40 NetApp, Inc. 2,885 77 Pure Storage, Inc., Class A (a) 2,231 189 Xerox Holdings Corp. 3,141 ------------- 8,257 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS -- 0.6% 39 Capri Holdings Ltd. (a) $ 1,840 33 PVH Corp. 1,856 11 Ralph Lauren Corp. 1,005 42 Tapestry, Inc. 1,459 ------------- 6,160 ------------- THRIFTS & MORTGAGE FINANCE -- 1.9% 169 Essent Group Ltd. 6,758 513 MGIC Investment Corp. 7,331 23 PennyMac Financial Services, Inc. 1,222 285 Radian Group, Inc. 6,016 ------------- 21,327 ------------- TRADING COMPANIES & DISTRIBUTORS -- 1.0% 26 Applied Industrial Technologies, Inc. 2,756 47 Beacon Roofing Supply, Inc. (a) 2,581 14 MSC Industrial Direct Co., Inc., Class A 1,109 113 Univar Solutions, Inc. (a) 2,850 6 Watsco, Inc. 1,632 ------------- 10,928 ------------- TOTAL COMMON STOCKS -- 99.9% 1,108,758 (Cost $1,234,377) ------------- MONEY MARKET FUNDS -- 0.0% 101 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 101 (Cost $101) ------------- TOTAL INVESTMENTS -- 99.9% 1,108,859 (Cost $1,234,478) NET OTHER ASSETS AND LIABILITIES -- 0.1% 1,024 ------------- NET ASSETS -- 100.0% $ 1,109,883 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. See Notes to Financial Statements Page 39 <PAGE> FIRST TRUST ACTIVE FACTOR MID CAP ETF (AFMC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 1,108,758 $ 1,108,758 $ -- $ -- Money Market Funds.............................. 101 101 -- -- --------------------------------------------------------------- Total Investments............................... $ 1,108,859 $ 1,108,859 $ -- $ -- =============================================================== </TABLE> * See Portfolio of Investments for industry breakout. Page 40 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.7% AEROSPACE & DEFENSE -- 0.2% 126 AAR Corp. (a) $ 5,403 ------------- BANKS -- 6.7% 217 Atlantic Union Bankshares Corp. 7,042 126 BancFirst Corp. 13,590 158 BankUnited, Inc. 5,854 323 Berkshire Hills Bancorp, Inc. 9,112 146 City Holding Co. 12,411 525 CVB Financial Corp. 13,776 40 Dime Community Bancshares, Inc. 1,250 441 First BanCorp 6,306 58 First Financial Bancorp 1,252 172 Hancock Whitney Corp. 8,296 293 Hilltop Holdings, Inc. 7,735 146 HomeStreet, Inc. 5,082 490 Hope Bancorp, Inc. 7,090 451 Northwest Bancshares, Inc. 6,346 216 OFG Bancorp 5,875 225 Popular, Inc. 17,375 80 Preferred Bank 5,427 96 Stock Yards Bancorp, Inc. 6,361 399 WesBanco, Inc. 13,650 ------------- 153,830 ------------- BEVERAGES -- 0.3% 56 MGP Ingredients, Inc. 6,130 ------------- BIOTECHNOLOGY -- 4.7% 377 Alkermes PLC (a) 8,923 184 AnaptysBio, Inc. (a) 4,272 36 Anika Therapeutics, Inc. (a) 814 206 Arcutis Biotherapeutics, Inc. (a) 5,552 1,039 Catalyst Pharmaceuticals, Inc. (a) 14,068 196 Eagle Pharmaceuticals, Inc. (a) 6,423 20 Enanta Pharmaceuticals, Inc. (a) 1,218 196 Halozyme Therapeutics, Inc. (a) 7,983 1,272 Ironwood Pharmaceuticals, Inc. (a) 13,687 132 iTeos Therapeutics, Inc. (a) 2,928 20 Karuna Therapeutics, Inc. (a) 5,101 70 Ligand Pharmaceuticals, Inc. (a) 6,467 202 REGENXBIO, Inc. (a) 5,959 174 Sage Therapeutics, Inc. (a) 6,553 674 Vanda Pharmaceuticals, Inc. (a) 7,131 150 Vir Biotechnology, Inc. (a) 3,562 266 Xencor, Inc. (a) 7,020 ------------- 107,661 ------------- BUILDING PRODUCTS -- 0.9% 22 Advanced Drainage Systems, Inc. 2,985 148 Insteel Industries, Inc. 4,277 290 Resideo Technologies, Inc. (a) 6,038 104 UFP Industries, Inc. 8,257 ------------- 21,557 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CAPITAL MARKETS -- 0.9% 198 Donnelley Financial Solutions, Inc. (a) $ 8,405 184 Federated Hermes, Inc. 6,267 10 Hercules Capital, Inc. 141 34 Houlihan Lokey, Inc. 2,669 24 Piper Sandler Cos. 2,749 ------------- 20,231 ------------- CHEMICALS -- 1.3% 283 AdvanSix, Inc. 10,262 234 American Vanguard Corp. 4,664 112 Cabot Corp. 8,061 134 LSB Industries, Inc. (b) 2,114 56 Sensient Technologies Corp. 4,461 ------------- 29,562 ------------- COMMERCIAL SERVICES & SUPPLIES -- 0.6% 166 ABM Industries, Inc. 7,702 665 GEO Group (The), Inc. (a) 5,440 ------------- 13,142 ------------- COMMUNICATIONS EQUIPMENT -- 2.0% 272 ADTRAN Holdings, Inc. 6,321 108 Calix, Inc. (a) 6,356 68 Clearfield, Inc. (a) 7,895 28 Digi International, Inc. (a) 927 264 NETGEAR, Inc. (a) 6,228 578 NetScout Systems, Inc. (a) 18,346 ------------- 46,073 ------------- CONSTRUCTION & ENGINEERING -- 1.2% 148 Comfort Systems USA, Inc. 14,850 14 EMCOR Group, Inc. 1,665 194 Fluor Corp. (a) 5,130 252 Sterling Infrastructure, Inc. (a) 6,373 ------------- 28,018 ------------- CONSUMER FINANCE -- 1.1% 92 Bread Financial Holdings, Inc. 3,536 120 Encore Capital Group, Inc. (a) 6,562 196 Enova International, Inc. (a) 6,848 478 Navient Corp. 7,356 ------------- 24,302 ------------- DIVERSIFIED CONSUMER SERVICES -- 1.7% 296 H&R Block, Inc. 13,320 999 Laureate Education, Inc. 11,009 1,308 Perdoceo Education Corp. (a) 15,147 ------------- 39,476 ------------- DIVERSIFIED FINANCIAL SERVICES -- 0.3% 288 Cannae Holdings, Inc. (a) 6,224 ------------- See Notes to Financial Statements Page 41 <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.4% 465 EchoStar Corp., Class A (a) $ 8,561 ------------- ELECTRIC UTILITIES -- 2.1% 310 Hawaiian Electric Industries, Inc. 12,127 284 Otter Tail Corp. 21,453 301 Portland General Electric Co. 15,553 ------------- 49,133 ------------- ELECTRICAL EQUIPMENT -- 1.7% 16 Acuity Brands, Inc. 2,623 134 Atkore, Inc. (a) 11,311 156 Encore Wire Corp. 20,295 826 GrafTech International Ltd. 4,857 ------------- 39,086 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 3.9% 18 Badger Meter, Inc. 1,704 100 Belden, Inc. 6,548 280 Benchmark Electronics, Inc. 7,686 22 ePlus, Inc. (a) 1,037 509 Knowles Corp. (a) 7,711 229 Methode Electronics, Inc. 9,265 58 PC Connection, Inc. 2,882 80 Plexus Corp. (a) 7,498 350 Sanmina Corp. (a) 16,982 311 ScanSource, Inc. (a) 9,010 431 TTM Technologies, Inc. (a) 6,780 675 Vishay Intertechnology, Inc. 13,277 ------------- 90,380 ------------- ENERGY EQUIPMENT & SERVICES -- 0.3% 108 Helmerich & Payne, Inc. 4,617 289 RPC, Inc. 2,298 ------------- 6,915 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 4.0% 60 CareTrust REIT, Inc. 1,292 229 Equity Commonwealth (a) 6,025 110 First Industrial Realty Trust, Inc. 5,575 242 Four Corners Property Trust, Inc. 6,507 60 Industrial Logistics Properties Trust 449 302 LTC Properties, Inc. 13,557 240 National Health Investors, Inc. 15,722 329 Office Properties Income Trust 5,781 353 Physicians Realty Trust 5,881 414 Piedmont Office Realty Trust, Inc., Class A 4,877 257 PotlatchDeltic Corp. 11,930 381 Retail Opportunity Investments Corp. 6,382 404 SITE Centers Corp. 5,236 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- EQUITY REAL ESTATE INVESTMENT TRUSTS (CONTINUED) 96 Tanger Factory Outlet Centers, Inc. $ 1,480 150 Urban Edge Properties 2,360 ------------- 93,054 ------------- FOOD & STAPLES RETAILING -- 3.7% 86 BJ's Wholesale Club Holdings, Inc. (a) 6,406 32 Grocery Outlet Holding Corp. (a) 1,284 237 Ingles Markets, Inc., Class A 20,744 697 SpartanNash Co. 21,210 307 Sprouts Farmers Market, Inc. (a) 8,872 346 Weis Markets, Inc. 26,888 ------------- 85,404 ------------- FOOD PRODUCTS -- 0.6% 128 Cal-Maine Foods, Inc. 6,862 300 Hostess Brands, Inc. (a) 6,954 ------------- 13,816 ------------- GAS UTILITIES -- 0.3% 76 ONE Gas, Inc. 5,949 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 5.1% 507 AngioDynamics, Inc. (a) 11,225 214 Avanos Medical, Inc. (a) 5,271 154 Cutera, Inc. (a) 7,354 88 Enovis Corp. (a) 4,457 22 Globus Medical, Inc., Class A (a) 1,302 28 ICU Medical, Inc. (a) 4,452 212 Inogen, Inc. (a) 6,070 70 Inspire Medical Systems, Inc. (a) 13,404 82 Integer Holdings Corp. (a) 5,172 12 iRhythm Technologies, Inc. (a) 1,769 303 Lantheus Holdings, Inc. (a) 23,876 44 Neogen Corp. (a) 920 282 Orthofix Medical, Inc. (a) 5,612 82 QuidelOrtho Corp. (a) 6,499 56 Shockwave Medical, Inc. (a) 16,624 180 Varex Imaging Corp. (a) 3,796 ------------- 117,803 ------------- HEALTH CARE PROVIDERS & SERVICES -- 2.9% 42 Addus HomeCare Corp. (a) 3,747 20 Amedisys, Inc. (a) 2,369 172 AMN Healthcare Services, Inc. (a) 17,654 78 CorVel Corp. (a) 12,120 116 Fulgent Genetics, Inc. (a) 5,043 464 Option Care Health, Inc. (a) 14,365 36 Patterson Cos., Inc. 1,004 320 Premier, Inc., Class A 11,277 ------------- 67,579 ------------- Page 42 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) HEALTH CARE TECHNOLOGY -- 2.0% 401 Allscripts Healthcare Solutions, Inc. (a) $ 6,817 415 Evolent Health, Inc., Class A (a) 15,251 629 NextGen Healthcare, Inc. (a) 10,781 207 Simulations Plus, Inc. 12,431 ------------- 45,280 ------------- HOUSEHOLD DURABLES -- 2.9% 22 Cavco Industries, Inc. (a) 5,148 102 Century Communities, Inc. 4,762 635 Ethan Allen Interiors, Inc. 15,094 248 Green Brick Partners, Inc. (a) 6,041 130 M/I Homes, Inc. (a) 5,621 194 Skyline Champion Corp. (a) 10,994 300 Taylor Morrison Home Corp. (a) 7,533 647 Tri Pointe Homes, Inc. (a) 11,213 ------------- 66,406 ------------- INSURANCE -- 3.3% 160 American Equity Investment Life Holding Co. 6,080 118 Brighthouse Financial, Inc. (a) 5,611 625 CNO Financial Group, Inc. 11,506 366 Employers Holdings, Inc. 14,332 32 Enstar Group Ltd. (a) 6,056 28 Kinsale Capital Group, Inc. 7,100 58 RLI Corp. 6,366 132 Safety Insurance Group, Inc. 11,887 92 Selective Insurance Group, Inc. 7,307 ------------- 76,245 ------------- INTERACTIVE MEDIA & SERVICES -- 0.0% 16 Ziff Davis, Inc. (a) 1,236 ------------- IT SERVICES -- 2.1% 170 CSG Systems International, Inc. 9,834 110 ExlService Holdings, Inc. (a) 18,448 619 International Money Express, Inc. (a) 13,866 68 Perficient, Inc. (a) 5,311 ------------- 47,459 ------------- LEISURE PRODUCTS -- 1.0% 622 Smith & Wesson Brands, Inc. 8,273 124 Sturm Ruger & Co., Inc. 6,479 327 Vista Outdoor, Inc. (a) 9,195 ------------- 23,947 ------------- LIFE SCIENCES TOOLS & SERVICES -- 0.1% 10 Medpace Holdings, Inc. (a) 1,476 ------------- MACHINERY -- 1.6% 60 Hillenbrand, Inc. 2,500 355 Manitowoc (The) Co., Inc. (a) 3,390 364 Mueller Industries, Inc. 22,994 110 Titan International, Inc. (a) 1,544 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- MACHINERY (CONTINUED) 46 Watts Water Technologies, Inc., Class A $ 6,372 ------------- 36,800 ------------- MARINE -- 1.5% 132 Eagle Bulk Shipping, Inc. 5,734 784 Genco Shipping & Trading Ltd. 10,749 235 Matson, Inc. 17,310 ------------- 33,793 ------------- MEDIA -- 1.0% 102 John Wiley & Sons, Inc., Class A 4,695 210 Scholastic Corp. 9,641 72 TechTarget, Inc. (a) 4,673 126 Thryv Holdings, Inc. (a) 3,223 ------------- 22,232 ------------- METALS & MINING -- 2.5% 94 Alcoa Corp. 4,651 74 Alpha Metallurgical Resources, Inc. 11,629 156 Ryerson Holding Corp. 4,446 285 Schnitzer Steel Industries, Inc., Class A 9,416 522 TimkenSteel Corp. (a) 8,008 559 Warrior Met Coal, Inc. 18,196 ------------- 56,346 ------------- MULTILINE RETAIL -- 0.8% 46 Dillard's, Inc., Class A 13,627 268 Macy's, Inc. 4,642 ------------- 18,269 ------------- MULTI-UTILITIES -- 0.3% 88 Black Hills Corp. 6,642 ------------- OIL, GAS & CONSUMABLE FUELS -- 6.5% 176 Antero Resources Corp. (a) 7,054 98 Arch Resources, Inc. 14,267 202 California Resources Corp. 10,092 108 Chesapeake Energy Corp. 10,853 82 Chord Energy Corp. 11,607 118 Civitas Resources, Inc. 7,928 296 CNX Resources Corp. (a) 5,230 86 CONSOL Energy, Inc. 6,173 34 CVR Energy, Inc. 1,110 24 Denbury, Inc. (a) 2,134 973 Dorian LPG Ltd. 14,157 32 Golar LNG Ltd. (a) 873 26 Gulfport Energy Corp. (a) 2,542 385 Magnolia Oil & Gas Corp., Class A 9,190 235 Murphy Oil Corp. 9,158 130 Ovintiv, Inc. 6,908 94 PDC Energy, Inc. 6,384 186 REX American Resources Corp. (a) 5,636 See Notes to Financial Statements Page 43 <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) OIL, GAS & CONSUMABLE FUELS (CONTINUED) 186 SandRidge Energy, Inc. (a) $ 3,902 114 SM Energy Co. 5,024 112 Teekay Tankers Ltd., Class A (a) 2,755 282 World Fuel Services Corp. 7,276 ------------- 150,253 ------------- PAPER & FOREST PRODUCTS -- 0.9% 364 Louisiana-Pacific Corp. 19,740 ------------- PERSONAL PRODUCTS -- 1.0% 354 elf Beauty, Inc. (a) 13,498 52 Inter Parfums, Inc. 4,083 32 Nu Skin Enterprises, Inc., Class A 1,310 48 USANA Health Sciences, Inc. (a) 3,097 48 Veru, Inc. (a) 734 ------------- 22,722 ------------- PHARMACEUTICALS -- 3.7% 749 Amphastar Pharmaceuticals, Inc. (a) 22,170 60 Axsome Therapeutics, Inc. (a) 3,828 379 Collegium Pharmaceutical, Inc. (a) 6,663 188 Corcept Therapeutics, Inc. (a) 4,854 398 Evolus, Inc. (a) 3,825 88 Harmony Biosciences Holdings, Inc. (a) 3,864 236 Innoviva, Inc. (a) 3,106 98 Intra-Cellular Therapies, Inc. (a) 4,925 24 Pacira BioSciences, Inc. (a) 1,259 239 Prestige Consumer Healthcare, Inc. (a) 12,089 424 SIGA Technologies, Inc. 6,394 365 Supernus Pharmaceuticals, Inc. (a) 12,494 ------------- 85,471 ------------- PROFESSIONAL SERVICES -- 1.8% 168 CBIZ, Inc. (a) 7,335 327 Heidrick & Struggles International, Inc. 9,306 112 Huron Consulting Group, Inc. (a) 7,493 184 Kforce, Inc. 10,069 134 Korn Ferry 8,163 ------------- 42,366 ------------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 1.5% 964 Anywhere Real Estate, Inc. (a) 9,418 80 Cushman & Wakefield PLC (a) 1,197 556 Douglas Elliman, Inc. 2,563 168 Marcus & Millichap, Inc. 6,280 399 RMR Group (The), Inc., Class A 10,390 124 St. Joe (The) Co. 4,737 ------------- 34,585 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- ROAD & RAIL -- 2.5% 186 ArcBest Corp. $ 14,979 878 Daseke, Inc. (a) 5,321 831 Heartland Express, Inc. 12,590 292 Marten Transport Ltd. 5,784 84 Ryder System, Inc. 6,421 511 Schneider National, Inc., Class B 11,681 ------------- 56,776 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 3.2% 132 Alpha & Omega Semiconductor Ltd. (a) 5,103 190 Axcelis Technologies, Inc. (a) 12,719 102 Cirrus Logic, Inc. (a) 7,822 413 Cohu, Inc. (a) 11,081 88 Diodes, Inc. (a) 6,263 237 Kulicke & Soffa Industries, Inc. 9,963 104 Lattice Semiconductor Corp. (a) 5,606 800 Photronics, Inc. (a) 13,440 48 Rambus, Inc. (a) 1,238 ------------- 73,235 ------------- SOFTWARE -- 1.9% 157 Box, Inc., Class A (a) 4,043 100 CommVault Systems, Inc. (a) 5,429 94 Ebix, Inc. 2,446 104 InterDigital, Inc. 5,216 49 Qualys, Inc. (a) 7,443 14 SPS Commerce, Inc. (a) 1,710 114 Tenable Holdings, Inc. (a) 4,515 32 Teradata Corp. (a) 1,053 106 Verint Systems, Inc. (a) 5,140 389 Xperi Holding Corp. 6,189 ------------- 43,184 ------------- SPECIALTY RETAIL -- 3.4% 456 Aaron's (The) Co., Inc. 5,426 343 Abercrombie & Fitch Co., Class A (a) 4,936 74 Academy Sports & Outdoors, Inc. 3,188 396 Big 5 Sporting Goods Corp. 4,847 56 Buckle (The), Inc. 1,808 176 Caleres, Inc. 4,491 26 Children's Place (The), Inc. (a) 1,097 38 Citi Trends, Inc. (a) 767 294 Designer Brands, Inc., Class A 5,016 64 Genesco, Inc. (a) 3,621 40 Group 1 Automotive, Inc. 7,144 84 Haverty Furniture Cos., Inc. 2,253 40 Hibbett, Inc. 2,344 275 MarineMax, Inc. (a) 9,993 54 Murphy USA, Inc. 15,669 64 Signet Jewelers Ltd. 4,184 76 Zumiez, Inc. (a) 1,973 ------------- 78,757 ------------- Page 44 See Notes to Financial Statements <PAGE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 0.7% 186 Avid Technology, Inc. (a) $ 5,087 82 Super Micro Computer, Inc. (a) 5,337 370 Xerox Holdings Corp. 6,149 ------------- 16,573 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.3% 483 G-III Apparel Group Ltd. (a) 10,177 58 Kontoor Brands, Inc. 2,159 246 Movado Group, Inc. 7,845 70 Oxford Industries, Inc. 7,471 62 Steven Madden Ltd. 1,805 ------------- 29,457 ------------- THRIFTS & MORTGAGE FINANCE -- 2.0% 162 Essent Group Ltd. 6,478 478 Kearny Financial Corp. 5,430 896 MGIC Investment Corp. 12,804 136 Mr. Cooper Group, Inc. (a) 5,753 684 Radian Group, Inc. 14,439 ------------- 44,904 ------------- TOBACCO -- 0.4% 150 Universal Corp. 7,656 94 Vector Group Ltd. 921 ------------- 8,577 ------------- TRADING COMPANIES & DISTRIBUTORS -- 2.5% 14 Applied Industrial Technologies, Inc. 1,484 160 BlueLinx Holdings, Inc. (a) 11,216 324 Boise Cascade Co. 20,195 162 Rush Enterprises, Inc., Class A 7,624 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS (CONTINUED) 80 Veritiv Corp. (a) $ 9,535 48 WESCO International, Inc. (a) 6,321 ------------- 56,375 ------------- WIRELESS TELECOMMUNICATION SERVICES -- 0.4% 212 Gogo, Inc. (a) 3,151 180 United States Cellular Corp. (a) 5,146 ------------- 8,297 ------------- TOTAL COMMON STOCKS -- 99.7% 2,286,692 (Cost $2,371,350) ------------- MONEY MARKET FUNDS -- 0.2% 5,636 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (c) 5,636 (Cost $5,636) ------------- TOTAL INVESTMENTS -- 99.9% 2,292,328 (Cost $2,376,986) NET OTHER ASSETS AND LIABILITIES -- 0.1% 2,149 ------------- NET ASSETS -- 100.0% $ 2,294,477 ============= (a) Non-income producing security. (b) Non-income producing security which makes payment-in-kind ("PIK") distributions. There were no in-kind distributions received for the fiscal year ended August 31, 2022. (c) Rate shown reflects yield as of August 31, 2022. ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 2,286,692 $ 2,286,692 $ -- $ -- Money Market Funds.............................. 5,636 5,636 -- -- --------------------------------------------------------------- Total Investments............................... $ 2,292,328 $ 2,292,328 $ -- $ -- =============================================================== </TABLE> * 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, 2022 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FLEXIBLE FIRST TRUST INCOME MUNICIPAL LOW DURATION OPPORTUNITIES HIGH INCOME STRATEGIC FOCUS ETF (FCEF) ETF (MFLX) ETF (LDSF) ---------------- ----------------- ----------------- ASSETS: <S> <C> <C> <C> Investments, at value - Unaffiliated............................. $ 27,961,778 $ 13,759,905 $ 41,787,108 Investments, at value - Affiliated............................... -- -- 168,962,043 ---------------- ----------------- ----------------- Total investments, at value................................... 27,961,778 13,759,905 210,749,151 Cash............................................................. -- 133,187 -- Receivables: Dividends..................................................... 64,579 4,014 43,779 Investment securities sold.................................... -- 213,596 -- Interest...................................................... -- 168,349 -- ---------------- ----------------- ----------------- Total Assets.................................................. 28,026,357 14,279,051 210,792,930 ---------------- ----------------- ----------------- LIABILITIES: Investment advisory fees payable................................. 21,020 6,826 35,655 ---------------- ----------------- ----------------- Total Liabilities............................................. 21,020 6,826 35,655 ---------------- ----------------- ----------------- NET ASSETS....................................................... $ 28,005,337 $ 14,272,225 $ 210,757,275 ================ ================= ================= NET ASSETS CONSIST OF: Paid-in capital.................................................. $ 30,703,956 $ 18,016,412 $ 227,943,968 Par value........................................................ 13,550 8,500 112,000 Accumulated distributable earnings (loss)........................ (2,712,169) (3,752,687) (17,298,693) ---------------- ----------------- ----------------- NET ASSETS....................................................... $ 28,005,337 $ 14,272,225 $ 210,757,275 ================ ================= ================= NET ASSET VALUE, per share....................................... $ 20.67 $ 16.79 $ 18.82 ================ ================= ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)........................ 1,355,000 850,002 11,200,002 ================ ================= ================= Investments, at cost - Unaffiliated.............................. $ 30,672,580 $ 14,054,537 $ 44,100,511 ================ ================= ================= Investments, at cost - Affiliated................................ $ -- $ -- $ 177,695,728 ================ ================= ================= Total investments, at cost....................................... $ 30,672,580 $ 14,054,537 $ 221,796,239 ================ ================= ================= </TABLE> Page 46 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FIRST TRUST ACTIVE FACTOR ACTIVE FACTOR ACTIVE FACTOR LARGE CAP ETF MID CAP ETF SMALL CAP ETF (AFLG) (AFMC) (AFSM) ---------------- ----------------- ----------------- <S> <C> <C> $ 4,688,446 $ 1,108,859 $ 2,292,328 -- -- -- ---------------- ----------------- ----------------- 4,688,446 1,108,859 2,292,328 -- -- -- 11,427 1,663 3,693 -- -- -- -- -- -- ---------------- ----------------- ----------------- 4,699,873 1,110,522 2,296,021 ---------------- ----------------- ----------------- 2,300 639 1,544 ---------------- ----------------- ----------------- 2,300 639 1,544 ---------------- ----------------- ----------------- $ 4,697,573 $ 1,109,883 $ 2,294,477 ================ ================= ================= $ 5,246,544 $ 1,624,067 $ 2,865,405 2,000 500 1,000 (550,971) (514,684) (571,928) ---------------- ----------------- ----------------- $ 4,697,573 $ 1,109,883 $ 2,294,477 ================ ================= ================= $ 23.49 $ 22.20 $ 22.94 ================ ================= ================= 200,002 50,002 100,002 ================ ================= ================= $ 4,856,490 $ 1,234,478 $ 2,376,986 ================ ================= ================= $ -- $ -- $ -- ================ ================= ================= $ 4,856,490 $ 1,234,478 $ 2,376,986 ================ ================= ================= </TABLE> See Notes to Financial Statements Page 47 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2022 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FLEXIBLE FIRST TRUST INCOME MUNICIPAL LOW DURATION OPPORTUNITIES HIGH INCOME STRATEGIC FOCUS ETF (FCEF) ETF (MFLX) ETF (LDSF) ---------------- ----------------- ----------------- INVESTMENT INCOME: <S> <C> <C> <C> Dividends - Unaffiliated......................................... $ 1,622,016 $ 601,273 $ 646,913 Dividends - Affiliated........................................... -- -- 3,515,584 Interest......................................................... -- 169,014 -- Foreign withholding tax.......................................... -- -- -- ---------------- ----------------- ----------------- Total investment income....................................... 1,622,016 770,287 4,162,497 ---------------- ----------------- ----------------- EXPENSES: Investment advisory fees......................................... 291,979 136,391 481,553 ---------------- ----------------- ----------------- Total expenses................................................ 291,979 136,391 481,553 ---------------- ----------------- ----------------- Less fees waived by the investment advisor....................... -- (11,814) -- ---------------- ----------------- ----------------- Net expenses..................................................... 291,979 124,577 481,553 ---------------- ----------------- ----------------- NET INVESTMENT INCOME (LOSS)..................................... 1,330,037 645,710 3,680,944 ---------------- ----------------- ----------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments - Unaffiliated.................................... (264,250) (3,517,636) (268,198) Investments - Affiliated...................................... -- -- (4,573,520) In-kind redemptions - Unaffiliated............................ 193,489 (76,431) (305,245) In-kind redemptions - Affiliated.............................. -- -- (1,815,706) Distribution of capital gains from investment companies.................................................. 520,210 13,681 60,471 ---------------- ----------------- ----------------- Net realized gain (loss)......................................... 449,449 (3,580,386) (6,902,198) ---------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation) on: Investments - Unaffiliated.................................... (7,342,772) (1,191,248) (2,562,299) Investments - Affiliated...................................... -- -- (8,139,913) ---------------- ----------------- ----------------- Net change in unrealized appreciation (depreciation)............. (7,342,772) (1,191,248) (10,702,212) ---------------- ----------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).......................... (6,893,323) (4,771,634) (17,604,410) ---------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................................... $ (5,563,286) $ (4,125,924) $ (13,923,466) ================ ================= ================= </TABLE> Page 48 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST FIRST TRUST FIRST TRUST ACTIVE FACTOR ACTIVE FACTOR ACTIVE FACTOR LARGE CAP ETF MID CAP ETF SMALL CAP ETF (AFLG) (AFMC) (AFSM) ---------------- ----------------- ----------------- <S> <C> <C> $ 79,724 $ 33,241 $ 44,454 -- -- -- -- -- -- -- (24) (52) ---------------- ----------------- ----------------- 79,724 33,217 44,402 ---------------- ----------------- ----------------- 24,459 11,622 18,973 ---------------- ----------------- ----------------- 24,459 11,622 18,973 ---------------- ----------------- ----------------- -- -- -- ---------------- ----------------- ----------------- 24,459 11,622 18,973 ---------------- ----------------- ----------------- 55,265 21,595 25,429 ---------------- ----------------- ----------------- (138,862) (150,352) (164,929) -- -- -- 107 (26,147) 109 -- -- -- -- -- -- ---------------- ----------------- ----------------- (138,755) (176,499) (164,820) ---------------- ----------------- ----------------- (441,602) (251,819) (219,832) -- -- -- ---------------- ----------------- ----------------- (441,602) (251,819) (219,832) ---------------- ----------------- ----------------- (580,357) (428,318) (384,652) ---------------- ----------------- ----------------- $ (525,092) $ (406,723) $ (359,223) ================ ================= ================= </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 INCOME FLEXIBLE MUNICIPAL OPPORTUNITIES ETF HIGH INCOME ETF (FCEF) (MFLX) ----------------------------------- ----------------------------------- Year Ended Year Ended Year Ended Year Ended 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss)............................ $ 1,330,037 $ 951,920 $ 645,710 $ 389,967 Net realized gain (loss)................................ 449,449 1,993,017 (3,580,386) 115,287 Net change in unrealized appreciation (depreciation).... (7,342,772) 7,167,845 (1,191,248) 1,141,529 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........................................... (5,563,286) 10,112,782 (4,125,924) 1,646,783 ---------------- ---------------- ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations................................... (2,022,212) (1,686,588) (717,089) (395,501) Return of capital....................................... -- -- (10,763) -- ---------------- ---------------- ---------------- ---------------- Total distributions to shareholders..................... (2,022,212) (1,686,588) (727,852) (395,501) ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................... 2,433,703 6,988,057 12,143,517 8,430,208 Cost of shares redeemed................................. (5,518,237) (10,040,378) (11,345,363) -- ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions............................. (3,084,534) (3,052,321) 798,154 8,430,208 ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets................. (10,670,032) 5,373,873 (4,055,622) 9,681,490 NET ASSETS: Beginning of period..................................... 38,675,369 33,301,496 18,327,847 8,646,357 ---------------- ---------------- ---------------- ---------------- End of period........................................... $ 28,005,337 $ 38,675,369 $ 14,272,225 $ 18,327,847 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................. 1,505,000 1,655,000 850,002 450,002 Shares sold............................................. 100,000 300,000 600,000 400,000 Shares redeemed......................................... (250,000) (450,000) (600,000) -- ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period....................... 1,355,000 1,505,000 850,002 850,002 ================ ================ ================ ================ </TABLE> Page 50 See Notes to Financial Statements <PAGE> <TABLE> <CAPTION> FIRST TRUST FIRST TRUST LOW DURATION ACTIVE FACTOR STRATEGIC FOCUS ETF LARGE CAP ETF (LDSF) (AFLG) ----------------------------------- ----------------------------------- Year Ended Year Ended Year Ended Year Ended 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- <S> <C> <C> <C> $ 3,680,944 $ 2,938,613 $ 55,265 $ 57,256 (6,902,198) 1,753,049 (138,755) 1,238,808 (10,702,212) (2,248,816) (441,602) 84,230 ---------------- ---------------- ---------------- ---------------- (13,923,466) 2,442,846 (525,092) 1,380,294 ---------------- ---------------- ---------------- ---------------- (4,397,151) (3,935,676) (46,676) (53,635) (729,900) -- -- -- ---------------- ---------------- ---------------- ---------------- (5,127,051) (3,935,676) (46,676) (53,635) ---------------- ---------------- ---------------- ---------------- 175,760,526 106,710,761 1,261,886 8,097,356 (130,024,664) (51,846,837) -- (7,515,991) ---------------- ---------------- ---------------- ---------------- 45,735,862 54,863,924 1,261,886 581,365 ---------------- ---------------- ---------------- ---------------- 26,685,345 53,371,094 690,118 1,908,024 184,071,930 130,700,836 4,007,455 2,099,431 ---------------- ---------------- ---------------- ---------------- $ 210,757,275 $ 184,071,930 $ 4,697,573 $ 4,007,455 ================ ================ ================ ================ 9,100,002 6,400,002 150,002 100,002 8,900,000 5,250,000 50,000 350,000 (6,800,000) (2,550,000) -- (300,000) ---------------- ---------------- ---------------- ---------------- 11,200,002 9,100,002 200,002 150,002 ================ ================ ================ ================ </TABLE> See Notes to Financial Statements Page 51 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) <TABLE> <CAPTION> FIRST TRUST FIRST TRUST ACTIVE FACTOR ACTIVE FACTOR MID CAP ETF SMALL CAP ETF (AFMC) (AFSM) ----------------------------------- ----------------------------------- Year Ended Year Ended Year Ended Year Ended 8/31/2022 8/31/2021 8/31/2022 8/31/2021 ---------------- ---------------- ---------------- ---------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss)............................ $ 21,595 $ 14,929 $ 25,429 $ 5,393 Net realized gain (loss)................................ (176,499) 614,371 (164,820) 731,776 Net change in unrealized appreciation (depreciation).... (251,819) 138,549 (219,832) 89,504 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........................................... (406,723) 767,849 (359,223) 826,673 ---------------- ---------------- ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations................................... (19,566) (17,180) (18,130) (8,250) Return of capital....................................... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total distributions to shareholders..................... (19,566) (17,180) (18,130) (8,250) ---------------- ---------------- ---------------- ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................... 1,306,411 1,175,597 -- 2,572,524 Cost of shares redeemed................................. (1,076,295) (2,457,585) -- (2,563,922) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from shareholder transactions............................. 230,116 (1,281,988) -- 8,602 ---------------- ---------------- ---------------- ---------------- Total increase (decrease) in net assets................. (196,173) (531,319) (377,353) 827,025 NET ASSETS: Beginning of period..................................... 1,306,056 1,837,375 2,671,830 1,844,805 ---------------- ---------------- ---------------- ---------------- End of period........................................... $ 1,109,883 $ 1,306,056 $ 2,294,477 $ 2,671,830 ================ ================ ================ ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................. 50,002 100,002 100,002 100,002 Shares sold............................................. 50,000 50,000 -- 100,000 Shares redeemed......................................... (50,000) (100,000) -- (100,000) ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period....................... 50,002 50,002 100,002 100,002 ================ ================ ================ ================ </TABLE> Page 52 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST INCOME OPPORTUNITIES ETF (FCEF) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, ------------------------------------------------------------------- 2022 2021 2020 2019 2018 ----------- ----------- ----------- ----------- ----------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period..................... $ 25.70 $ 20.12 $ 21.75 $ 22.26 $ 21.66 --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................. 0.87 0.65 0.82 0.82 0.78 Net realized and unrealized gain (loss).................. (4.53) 6.07 (1.29) (0.18) 0.93 --------- --------- --------- --------- --------- Total from investment operations......................... (3.66) 6.72 (0.47) 0.64 1.71 --------- --------- --------- --------- --------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.................................... (1.26) (0.84) (1.10) (0.96) (1.01) Net realized gain........................................ (0.11) (0.30) (0.06) (0.19) (0.10) --------- --------- --------- --------- --------- Total distributions...................................... (1.37) (1.14) (1.16) (1.15) (1.11) --------- --------- --------- --------- --------- Net asset value, end of period........................... $ 20.67 $ 25.70 $ 20.12 $ 21.75 $ 22.26 ========= ========= ========= ========= ========= TOTAL RETURN (a)......................................... (14.62)% 34.19% (2.04)% 3.18% 8.09% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..................... $ 28,005 $ 38,675 $ 33,301 $ 37,085 $ 45,754 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (b)........ 0.85% 0.85% 0.85% 0.85% 0.85% Ratio of net investment income (loss) to average net assets................................................ 3.87% 2.79% 4.01% 3.92% 3.14% Portfolio turnover rate (c).............................. 16% 8% 6% 13% 15% </TABLE> FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME ETF (MFLX) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, ------------------------------------------------------------------- 2022 2021 2020 2019 2018 ----------- ----------- ----------- ----------- ----------- <S> <C> <C> <C> <C> <C> Net asset value, beginning of period..................... $ 21.56 $ 19.21 $ 19.61 $ 17.94 $ 19.20 --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................. 0.67 0.70 0.68 0.62 0.64 Net realized and unrealized gain (loss).................. (4.68) 2.39 (0.48) 1.65 (1.24) --------- --------- --------- --------- --------- Total from investment operations......................... (4.01) 3.09 0.20 2.27 (0.60) --------- --------- --------- --------- --------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.................................... (0.72) (0.74) (0.60) (0.60) (0.64) Net realized gain........................................ (0.03) (0.00) (d) -- -- -- Return of capital........................................ (0.01) -- -- -- (0.02) --------- --------- --------- --------- --------- Total distributions...................................... (0.76) (0.74) (0.60) (0.60) (0.66) --------- --------- --------- --------- --------- Net asset value, end of period........................... $ 16.79 $ 21.56 $ 19.21 $ 19.61 $ 17.94 ========= ========= ========= ========= ========= TOTAL RETURN (a)......................................... (18.91)% 16.37% 1.10% 12.96% (3.09)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..................... $ 14,272 $ 18,328 $ 8,646 $ 10,785 $ 13,454 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (b)........ 0.75% 0.75% 0.75% 0.75% 0.75% Ratio of net expenses to average net assets.............. 0.69% -- -- -- -- Ratio of net investment income (loss) to average net assets................................................ 3.55% 3.57% 3.49% 3.49% 3.54% Portfolio turnover rate (c).............................. 109% (e) 17% 7% 20% 11% </TABLE> (a) 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. Total returns would have been lower if certain fees had not been waived by the investment advisor. (b) 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. (c) 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. (d) Amount is less than $0.01. (e) The variation in the portfolio turnover rate is due to the change in the Fund's investment strategy effective April 14, 2022 which resulted in a rebalance of the Fund's portfolio. 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 LOW DURATION STRATEGIC FOCUS ETF (LDSF) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD --------------------------------------- ENDED 2022 2021 2020 8/31/2019 (a) ----------- ----------- ----------- ------------- <S> <C> <C> <C> <C> Net asset value, beginning of period..................... $ 20.23 $ 20.42 $ 20.50 $ 20.03 --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................. 0.29 0.38 0.49 0.43 Net realized and unrealized gain (loss).................. (1.29) (0.06) (0.07) 0.47 --------- --------- --------- --------- Total from investment operations......................... (1.00) 0.32 0.42 0.90 --------- --------- --------- --------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.................................... (0.35) (0.51) (0.50) (0.43) Return of capital........................................ (0.06) -- -- -- --------- --------- --------- --------- Total distributions...................................... (0.41) (0.51) (0.50) (0.43) --------- --------- --------- --------- Net asset value, end of period........................... $ 18.82 $ 20.23 $ 20.42 $ 20.50 ========= ========= ========= ========= TOTAL RETURN (b)......................................... (4.98)% 1.57% 2.09% 4.52% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..................... $ 210,757 $ 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% 0.20% (d) Ratio of net investment income (loss) to average net assets................................................ 1.53% 1.85% 2.36% 3.16% (d) Portfolio turnover rate (e).............................. 50% 54% 71% 14% </TABLE> FIRST TRUST ACTIVE FACTOR LARGE CAP ETF (AFLG) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ------------------------- ENDED 2022 2021 8/31/2020 (a) ----------- ----------- ------------- <S> <C> <C> <C> Net asset value, beginning of period..................... $ 26.72 $ 20.99 $ 19.87 --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................. 0.30 0.27 0.23 Net realized and unrealized gain (loss).................. (3.26) 5.72 1.07 --------- --------- --------- Total from investment operations......................... (2.96) 5.99 1.30 --------- --------- --------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.................................... (0.27) (0.26) (0.18) --------- --------- --------- Net asset value, end of period........................... $ 23.49 $ 26.72 $ 20.99 ========= ========= ========= TOTAL RETURN (b)......................................... (11.18)% 28.74% 6.67% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..................... $ 4,698 $ 4,007 $ 2,099 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets............ 0.55% 0.55% 0.55% (d) Ratio of net investment income (loss) to average net assets................................................ 1.24% 1.12% 1.62% (d) Portfolio turnover rate (e).............................. 61% 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 54 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 ENDED AUGUST 31, PERIOD ------------------------- ENDED 2022 2021 8/31/2020 (a) ----------- ----------- ------------- <S> <C> <C> <C> Net asset value, beginning of period..................... $ 26.12 $ 18.37 $ 19.88 --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................. 0.32 0.19 0.18 Net realized and unrealized gain (loss).................. (3.96) 7.76 (1.55) --------- --------- --------- Total from investment operations......................... (3.64) 7.95 (1.37) --------- --------- --------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.................................... (0.28) (0.20) (0.14) --------- --------- --------- Net asset value, end of period........................... $ 22.20 $ 26.12 $ 18.37 ========= ========= ========= TOTAL RETURN (b)......................................... (14.04)% 43.52% (6.86)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..................... $ 1,110 $ 1,306 $ 1,837 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets............ 0.65% 0.65% 0.65% (c) Ratio of net investment income (loss) to average net assets................................................ 1.21% 0.81% 1.34% (c) Portfolio turnover rate (d).............................. 80% 80% 66% </TABLE> FIRST TRUST ACTIVE FACTOR SMALL CAP ETF (AFSM) <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ------------------------- ENDED 2022 2021 8/31/2020 (a) ----------- ----------- ------------- <S> <C> <C> <C> Net asset value, beginning of period..................... $ 26.72 $ 18.45 $ 19.95 --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)............................. 0.25 0.05 0.12 Net realized and unrealized gain (loss).................. (3.85) 8.30 (1.52) --------- --------- --------- Total from investment operations......................... (3.60) 8.35 (1.40) --------- --------- --------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.................................... (0.18) (0.08) (0.10) --------- --------- --------- Net asset value, end of period........................... $ 22.94 $ 26.72 $ 18.45 ========= ========= ========= TOTAL RETURN (b)......................................... (13.52)% 45.40% (7.03)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..................... $ 2,294 $ 2,672 $ 1,845 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets (e)........ 0.75% 0.75% 0.75% (c) Ratio of net investment income (loss) to average net assets................................................ 1.01% 0.27% 0.91% (c) Portfolio turnover rate (d).............................. 73% 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 55 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers the six funds (each a "Fund" and collectively, the "Funds") listed below: First Trust Income Opportunities ETF - (The Nasdaq Stock Market LLC ("Nasdaq") ticker "FCEF")(1) First Trust Flexible Municipal High Income ETF - (Nasdaq ticker "MFLX")(2) First Trust Low Duration Strategic Focus ETF - (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") (1) Effective on April 8, 2022, First Trust CEF Income Opportunity ETF changed its name to First Trust Income Opportunities ETF. (2) Effective on April 14, 2022, First Trust Municipal CEF Income Opportunity ETF (Nasdaq ticker "MCEF") changed its name and ticker to First Trust Flexible Municipal High Income ETF (Nasdaq ticker "MFLX"). 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. FCEF's primary investment objective is to provide current income with a secondary emphasis on total return. MFLX's investment objective is to provide current income. AFLG, AFMC and AFSM's investment objective seeks to provide capital appreciation. LDSF's primary investment objective seeks to generate current income, with a secondary objective of preservation of capital. Under normal market conditions, FCEF will invest its net assets in a portfolio of closed-end investment companies ("Closed-End Funds") and exchanged-traded funds ("ETFs") that are listed and traded in the United States on registered exchanges. Under normal market conditions, MFLX will invest at least 80% of its net assets (plus any investment borrowing) in municipal debt securities that pay interest that is exempt from regular federal income taxes. Prior to April 8, 2022 and April 14, 2022, respectively, FCEF and MFLX invested at least 80% of their net assets (including investment borrowings) in Closed-End Funds. MFLX invested 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. FCEF and MFLX may have also invested 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. Under normal market conditions, LDSF will invest at least 80% of its net assets (including investment borrowings) in a portfolio of U.S.-listed 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 Advisors L.P. ("First Trust" or the "Advisor"). 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. Page 56 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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. There can be no assurance that a Fund will achieve its investment objective(s). The Funds may not be appropriate for all investors. 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 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. 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. Municipal securities and other debt securities are fair valued on the basis of fair 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 Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. Page 57 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 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) 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, 2022, is included with each Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" Page 58 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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. Amortization of premiums and accretion of discounts are recorded using the effective interest method. 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. MFLX may invest in when-issued or delayed-delivery securities. Securities purchased or sold on a when-issued or delayed-delivery basis may have extended settlement periods. The value of the security so purchased is subject to market fluctuations during this period. MFLX maintains liquid assets with a current value at least equal to the amount of its when-issued or delayed-delivery securities. At August 31, 2022, MFLX held no when-issued or delayed-delivery securities. 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. Amounts related to these investments at August 31, 2022 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 8/31/2022 8/31/2021 PURCHASES SALES (DEPRECIATION) (LOSS) 8/31/2022 INCOME ----------------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> First Trust Emerging Markets Local Currency Bond ETF -- $ 4,515,997 $ 4,789,473 $ (7,718,545) $ 36,416 $ (1,623,341) $ -- $ 339,698 First Trust Enhanced Short Maturity ETF 440,244 18,425,976 40,929,741 (33,122,284) (4,113) (74,424) 26,154,896 128,936 First Trust Low Duration Opportunities ETF 1,735,219 73,503,407 70,758,510 (57,284,884) (2,404,706) (743,897) 83,828,430 (11,357) First Trust Senior Loan Fund -- 32,186,177 28,469,694 (58,506,391) (59,047) (2,090,433) -- 1,044,416 First Trust Tactical High Yield ETF 806,714 9,186,126 42,239,555 (14,275,683) (3,997,622) (480,459) 32,671,917 1,431,640 First Trust TCW Unconstrained Plus Bond ETF 1,065,484 18,399,566 50,965,049 (39,970,302) (1,710,841) (1,376,672) 26,306,800 582,251 ------------------------------------------------------------------------------------------------- $156,217,249 $238,152,022 $(210,878,089) $ (8,139,913) $ (6,389,226) $168,962,043 $3,515,584 ================================================================================================= </TABLE> 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 FCEF, MFLX and LDSF which declare and pay 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. Page 59 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 year ended August 31, 2022, 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 Income Opportunities ETF $ 1,853,122 $ 169,090 $ -- $ -- First Trust Flexible Municipal High Income ETF 18,745 29,680 668,664 10,763 First Trust Low Duration Strategic Focus ETF 4,397,151 -- -- 729,900 First Trust Active Factor Large Cap ETF 46,676 -- -- -- First Trust Active Factor Mid Cap ETF 19,566 -- -- -- First Trust Active Factor Small Cap ETF 18,130 -- -- -- </TABLE> 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 Income Opportunities ETF $ 1,243,133 $ 443,455 $ -- $ -- First Trust Flexible Municipal High Income ETF 9,130 -- 386,371 -- 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 -- -- -- </TABLE> As of August 31, 2022, 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 Income Opportunities ETF $ -- $ -- $ (2,712,169) First Trust Flexible Municipal High Income ETF -- (3,455,798) (296,889) First Trust Low Duration Strategic Focus ETF -- (6,147,684) (11,151,009) First Trust Active Factor Large Cap ETF 17,567 (381,050) (187,488) First Trust Active Factor Mid Cap ETF 3,450 (392,394) (125,740) First Trust Active Factor Small Cap ETF 7,523 (489,975) (89,476) </TABLE> E. 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, MFLX 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. Page 60 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 FCEF, MFLX and LDSF, the taxable years ended 2019, 2020, 2021, and 2022 remain open to federal and state audit. For AFLG, AFMC and AFSM, the taxable years ended 2020, 2021, and 2022 remain open to federal and state audit. As of August 31, 2022, 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, 2022, 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 Capital Loss Carryforwards -------------- <S> <C> First Trust Income Opportunities ETF $ -- First Trust Flexible Municipal High Income ETF 3,455,798 First Trust Low Duration Strategic Focus ETF 6,147,684 First Trust Active Factor Large Cap ETF 381,050 First Trust Active Factor Mid Cap ETF 392,394 First Trust Active Factor Small Cap ETF 489,975 </TABLE> 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, 2022, 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, 2022, 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 Income Opportunities ETF $ 523,085 $ (271,695) $ (251,390) First Trust Flexible Municipal High Income ETF 8,606 122,821 (131,427) First Trust Low Duration Strategic Focus ETF 716,207 2,926,082 (3,642,289) First Trust Active Factor Large Cap ETF -- (147) 147 First Trust Active Factor Mid Cap ETF -- 26,983 (26,983) First Trust Active Factor Small Cap ETF 224 (88) (136) </TABLE> Page 61 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) ------------- ------------- -------------- -------------- <S> <C> <C> <C> <C> First Trust Income Opportunities ETF $ 30,673,947 $ 610,422 $ (3,322,591) $ (2,712,169) First Trust Flexible Municipal High Income ETF 14,056,794 80,156 (377,045) (296,889) First Trust Low Duration Strategic Focus ETF 221,900,160 216,943 (11,367,952) (11,151,009) First Trust Active Factor Large Cap ETF 4,875,934 248,387 (435,875) (187,488) First Trust Active Factor Mid Cap ETF 1,234,599 32,187 (157,927) (125,740) First Trust Active Factor Small Cap ETF 2,381,804 175,460 (264,936) (89,476) </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 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: <TABLE> <CAPTION> Rate -------------- <S> <C> First Trust Income Opportunities ETF 0.85% First Trust Flexible Municipal High Income ETF 0.75% 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% </TABLE> For MFLX, pursuant to a contractual agreement effective April 14, 2022, the Advisor agreed to waive management fees of 0.20% of average daily net assets until April 14, 2023. The waiver agreement may be terminated by action of the Board of Trustees at any time upon 60 days' written notice by the Trust, on behalf of MFLX, or by the Advisor only after April 14, 2023. First Trust does not have the right to recover the fees waived. During the fiscal year ended August 31, 2022, the Advisor waived MFLX's fees of $11,814. In addition, FCEF, MFLX and LDSF incur 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. Page 62 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, 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 Income Opportunities ETF $ 5,537,411 $ 5,343,179 First Trust Flexible Municipal High Income ETF 18,703,695 20,891,030 First Trust Low Duration Strategic Focus ETF 118,024,880 117,341,339 First Trust Active Factor Large Cap ETF 2,680,410 2,667,837 First Trust Active Factor Mid Cap ETF 1,354,416 1,347,834 First Trust Active Factor Small Cap ETF 1,840,473 1,831,794 </TABLE> For the fiscal year ended August 31, 2022, 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 Income Opportunities ETF $ 1,231,396 $ 5,230,448 First Trust Flexible Municipal High Income ETF 11,008,041 8,420,948 First Trust Low Duration Strategic Focus ETF 175,450,130 129,792,828 First Trust Active Factor Large Cap ETF 1,258,562 -- First Trust Active Factor Mid Cap ETF 1,304,037 1,074,665 First Trust Active Factor Small Cap ETF -- -- </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 Page 63 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2023. 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. OTHER MATTERS By operation of law, LDSF now operates as a diversified open-end management investment company as defined in Section 5(b) of the 1940 Act. 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 64 <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 Income Opportunities ETF (formerly known as First Trust CEF Income Opportunity ETF), First Trust Flexible Municipal High Income ETF (formerly known as First Trust Municipal CEF Income Opportunity ETF), First Trust Low Duration Strategic Focus ETF, First Trust Active Factor Large Cap ETF, First Trust Active Factor Mid Cap ETF, and First Trust Active Factor Small Cap ETF, (the "Funds"), each a series of the First Trust Exchange-Traded Fund VIII, including the portfolios of investments, as of August 31, 2022, 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, 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, 2022, 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 periods listed in the table below in conformity with accounting principles generally accepted in the United States of America. <TABLE> <CAPTION> ------------------------------------------------------------------------------------------------------------------------------ INDIVIDUAL FUNDS INCLUDED IN THE TRUST FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------------ <S> <C> First Trust Income Opportunities ETF (FCEF) For the years ended August 31, 2022, 2021, 2020, 2019, and 2018 (formerly known as First Trust CEF Income Opportunity ETF) First Trust Flexible Municipal High Income ETF (MFLX) (formerly known as First Trust Municipal CEF Income Opportunity ETF (MCEF)) ------------------------------------------------------------------------------------------------------------------------------ First Trust Low Duration Strategic Focus ETF For the years ended August 31, 2022, 2021, and 2020 and for the period from (LDSF) January 3, 2019 (commencement of operations) through August 31, 2019 ------------------------------------------------------------------------------------------------------------------------------ First Trust Active Factor Large Cap ETF (AFLG) For the years ended August 31, 2022 and 2021 and for the period from 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) ------------------------------------------------------------------------------------------------------------------------------ </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 also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of Page 65 <PAGE> -------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED) -------------------------------------------------------------------------------- the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2022, 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 21, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 66 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, 2022, 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 Income Opportunities ETF * First Trust Flexible Municipal High Income ETF * 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% </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, 2022, 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 Income Opportunities ETF ** First Trust Flexible Municipal High Income ETF ** 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% </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. A portion of each of the Funds' 2022 ordinary dividends (including short-term capital gains) paid to its shareholders during the fiscal year ended August 31, 2022, 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, 2022, that were properly designated by First Trust Low Duration Strategic Focus ETF 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. Page 67 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) For the taxable year ended August 31, 2022, 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 Flexible Municipal High Income ETF designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended August 31, 2022: <TABLE> <CAPTION> Federal and State Income Tax ---------------------------- <S> <C> Tax-Exempt Interest Dividends 97.69% Alternative Minimum Tax (AMT) 14.23% </TABLE> For the fiscal year ended August 31, 2022, the amount of long-term capital gain distributions designated by First Trust Income Opportunities ETF was $169,090, which is taxable at the applicable capital gain tax rates for federal income tax purposes. For the fiscal year ended August 31, 2022, the amount of long-term capital gain distributions designated by First Trust Flexible Municipal High Income ETF was $29,680, which is taxable at the applicable capital gain tax rates for federal income tax purposes. 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 68 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the Page 69 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) same volume or liquidity. 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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of the Fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund's shares and result in increased market volatility. During any such events, the Fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE Page 70 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) ADVISORY AGREEMENT BOARD CONSIDERATIONS REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AGREEMENT FOR FIRST TRUST INCOME OPPORTUNITIES ETF FIRST TRUST FLEXIBLE MUNICIPAL HIGH INCOME 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 two series of the Trust (each a "Fund" and collectively, the "Funds"): First Trust Income Opportunities ETF (FCEF) First Trust Flexible Municipal High Income ETF (MFLX) The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 indirect 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 18, 2022, 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 12-13, 2022 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 CEF Management Team is responsible for the day-to-day management of FCEF's investments and the Advisor's Municipal Securities Team is responsible for the day-to-day management of MFLX's investments, with a sleeve managed by the CEF Management Team. The Board considered the background and experience of the members of the CEF Management Team and the Municipal Securities Team and noted the Board's prior meetings with members of the CEF Management Team. The Board considered the Advisor's statement that it applies the same oversight model internally with its CEF Management Team and Municipal Securities 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 18, 2022 meeting, described to the Board the scope of its ongoing investment in additional Page 71 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 addition to the written materials provided by the Advisor, at the June 12-13, 2022 meeting, the Board also received a presentation from representatives of the Advisor's Municipal Securities Team, who discussed the services that the Team provides to MFLX, including the Team's day-to-day management of MFLX's investments. 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 the Advisor had previously agreed to waive a portion of its unitary fee for MFLX in an amount equal to 0.20% of MFLX's average daily net assets until at least April 14, 2023. The Board also 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 for FCEF, 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 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 below 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 MFLX, after taking into account the contractual fee waiver, was above the median total (net) expense ratio of the peer funds in its Expense Group. The Board also noted that FCEF'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 its Expense Group. With respect to the Expense Groups, the Board, at the April 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including that the Expense Group for FCEF 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, 2021 to the performance of the funds in its Performance Universe and, for FCEF, to that of a blended benchmark index and, for MFLX, to that of a benchmark index. With respect to FCEF, the Board noted that during 2021, it approved changing the Fund's investment strategy to allow the Fund to invest in ETFs in addition to closed-end funds, which took effect April 8, 2022, and that the performance information reflected FCEF's old investment strategy. With respect to MFLX, the Board noted that during 2021, it approved, subject to shareholder approval, changing the Fund's investment strategy from a fund-of-funds investment strategy primarily invested in municipal closed-end funds to an investment strategy primarily invested directly in municipal debt securities, which was approved by shareholders on April 12, 2022 and took effect on April 14, 2022, and that the performance information reflected MFLX's old investment strategy. Based on the information provided, the Board noted that FCEF outperformed its Performance Universe median and blended benchmark index for the one-, three- and five-year periods ended December 31, 2021. The Board also noted that MFLX outperformed its Performance Universe median and benchmark index for the one-year period ended December 31, 2021, and outperformed its Performance Universe median and underperformed its benchmark index for the three- and five-year periods ended December 31, 2021. 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 that its expenses relating to providing advisory services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add Page 72 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) new staff. 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, 2021 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 indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect 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 indirect 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. 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, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 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 the Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect 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 18, 2022, 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 12-13, 2022 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. In reviewing the services provided, the Board noted the compliance Page 73 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 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 18, 2022 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 addition to the written materials provided by the Advisor, at the April 18, 2022 meeting, the Board also received a presentation from representatives of the Advisor's Investment Committee, who discussed the services that the Committee provides to the Fund, including the Committee's day-to-day management of the Fund's investments. 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, 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 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 above 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and 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, 2021 to the performance of the funds in the Performance Universe and to that of a benchmark index. Based on the information provided, the Board noted that the Fund underperformed the Performance Universe median and outperformed the benchmark index for the one-year period ended December 31, 2021. On the basis of all the information provided on the unitary fee and performance of 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 that its expenses relating to providing advisory services to the Fund will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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, 2021 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 indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect benefit to the Advisor Page 74 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 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 indirect 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, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 indirect 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 18, 2022, 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 12-13, 2022 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 Page 75 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 considered the background and experience of the 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 18, 2022 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 addition to the written materials provided by the Advisor, at the April 18, 2022 meeting, the Board also received a presentation from representatives of the Advisor's Investment Committee, who discussed the services that the Committee provides to each Fund, including the Committee's day-to-day management of each Fund's investments. 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 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 AFLG was above the median total (net) expense ratio of the peer funds in its Expense Group and that the unitary fee rate for each of AFMC and AFSM was below 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and 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, 2021 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 AFLG outperformed its Performance Universe median and underperformed its benchmark index for the one-year period ended December 31, 2021. The Board also noted that each of AFMC and AFSM outperformed its respective Performance Universe median and benchmark index for the one-year period ended December 31, 2021. 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 that its expenses relating to providing advisory services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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, 2021 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 indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect benefit to the Advisor and FTP their exposure to investors and brokers who, Page 76 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 indirect 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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 77 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 78 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 79 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 2022 Page 80 <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 320 South Canal Street Chicago, IL 60606 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust Innovation Leaders ETF (ILDR) First Trust Expanded Technology ETF (XPND) ---------------------------- Annual Report For the Year Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 2 Fund Performance Overview First Trust Innovation Leaders ETF (ILDR)................................. 3 First Trust Expanded Technology ETF (XPND)................................ 5 Notes to Fund Performance Overview........................................... 7 Portfolio Commentary......................................................... 8 Understanding Your Fund Expenses............................................. 12 Portfolio of Investments First Trust Innovation Leaders ETF (ILDR)................................. 13 First Trust Expanded Technology ETF (XPND)................................ 16 Statements of Assets and Liabilities......................................... 18 Statements of Operations..................................................... 19 Statements of Changes in Net Assets.......................................... 20 Financial Highlights......................................................... 21 Notes to Financial Statements................................................ 22 Report of Independent Registered Public Accounting Firm...................... 28 Additional Information....................................................... 29 Board of Trustees and Officers .............................................. 36 Privacy Policy............................................................... 38 <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 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. 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 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, 2022 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, 2022. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (5/25/21) (5/25/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -33.75% -19.66% -24.25% Market Price -33.40% -19.24% -23.75% INDEX PERFORMANCE Russell 3000(R) Growth Index -19.44% -6.90% -8.67% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 7.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 48.6% Health Care 24.1 Industrials 13.2 Consumer Discretionary 7.3 Communication Services 6.8 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Amazon.com, Inc. 5.6% Microsoft Corp. 5.2 Alphabet, Inc., Class C 3.3 Uber Technologies, Inc. 2.9 Autodesk, Inc. 2.4 Vertex Pharmaceuticals, Inc. 2.4 Keysight Technologies, Inc. 2.2 Alnylam Pharmaceuticals, Inc. 2.1 Siemens AG 2.0 ServiceNow, Inc. 2.0 -------- Total 30.1% ======== Page 3 <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, 2022 First Trust Innovation Russell 3000(R) Leaders ETF Growth Index <S> <C> <C> 5/25/21 $10,000 $10,000 8/31/21 11,435 11,337 2/28/22 9,242 10,396 8/31/22 7,575 9,133 </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) -------------------------------------------------------------------------------- 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. 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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS Inception Inception 1 Year Ended (6/14/21) (6/14/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -22.19% -13.10% -15.67% Market Price -22.19% -13.10% -15.67% INDEX PERFORMANCE S&P 500(R) Information Technology Index -14.35% -4.10% -4.95% --------------------------------------------------------------------------------------------------------------------- </TABLE> (See Notes to Fund Performance Overview on page 7.) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 89.0% Communication Services 11.0 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Apple, Inc. 5.0% Microsoft Corp. 4.5 Visa, Inc., Class A 4.4 Alphabet, Inc., Class A 4.4 Mastercard, Inc., Class A 4.3 NVIDIA Corp. 3.9 T-Mobile US, Inc. 3.5 Broadcom, Inc. 3.5 Adobe, Inc. 3.2 Texas Instruments, Inc. 3.1 -------- Total 39.8% ======== Page 5 <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, 2022 First Trust Expanded S&P 500(R) Information Technology ETF Technology Index <S> <C> <C> 6/14/21 $10,000 $10,000 8/31/21 10,837 11,097 2/28/22 9,764 10,804 8/31/22 8,433 9,505 </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> -------------------------------------------------------------------------------- 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 7 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (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 the 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 May 2021. COMMENTARY MARKET RECAP Very few asset classes have generated attractive returns to investors in 2022. From the close of 2021 through August 31, 2022, the S&P 500(R) Index was down 16.14%. The NASDAQ Composite, with a tech bias, was down 24.07%. But most surprising, the Bloomberg Global-Aggregate Total Return Index, a broad measure of investment grade fixed-income, was down 15.55% and the U.S. 10-Year Treasury was down 12.19%. The 10-Year Treasury is widely regarded as a 'risk-free' asset, and it was down 12.19%. The reduction in asset prices has largely been due to more aggressive monetary policy in the face of high and sustained inflation. As of the writing of this report, the U.S. Consumer Price Index was up 8.3% year-over-year. Additionally, the yield available on active U.S Treasuries dated 2-years, 5-years, and 10-years were up 328%, 257% and 188% year-to-date, respectively. This sudden and massive repricing to risk-free assets reverberated across all asset classes precipitating the widely negative performance. FUND PERFORMANCE For the 12-month period ended August 31, 2022, the Fund returned -33.75% on a net asset value ("NAV") basis and -33.40% on a market price basis. The Russell 3000(R) Growth Index (the "Benchmark") returned -19.44% over the same period. The Fund's underperformance was primarily attributable to poor stock selection led by a portfolio overweight to Information Technology stocks. For reference, the Goldman Sachs Non-Profitable Technology Index has fallen -48% year-to-date. The Fund pursues innovation and innovative companies typically spend heavily today in anticipation of high future profits. Overweighting high growth, unprofitable stocks was the largest detriment to performance for the period as unprofitable stocks were inordinately impacted because of tightening monetary conditions. 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. The Health Care sector also detracted from the Fund's performance during the period as the Fund had nearly double the Benchmark's weight in the sector and it was the second worst-performing sector in the Benchmark. Early lifecycle health care companies generally have high research and development expenses and potential for growth, but lack of profits was also detrimental to emerging biotechnology and device companies. MARKET AND FUND OUTLOOK During 2021, the Federal Reserve's (the "Fed") ultra-low interest rate policy and an elevated balance sheet represented exceptionally loose monetary policy in the U.S. In addition to this, substantial fiscal spending was employed to offset the coronavirus-related lockdowns. This combination ultimately conspired to drive inflation above the Fed's target rate of 2%. The Fed's chief tools to rein in demand price pressures are through contracting money supply and tightening monetary conditions. The Fed is doing this, and historically, rising rate environments more often than not result in a recession. Tightening policy has a myriad of impacts to economies globally including higher debt funding costs, higher mortgage rates, lower capital market activity levels (reducing supply and competition) and making saving relatively more attractive than spending or investing. Our expectation is that 2022's rapid increase in interest rates will tighten economic conditions in due course and result in a domestic recession. However, equity markets tend to be forward-looking, and valuations have fallen considerably in anticipation of lower earnings growth and lower economic activity. Page 8 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) There is a mounting degree of uncertainty facing today's financial markets. Inflation at historic levels has introduced a paradigm shift in the Fed's priorities, which has increased market volatility and resulted in an elevated dispersion of possible market outcomes. In the face of uncertainty, the Fund is favoring companies with strong balance sheets that can withstand higher financing costs or loss of access to capital markets. While profitability is important, companies with strong margin profiles that generate healthy amounts of cash organically can also thrive in the current environment, in our opinion. We believe slowing economic conditions will likely reduce the impetus for capital markets to fund new private ventures, which may alleviate competition. Access to affordable labor may improve, in our opinion. We believe the opportunity to reconsider growth at any cost and remodulate a company for profitable growth could enhance future expected economic returns for shareholders. In short, we are optimistic for the future but acknowledge that high volatility and increased uncertainty have weighed not only on Fund performance, but also financial markets broadly. The Fund continues to search out innovative, disruptive companies but with a mind for durable businesses that have sufficient cash flows to endure an economic slowdown. Page 9 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (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 of the Fund since 2021. MARKET RECAP U.S. equity markets lost ground and experienced heightened volatility over the 12-month period ended August 31, 2022 as tightening monetary policy, flagging earnings, and reduced sentiment sent shares lower. Volatility was seen late in third quarter of 2021, due to anxiety about potential Federal Reserve (the "Fed") tapering of asset purchases and fears of financial contagion after Chinese real estate firm Evergrande failed to make its U.S. dollar debt payments. However, the fourth quarter of 2021 showed U.S. equities were rebounding as strong third quarter earnings, solid economic growth, and the passage of fiscal stimulus in the form of a trillion-dollar infrastructure bill lifted sentiment. Although the U.S. market experienced volatility in December 2021 due to worries about inflation-driven, tighter Fed policy, equities eventually looked past the Fed's announced acceleration in asset purchase tapering. Volatility continued during much of the first quarter of 2022, due to a more hawkish Fed, high inflation, and the uncertainty regarding Russia's war against Ukraine. While the first quarter of 2022 showed stocks decline through early March, they enjoyed a late quarter rally that began after the March 2022 Federal Open Market Committee meeting. However, U.S. sentiment soured during the second quarter of 2022, as the Fed embarked on an aggressive rate hike cycle to rein in persistently high inflation. Signs of inflation impacting consumer confidence and consumption, including earnings misses by Target and Walmart, increased perceived expectations of an economic downturn. The Fed started raising rates in mid-March 2022 as they began to combat rising inflation, raising them four times to an upper bound rate of 2.50% as of the end of August 2022. The U.S. equity market declined over the 12-month period ended August 31, 2022, with the S&P 500(R) Index returning -11.23% during that timeframe. The Energy sector stocks were top sector performers within the S&P 500(R) Index during the same period. The Utilities and Consumer Staples sectors were the only other sectors to post positive returns, while the Communication Services, Consumer Discretionary, and Information Technology sector stocks were the worst performers. On a size basis, the S&P 400(R) MidCap Index returned -10.37% and the S&P SmallCap 600(R) Index returned -12.12% over the same period. FUND PERFORMANCE The Fund returned -22.19% on a net asset value ("NAV") basis and on a market price basis for the 12-month period ended August 31, 2022. The S&P 500(R) Information Technology Index (the "Benchmark") returned -14.35% over the same period, underperforming the S&P 500(R) Index by over 3.00%. The Fund's focus on Information Technology stocks and those whose operations are principally derived from and/or dependent upon technology, contributed to the Fund's underperformance relative to the overall equity market. The Fund also underperformed the S&P 500(R) Information Technology Index. Much of the underperformance can be attributed to the Fund's underweighting in Apple, Inc. and overweight exposure to the Software industry and Communication Services' Interactive Media & Services industry. The Fund held less than 5% in outperforming Apple, Inc. (+4.13% return for the period), while the stock made up approximately 24% of the Benchmark. The Fund's overweighted software names ZoomInfo Technologies, Inc. (-61.23%), Adobe, Inc. (-43.73%), and Page 10 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ServiceNow, Inc. (-34.18%), also contributed to the Fund's relative underperformance. The Fund also had exposure to the underperforming Interactive Media & Services industry stocks Meta Platforms, Inc. (-47.58%) and Alphabet, Inc. (-25.21%). This industry is in the Communication Services sector, which it is not included in the Benchmark. A factor attribution analysis revealed the Fund had heavy factor loadings to small size and low quality stocks relative to the S&P 500(R) Information Technology benchmark. Small size was the worst performing factor by a wide margin, as smaller names were the first to be sold off over the last 12 months. The Fund's higher exposure to smaller size, due in part to the Fund's modified market capitalization weighting scheme, created a drag on performance. High quality names Apple, Inc. and Microsoft Corp. each carried a weight of 20% or greater in the Benchmark. The Fund limits weights to a maximum of 4.5% at every rebalance to lower exposure to single-stock risk. MARKET AND FUND OUTLOOK We believe market risk will be more elevated in the near term due to uncertainty across several spectrums including inflation, geopolitical risks, and slowing growth. Valuations for growth stocks, and technology stocks in particular, have come down over the course of the year, though they remain above long-term averages, as the Fed has embarked on a rate hiking cycle to combat inflation. In general, higher interest rates lead to lower valuation multiples of equities as future cash flows get discounted back to the present at higher rates. Against this backdrop we remain constructive on equities for the long-term but believe market volatility will likely remain heightened in the near term. Page 11 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (UNAUDITED) As a shareholder of 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 and held through the six-month period ended August 31, 2022. 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) --------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> FIRST TRUST INNOVATION LEADERS ETF (ILDR) Actual $1,000.00 $ 819.70 0.75% $3.44 Hypothetical (5% return before expenses) $1,000.00 $1,021.42 0.75% $3.82 FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) Actual $1,000.00 $ 863.60 0.65% $3.05 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, 2022 through August 31, 2022), multiplied by 184/365 (to reflect the six-month period). Page 12 <PAGE> FIRST TRUST INNOVATION LEADERS ETF (ILDR) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 98.6% AEROSPACE & DEFENSE -- 3.1% 500 AeroVironment, Inc. (a) $ 44,325 101 Northrop Grumman Corp. 48,277 ------------- 92,602 ------------- AUTOMOBILES -- 1.1% 120 Tesla, Inc. (a) 33,073 ------------- BIOTECHNOLOGY -- 16.8% 299 Alnylam Pharmaceuticals, Inc. (a) 61,794 650 Apellis Pharmaceuticals, Inc. (a) 39,331 1,444 Arcus Biosciences, Inc. (a) 34,772 649 BioMarin Pharmaceutical, Inc. (a) 57,891 1,498 Coherus Biosciences, Inc. (a) 16,748 449 Intellia Therapeutics, Inc. (a) 26,967 2,366 Myovant Sciences Ltd. (a) 40,435 101 Regeneron Pharmaceuticals, Inc. (a) 58,687 805 REGENXBIO, Inc. (a) 23,747 1,748 Rocket Pharmaceuticals, Inc. (a) 26,937 1,201 SpringWorks Therapeutics, Inc. (a) 33,352 422 Ultragenyx Pharmaceutical, Inc. (a) 20,125 250 Vertex Pharmaceuticals, Inc. (a) 70,440 ------------- 511,226 ------------- COMMUNICATIONS EQUIPMENT -- 4.1% 162 Arista Networks, Inc. (a) 19,421 500 Ciena Corp. (a) 25,370 200 F5, Inc. (a) 31,412 200 Motorola Solutions, Inc. 48,682 ------------- 124,885 ------------- CONSTRUCTION & ENGINEERING -- 1.6% 600 MasTec, Inc. (a) 48,300 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.2% 2,602 Radius Global Infrastructure, Inc., Class A (a) 35,830 ------------- ELECTRICAL EQUIPMENT -- 2.6% 1,001 Bloom Energy Corp., Class A (a) 25,435 60 Generac Holdings, Inc. (a) 13,225 349 Schneider Electric SE (EUR) (b) 41,481 ------------- 80,141 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 6.2% 299 Cognex Corp. 12,591 400 Keysight Technologies, Inc. (a) 65,556 250 TE Connectivity Ltd. 31,552 800 Trimble, Inc. (a) 50,600 90 Zebra Technologies Corp., Class A (a) 27,148 ------------- 187,447 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- ENTERTAINMENT -- 0.8% 200 Take-Two Interactive Software, Inc. (a) $ 24,512 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 4.4% 180 Align Technology, Inc. (a) 43,866 212 Dexcom, Inc. (a) 17,428 694 Globus Medical, Inc., Class A (a) 41,078 68 Intuitive Surgical, Inc. (a) 13,990 899 Outset Medical, Inc. (a) 16,443 ------------- 132,805 ------------- HEALTH CARE PROVIDERS & SERVICES -- 1.2% 600 Castle Biosciences, Inc. (a) 17,400 350 Guardant Health, Inc. (a) 17,521 ------------- 34,921 ------------- INDUSTRIAL CONGLOMERATES -- 2.9% 144 Honeywell International, Inc. 27,266 600 Siemens AG (EUR) (b) 60,777 ------------- 88,043 ------------- INTERACTIVE MEDIA & SERVICES -- 4.7% 901 Alphabet, Inc., Class C (a) 98,344 1,000 ZoomInfo Technologies, Inc. (a) 45,420 ------------- 143,764 ------------- INTERNET & DIRECT MARKETING RETAIL -- 6.1% 1,319 Amazon.com, Inc. (a) 167,210 180 Etsy, Inc. (a) 19,010 ------------- 186,220 ------------- IT SERVICES -- 6.7% 8 Adyen N.V. (EUR) (a) (b) (c) (d) 12,345 449 Block, Inc. (a) 30,941 250 Cloudflare, Inc., Class A (a) 15,642 50 MongoDB, Inc. (a) 16,143 366 PayPal Holdings, Inc. (a) 34,199 100 Snowflake, Inc., Class A (a) 18,095 1,510 Switch, Inc., Class A 51,265 374 Twilio, Inc., Class A (a) 26,023 ------------- 204,653 ------------- LIFE SCIENCES TOOLS & SERVICES -- 1.4% 75 Thermo Fisher Scientific, Inc. 40,899 ------------- ROAD & RAIL -- 2.8% 2,999 Uber Technologies, Inc. (a) 86,251 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 8.1% 1,251 Allegro MicroSystems, Inc. (a) 29,173 175 Enphase Energy, Inc. (a) 50,127 50 Lam Research Corp. 21,896 374 NVIDIA Corp. 56,452 200 NXP Semiconductors N.V. 32,916 See Notes to Financial Statements Page 13 <PAGE> FIRST TRUST INNOVATION LEADERS ETF (ILDR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (CONTINUED) 1,598 Rambus, Inc. (a) $ 41,212 125 Synaptics, Inc. (a) 14,451 ------------- 246,227 ------------- SOFTWARE -- 22.8% 135 Adobe, Inc. (a) 50,414 150 Aspen Technology, Inc. (a) 31,590 352 Autodesk, Inc. (a) 71,012 234 Crowdstrike Holdings, Inc., Class A (a) 42,731 300 Datadog, Inc., Class A (a) 31,485 299 Elastic N.V. (a) 25,089 150 Five9, Inc. (a) 14,717 75 Intuit, Inc. 32,384 599 Microsoft Corp. 156,621 3,895 Palantir Technologies, Inc., Class A (a) 30,069 136 ServiceNow, Inc. (a) 59,108 400 Sprout Social, Inc., Class A (a) 24,016 600 Trade Desk (The), Inc., Class A (a) 37,620 281 Workday, Inc., Class A (a) 46,241 266 Workiva, Inc. (a) 18,059 133 Zscaler, Inc. (a) 21,179 ------------- 692,335 ------------- TOTAL COMMON STOCKS -- 98.6% 2,994,134 (Cost $3,666,972) ------------- MONEY MARKET FUNDS -- 1.4% 42,611 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (e) 42,611 (Cost $42,611) ------------- TOTAL INVESTMENTS -- 100.0% 3,036,745 (Cost $3,709,583) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (1,059) ------------- NET ASSETS -- 100.0% $ 3,035,686 ============= (a) Non-income producing security. (b) 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, 2022, securities noted as such are valued at $114,603 or 3.8% of net assets. Certain of these securities are fair valued using a factor provided by a third-party pricing service due to the change in value between the foreign markets' close and the New York Stock Exchange close exceeding a certain threshold. On days when this threshold is not exceeded, these securities are typically valued at the last sale price on the exchange on which they are principally traded. (c) 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. (d) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. (e) Rate shown reflects yield as of August 31, 2022. % OF TOTAL CURRENCY EXPOSURE DIVERSIFICATION INVESTMENTS --------------------------------------------------------------------- USD 96.2% EUR 3.8 -------- Total 100.0% ======== Currency Abbreviations: EUR - Euro USD - United States Dollar Page 14 See Notes to Financial Statements <PAGE> FIRST TRUST INNOVATION LEADERS ETF (ILDR) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Common Stocks: Electrical Equipment......................... $ 80,141 $ 38,660 $ 41,481 $ -- Industrial Conglomerates..................... 88,043 27,266 60,777 -- IT Services.................................. 204,653 192,308 12,345 -- Other Industry Categories*................... 2,621,297 2,621,297 -- -- Money Market Funds.............................. 42,611 42,611 -- -- --------------------------------------------------------------- Total Investments............................... $ 3,036,745 $ 2,922,142 $ 114,603 $ -- =============================================================== </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 15 <PAGE> FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.7% ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 6.2% 4,329 Amphenol Corp., Class A $ 318,311 234 CDW Corp. 39,944 7,927 Corning, Inc. 272,055 1,907 Keysight Technologies, Inc. (a) 312,538 ------------- 942,848 ------------- ENTERTAINMENT -- 0.2% 1,368 Warner Music Group Corp., Class A 36,621 ------------- INTERACTIVE MEDIA & SERVICES -- 4.7% 6,253 Alphabet, Inc., Class A (a) 676,700 981 ZoomInfo Technologies, Inc. (a) 44,557 ------------- 721,257 ------------- IT SERVICES -- 18.7% 393 Akamai Technologies, Inc. (a) 35,480 1,721 Automatic Data Processing, Inc. 420,630 3,944 Cognizant Technology Solutions Corp., Class A 249,142 164 FleetCor Technologies, Inc. (a) 34,855 153 Gartner, Inc. (a) 43,654 3,093 International Business Machines Corp. 397,296 212 Jack Henry & Associates, Inc. 40,746 2,005 Mastercard, Inc., Class A 650,362 2,485 Paychex, Inc. 306,500 3,407 Visa, Inc., Class A 677,005 ------------- 2,855,670 ------------- MEDIA -- 2.4% 731 Charter Communications, Inc., Class A (a) 301,632 1,261 Interpublic Group of (The) Cos., Inc. 34,854 544 Omnicom Group, Inc. 36,394 ------------- 372,880 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 35.2% 4,936 Advanced Micro Devices, Inc. (a) 418,918 2,258 Analog Devices, Inc. 342,155 3,462 Applied Materials, Inc. 325,670 1,082 Broadcom, Inc. 540,037 1,496 Enphase Energy, Inc. (a) 428,514 902 KLA Corp. 310,405 688 Lam Research Corp. 301,282 5,457 Marvell Technology, Inc. 255,497 4,189 Microchip Technology, Inc. 273,332 4,958 Micron Technology, Inc. 280,276 89 Monolithic Power Systems, Inc. 40,333 3,900 NVIDIA Corp. 588,666 4,660 ON Semiconductor Corp. (a) 320,468 3,495 QUALCOMM, Inc. 462,284 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (CONTINUED) 374 Teradyne, Inc. $ 31,656 2,828 Texas Instruments, Inc. 467,214 ------------- 5,386,707 ------------- SOFTWARE -- 23.4% 1,305 Adobe, Inc. (a) 487,339 1,958 Cadence Design Systems, Inc. (a) 340,242 5,315 Fortinet, Inc. (a) 258,787 1,018 Intuit, Inc. 439,552 2,632 Microsoft Corp. 688,189 621 Palo Alto Networks, Inc. (a) 345,779 345 PTC, Inc. (a) 39,637 710 Roper Technologies, Inc. 285,832 805 ServiceNow, Inc. (a) 349,869 981 Synopsys, Inc. (a) 339,446 ------------- 3,574,672 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 5.4% 4,815 Apple, Inc. 757,014 2,528 Hewlett Packard Enterprise Co. 34,381 551 NetApp, Inc. 39,744 ------------- 831,139 ------------- WIRELESS TELECOMMUNICATION SERVICES -- 3.5% 3,760 T-Mobile US, Inc. (a) 541,289 ------------- TOTAL COMMON STOCKS -- 99.7% 15,263,083 (Cost $17,041,737) ------------- MONEY MARKET FUNDS -- 0.2% 27,402 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 27,402 (Cost $27,402) ------------- TOTAL INVESTMENTS -- 99.9% 15,290,485 (Cost $17,069,139) NET OTHER ASSETS AND LIABILITIES -- 0.1% 9,468 ------------- NET ASSETS -- 100.0% $ 15,299,953 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. Page 16 See Notes to Financial Statements <PAGE> FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS --------------------------------------------------------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 15,263,083 $ 15,263,083 $ -- $ -- Money Market Funds.............................. 27,402 27,402 -- -- --------------------------------------------------------------- Total Investments............................... $ 15,290,485 $ 15,290,485 $ -- $ -- =============================================================== </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 17 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST INNOVATION EXPANDED LEADERS ETF TECHNOLOGY ETF (ILDR) (XPND) ---------------- ----------------- ASSETS: <S> <C> <C> Investments, at value............................................ $ 3,036,745 $ 15,290,485 Receivables: Dividends..................................................... 998 18,608 Dividend Reclaims............................................. 9 -- ---------------- ----------------- Total Assets.................................................. 3,037,752 15,309,093 ---------------- ----------------- LIABILITIES: Investment advisory fees payable................................. 2,066 9,140 ---------------- ----------------- Total Liabilities............................................. 2,066 9,140 ---------------- ----------------- NET ASSETS....................................................... $ 3,035,686 $ 15,299,953 ================ ================= NET ASSETS CONSIST OF: Paid-in capital.................................................. $ 4,272,713 $ 18,650,974 Par value........................................................ 2,000 9,000 Accumulated distributable earnings (loss)........................ (1,239,027) (3,360,021) ---------------- ----------------- NET ASSETS....................................................... $ 3,035,686 $ 15,299,953 ================ ================= NET ASSET VALUE, per share....................................... $ 15.18 $ 17.00 ================ ================= Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share)........................ 200,002 900,002 ================ ================= Investments, at cost............................................. $ 3,709,583 $ 17,069,139 ================ ================= </TABLE> Page 18 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2022 <TABLE> <CAPTION> FIRST TRUST FIRST TRUST INNOVATION EXPANDED LEADERS ETF TECHNOLOGY ETF (ILDR) (XPND) ---------------- ----------------- INVESTMENT INCOME: <S> <C> <C> Dividends........................................................ $ 8,413 $ 140,740 Foreign withholding tax.......................................... (581) -- ---------------- ----------------- Total investment income....................................... 7,832 140,740 ---------------- ----------------- EXPENSES: Investment advisory fees......................................... 24,730 109,296 ---------------- ----------------- Total expenses................................................ 24,730 109,296 ---------------- ----------------- NET INVESTMENT INCOME (LOSS)..................................... (16,898) 31,444 ---------------- ----------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments................................................... (555,618) (1,675,116) In-kind redemptions........................................... 209,636 112,124 Foreign currency transactions................................. 77 -- ---------------- ----------------- Net realized gain (loss)......................................... (345,905) (1,562,992) ---------------- ----------------- Net change in unrealized appreciation (depreciation) on investments................................................... (994,121) (2,600,150) ---------------- ----------------- NET REALIZED AND UNREALIZED GAIN (LOSS).......................... (1,340,026) (4,163,142) ---------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................ $ (1,356,924) $ (4,131,698) ================ ================= </TABLE> See Notes to Financial Statements Page 19 <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> FIRST TRUST FIRST TRUST INNOVATION EXPANDED LEADERS ETF TECHNOLOGY ETF (ILDR) (XPND) -------------------------------- -------------------------------- Year Ended Period Ended Year Ended Period Ended 8/31/2022 8/31/2021 (a) 8/31/2022 8/31/2021 (b) -------------- -------------- -------------- -------------- OPERATIONS: <S> <C> <C> <C> <C> Net investment income (loss)............................ $ (16,898) $ (3,670) $ 31,444 $ (870) Net realized gain (loss)................................ (345,905) 8,703 (1,562,992) -- Net change in unrealized appreciation (depreciation).... (994,121) 321,283 (2,600,150) 821,496 -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations........................................... (1,356,924) 326,316 (4,131,698) 820,626 -------------- -------------- -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations................................... (5,085) -- (16,900) -- -------------- -------------- -------------- -------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................... 2,079,627 3,116,857 4,886,380 15,578,560 Cost of shares redeemed................................. (1,125,105) -- (1,837,015) -- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from shareholder transactions............................. 954,522 3,116,857 3,049,365 15,578,560 -------------- -------------- -------------- -------------- Total increase (decrease) in net assets................. (407,487) 3,443,173 (1,099,233) 16,399,186 NET ASSETS: Beginning of period..................................... 3,443,173 -- 16,399,186 -- -------------- -------------- -------------- -------------- End of period........................................... $ 3,035,686 $ 3,443,173 $ 15,299,953 $ 16,399,186 ============== ============== ============== ============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................. 150,002 -- 750,002 -- Shares sold............................................. 100,000 150,002 250,000 750,002 Shares redeemed......................................... (50,000) -- (100,000) -- -------------- -------------- -------------- -------------- Shares outstanding, end of period....................... 200,002 150,002 900,002 750,002 ============== ============== ============== ============== </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 20 See Notes to Financial Statements <PAGE> FIRST TRUST EXCHANGE-TRADED FUND VIII FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD FIRST TRUST INNOVATION LEADERS ETF (ILDR) <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 22.95 $ 20.07 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (0.02) Net realized and unrealized gain (loss)........................ (7.66) 2.90 -------- -------- Total from investment operations............................... (7.74) 2.88 -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.00) (b) -- Net realized gain.............................................. (0.03) -- -------- -------- Total distributions............................................ (0.03) -- -------- -------- Net asset value, end of period................................. $ 15.18 $ 22.95 ======== ======== TOTAL RETURN (c)............................................... (33.75)% 14.35% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 3,036 $ 3,443 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.75% 0.75% (d) Ratio of net investment income (loss) to average net assets.... (0.51)% (0.49)% (d) Portfolio turnover rate (e).................................... 58% 9% FIRST TRUST EXPANDED TECHNOLOGY ETF (XPND) YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 21.87 $ 20.18 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... 0.04 (0.00) (b) Net realized and unrealized gain (loss)........................ (4.89) 1.69 -------- -------- Total from investment operations............................... (4.85) 1.69 -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.02) -- -------- -------- Net asset value, end of period................................. $ 17.00 $ 21.87 ======== ======== TOTAL RETURN (c)............................................... (22.19)% 8.37% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 15,300 $ 16,399 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.65% 0.65% (d) Ratio of net investment income (loss) to average net assets.... 0.19% (0.03)% (d) Portfolio turnover rate (e).................................... 88% 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) 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 21 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six 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. First Trust Innovation Leaders ETF - (ticker "ILDR") First Trust Expanded Technology ETF - (ticker "XPND") 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. ILDR's investment objective seeks to provide capital appreciation. XPND's investment objective seeks to provide long-term capital appreciation. Under normal market conditions, ILDR 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. Under normal market conditions, XPND 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. There can be no assurance that a Fund will achieve its investment objective. The Funds may not be appropriate for all investors. 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. 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: 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. Page 22 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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; 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. If the securities in question are foreign securities, the following additional information may be considered: 1) the value of similar foreign securities traded on other foreign markets; 2) ADR trading of similar securities; 3) closed-end fund or exchange-traded fund trading of similar securities; 4) foreign currency exchange activity; 5) the trading prices of financial products that are tied to baskets of foreign securities; 6) factors relating to the event that precipitated the pricing problem; 7) whether the event is likely to recur; and 8) whether the effects of the event are isolated or whether they affect entire markets, countries or regions. 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 23 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 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, 2022, is included with each Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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. 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 fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in "Net realized gain (loss) on investments" on the Statements of Operations. D. 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. The tax character of distributions paid by each Fund during the fiscal year ended August 31, 2022, was as follows: <TABLE> <CAPTION> Distributions Distributions Distributions paid from paid from paid from Ordinary Income Capital Gains Return of Capital --------------- --------------- ----------------- <S> <C> <C> <C> First Trust Innovation Leaders ETF $ 5,085 $ -- $ -- First Trust Expanded Technology ETF 16,900 -- -- </TABLE> During the fiscal year ended August 31, 2021, none of the Funds paid a distribution. Page 24 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of August 31, 2022, the components of distributable earnings on a tax basis for each Fund were as follows: <TABLE> <CAPTION> Accumulated Undistributed Capital and Net Unrealized Ordinary Other Appreciation Income Gain (Loss) (Depreciation) --------------- --------------- ----------------- <S> <C> <C> <C> First Trust Innovation Leaders ETF $ (10,531) $ (528,761) $ (699,735) First Trust Expanded Technology ETF 14,544 (1,548,181) (1,826,384) </TABLE> E. 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. For ILDR and XPND the taxable years ending 2021 and 2022 remain open to federal and state audit. As of August 31, 2022, 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, 2022, 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 regulators, to offset future capital gains. <TABLE> <CAPTION> Non-Expiring Capital Loss Carryforwards -------------- <S> <C> First Trust Innovation Leaders ETF $ 528,761 First Trust Expanded Technology ETF 1,548,181 </TABLE> 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, 2022, the Funds 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 Innovation Leaders ETF $ 10,531 $ -- First Trust Expanded Technology ETF -- -- </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 and in-kind transactions. The results of operations and net assets were not affected by these adjustments. For the fiscal year ended August 31, 2022, 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 Innovation Leaders ETF $ 6,371 $ (209,705) $ 203,334 First Trust Expanded Technology ETF -- (32,919) 32,919 </TABLE> Page 25 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> First Trust Innovation Leaders ETF $ 3,736,480 $ 166,698 $ (866,433) $ (699,735) First Trust Expanded Technology ETF 17,116,869 565,337 (2,391,721) (1,826,384) </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 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: <TABLE> <CAPTION> Rate -------------- <S> <C> First Trust Innovation Leaders ETF 0.75% First Trust Expanded Technology ETF 0.65% </TABLE> 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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, 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 Innovation Leaders ETF $ 1,898,276 $ 1,938,220 First Trust Expanded Technology ETF 14,993,909 14,774,971 </TABLE> Page 26 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 For the fiscal year ended August 31, 2022, 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 Innovation Leaders ETF $ 2,050,303 $ 1,110,568 First Trust Expanded Technology ETF 4,873,046 1,831,304 </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, 2023. 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 27 <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 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, 2022, the related statements of operations for the year then ended, and 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, 2022, and the results of their operations for the year then ended, and 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> First Trust Innovation Leaders ETF For the year ended For the year ended August 31, 2022 and for the period August 31, 2022 from May 25, 2021 (commencement of operations) through August 31, 2021 ------------------------------------------------------------------------------------------------------------------------------ First Trust Expanded Technology ETF For the year ended For the year ended August 31, 2022 and for the period August 31, 2022 from June 14, 2021 (commencement of operations) through 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 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, 2022, 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 21, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 28 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, 2022, 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 Innovation Leaders ETF 31.84% First Trust Expanded Technology ETF 100.00% </TABLE> For the taxable year ended August 31, 2022, 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 Innovation Leaders ETF 35.70% First Trust Expanded Technology ETF 100.00% </TABLE> A portion of each of the Funds' 2022 ordinary dividends (including short-term capital gains) paid to their shareholders during the fiscal year ended August 31, 2022, may be eligible for the Qualified Business Income Deduction (QBI) under Internal Revenue Code 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 29 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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. Page 30 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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 evelopments, 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of the Fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund's shares and result in increased market volatility. During any such events, the Fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund's shares may widen. 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. Page 31 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE REMUNERATION First Trust Advisors L.P. ("First Trust") is authorised and regulated by the U.S. Securities and Exchange Commission and is entitled to market shares of certain First Trust Exchange-Traded Fund VIII funds it manages (the "Funds") in certain member states in the European Economic Area in accordance with the cooperation arrangements in Article 42 of the Alternative Investment Fund Managers Directive (the "Directive"). First Trust is required under the Directive to make disclosures in respect of remuneration. The following disclosures are made in line with First Trust's interpretation of currently available regulatory guidance on remuneration disclosures. During the year ended December 31, 2021, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Funds is $9,761. This figure is comprised of $376 paid (or to be paid) in fixed compensation and $9,385 paid (or to be paid) in variable compensation. There were a total of 24 beneficiaries of the remuneration described above. Those amounts include $5,013 paid (or to be paid) to senior management of First Trust Advisors L.P. and $4,748 paid (or to be paid) to other employees whose professional activities have a material impact on the risk profiles of First Trust Advisors L.P. or the Funds (collectively, "Code Staff"). Code Staff included in the aggregated figures disclosed above are rewarded in line with First Trust's remuneration policy (the "Remuneration Policy") which is determined and implemented by First Trust's senior management. The Remuneration Policy reflects First Trust's ethos of good governance and encapsulates the following principal objectives: i. to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure; ii. to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and iii. to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First Trust in a manner that avoids conflicts of interest. First Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure or consider the taking of risk or failure to take risk in its remuneration of Code Staff. First Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance of First Trust. Remuneration is not based upon the performance of the Funds. The elements of remuneration are balanced between fixed and variable and the senior management sets fixed salaries at a level sufficient to ensure that variable remuneration incentivizes and rewards strong individual performance but does not encourage excessive risk taking. No individual is involved in setting his or her own remuneration. Page 32 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 Innovation Leaders ETF (ILDR) First Trust Expanded Technology ETF (XPND) The Board approved the continuation of the Agreement for each Fund for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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; 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 indirect 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 18, 2022, 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 12-13, 2022 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 Research Group is responsible for the day-to-day management of the Funds' investments. The Board considered the background and experience of the members of the Research Group. The Board considered the Advisor's statement that it applies the same oversight model internally with its Research Group 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 18, 2022 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 addition to the written materials provided by the Advisor, at the April 18, 2022 meeting, the Board also received a presentation from representatives of the Advisor's Research Group, who discussed the services that the Group provides to the Funds, including the Page 33 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) Group's day-to-day management of the Funds' investments. 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 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 ILDR was equal to the median total (net) expense ratio of the peer funds in its Expense Group and that the unitary fee rate for XPND 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs, including that the Expense Group for XPND 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. Because ILDR commenced operations on May 25, 2021 and XPND commenced operations on June 14, 2021 and therefore each Fund has a limited performance history, comparative performance information for the Funds was not considered. On the basis of all the information provided on the unitary fee for 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 that its expenses relating to providing advisory services to the Funds will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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 period from inception through December 31, 2021 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, 2021. 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 indirect benefits described by the Advisor that may be realized from its relationship with the Funds. The Board considered that the Advisor had identified as an indirect 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 indirect 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 Page 34 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) 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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 35 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 36 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 37 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST EXCHANGE-TRADED FUND VIII AUGUST 31, 2022 (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 2022 Page 38 <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 320 South Canal Street Chicago, IL 60606 <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, 2022 ---------------------------- Wellington Management Company LLP Sands Capital Management, LLC <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 1 Fund Performance Overview.................................................... 2 Portfolio Commentary......................................................... 4 Understanding Your Fund Expenses............................................. 6 Portfolio of Investments..................................................... 7 Statement of Assets and Liabilities.......................................... 9 Statement of Operations...................................................... 10 Statements of Changes in Net Assets.......................................... 11 Financial Highlights......................................................... 12 Notes to Financial Statements................................................ 13 Report of Independent Registered Public Accounting Firm...................... 18 Additional Information....................................................... 19 Board of Trustees and Officers............................................... 25 Privacy Policy............................................................... 27 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, 2022 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, 2022. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 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. 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) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -35.83% -4.04% -8.34% Market Price -35.85% -4.06% -8.39% INDEX PERFORMANCE Russell 1000(R) Growth Index -19.06% 7.50% 16.49% Russell 1000(R) Index -12.96% 10.78% 24.15% --------------------------------------------------------------------------------------------------------------------- </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 44.8% Consumer Discretionary 16.4 Health Care 13.7 Communication Services 12.6 Industrials 7.6 Consumer Staples 2.1 Financials 1.3 Real Estate 0.9 Materials 0.6 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Amazon.com, Inc. 7.6% Visa, Inc., Class A 4.7 ServiceNow, Inc. 4.7 Microsoft Corp. 4.4 Apple, Inc. 3.9 Atlassian Corp. PLC, Class A 3.0 Dexcom, Inc. 3.0 Alphabet, Inc., Class A 2.8 Block, Inc. 2.5 CoStar Group, Inc. 2.3 -------- Total 38.9% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT JULY 21, 2020 - AUGUST 31, 2022 First Trust Multi-Manager Russell 1000(R) Russell 1000(R) Large Growth ETF Growth Index Index <S> <C> <C> <C> 1/3/19 $10,000 $10,000 $10,000 8/31/20 11,018 11,198 10,785 2/28/21 12,233 11,796 12,056 8/31/21 14,285 14,392 14,264 2/28/22 11,485 13,277 13,711 8/31/22 9,166 11,649 12,415 </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. Page 3 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) ANNUAL REPORT AUGUST 31, 2022 (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 o Erik Russo, 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. growth equities, as measured by the Russell 1000(R) Growth Index (the "Benchmark") declined 19.06% for the 12-month period ended August 31, 2022. The S&P 500(R) Index fell 11.23% over the same period. In September 2021, U.S. equities declined, as risk sentiment waned amid anxiety about the impact of persistent supply-chain disruptions on inflation and the economy, imminent policy normalization, elevated energy prices, and uncertainty about government fiscal stimulus and the federal debt ceiling. In the fourth quarter of 2021, U.S. equities surged as risk sentiment was bolstered by robust equity inflows, strong corporate earnings, favorable economic data, and extremely accommodative financial conditions. In the fourth quarter of 2021, U.S. corporate earnings were stronger than expected, with companies in the S&P 500(R) Index registering year-over-year earnings growth of approximately 30%. During the first quarter of 2022, U.S. equities registered their first quarterly loss since March 2020. Fears about the economic implications of Russia's large-scale military attack on Ukraine, that began in late February 2022, and the prospect of aggressive monetary policy tightening by the Federal Reserve (the "Fed") drove the S&P 500(R) Index into correction territory in February 2022. In the second quarter of 2022, U.S. equities fell sharply during a volatile quarter. Rampant inflation and tighter financial conditions hurt risk sentiment and increased the probability of a recession. In August 2022, U.S. equities ended lower after a strong rally earlier in the month reversed course amid concerns about aggressive interest rate hikes, the looming ramp-up in the Fed's balance-sheet reduction, and anxiety about future corporate earnings. PERFORMANCE ANALYSIS For the 12-month period ended August 31, 2022, the Fund returned -35.85% on a market price basis and -35.83% on a net asset value basis. During the same period, the Benchmark experienced a peak-to-trough decline of 31.9%, with the selloff felt most acutely in high growth, high valuation equities. The markets recovered in the latter half of the same period due to better-than-feared second quarter earnings results to help stem losses. The Information Technology, Communication Services and the Consumer Discretionary sectors accounted for the bulk of the Benchmark's drawdown during the same period. The Energy and Consumer Staples sectors were the only sectors in the Benchmark to finish the same period with positive returns. Relative to the Benchmark, selection within the Page 4 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) Information Technology sector was the largest detractor from the Fund's performance on a sector basis. Overweight positions in Block, Inc., Twilio, Inc., and an off-Benchmark position in Shopify, Inc., were some of the largest single name detractors, with each down more than 70%. An underweight position in Apple, Inc., which had a positive return during the period, also hurt Fund performance. An overweight allocation to the Communication Services sector, which had the worst returns in the Benchmark for the period, detracted from the Fund's performance. Selection within the sector subtracted from performance and the Fund's return outpaced the Benchmark to the downside. This was largely due to Sea Ltd. which was down 81.7% in the period. Lastly, stock picks within the Consumer Discretionary sector also detracted from performance with the Fund returning worse than the Benchmark. This was partly driven by an underweight position in Tesla, Inc. which had positive returns in the period. MARKET AND FUND OUTLOOK The U.S. Consumer Price Index registered its highest reading in June 2022, at levels we have not seen since the early 1980s. Supply chain issues, coronavirus-related ("COVID-19") closures in China, and the conflict in Ukraine have contributed to making things worse for the consumer. In a sign that the Fed is behind on battling inflation, they hiked interest rates by 75 basis points in June 2022 to take the upper bound for the short-term rate to 1.75%. The median expectation from the Federal Open Market Committee members' Dot Projections is a rate target of 3.75% in 2023, which has a range of 2.75% - 4.38%, denoting the disparate range of views among experts and the possibility that the Fed may only be halfway through their rate hikes. In our opinion, the equity markets are focused on the economy slowing, and recent commentary from companies highlights the pressure on consumption in the U.S. We believe the rest of the world is not that different, and it seems we are all on a global tightening cycle. On the positive side, employment in the U.S. remains robust, and there remains room for the participation rate to increase to pre-COVID-19 levels, which could temper some of the wage pressure. In our view, the range of outcomes remains wide and recessionary conditions are possible in many economies. We expect inflation to abate in 2023. However, the biggest risk to that view remains the energy markets as restrictions to Russian supplies of both natural gas and oil from Europe and the reopening of China in the next several months have the potential to put upward pressure on commodity prices. Page 5 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (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, 2022. 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) Actual $1,000.00 $ 798.10 0.85% $3.85 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, 2022 through August 31, 2022), 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, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 98.5% AEROSPACE & DEFENSE -- 0.6% 4,207 Raytheon Technologies Corp. $ 377,578 ------------- AUTOMOBILES -- 1.1% 2,473 Tesla, Inc. (a) 681,584 ------------- BEVERAGES -- 1.3% 1,590 Constellation Brands, Inc., Class A 391,219 5,096 Monster Beverage Corp. (a) 452,678 ------------- 843,897 ------------- BIOTECHNOLOGY -- 1.6% 7,073 Sarepta Therapeutics, Inc. (a) 773,645 1,673 Seagen, Inc. (a) 258,127 ------------- 1,031,772 ------------- BUILDING PRODUCTS -- 0.8% 3,274 Fortune Brands Home & Security, Inc. 201,122 5,300 Johnson Controls International PLC 286,942 ------------- 488,064 ------------- CHEMICALS -- 0.6% 1,624 Sherwin-Williams (The) Co. 376,930 ------------- COMMERCIAL SERVICES & SUPPLIES -- 0.5% 2,226 Republic Services, Inc. 317,695 ------------- COMMUNICATIONS EQUIPMENT -- 0.7% 1,927 Motorola Solutions, Inc. 469,051 ------------- CONSTRUCTION & ENGINEERING -- 0.5% 7,562 WillScot Mobile Mini Holdings Corp. (a) 303,539 ------------- CONSUMER FINANCE -- 0.7% 3,002 American Express Co. 456,304 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 1.0% 2,275 CDW Corp. 388,342 6,577 Corning, Inc. 225,723 ------------- 614,065 ------------- ENTERTAINMENT -- 4.8% 3,407 Netflix, Inc. (a) 761,669 20,333 Sea Ltd., ADR (a) 1,260,646 2,196 Walt Disney (The) Co. (a) 246,128 28,543 Warner Music Group Corp., Class A 764,096 ------------- 3,032,539 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 0.8% 1,392 Alexandria Real Estate Equities, Inc. 213,533 4,709 Equity LifeStyle Properties, Inc. 330,101 ------------- 543,634 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 6.8% 2,926 Align Technology, Inc. (a) $ 713,066 4,613 Baxter International, Inc. 265,063 22,926 Dexcom, Inc. (a) 1,884,747 10,395 Edwards Lifesciences Corp. (a) 936,590 4,324 Hologic, Inc. (a) 292,129 882 Teleflex, Inc. 199,561 ------------- 4,291,156 ------------- HEALTH CARE PROVIDERS & SERVICES -- 2.3% 883 Laboratory Corp. of America Holdings 198,913 13,832 R1 RCM, Inc. (a) 302,229 1,841 UnitedHealth Group, Inc. 956,087 ------------- 1,457,229 ------------- HOTELS, RESTAURANTS & LEISURE -- 2.9% 8,756 Airbnb, Inc., Class A (a) 990,479 192 Booking Holdings, Inc. (a) 360,156 328 Chipotle Mexican Grill, Inc. (a) 523,750 ------------- 1,874,385 ------------- INSURANCE -- 0.6% 2,002 Chubb Ltd. 378,478 ------------- INTERACTIVE MEDIA & SERVICES -- 6.7% 15,933 Alphabet, Inc., Class A (a) 1,724,269 4,384 Alphabet, Inc., Class C (a) 478,514 17,000 Match Group, Inc. (a) 961,010 6,676 Meta Platforms, Inc., Class A (a) 1,087,721 ------------- 4,251,514 ------------- INTERNET & DIRECT MARKETING RETAIL -- 8.5% 37,306 Amazon.com, Inc. (a) 4,729,282 8,086 DoorDash, Inc., Class A (a) 484,351 1,873 Etsy, Inc. (a) 197,808 ------------- 5,411,441 ------------- IT SERVICES -- 15.2% 22,344 Block, Inc. (a) 1,539,725 14,629 Cloudflare, Inc., Class A (a) 915,337 2,905 Concentrix Corp. 365,391 2,543 Fidelity National Information Services, Inc. 232,354 1,368 FleetCor Technologies, Inc. (a) 290,741 2,154 Global Payments, Inc. 267,591 2,494 Mastercard, Inc., Class A 808,979 24,031 Shopify, Inc., Class A (a) 760,581 6,405 Snowflake, Inc., Class A (a) 1,158,985 5,540 Twilio, Inc., Class A (a) 385,473 14,896 Visa, Inc., Class A 2,959,984 ------------- 9,685,141 ------------- See Notes to Financial Statements Page 7 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) LIFE SCIENCES TOOLS & SERVICES -- 1.7% 8,737 10X Genomics, Inc., Class A (a) $ 288,234 1,157 Danaher Corp. 312,286 855 Thermo Fisher Scientific, Inc. 466,248 ------------- 1,066,768 ------------- MACHINERY -- 0.8% 1,372 Deere & Co. 501,123 ------------- MEDIA -- 1.0% 1,493 Charter Communications, Inc., Class A (a) 616,057 ------------- PERSONAL PRODUCTS -- 0.7% 1,761 Estee Lauder (The) Cos., Inc., Class A 447,963 ------------- PHARMACEUTICALS -- 1.1% 2,415 Eli Lilly & Co. 727,470 ------------- PROFESSIONAL SERVICES -- 2.3% 20,682 CoStar Group, Inc. (a) 1,440,294 ------------- ROAD & RAIL -- 2.1% 45,565 Uber Technologies, Inc. (a) 1,310,449 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 5.2% 4,585 Advanced Micro Devices, Inc. (a) 389,129 3,074 Entegris, Inc. 291,661 1,349 Lam Research Corp. 590,741 6,429 Marvell Technology, Inc. 301,006 7,708 NVIDIA Corp. 1,163,445 3,354 Texas Instruments, Inc. 554,114 ------------- 3,290,096 ------------- SOFTWARE -- 17.7% 1,321 Adobe, Inc. (a) 493,314 7,639 Atlassian Corp. PLC, Class A (a) 1,891,875 4,855 Datadog, Inc., Class A (a) 509,532 3,186 Intuit, Inc. 1,375,651 10,410 Microsoft Corp. 2,721,903 714 Palo Alto Networks, Inc. (a) 397,562 604 Paycom Software, Inc. (a) 212,125 2,837 Salesforce, Inc. (a) 442,912 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- SOFTWARE (CONTINUED) 6,755 ServiceNow, Inc. (a) $ 2,935,858 1,612 Workday, Inc., Class A (a) 265,271 ------------- 11,246,003 ------------- SPECIALTY RETAIL -- 2.3% 10,193 Floor & Decor Holdings, Inc., Class A (a) 829,303 9,683 TJX (The) Cos., Inc. 603,735 ------------- 1,433,038 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 4.3% 15,416 Apple, Inc. 2,423,703 4,198 NetApp, Inc. 302,802 ------------- 2,726,505 ------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.3% 1,215 Lululemon Athletica, Inc. (a) 364,451 4,431 NIKE, Inc., Class B 471,680 ------------- 836,131 ------------- TOTAL COMMON STOCKS -- 98.5% 62,527,893 (Cost $87,865,918) ------------- MONEY MARKET FUNDS -- 1.5% 968,136 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 968,136 (Cost $968,136) ------------- TOTAL INVESTMENTS -- 100.0% 63,496,029 (Cost $88,834,054) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (17,721) ------------- NET ASSETS -- 100.0% $ 63,478,308 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. ADR - American Depositary Receipt ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 62,527,893 $ 62,527,893 $ -- $ -- Money Market Funds.............................. 968,136 968,136 -- -- -------------- -------------- -------------- -------------- Total Investments............................... $ 63,496,029 $ 63,496,029 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. Page 8 See Notes to Financial Statements <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> ASSETS: Investments, at value.................................................. $ 63,496,029 Dividends receivable................................................... 34,490 --------------- Total Assets........................................................ 63,530,519 --------------- LIABILITIES: Investment advisory fees payable....................................... 52,211 --------------- Total Liabilities................................................... 52,211 --------------- NET ASSETS............................................................. $ 63,478,308 =============== NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 97,032,120 Par value.............................................................. 35,000 Accumulated distributable earnings (loss).............................. (33,588,812) --------------- NET ASSETS............................................................. $ 63,478,308 =============== NET ASSET VALUE, per share............................................. $ 18.14 =============== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 3,500,002 =============== Investments, at cost................................................... $ 88,834,054 =============== </TABLE> See Notes to Financial Statements Page 9 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> INVESTMENT INCOME: Dividends.............................................................. $ 400,008 --------------- Total investment income............................................. 400,008 --------------- EXPENSES: Investment advisory fees............................................... 945,807 --------------- Total expenses...................................................... 945,807 --------------- NET INVESTMENT INCOME (LOSS)........................................... (545,799) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... (9,025,526) In-kind redemptions................................................. 1,674,945 --------------- Net realized gain (loss)............................................... (7,350,581) --------------- Net change in unrealized appreciation (depreciation) on investments.... (40,729,422) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ (48,080,003) --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ (48,625,802) =============== </TABLE> Page 10 See Notes to Financial Statements <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> YEAR YEAR ENDED ENDED 8/31/2022 8/31/2021 --------------- --------------- <S> <C> <C> OPERATIONS: Net investment income (loss)......................................................... $ (545,799) $ (192,447) Net realized gain (loss)............................................................. (7,350,581) 1,419,102 Net change in unrealized appreciation (depreciation)................................. (40,729,422) 15,190,009 --------------- --------------- Net increase (decrease) in net assets resulting from operations...................... (48,625,802) 16,416,664 --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations................................................................ -- (6,060) --------------- --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................................................ 11,734,001 164,222,162 Cost of shares redeemed.............................................................. (70,634,728) (11,813,486) --------------- --------------- Net increase (decrease) in net assets resulting from shareholder transactions........ (58,900,727) 152,408,676 --------------- --------------- Total increase (decrease) in net assets.............................................. (107,526,529) 168,819,280 NET ASSETS: Beginning of period.................................................................. 171,004,837 2,185,557 --------------- --------------- End of period........................................................................ $ 63,478,308 $ 171,004,837 =============== =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period.............................................. 6,050,002 100,002 Shares sold.......................................................................... 550,000 6,400,000 Shares redeemed...................................................................... (3,100,000) (450,000) --------------- --------------- Shares outstanding, end of period.................................................... 3,500,002 6,050,002 =============== =============== </TABLE> See Notes to Financial Statements Page 11 <PAGE> FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD <TABLE> <CAPTION> YEAR ENDED AUGUST 31, PERIOD ----------------------------- ENDED 2022 2021 8/31/2020 (a) -------------- -------------- -------------- <S> <C> <C> <C> Net asset value, beginning of period........................... $ 28.27 $ 21.86 $ 19.84 -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.18) 0.01 (0.00) (b) Net realized and unrealized gain (loss)........................ (9.95) 6.46 2.02 -------- -------- -------- Total from investment operations............................... (10.13) 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................................. $ 18.14 $ 28.27 $ 21.86 ======== ======== ======== TOTAL RETURN (c)............................................... (35.83)% 29.65% 10.18% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 63,478 $171,005 $ 2,186 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% 0.85% 0.85% (d) Ratio of net investment income (loss) to average net assets.... (0.49)% (0.49)% (0.21)% (d) Portfolio turnover rate (e).................................... 31% 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. Page 12 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six 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 the 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 13 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 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, 2022, is included with the Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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 Page 14 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 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. The tax character of distributions paid during the fiscal year ended August 31, 2022 and 2021 was as follows: Distributions paid from: 2022 2021 Ordinary income............................... $ -- $ 6,060 Capital gains................................. -- -- Return of capital............................. -- -- As of August 31, 2022, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income................. $ (251,746) Accumulated capital and other gain (loss)..... (6,999,162) Net unrealized appreciation (depreciation).... (26,337,904) 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, 2021, and 2022 remain open to federal and state audit. As of August 31, 2022, 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, 2022, for federal income tax purposes, the Fund had $6,999,162 capital loss carryforward available, 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 Fund's shareholders. 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, 2022, the Fund incurred and elected to defer net late year ordinary or capital losses as follows: Qualified Late Year Losses ----------------------------------------- Ordinary Losses Capital Losses ---------------- -------------- $ 251,746 $ -- 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, 2022, the adjustments for the Fund were as follows: Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- -------------- $ 483,782 $ (212,588) $ (271,194) Page 15 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) -------------- -------------- -------------- -------------- $ 89,833,933 $ 1,579,366 $ (27,917,270) (26,337,904) 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 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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, the cost of purchases and proceeds from sales of investments, excluding short-term investments and in-kind transactions, were $35,124,188 and $34,200,898, respectively. For the fiscal year ended August 31, 2022, the cost of in-kind purchases and proceeds from in-kind sales were $11,532,653 and $69,518,004, respectively. Page 16 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 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 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, 2023. 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 17 <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, 2022, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for the years ended August 31, 2022 and 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, 2022, and the results of its operations for the year then ended, and the changes in its net assets for each of the two years in the period then ended, and the financial highlights for the years ended August 31, 2022 and 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, 2022, 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, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 18 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (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 There were no distributions made by MMLG during the Fund's fiscal year ended August 31, 2022; therefore, no analysis for the corporate dividends received deduction and qualified dividend income was 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 19 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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 20 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of a fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund's shares and result in increased market volatility. During any such events, a fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. 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 Page 21 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (UNAUDITED) 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, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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, 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, including comparisons of the 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 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 indirect 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 18, 2022, 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 12-13, 2022 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 18, 2022 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 Sands' services to the Fund, the Board noted the background and experience of Sands' portfolio management team and the Board's prior meetings with members of Sands' portfolio management team. In addition to the written materials provided by Wellington, at the April 18, 2022 meeting, the Board also received a presentation from representatives of Wellington, who discussed the services that Wellington provides to the Fund. In considering Wellington's services to the Fund, the Board noted the background Page 22 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (UNAUDITED) and experience of Wellington'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 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 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating peer groups for actively-managed ETFs and that 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. The Board received and reviewed information comparing the Fund's performance for the one-year period ended December 31, 2021 to the performance of the funds in the Performance Universe and to that of a benchmark index. Based on the information provided, the Board noted that the Fund underperformed the Performance Universe median and the benchmark index for the one-year period ended December 31, 2021. On the basis of all the information provided on the unitary fee and performance of 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 that its expenses relating to providing advisory services to the Fund will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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, 2021 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 indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect 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 indirect 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 indirect 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 Page 23 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (UNAUDITED) 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 indirect 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 indirect 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 indirect benefits to Wellington 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 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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 24 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 25 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 26 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER LARGE GROWTH ETF (MMLG) AUGUST 31, 2022 (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 2022 Page 27 <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-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 320 South Canal Street Chicago, IL 60606 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust TCW ESG Premier Equity ETF (EPRE) ---------------------------- Annual Report For the Year Ended August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 1 Fund Performance Overview.................................................... 2 Portfolio Commentary......................................................... 4 Understanding Your Fund Expenses............................................. 6 Portfolio of Investments..................................................... 7 Statement of Assets and Liabilities.......................................... 8 Statement of Operations...................................................... 9 Statements of Changes in Net Assets.......................................... 10 Financial Highlights......................................................... 11 Notes to Financial Statements................................................ 12 Report of Independent Registered Public Accounting Firm...................... 18 Additional Information....................................................... 19 Board of Trustees and Officers............................................... 25 Privacy Policy............................................................... 27 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 (First Trust TCW ESG Premier Equity 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-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 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 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 the Fund are spelled out in its prospectus, statement of additional information, and other Fund regulatory filings. <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2022 Dear Shareholders: First Trust is pleased to provide you with the annual report for the First Trust TCW ESG Premier Equity ETF (the "Fund"), which contains detailed information about the Fund for the twelve months ended August 31, 2022. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you. 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 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 --------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL CUMULATIVE TOTAL RETURNS TOTAL RETURNS 1 Year Ended Inception (5/25/21) Inception (5/25/21) 8/31/22 to 8/31/22 to 8/31/22 <S> <C> <C> <C> FUND PERFORMANCE NAV -20.78% -11.86% -14.80% Market Price -20.81% -11.82% -14.75% INDEX PERFORMANCE Russell 1000(R) Index -12.96% -4.60% -5.80% --------------------------------------------------------------------------------------------------------------------- </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 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. 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 TCW ESG PREMIER EQUITY ETF (EPRE) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Industrials 37.8% Information Technology 30.4 Financials 16.1 Consumer Staples 10.2 Health Care 5.5 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- HEICO Corp. 10.5% TransDigm Group, Inc. 7.8 Microsoft Corp. 7.5 Keurig Dr Pepper, Inc. 7.4 S&P Global, Inc. 6.1 Copart, Inc. 6.1 Fiserv, Inc. 6.0 Mettler-Toledo International, Inc. 5.5 AMETEK, Inc. 5.2 CoStar Group, Inc. 5.2 -------- Total 67.3% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT MAY 25, 2021 - AUGUST 31, 2022 First Trust TCW ESG Premier Russell 1000(R) Equity ETF (EPRE) Index <S> <C> <C> 5/25/21 $10,000 $10,000 8/31/21 10,756 10,823 2/28/22 9,292 10,403 8/31/22 8,520 9,420 </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> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor") is the investment advisor to the First Trust TCW ESG Premier Equity ETF ("EPRE" or 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. 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 the 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 advisor services, had approximately $218 billion under management or committed to management, including $191.3 billion of U.S. fixed income investments, as of August 31, 2022. PORTFOLIO MANAGEMENT TEAM Joseph R. Shaposhnik, Managing Director of TCW The portfolio manager is responsible for the day-to-day management of the Fund and has served as the portfolio manager of the Fund since 2021. COMMENTARY MARKET RECAP During the 12-month period ended August 31, 2022, equities struggled after hitting all-time highs late in 2021. The weak performance was seen in almost every sector across the market as record inflation and rising interest rates put downward pressure on stocks. Inflation has proved to not be transitory as the U.S. Federal Reserve (the "Fed") and many analysts had forecasted around a year ago. Coming out of the coronavirus ("COVID-19") pandemic, various factors have contributed to the inflation readings that have hit, and are still hovering around, 40-year highs. Strong demand, a healthy labor market, and supply chain bottlenecks are at the forefront of those contributors. Russia's invasion of Ukraine in February 2022 has only added to the pressure as oil, gas, and other commodities have become more expensive as a result. The lasting inflation has led to the Fed being forced to raise interest rates - which rose from essentially 0.1% to 2.3% in the period - which has stifled consumer optimism and business activity. Although this is considered negative at face value, it is likely necessary to bring inflation under control. It is hard to predict the Fed's next moves although investors are currently bracing for interest rates as high as 4.5% in the coming months, and it is likely they will stay elevated for a considerable period of time, in our opinion. PERFORMANCE ANALYSIS For the 12-month period ended August 31, 2022, the Fund was down 20.78% based on net asset value, while the portfolio's return underperformed the Russell 1000(R) Index, which decreased by 12.96%. Top performers in the period included HEICO Corp. (Industrials), Fiserv, Inc. (Information Technology), and Church & Dwight Co., Inc. (Consumer Staples). 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, Inc. shares, as the company is a leader in providing critical data and support services to investment professionals and institutions worldwide. The weakest performers during the period included Vertiv Holdings Co. (Industrials), Dye & Durham Ltd. (Information Technology), and Clarivate PLC (Industrials). Page 4 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) MARKET AND FUND OUTLOOK We expect an increased level of volatility in the shorter-term due to a number of developments in the economy. Notably, there is growing speculation that the Fed is solely focused on bringing down inflation, regardless of the impact on the rest of the market and economy. Due to this, we are especially keyed in on inflation and the Fed's reaction to future Consumer Price Index figures. At least based on results that came out at the end of August 2022, inflation may have peaked, but either way, we expect further interest rate hikes from the Fed in order to achieve their long-term goal of 2.0% year-over-year inflation. We are vigilant of the balance of supply and demand within the economy as prices remain elevated and consumer sentiment is stunted. We will also continue to evaluate the ongoing war between Russia and Ukraine, as diplomatic policies and sanctions on Russia are seemingly having a large impact on prices that are flowing through the economy down to consumers. It is hard to forecast any type of resolution to the conflict, but should it end, or circumstances change drastically, the effect on consumers and the market will likely be seen as well. At this time, it appears that the worst of the COVID-19 pandemic seems to be behind us, at least in terms of lockdowns and when looking at the severity of the disease. While future variants may arise, governments across the world seem to be ending, or at least loosening, restrictions on their constituents. While this may negatively impact certain companies that have flourished from lockdowns, we expect a wide variety of companies to continue to benefit from the easing restrictions. 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. Page 5 <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (UNAUDITED) As a shareholder of First Trust TCW ESG Premier Equity 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, 2022. 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------ <S> <C> <C> <C> <C> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) Actual $1,000.00 $ 916.90 0.85% $4.11 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, 2022 through August 31, 2022), multiplied by 184/365 (to reflect the six-month period). Page 6 <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 80.6% AEROSPACE & DEFENSE -- 14.7% 470 HEICO Corp. $ 71,581 88 TransDigm Group, Inc. 52,834 ------------- 124,415 ------------- BEVERAGES -- 5.9% 1,318 Keurig Dr Pepper, Inc. 50,242 ------------- CAPITAL MARKETS -- 13.0% 151 Morningstar, Inc. 34,427 75 MSCI, Inc. 33,693 118 S&P Global, Inc. 41,626 ------------- 109,746 ------------- COMMERCIAL SERVICES & SUPPLIES -- 4.9% 345 Copart, Inc. (a) 41,279 ------------- ELECTRICAL EQUIPMENT -- 4.2% 294 AMETEK, Inc. 35,327 ------------- HOUSEHOLD PRODUCTS -- 2.3% 232 Church & Dwight Co., Inc. 19,421 ------------- IT SERVICES -- 4.8% 403 Fiserv, Inc. (a) 40,780 ------------- LIFE SCIENCES TOOLS & SERVICES -- 4.4% 31 Mettler-Toledo International, Inc. (a) 37,586 ------------- PROFESSIONAL SERVICES -- 6.7% 506 CoStar Group, Inc. (a) 35,238 111 Equifax, Inc. 20,951 ------------- 56,189 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.1% 373 Marvell Technology, Inc. $ 17,464 ------------- SOFTWARE -- 17.6% 846 Dye & Durham Ltd. (CAD) 9,405 186 Manhattan Associates, Inc. (a) 26,274 195 Microsoft Corp. 50,987 41 Roper Technologies, Inc. 16,506 251 Trade Desk (The), Inc., Class A (a) 15,738 79 Tyler Technologies, Inc. (a) 29,349 ------------- 148,259 ------------- TOTAL COMMON STOCKS -- 80.6% 680,708 (Cost $725,882) ------------- MONEY MARKET FUNDS -- 19.4% 163,843 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 163,843 (Cost $163,843) ------------- TOTAL INVESTMENTS -- 100.0% 844,551 (Cost $889,725) NET OTHER ASSETS AND LIABILITIES -- (0.0)% (105) ------------- NET ASSETS -- 100.0% $ 844,446 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. Currency Abbreviation: CAD - Canadian Dollar ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 680,708 $ 680,708 $ -- $ -- Money Market Funds.............................. 163,843 163,843 -- -- -------------- -------------- -------------- -------------- Total Investments............................... $ 844,551 $ 844,551 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. See Notes to Financial Statements Page 7 <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> ASSETS: Investments, at value.................................................. $ 844,551 Dividends receivable................................................... 538 --------------- Total Assets........................................................ 845,089 --------------- LIABILITIES: Investment advisory fees payable....................................... 643 --------------- Total Liabilities................................................... 643 --------------- NET ASSETS............................................................. $ 844,446 =============== NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 994,833 Par value.............................................................. 500 Accumulated distributable earnings (loss).............................. (150,887) --------------- NET ASSETS............................................................. $ 844,446 =============== NET ASSET VALUE, per share............................................. $ 16.89 =============== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 50,002 =============== Investments, at cost................................................... $ 889,725 =============== </TABLE> Page 8 See Notes to Financial Statements <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> INVESTMENT INCOME: Interest............................................................... $ 6,508 Foreign tax withholding................................................ (21) --------------- Total investment income............................................. 6,487 --------------- EXPENSES: Investment advisory fees payable....................................... 10,661 --------------- Total expenses...................................................... 10,661 --------------- NET INVESTMENT INCOME (LOSS)........................................... (4,174) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... (105,309) In-kind redemptions................................................. 75,037 Foreign currency transactions....................................... (77) --------------- Net realized gain (loss)............................................... (30,349) --------------- Net change in unrealized appreciation (depreciation) on investments.... (187,820) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ (218,169) --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ (222,343) =============== </TABLE> See Notes to Financial Statements Page 9 <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) STATEMENTS OF CHANGES IN NET ASSETS <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) --------------- --------------- <S> <C> <C> OPERATIONS: Net investment income (loss)......................................................... $ (4,174) $ (3,260) Net realized gain (loss)............................................................. (30,349) 11,418 Net change in unrealized appreciation (depreciation)................................. (187,820) 142,646 --------------- --------------- Net increase (decrease) in net assets resulting from operations...................... (222,343) 150,804 --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations................................................................ (8,685) -- --------------- --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................................................ -- 1,998,385 Cost of shares redeemed.............................................................. (1,073,715) -- --------------- --------------- Net increase (decrease) in net assets resulting from shareholder transactions........ (1,073,715) 1,998,385 --------------- --------------- Total increase (decrease) in net assets.............................................. (1,304,743) 2,149,189 NET ASSETS: Beginning of period.................................................................. 2,149,189 -- --------------- --------------- End of period........................................................................ $ 844,446 $ 2,149,189 =============== =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period.............................................. 100,002 -- Shares sold.......................................................................... -- 100,002 Shares redeemed...................................................................... (50,000) -- --------------- --------------- Shares outstanding, end of period.................................................... 50,002 100,002 =============== =============== </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. Page 10 See Notes to Financial Statements <PAGE> FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD <TABLE> <CAPTION> YEAR PERIOD ENDED ENDED 8/31/2022 8/31/2021 (a) -------------- -------------- <S> <C> <C> Net asset value, beginning of period........................... $ 21.49 $ 19.98 -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (0.03) Net realized and unrealized gain (loss)........................ (4.35) 1.54 -------- -------- Total from investment operations............................... (4.43) 1.51 -------- -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net realized gain.............................................. (0.17) -- -------- -------- Net asset value, end of period................................. $ 16.89 $ 21.49 ======== ======== TOTAL RETURN (b)............................................... (20.78)% 7.56% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 844 $ 2,149 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.... (0.33)% (0.58)% (c) Portfolio turnover rate (d).................................... 12% 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 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. See Notes to Financial Statements Page 11 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers the First Trust TCW ESG Premier Equity ETF (the "Fund"), which trades under the ticker "EPRE" on the NYSE Arca, Inc. 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's 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 the sub-advisor'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. 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. Foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. 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 Pricing Committee of the Fund's 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. 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 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 Page 12 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 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. If the securities in question are foreign securities, the following additional information may be considered: 1) the value of similar foreign securities traded on other foreign markets; 2) ADR trading of similar securities; 3) closed-end fund or exchange-traded fund trading of similar securities; 4) foreign currency exchange activity; 5) the trading prices of financial products that are tied to baskets of foreign securities; 6) factors related to the event that precipitated the pricing problem; 7) whether the event is likely to recur; and 8) whether the effects of the events are isolated or whether they affect entire markets, countries or regions. 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 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 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, 2022, is included with the Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. Page 13 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 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. 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 would be shown in "Net change in unrealized appreciation (depreciation) on foreign currency translation" on the Statement 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 Statement 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 Statement of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in "Net realized gain (loss) on investments" on the Statement of Operations. D. 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 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 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. The tax character of distributions paid during the fiscal year ended August 31, 2022 was as follows: Distributions paid from: Ordinary income............................... $ 8,685 Capital gains................................. -- Return of capital............................. -- The Fund did not pay a distribution during its fiscal period ended August 31, 2021. As of August 31, 2022, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income................. $ (400) Accumulated capital and other gain (loss)..... (102,776) Net unrealized appreciation (depreciation).... (47,711) E. 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 2021 and 2022 remain open to federal and state audit. As of August 31, 2022, 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. Page 14 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 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, 2022, for federal income tax purposes, the Fund had $102,776 capital loss carryforwards available, 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 Fund's shareholders. 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, 2022, the Fund incurred and elected to defer net late year ordinary or capital losses as follows: Qualified Late Year Losses ----------------------------------------- Ordinary Losses Capital Losses ---------------- -------------- $ 400 $ -- 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, 2022, the adjustments for the Fund were as follows: Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- -------------- $ 3,774 $ (74,437) $ 70,663 As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) -------------- -------------- -------------- -------------- $ 892,262 $ 15,213 $ (62,924) $ (47,711) 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 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. TCW Investment Management Company LLC ("TCW" or the "Sub-Advisor") serves as the Fund's sub-advisor and manages the Fund's portfolio subject to First Trust's supervision. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Fund, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of the Fund, the Advisor and TCW, First Trust will supervise TCW and its management of the investment of the Fund's assets and will pay TCW for its services as the Fund's 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 the 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. The Fund has agreed to pay First Trust an annual unitary management fee equal to 0.85% of its average daily net assets. Page 15 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, the cost of purchases and proceeds from sales of investments, excluding short-term investments and in-kind transactions, were $137,949 and $347,980, respectively. For the fiscal year ended August 31, 2022, the cost of in-kind purchases and proceeds from in-kind sales were $0 and $975,010, 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 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. Page 16 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 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, 2023. 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 was the following subsequent event: On September 20, 2022, First Trust announced approval of the liquidation of the Fund. Based upon the recommendation of First Trust, the Board of Trustees determined it was in the best interest of the Fund and the Fund's shareholders to liquidate the Fund. The Board of Trustees approved the liquidation pursuant to a plan of liquidation and termination. Shareholders may sell their holdings in the Fund prior to the end of the trading day on October 26, 2022. Customary brokerage charges may apply to these transactions. The last day the Fund will accept creation and redemption orders is October 26, 2022 and the Fund's shares will subsequently be de-listed. The Fund will liquidate on or around November 1, 2022. Any person holding shares in the Fund as of October 28, 2022 will receive a cash redemption amount equal to the net asset value of such shares after the Fund has discharged and/or made reasonable provisions for the payment of all of its charges, taxes, expenses and liabilities. Shareholders generally will recognize a capital gain or loss on any redemption. The Fund may pay one or more dividends or other distributions prior to or along with any redemption payment. After October 26, 2022 the Fund is expected to materially deviate from its stated investment strategies and policies and will no longer be managed to meet its investment objective. Page 17 <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 TCW ESG Premier Equity ETF (the "Fund"), a series of the First Trust Exchange-Traded Fund VIII, including the portfolio of investments, as of August 31, 2022, 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, 2022 and the period from May 25, 2021 (commencement of operations) through August 31, 2021, 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, 2022, 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, 2022 and for the period from May 25, 2021 (commencement of operations) through August 31, 2021, 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, 2022, 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, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 18 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (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, 2022, 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 Received Deduction Qualified Dividend Income ---------------------------- ------------------------- 14.62% 15.18% 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 Page 19 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (UNAUDITED) 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 has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain fund investments and may result in Page 20 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (UNAUDITED) 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. Market Risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of a fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund's shares and result in increased market volatility. During any such events, a fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE Page 21 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (UNAUDITED) 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") with First Trust Advisors L.P. (the "Advisor") on behalf of the 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"). The Board approved the continuation of the Agreements for a one-year period ending June 30, 2023 at a meeting held on June 12-13, 2022. 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 18, 2022 and June 12-13, 2022, 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 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 rate as compared to fees charged to other clients of the Sub-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; the nature of expenses 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 indirect 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 18, 2022, 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 12-13, 2022 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 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-Advisor 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-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 the Fund and reviewed all of the services 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 noted that the Advisor oversees the Sub-Advisor's day-to-day management of the 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 Fund's investment portfolio, but that the Advisor executes the 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 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 18, 2022 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 Agreement, the Board noted that the 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 the Fund, including the Sub-Advisor's day-to-day management of the Fund's investments. In considering the Sub-Advisor's management of the Fund, the Board noted the background and experience of the Sub-Advisor's portfolio manager, including the Board's prior meetings with the Page 22 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (UNAUDITED) portfolio manager. 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 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 the Fund consistent with its 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 sub-advisory fee is paid by the Advisor 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, 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 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 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 18, 2022 meeting, discussed with Broadridge its methodology for assembling peer groups and 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 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 and the Sub-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 May 25, 2021 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-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 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 that its expenses relating to providing advisory services to the Fund will likely increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. 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, 2021 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, 2021. 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 indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered that the Advisor had identified as an indirect 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 indirect benefits to the Advisor were not unreasonable. The Board considered the Sub-Advisor's statements that the Sub-Advisor believes that the current sub-advisory fee appropriately reflects 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 the Fund. The Board noted that the Advisor pays the Sub-Advisor from its 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 the potential indirect benefits to the Sub-Advisor from being associated with the Advisor and the Fund, and noted the Sub-Advisor's statements that the Sub-Advisor does not accrue any ancillary or indirect benefits due to its relationship with the Fund. The Board concluded that the character and amount of potential indirect benefits to the Sub-Advisor were not unreasonable. Page 23 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 24 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 25 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 26 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST TCW ESG PREMIER EQUITY ETF (EPRE) AUGUST 31, 2022 (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 2022 Page 27 <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 320 South Canal Street Chicago, IL 60606 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) ---------------------------- Annual Report For the Period September 20, 2021 (Commencement of Operations) through August 31, 2022 ---------------------------- <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 1 Fund Performance Overview.................................................... 2 Portfolio Commentary......................................................... 4 Understanding Your Fund Expenses............................................. 5 Portfolio of Investments..................................................... 6 Statement of Assets and Liabilities.......................................... 7 Statement of Operations...................................................... 8 Statement of Changes in Net Assets........................................... 9 Financial Highlights......................................................... 10 Notes to Financial Statements................................................ 11 Report of Independent Registered Public Accounting Firm...................... 17 Additional Information....................................................... 18 Board of Trustees and Officers............................................... 23 Privacy Policy............................................................... 25 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 SkyBridge Capital II, LLC ("SkyBridge" or 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 the series of First Trust Exchange-Traded Fund VIII (the "Trust") described in this report (First Trust SkyBridge Crypto Industry and Digital Economy 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-Advisor and their 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 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 the Fund are spelled out in the prospectus, the statement of additional information, and other Fund regulatory filings. <PAGE> -------------------------------------------------------------------------------- SHAREHOLDER LETTER -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2022 Dear Shareholders: First Trust is pleased to provide you with the annual report for the First Trust SkyBridge Crypto Industry and Digital Economy ETF (the "Fund"), which contains detailed information about the Fund for the period from the Fund's inception on September 20, 2021 through August 31, 2022. Please note that information in this letter and the report prior to the Fund's inception date will not apply to the Fund. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) The First Trust SkyBridge Crypto Industry and Digital Economy ETF's (the "Fund") investment objective is to provide investors with capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any investment borrowings) in the common stocks and American Depositary Receipts ("ADRs") of Crypto Industry Companies and Digital Economy Companies. Under normal market conditions, the Fund will invest at least 50% of its net assets (plus any investment borrowings) in Crypto Industry Companies. The remainder of the Fund's net assets used to satisfy the 80% test set forth above will be invested in Digital Economy Companies. The Fund's selection universe includes common stocks and ADRs listed on global securities exchanges, including U.S. dollar denominated and non-U.S. dollar denominated securities issued by U.S. and non-U.S. companies, including companies operating in emerging market countries. "Crypto Industry Companies" are those companies that (i) derive at least 50% of their revenue or profits directly from goods produced or sold, investments made, or services performed in the crypto industry and/or (ii) have at least 50% of their net assets accounted for by direct holdings of bitcoin, ether or another cryptocurrency. "Digital Economy Companies" are those companies that derive at least 50% of their revenue or profits directly from goods produced or sold, investments made, or services performed in the digital economy ecosystem. The Fund will not directly invest in digital assets (including bitcoin, other cryptocurrencies or initial coin offerings), or indirectly through the use of derivatives or through investments in funds or trusts that hold digital assets. As the Fund does not directly or indirectly invest in cryptocurrencies or other digital assets, the Fund does not expect to track the price movement of any cryptocurrencies or other digital assets. The Fund is classified as "non-diversified" under the Investment Company Act of 1940, as amended (the "1940 Act"). <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (9/20/21) to 8/31/22 <S> <C> FUND PERFORMANCE NAV -66.46% Market Price -66.46% INDEX PERFORMANCE S&P 500(R) Index -7.94% --------------------------------------------------------------------------------------------------------------------- </TABLE> Total returns for the period since inception are calculated from the inception date of the Fund. "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 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 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 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. 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 SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Information Technology 47.1% Financials 39.1 Communication Services 8.2 Consumer Discretionary 5.6 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM COUNTRY ALLOCATION(1) INVESTMENTS ---------------------------------------------------------- United States 75.2% Cayman Islands 15.1 Canada 9.1 United Kingdom 0.6 -------- Total 100.0% ======== (1) Portfolio securities are categorized based on their country of incorporation. ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- Galaxy Digital Holdings Ltd. 14.6% Coinbase Global, Inc., Class A 14.3 MicroStrategy, Inc., Class A 14.1 Hut 8 Mining Corp. 4.9 Block, Inc. 4.8 Riot Blockchain, Inc. 4.7 Silvergate Capital Corp., Class A 4.6 Meta Platforms, Inc., Class A 4.4 Tesla, Inc. 3.9 Alphabet, Inc., Class C 3.8 -------- Total 74.1% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT SEPTEMBER 20, 2021 - AUGUST 31, 2022 First Trust SkyBridge Crypto Industry and S&P 500(R) Digital Economy ETF Index <S> <C> <C> 9/20/21 $10,000 $10,000 2/28/22 7,431 10,099 8/31/22 3,354 9,206 </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> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust Advisors, L.P. ("First Trust" or the "Advisor") is the investment advisor to the First Trust SkyBridge Crypto Industry and Digital Economy ETF ("CRPT" or 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. SUB-ADVISOR SkyBridge Capital II, LLC ("SkyBridge" or the "Sub-Advisor") is the sub-advisor to the Fund and is a registered investment advisor based in New York, New York. SKYBRIDGE CAPITAL II, LLC PORTFOLIO MANAGEMENT TEAM ANTHONY SCARAMUCCI - FOUNDER AND MANAGING PARTNER BRETT MESSING - PRESIDENT AND CO-CHIEF INVESTMENT OFFICER The portfolio managers are primarily and jointly responsible for the day-to-day management of the Fund. Each portfolio manager has served as part of the portfolio management team of the Fund since September 2021. MARKET RECAP While markets broadly have sold off this year driven by macroeconomic headwinds, including a rising rates environment and continued inflationary pressures, the Fund's performance has also been negatively impacted by several crypto industry-specific adverse events. These include the demise of crypto stablecoin, Terra Luna, crypto "banking" platform Celsius and crypto hedge fund Three Arrows Capital. The resulting contagion effect impacted all digital assets including Bitcoin and Ethereum, the two largest digital assets by market capitalization. Bitcoin and Ethereum are often used as collateral in the digital asset eco-system, and they were adversely impacted by deleveraging/forced liquidations. As prices of digital assets declined sharply, many of the crypto-related equities held by the Fund sold off sharply as well. PERFORMANCE ANALYSIS Since the Fund's launch in September 2021, we have aimed to execute on its thematic mandate to provide exposure to companies that SkyBridge views as "Crypto Industry and Digital Economy Leaders," meaning firms that are driving cryptocurrency and crypto assets-related innovation. However, performance has been disappointing with the Fund returning -66.46% (at the market price and net asse value) from its inception on September 20, 2021 through August 31, 2022. Over the same period, the S&P 500(R) Index has returned -7.94%. The Fund's underperformance relative to the S&P 500(R) Index is due primarily to its exposure to growth stocks generally (which have underperformed value stocks, for example) as well as its exposure to crypto industry equities (for example, crypto exchange Coinbase, Inc. and Bitcoin miner Riot Blockchain, Inc.) that have been fundamentally negatively impacted by the decline in value of digital assets, including Bitcoin and Ethereum. MARKET AND FUND OUTLOOK In the wake of the selloff earlier this year, SkyBridge has taken a hard look at our digital asset investment thesis. We anticipated a bear market, but the magnitude of the recent selloff was more severe than we expected given the maturation of the asset class. We believe the two critical elements of our digital asset bull case are firmly intact: First, Bitcoin is a singular digital asset on a course of adoption as the preeminent non-sovereign alternative to fiat currency. We anticipate that the price of Bitcoin will stabilize and then rise over time because its core virtues are intact - it is decentralized, scarce, portable, and secure. The next halving in May 2024 will further contribute to its scarcity and appreciation. Second, Ethereum (and Solana, etc.) represents a generational technology transition ("Web3") as promising as the emergence of the internet. Web3 can be deployed in many markets: IT storage, video distribution, web hosting, search, etc. This new decentralized business model undercuts the profit pools associated with centralization by coordinating a community to deploy capital. The enormous flow of capital and talent into an innovative technology like this has historically generated outstanding returns for investors. The macro-driven selloff across risk assets this year has no bearing on these views, and we believe the crypto industry-specific adverse events noted earlier - even as they have understandably shaken investor confidence - have not disrupted the evolutionary course of either Bitcoin or Ethereum. We believe the Fund will continue to successfully provide thematic exposure to investors seeking exposure to the public equity of firms that are driving cryptocurrency and crypto assets-related innovation. Page 4 <PAGE> FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (UNAUDITED) As a shareholder of First Trust SkyBridge Crypto Industry and Digital Economy 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, 2022. 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) -------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) Actual $1,000.00 $ 451.40 0.85% $3.11 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, 2022 through August 31, 2022), multiplied by 184/365 (to reflect the six-month period). Page 5 <PAGE> FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 99.9% AUTOMOBILES -- 3.9% 3,775 Tesla, Inc. (a) $ 1,040,428 ------------- BANKS -- 8.0% 5,110 Signature Bank 890,980 13,560 Silvergate Capital Corp., Class A (a) 1,235,587 ------------- 2,126,567 ------------- CAPITAL MARKETS -- 31.1% 56,794 Coinbase Global, Inc., Class A (a) 3,793,839 709,695 Galaxy Digital Holdings Ltd. (CAD) (a) 3,885,261 3,938 Interactive Brokers Group, Inc., Class A 242,541 36,649 Robinhood Markets, Inc., Class A (a) 349,998 ------------- 8,271,639 ------------- INTERACTIVE MEDIA & SERVICES -- 8.2% 9,178 Alphabet, Inc., Class C (a) 1,001,779 7,251 Meta Platforms, Inc., Class A (a) 1,181,405 ------------- 2,183,184 ------------- INTERNET & DIRECT MARKETING RETAIL -- 1.7% 323 MercadoLibre, Inc. (a) 276,281 7,224 Overstock.com, Inc. (a) 188,547 ------------- 464,828 ------------- IT SERVICES -- 11.0% 18,370 Block, Inc. (a) 1,265,877 357,665 Core Scientific, Inc. (a) 786,863 604 Mastercard, Inc., Class A 195,919 2,900 PayPal Holdings, Inc. (a) 270,976 6,264 Shopify, Inc., Class A (a) 198,256 1,115 Visa, Inc., Class A 221,562 ------------- 2,939,453 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.7% 2,625 Advanced Micro Devices, Inc. (a) 222,784 1,524 NVIDIA Corp. 230,032 ------------- 452,816 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- SOFTWARE -- 33.8% 34,663 Argo Blockchain PLC, ADR (a) $ 164,996 579,448 Bitfarms Ltd. (a) 753,282 157,835 Cipher Mining, Inc. (a) 317,248 34,727 Cleanspark, Inc. (a) 148,632 32,274 Hive Blockchain Technologies Ltd. (a) 164,275 640,683 Hut 8 Mining Corp. (a) 1,300,587 71,351 Marathon Digital Holdings, Inc. (a) 845,509 16,181 MicroStrategy, Inc., Class A (a) 3,746,872 173,844 Riot Blockchain, Inc. (a) 1,246,462 7,552 Unity Software, Inc. (a) 322,621 ------------- 9,010,484 ------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 0.5% 36,120 Canaan, Inc., ADR (a) 126,781 ------------- TOTAL COMMON STOCKS -- 99.9% 26,616,180 (Cost $52,540,630) ------------- MONEY MARKET FUNDS -- 0.2% 40,942 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) 40,942 (Cost $40,942) ------------- TOTAL INVESTMENTS -- 100.1% 26,657,122 (Cost $52,581,572) NET OTHER ASSETS AND LIABILITIES -- (0.1)% (20,593) ------------- NET ASSETS -- 100.0% $ 26,636,529 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. ADR - American Depositary Receipt Currency Abbreviation: CAD - Canadian Dollar ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 26,616,180 $ 26,616,180 $ -- $ -- Money Market Funds.............................. 40,942 40,942 -- -- -------------- -------------- -------------- -------------- Total Investments............................... $ 26,657,122 $ 26,657,122 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. Page 6 See Notes to Financial Statements <PAGE> FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> ASSETS: Investments, at value.................................................. $ 26,657,122 Receivables: Investment securities sold.......................................... 2,616,077 Dividends........................................................... 854 ---------------- Total Assets........................................................ 29,274,053 ---------------- LIABILITIES: Payables: Investment securities purchased..................................... 2,614,789 Investment advisory fees............................................ 22,735 ---------------- Total Liabilities................................................... 2,637,524 ---------------- NET ASSETS............................................................. $ 26,636,529 ================ NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 76,995,779 Par value.............................................................. 42,500 Accumulated distributable earnings (loss).............................. (50,401,750) ---------------- NET ASSETS............................................................. $ 26,636,529 ================ NET ASSET VALUE, per share............................................. $ 6.27 ================ Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 4,250,002 ================ Investments, at cost................................................... $ 52,581,572 ================ </TABLE> See Notes to Financial Statements Page 7 <PAGE> FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) STATEMENT OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2022 (a) <TABLE> <CAPTION> <S> <C> INVESTMENT INCOME: Dividends.............................................................. $ 28,326 ---------------- Total investment income............................................. 28,326 ---------------- EXPENSES: Investment advisory fees............................................... 282,714 ---------------- Total expenses...................................................... 282,714 ---------------- NET INVESTMENT INCOME (LOSS)........................................... (254,388) ---------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... (26,151,728) In-kind redemptions................................................. (1,633,934) Foreign currency transactions....................................... (1,383) ---------------- Net realized gain (loss)............................................... (27,787,045) ---------------- Net change in unrealized appreciation (depreciation) on investments.... (25,924,450) ---------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ (53,711,495) ---------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ (53,965,883) ================ </TABLE> (a) Inception date is September 20, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. Page 8 See Notes to Financial Statements <PAGE> FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) STATEMENT OF CHANGES IN NET ASSETS <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) ---------------- <S> <C> OPERATIONS: Net investment income (loss)........................................... $ (254,388) Net realized gain (loss)............................................... (27,787,045) Net change in unrealized appreciation (depreciation)................... (25,924,450) ---------------- Net increase (decrease) in net assets resulting from operations........ (53,965,883) ---------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment operations.................................................. (500,000) ---------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold.............................................. 89,544,101 Cost of shares redeemed................................................ (8,441,689) ---------------- Net increase (decrease) in net assets resulting from shareholder transactions........................................................ 81,102,412 ---------------- Total increase (decrease) in net assets................................ 26,636,529 NET ASSETS: Beginning of period.................................................... -- ---------------- End of period.......................................................... $ 26,636,529 ================ CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period................................ -- Shares sold............................................................ 5,450,002 Shares redeemed........................................................ (1,200,000) ---------------- Shares outstanding, end of period...................................... 4,250,002 ================ </TABLE> (a) Inception date is September 20, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. See Notes to Financial Statements Page 9 <PAGE> FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 18.91 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) (b) Net realized and unrealized gain (loss)........................ (12.36) -------- Total from investment operations............................... (12.44) -------- DISTRIBUTIONS PAID TO SHAREHOLDERS FROM: Net investment income.......................................... (0.20) Net realized gain.............................................. (0.00) (c) -------- Total distributions............................................ (0.20) -------- Net asset value, end of period................................. $ 6.27 ======== TOTAL RETURN (d)............................................... (66.46)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 26,637 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.85% (e) Ratio of net investment income (loss) to average net assets.... (0.76)% (e) Portfolio turnover rate (f).................................... 90% </TABLE> (a) Inception date is September 20, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. (b) Based on average shares outstanding. (c) Amount is less than $0.01. (d) 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. (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. Page 10 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers the First Trust SkyBridge Crypto Industry and Digital Economy ETF (the "Fund"), which trades under the ticker "CRPT" on the 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 investors with capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets (plus any investment borrowings) in the common stocks and American Depositary Receipts ("ADRs") of Crypto Industry Companies and Digital Economy Companies. Under normal market conditions, the Fund will invest at least 50% of its net assets (plus any investment borrowings) in Crypto Industry Companies. The remainder of the Fund's net assets used to satisfy the 80% test set forth above will be invested in Digital Economy Companies. 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 Pricing Committee of the Fund's 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. 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 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. Shares of open-end funds are valued at fair value which is based on NAV per share. 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. 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 11 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 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. If the securities in question are foreign securities, the following additional information may be considered: 1) the value of similar foreign securities traded on other foreign markets; 2) ADR trading of similar securities; 3) closed-end fund or exchange-traded fund trading of similar securities; 4) foreign currency exchange activity; 5) the trading prices of financial products that are tied to baskets of foreign securities; 6) factors relating to the event that precipitated the pricing problem; 7) whether the event is likely to recur; and 8) whether the effects of the event are isolated or whether they affect entire markets, countries or regions. Because foreign markets may be open on different days than the days during which investors may transact in the shares of the 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 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 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, 2022, is included with the Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" Page 12 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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. FOREIGN CURRENCY The books and records of the Fund 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 would be included in "Net change in unrealized appreciation (depreciation) on foreign currency translation" on the Statement 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 would be shown in "Net change in unrealized appreciation (depreciation) on investments" on the Statement 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 is included in "Net realized gain (loss) on foreign currency transactions" on the Statement of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in "Net realized gain (loss) on investments" on the Statement of Operations. D. 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. The tax character of distributions during the fiscal period ended August 31, 2022 was as follows: Distributions paid from: Ordinary income $ 500,000 Capital gains -- Return of capital -- As of August 31, 2022, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income $ (593,091) Accumulated capital and other gain (loss) (14,652,625) Net unrealized appreciation (depreciation) (35,156,034) E. INCOME TAXES The 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, 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. Page 13 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 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 period ended 2022 remains open to federal and state audit. As of August 31, 2022, 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, 2022, the Fund had no capital loss carryforward 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 period ended August 31, 2022, the Fund incurred and elected to defer net late year ordinary or capital losses as follows: Qualified Late Year Losses ------------------------------------ Ordinary Losses Capital Losses ----------------- ---------------- $ 597,238 $ 14,652,625 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 period ended August 31, 2022, the adjustments for the Fund were as follows: Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital --------------------- --------------------- --------------------- $ (859) $ 4,064,992 $ (4,064,133) As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: <TABLE> <CAPTION> Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) --------------------- --------------------- --------------------- --------------------- <S> <C> <C> <C> <C> $ 61,813,156 $ 628,776 $ (35,784,810) $ (35,156,034) </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 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 supervising the selection and 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. SkyBridge Capital II, LLC ("SkyBridge" or the "Sub-Advisor") serves as the Fund's sub-advisor and manages the Fund's portfolio subject to First Trust's supervision. Pursuant to the Investment Management Agreement, between the Trust, on behalf of the Fund, and the Advisor, and the Investment Sub-Advisory Agreement among the Trust, on behalf of the Fund, the Advisor and SkyBridge, First Trust will supervise SkyBridge and its management of the investment of the Fund's assets and will pay SkyBridge for its services as the Fund's sub-advisor. SkyBridge 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 Page 14 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 management fee for that month. First Trust will also be responsible for the 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. The Fund has agreed to pay First Trust an annual unitary management fee equal to 0.85% of its average daily net assets. 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 an index fund. Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, the cost of purchases and proceeds from sales of investments, excluding short-term investments and in-kind transactions, were $29,297,405 and $29,157,171, respectively. For the fiscal period ended August 31, 2022, the cost of in-kind purchases and proceeds from in-kind sales were $88,491,974 and $8,305,916, 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 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 Page 15 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 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 September 16, 2023. 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 16 <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 SkyBridge Crypto Industry and Digital Economy ETF (the "Fund"), a series of the First Trust Exchange-Traded Fund VIII, including the portfolio of investments, as of August 31, 2022, the related statement of operations, the statement of changes in net assets, and the financial highlights for the period from September 20, 2021 (commencement of operations) through August 31, 2022, 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, 2022, and the results of its operations, the changes in its net assets, and the financial highlights for the period from September 20, 2021 (commencement of operations) through August 31, 2022, 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 audit. 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 audit 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 audit, 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 audit 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 audit 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, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Chicago, Illinois October 21, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 17 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (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 period ended August 31, 2022, 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 Received Deduction Qualified Dividend Income ---------------------------- ------------------------- 3.99% 3.99% 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 Page 18 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (UNAUDITED) 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 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. Page 19 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (UNAUDITED) 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 has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of the Fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund's shares and result in increased market volatility. During any such events, the Fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale Page 20 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (UNAUDITED) price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE REMUNERATION First Trust Advisors L.P. ("First Trust") is authorised and regulated by the U.S. Securities and Exchange Commission and is entitled to market shares of certain funds it manages, including First Trust SkyBridge Crypto Industry and Digital Economy ETF (the "Fund") in certain member states in the European Economic Area in accordance with the cooperation arrangements in Article 42 of the Alternative Investment Fund Managers Directive (the "Directive"). First Trust is required under the Directive to make disclosures in respect of remuneration. The following disclosures are made in line with First Trust's interpretation of currently available regulatory guidance on remuneration disclosures. During the period from the Fund's inception on September 20, 2021 through December 31, 2021, the amount of remuneration paid (or to be paid) by First Trust Advisors L.P. in respect of the Fund is $15,436. This figure is comprised of $594 paid (or to be paid) in fixed compensation and $14,842 paid (or to be paid) in variable compensation. There were a total of 24 beneficiaries of the remuneration described above. Those amounts include $7,927 paid (or to be paid) to senior management of First Trust Advisors L.P. and $7,509 paid (or to be paid) to other employees whose professional activities have a material impact on the risk profiles of First Trust Advisors L.P. or the Fund (collectively, "Code Staff"). Code Staff included in the aggregated figures disclosed above are rewarded in line with First Trust's remuneration policy (the "Remuneration Policy") which is determined and implemented by First Trust's senior management. The Remuneration Policy reflects First Trust's ethos of good governance and encapsulates the following principal objectives: i. to provide a clear link between remuneration and performance of First Trust and to avoid rewarding for failure; ii. to promote sound and effective risk management consistent with the risk profiles of the funds managed by First Trust; and iii. to remunerate staff in line with the business strategy, objectives, values and interests of First Trust and the funds managed by First Trust in a manner that avoids conflicts of interest. First Trust assesses various risk factors which it is exposed to when considering and implementing remuneration for Code Staff and considers whether any potential award to such person(s) would give rise to a conflict of interest. First Trust does not reward failure, or consider the taking of risk or failure to take risk in its remuneration of Code Staff. First Trust assesses performance for the purposes of determining payments in respect of performance-related remuneration of Code Staff by reference to a broad range of measures including (i) individual performance (using financial and non-financial criteria), and (ii) the overall performance of First Trust. Remuneration is not based upon the performance of the Fund. The elements of remuneration are balanced between fixed and variable and the senior management sets fixed salaries at a level sufficient to ensure that variable remuneration incentivises and rewards strong individual performance but does not encourage excessive risk taking. No individual is involved in setting his or her own remuneration. 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, Page 21 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (UNAUDITED) 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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 22 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 23 <PAGE> -------------------------------------------------------------------------------- BOARD OF TRUSTEES AND OFFICERS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 24 <PAGE> -------------------------------------------------------------------------------- PRIVACY POLICY -------------------------------------------------------------------------------- FIRST TRUST SKYBRIDGE CRYPTO INDUSTRY AND DIGITAL ECONOMY ETF (CRPT) AUGUST 31, 2022 (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 2022 Page 25 <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 SkyBridge Capital II, LLC 527 Madison Avenue, 4th Floor New York, NY 10022 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 320 South Canal Street Chicago, IL 60606 <PAGE> [BLANK BACK COVER] <PAGE>
FIRST TRUST First Trust Exchange-Traded Fund VIII -------------------------------------------------------------------------------- First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) ---------------------------- Annual Report For the Period October 13, 2021 (Commencement of Operations) through August 31, 2022 ---------------------------- Driehaus Capital Management LLC Stephens Investment Management Group, LLC <PAGE> -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) ANNUAL REPORT AUGUST 31, 2022 Shareholder Letter........................................................... 1 Fund Performance Overview.................................................... 2 Portfolio Commentary......................................................... 4 Understanding Your Fund Expenses............................................. 6 Portfolio of Investments..................................................... 7 Statement of Assets and Liabilities.......................................... 11 Statement of Operations...................................................... 12 Statement of Changes in Net Assets........................................... 13 Financial Highlights......................................................... 14 Notes to Financial Statements................................................ 15 Report of Independent Registered Public Accounting Firm...................... 21 Additional Information....................................................... 22 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 Driehaus Capital Management LLC and/or Stephens Investment Management Group, LLC (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 Small Cap Opportunities 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 a relevant market benchmark. 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 SMALL CAP OPPORTUNITIES ETF (MMSC) ANNUAL LETTER FROM THE CHAIRMAN AND CEO AUGUST 31, 2022 Dear Shareholders: First Trust is pleased to provide you with the annual report for the First Trust Multi-Manager Small Cap Opportunities ETF (the "Fund"), which contains detailed information about the Fund for the period from the Fund's inception on October 13, 2021 through August 31, 2022. Please note that information in this letter and the report prior to the Fund's inception date will not apply to the Fund. At their most recent meeting (September 20-21, 2022), the Federal Open Market Committee announced a 75 basis point interest rate hike, the third rate hike in as many meetings. Overall, the Federal Reserve (the "Fed") has raised its benchmark Federal Funds target rate (upper bound) from 0.25% this past March to 3.25% as of September 30, 2022, the fastest pace for rate hikes since 1994. The Fed is hiking interest rates aggressively to combat the surge in inflation that commenced in the second quarter of 2021. Perhaps the most common measure of inflation is the Consumer Price Index ("CPI"). The CPI has averaged 3.0% per year since 1926 but stood at an eye-popping 8.3% on a trailing 12-month basis in August 2022. Its recent high point was 9.1% in June 2022. For borrowers, these rate hikes will raise the cost of capital, making it tougher to secure loans for consumers and businesses. The goal is to raise interest rates high enough to cool some of the demand for goods and services so that inflation can begin to moderate. The Fed would eventually like to see the CPI back near the 2.0% level. It will take some time to play out. Guidance from Fed Chairman Jerome Powell indicates that more rate hikes are coming, perhaps as much as another 100 basis points by year-end. We'll see. One of the areas that has yet to cool off is the housing market, in my opinion. We have seen a substantial selloff this year in the stock and bond markets, but not housing. Prices appreciated markedly across the U.S. during the coronavirus ("COVID-19") pandemic. Demand was high and inventories were uncharacteristically low. Simply put, housing affordability has become a huge challenge for many prospective buyers. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which tracks the value of single-family homes, soared 45.2% from the end of 2019 through June 2022. Keep in mind, historically, home prices tend to rise with inflation over time. They are not supposed to increase 45% over 30 months. The rapid increase in short-term lending rates has caused the rate on a 30-year fixed-rate mortgage to nearly double from 3.27% at the end of 2021 to 6.43% as of September 21, 2022, according to Bankrate. The sharp rise in mortgage rates is just beginning to have a slight effect on demand. Redfin reported that close to 63,000 deals on existing homes fell through in July 2022, or around 16% of homes under contract that month, according to CNBC. Fed Chairman Powell is trying to engineer a soft landing for the economy via monetary policy. In other words, the Fed is trying to avoid a deep and lengthy recession. That is why the relative resilience of the real estate markets, both residential and commercial, is so critical at this juncture. One other plus going for the U.S. economy today is the strong labor market. As of this report, companies are still hiring. If these sources of strength eventually succumb to the economic headwinds and turn weaker, the odds of achieving a soft landing drop dramatically, in my opinion. For those investors who like to follow the news closely, in addition to monitoring the state of the economy, keep an eye on the war between Russia and Ukraine as well as the COVID-19-induced lockdowns of cities in China. Any good news on those two fronts could be a net positive for the markets moving forward. As I previously noted, it is going to take some time to remedy this situation. As always, we encourage investors to be diversified and stay the course. 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 SMALL CAP OPPORTUNITIES ETF (MMSC) The First Trust Multi-Manager Small Cap Opportunities ETF (the "Fund") seeks to provide long-term capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets (plus borrowing for investment purposes) in equity securities issued by small capitalization companies. The Fund considers small capitalization companies to be those companies with market capitalizations, at the time of investment, within the market capitalization range of the companies comprising the Russell 2000(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 and common stocks issued by non-U.S. companies that are principally traded in the United States. The Fund utilizes a multi-manager approach to provide exposure to the small capitalization growth segment of the equity market through the blending of multiple portfolio management teams. The Fund lists and principally trades its shares on the NYSE Arca, Inc. under the ticker symbol "MMSC." <TABLE> <CAPTION> --------------------------------------------------------------------------------------------------------------------- PERFORMANCE --------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS Inception (10/13/21) to 8/31/22 <S> <C> FUND PERFORMANCE NAV -24.86% Market Price -24.81% INDEX PERFORMANCE Russell 2000(R) Growth Index -23.12% --------------------------------------------------------------------------------------------------------------------- </TABLE> Total returns for the period since inception are calculated from the inception date of the Fund. "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 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. 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 SMALL CAP OPPORTUNITIES ETF (MMSC) (CONTINUED) ---------------------------------------------------------- % OF TOTAL LONG-TERM SECTOR CLASSIFICATION INVESTMENTS ---------------------------------------------------------- Health Care 24.3% Information Technology 22.7 Industrials 17.5 Consumer Discretionary 10.2 Consumer Staples 8.0 Financials 6.6 Energy 5.6 Materials 3.4 Communication Services 0.9 Utilities 0.4 Real Estate 0.4 -------- Total 100.0% ======== ---------------------------------------------------------- % OF TOTAL LONG-TERM TOP TEN HOLDINGS INVESTMENTS ---------------------------------------------------------- MGP Ingredients, Inc. 1.8% Celsius Holdings, Inc. 1.7 Chart Industries, Inc. 1.6 Halozyme Therapeutics, Inc. 1.4 CyberArk Software Ltd. 1.4 Wingstop, Inc. 1.2 Manhattan Associates, Inc. 1.2 Kinsale Capital Group, Inc. 1.1 Acadia Healthcare Co., Inc. 1.1 Cytokinetics, Inc. 1.1 -------- Total 13.6% ======== <TABLE> <CAPTION> PERFORMANCE OF A $10,000 INITIAL INVESTMENT OCTOBER 13, 2021 - AUGUST 31, 2022 First Trust Multi-Manager Russell 2000(R) Small Cap Opportunities ETF Growth Index <S> <C> <C> 10/13/21 $10,000 $10,000 2/28/22 8,653 8,604 8/31/22 7,514 7,688 </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> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) ADVISOR First Trust Advisors L.P. ("First Trust" or the "Advisor) is the investment advisor to the First Trust Multi-Manager Small Cap Opportunities ETF ("MMSC" or the "Fund"). The following serve as investment sub-advisors (each, a "Sub-Advisor") to the Fund: Driehaus Capital Management LLC ("DCM") and Stephens Investment Management Group, LLC ("SIMG"). 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 o Erik Russo, Vice President of First Trust SUB-ADVISOR PORTFOLIO MANAGERS DRIEHAUS CAPITAL MANAGEMENT LLC o Jeffrey James, Lead Portfolio Manager o Michael Buck, Portfolio Manager o Prakash Vijayan, CFA, Assistant Portfolio Manager STEPHENS INVESTMENT MANAGEMENT GROUP, LLC o Ryan E. Crane, Chief Investment Officer o Kelly Ranucci, Senior Portfolio Manager o John Keller, Portfolio Manager o John M. Thornton, Senior Portfolio Manager o Samuel M. Chase III, Senior Portfolio Manager The Investment Committee members are primarily and jointly responsible for the day-to-day management of the Fund, while each of the Sub-Advisor portfolio managers provides non-discretionary investment advice to the Investment Committee. Each portfolio manager has served as a part of the portfolio management team of the Fund since October 2021. COMMENTARY MARKET OVERVIEW The past twelve-month period ended August 31, 2022, has been a difficult period for U.S. equities. While the fourth quarter of 2021 exhibited heightened levels of volatility and a continued rotation from growth to value-oriented companies, initially beginning in February 2021, the majority of the market drawdown occurred during the first half of 2022. This six-month period was among the most extreme in terms of total percentage declines for small cap stocks, recording the worst percentage decline ever for a first half of a year for the Russell 2000(R) Index and the Russell 2000(R) Growth Index. It was also the worst first half of a year for the S&P 500(R) Index since 1970. While the market declines were severe across all market cap ranges and nearly every industry, the smallest market caps and growth declined more than larger caps and value. Following these declines, in July and August 2022 markets rebounded sharply from the lows and recovered a portion of losses incurred earlier in the year. Amid growing bearish sentiment and fear of a Federal Reserve (the "Fed") induced economic slowdown, equity multiples were under severe pressure. Inflation thus far has proven more persistent and stubborn than hoped. This has further pressured equities through the period as market participants concluded the Fed would have to further raise interest rates and tighten financial conditions more aggressively. This monetary stance by the Fed increases the risk of U.S. recession, in our opinion. Page 4 <PAGE> -------------------------------------------------------------------------------- PORTFOLIO COMMENTARY (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) ANNUAL REPORT AUGUST 31, 2022 (UNAUDITED) While inflation is the number one focus for the Fed, positively, there are multiple signs the underlying drivers of inflation in the U.S could be starting to peak/marginally ease; M2 (the widely used measure of the money supply) growth has slowed, average hourly wages also appear to have peaked as labor participation rates are improving, supply chains are improving (though issues remain), inventories in many industries are returning to more normal or in some cases are at elevated levels, most commodity prices have fallen and some sharply, core Consumer Price Index ("CPI") (ex-food and energy) and Personal Consumption Expenditures have eased from recent highs, and market-based measures of inflation expectations have eased meaningfully. While these are very encouraging secondary signs, market participants and the Fed want to see total CPI peak and improve materially to conclude inflation is convincingly on track for a decline to lower levels. CPI data released over the past several months has continued to show inflation at increased levels, albeit elevating at a slower pace. PERFORMANCE REVIEW Over the period since the Fund's inception on October 13, 2021 through August 31, 2022, the Fund returned -24.86% on a net asset value basis and -24.81% on a market price basis. The Russell 2000(R) Growth Index (the "Benchmark") returned -23.12% for the same period. The Fund underperformed the Benchmark over the period. On a relative basis, selection in the Industrials sector was the largest driver of underperformance as those stocks held in the Fund had worse returns than the Benchmark. Kornit Digital Ltd., an off-Benchmark holding, contributed the largest degree of underperformance, as it was down 79.30% for the period, and represented approximately 1% of the Fund. Selection within the Consumer Discretionary sector was also detrimental to the Fund's performance with companies from that sector held in the Fund returning worse than the Benchmark. Offsetting some of the losses on a relative basis were stock picks in the Healthcare sector, specifically within the Pharmaceuticals and Biotechnology & Life Sciences industries, where the Fund's stocks held in relatively better than the Benchmark. The top two contributors, Cytokinetics, Inc. (+42.2%) and Xenon Pharmaceuticals, Inc. (+30.6%), had strong positive returns in a down quarter. MARKET OUTLOOK & FUND POSITIONING The market's conditions remain challenging. Macro conditions have continued to dominate over bottom-up and industry trends. The market fears inflation will continue to drive the Fed to further tighten financial conditions and to raise interest rates which will put further pressure on the economy and on earnings. Positively, valuations have declined for small cap stocks. Looking at history, the current declines in price and in multiple are similar to past recessions. While the odds of a recession have increased materially, economic conditions remain mixed. Some economic variables are recessionary while several others are not, yet. A second key positive is that multiple inflation indicators in the US appear to be showing signs of easing. However, it is not clear how quickly the rate of inflation will come down, if at all, over the rest of the second half and fourth quarter. Several scenarios could play out in terms of the trajectory of inflation. Also, it is not clear how much the economy and earnings will slow. A bullish scenario that could unfold is inflation eases leading into the fourth quarter, the Fed's rhetoric in time adjusts to the improving inflation outlook and the economy and earnings continue to deteriorate, but only modestly so. In this scenario, we believe equity multiples are likely to stabilize in the coming months with severe economic and earnings declines already discounted. A bearish scenario would be inflation remains stubbornly high versus expectations, the Fed is forced to remain very hawkish and economic growth and earnings deteriorate. Suffice it to say, we expect continued volatility, in our opinion. In the short run, this is never pleasant. However, as long-term investors, we are excited. We believe this market could soon present investment opportunities, the likes of which we haven't seen in a decade. Page 5 <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) UNDERSTANDING YOUR FUND EXPENSES AUGUST 31, 2022 (UNAUDITED) As a shareholder of First Trust Multi-Manager Small Cap Opportunities 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, 2022. 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, 2022 AUGUST 31, 2022 PERIOD PERIOD (a) ------------------------------------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) Actual $1,000.00 $ 868.30 0.95% $4.47 Hypothetical (5% return before expenses) $1,000.00 $1,020.42 0.95% $4.84 </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, 2022 through August 31, 2022), multiplied by 184/365 (to reflect the six-month period). Page 6 <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) PORTFOLIO OF INVESTMENTS AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS -- 97.9% AEROSPACE & DEFENSE -- 3.4% 159 AAR Corp. (a) $ 6,818 133 AeroVironment, Inc. (a) 11,790 115 Axon Enterprise, Inc. (a) 13,418 71 HEICO Corp., Class A 8,703 441 Kratos Defense & Security Solutions, Inc. (a) 5,530 365 RADA Electronic Industries Ltd. (a) 3,661 76 Spirit AeroSystems Holdings, Inc., Class A 2,288 ------------- 52,208 ------------- AIR FREIGHT & LOGISTICS -- 0.4% 82 Hub Group, Inc., Class A (a) 6,544 ------------- AUTO COMPONENTS -- 1.1% 30 Fox Factory Holding Corp. (a) 2,796 52 Gentherm, Inc. (a) 3,115 88 Visteon Corp. (a) 10,545 ------------- 16,456 ------------- BANKS -- 0.7% 93 Silvergate Capital Corp., Class A (a) 8,474 44 Triumph Bancorp, Inc. (a) 2,724 ------------- 11,198 ------------- BEVERAGES -- 4.0% 242 Celsius Holdings, Inc. (a) 25,045 460 Duckhorn Portfolio (The), Inc. (a) 8,390 250 MGP Ingredients, Inc. 27,365 ------------- 60,800 ------------- BIOTECHNOLOGY -- 7.2% 166 Apellis Pharmaceuticals, Inc. (a) 10,045 337 Crinetics Pharmaceuticals, Inc. (a) 6,363 313 Cytokinetics, Inc. (a) 16,576 530 Exelixis, Inc. (a) 9,402 67 Galapagos N.V., ADR (a) 3,354 526 Halozyme Therapeutics, Inc. (a) 21,424 18 Karuna Therapeutics, Inc. (a) 4,591 81 Ligand Pharmaceuticals, Inc. (a) 7,484 133 Merus N.V. (a) 3,149 217 Nuvalent, Inc., Class A (a) 3,663 332 Relay Therapeutics, Inc. (a) 7,626 391 Xenon Pharmaceuticals, Inc. (a) 15,175 ------------- 108,852 ------------- BUILDING PRODUCTS -- 0.7% 207 AZEK (The) Co., Inc. (a) 3,778 136 Trex Co., Inc. (a) 6,363 ------------- 10,141 ------------- CAPITAL MARKETS -- 0.8% 16 MarketAxess Holdings, Inc. 3,977 71 Piper Sandler Cos. 8,135 ------------- 12,112 ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- CHEMICALS -- 1.9% 183 Aspen Aerogels, Inc. (a) $ 2,381 64 Balchem Corp. 8,436 101 Cabot Corp. 7,269 321 Livent Corp. (a) 10,330 ------------- 28,416 ------------- COMMERCIAL SERVICES & SUPPLIES -- 1.8% 46 Casella Waste Systems, Inc., Class A (a) 3,769 71 Driven Brands Holdings, Inc. (a) 2,231 200 Montrose Environmental Group, Inc. (a) 8,042 100 Ritchie Bros Auctioneers, Inc. 6,934 48 Tetra Tech, Inc. 6,519 ------------- 27,495 ------------- COMMUNICATIONS EQUIPMENT -- 0.8% 201 Calix, Inc. (a) 11,829 ------------- CONSTRUCTION & ENGINEERING -- 2.7% 144 Ameresco, Inc., Class A (a) 9,914 50 Comfort Systems USA, Inc. 5,017 64 Dycom Industries, Inc. (a) 7,176 157 Fluor Corp. (a) 4,151 365 WillScot Mobile Mini Holdings Corp. (a) 14,651 ------------- 40,909 ------------- CONSUMER FINANCE -- 2.5% 96 Encore Capital Group, Inc. (a) 5,249 1,019 EZCORP, Inc., Class A (a) 8,916 166 FirstCash Holdings, Inc. 12,942 272 PRA Group, Inc. (a) 10,048 ------------- 37,155 ------------- DIVERSIFIED CONSUMER SERVICES -- 1.2% 79 Bright Horizons Family Solutions, Inc. (a) 5,388 72 Duolingo, Inc. (a) 6,769 242 European Wax Center, Inc., Class A 5,235 ------------- 17,392 ------------- ELECTRICAL EQUIPMENT -- 0.4% 240 Shoals Technologies Group, Inc., Class A (a) 6,329 ------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 1.1% 108 Cognex Corp. 4,548 177 National Instruments Corp. 7,037 393 nLight, Inc. (a) 4,909 ------------- 16,494 ------------- See Notes to Financial Statements Page 7 <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ENERGY EQUIPMENT & SERVICES -- 1.0% 191 Cactus, Inc., Class A $ 7,631 232 Patterson-UTI Energy, Inc. 3,457 212 ProFrac Holding Corp., Class A (a) 4,174 ------------- 15,262 ------------- ENTERTAINMENT -- 0.3% 58 World Wrestling Entertainment, Inc., Class A 3,945 ------------- EQUITY REAL ESTATE INVESTMENT TRUSTS -- 0.3% 63 Ryman Hospitality Properties, Inc. (a) 5,180 ------------- FOOD & STAPLES RETAILING -- 1.7% 333 Chefs' Warehouse (The), Inc. (a) 11,102 210 Grocery Outlet Holding Corp. (a) 8,425 112 Performance Food Group Co. (a) 5,598 ------------- 25,125 ------------- FOOD PRODUCTS -- 1.1% 249 Hostess Brands, Inc. (a) 5,772 694 Mission Produce, Inc. (a) 11,173 ------------- 16,945 ------------- HEALTH CARE EQUIPMENT & SUPPLIES -- 8.0% 76 AtriCure, Inc. (a) 3,467 117 Axonics, Inc. (a) 8,453 180 BioLife Solutions, Inc. (a) 4,250 92 Inari Medical, Inc. (a) 6,380 57 Inspire Medical Systems, Inc. (a) 10,915 21 Insulet Corp. (a) 5,365 48 iRhythm Technologies, Inc. (a) 7,078 185 Lantheus Holdings, Inc. (a) 14,578 218 Neogen Corp. (a) 4,556 126 NuVasive, Inc. (a) 5,356 116 Omnicell, Inc. (a) 11,866 131 PROCEPT BioRobotics Corp. (a) 5,303 52 Shockwave Medical, Inc. (a) 15,437 73 STAAR Surgical Co. (a) 6,905 144 Tandem Diabetes Care, Inc. (a) 6,586 86 TransMedics Group, Inc. (a) 4,475 ------------- 120,970 ------------- HEALTH CARE PROVIDERS & SERVICES -- 2.4% 204 Acadia Healthcare Co., Inc. (a) 16,714 59 AMN Healthcare Services, Inc. (a) 6,056 194 HealthEquity, Inc. (a) 12,819 ------------- 35,589 ------------- HEALTH CARE TECHNOLOGY -- 1.0% 317 Allscripts Healthcare Solutions, Inc. (a) 5,389 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- HEALTH CARE TECHNOLOGY (CONTINUED) 223 HealthStream, Inc. (a) $ 4,935 166 Schrodinger, Inc. (a) 4,555 ------------- 14,879 ------------- HOTELS, RESTAURANTS & LEISURE -- 3.3% 70 Dave & Buster's Entertainment, Inc. (a) 2,894 301 Everi Holdings, Inc. (a) 5,568 141 Papa John's International, Inc. 11,397 921 Playa Hotels & Resorts N.V. (a) 6,042 157 Wingstop, Inc. 17,876 330 Xponential Fitness, Inc., Class A (a) 6,049 ------------- 49,826 ------------- HOUSEHOLD DURABLES -- 0.3% 84 Skyline Champion Corp. (a) 4,760 ------------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.4% 213 Sunnova Energy International, Inc. (a) 5,372 ------------- INSURANCE -- 2.5% 67 Kinsale Capital Group, Inc. 16,990 161 Palomar Holdings, Inc. (a) 12,766 196 Ryan Specialty Holdings, Inc. (a) 8,302 ------------- 38,058 ------------- INTERNET & DIRECT MARKETING RETAIL -- 1.2% 937 aka Brands Holding Corp. (a) 1,949 360 Farfetch Ltd., Class A (a) 3,611 247 Revolve Group, Inc. (a) 5,802 150 Xometry, Inc., Class A (a) 7,351 ------------- 18,713 ------------- IT SERVICES -- 3.3% 61 DigitalOcean Holdings, Inc. (a) 2,568 63 Endava PLC, ADR (a) 6,363 23 ExlService Holdings, Inc. (a) 3,857 315 Flywire Corp. (a) 7,831 60 Globant S.A. (a) 12,646 115 Maximus, Inc. 6,968 137 Toast, Inc., Class A (a) 2,593 50 WEX, Inc. (a) 7,713 ------------- 50,539 ------------- LEISURE PRODUCTS -- 0.4% 268 Callaway Golf Co. (a) 5,931 ------------- LIFE SCIENCES TOOLS & SERVICES -- 3.4% 164 Alpha Teknova, Inc. (a) 740 139 Azenta, Inc. 7,327 26 Bio-Techne Corp. 8,627 49 ICON PLC (a) 10,282 37 Medpace Holdings, Inc. (a) 5,461 Page 8 See Notes to Financial Statements <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) LIFE SCIENCES TOOLS & SERVICES (CONTINUED) 71 Repligen Corp. (a) $ 15,575 59 Syneos Health, Inc. (a) 3,546 ------------- 51,558 ------------- MACHINERY -- 3.8% 122 Chart Industries, Inc. (a) 23,651 127 Evoqua Water Technologies Corp. (a) 4,455 150 Kornit Digital Ltd. (a) 4,662 48 Lindsay Corp. 7,697 56 RBC Bearings, Inc. (a) 13,478 165 Shyft Group (The), Inc. 3,952 ------------- 57,895 ------------- MARINE -- 0.2% 50 Kirby Corp. (a) 3,353 ------------- MEDIA -- 0.6% 51 Nexstar Media Group, Inc. 9,757 ------------- METALS & MINING -- 1.5% 369 ATI, Inc. (a) 11,044 335 MP Materials Corp. (a) 11,722 ------------- 22,766 ------------- MULTILINE RETAIL -- 0.5% 138 Ollie's Bargain Outlet Holdings, Inc. (a) 7,633 ------------- OIL, GAS & CONSUMABLE FUELS -- 4.4% 445 Cameco Corp. 12,972 127 Excelerate Energy, Inc., Class A 3,261 287 Golar LNG Ltd. (a) 7,827 385 Magnolia Oil & Gas Corp., Class A 9,190 198 Matador Resources Co. 11,801 954 Southwestern Energy Co. (a) 7,145 499 Viper Energy Partners, L.P. 15,229 ------------- 67,425 ------------- PERSONAL PRODUCTS -- 1.1% 346 Beauty Health (The) Co. (a) 4,014 350 BellRing Brands, Inc. (a) 8,291 111 elf Beauty, Inc. (a) 4,232 ------------- 16,537 ------------- PHARMACEUTICALS -- 1.9% 227 DICE Therapeutics, Inc. (a) 3,564 46 Intra-Cellular Therapies, Inc. (a) 2,312 253 Pacira BioSciences, Inc. (a) 13,278 280 Supernus Pharmaceuticals, Inc. (a) 9,584 ------------- 28,738 ------------- PROFESSIONAL SERVICES -- 2.3% 37 Exponent, Inc. 3,473 72 FTI Consulting, Inc. (a) 11,563 77 ICF International, Inc. 7,820 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- PROFESSIONAL SERVICES (CONTINUED) 259 KBR, Inc. $ 12,510 ------------- 35,366 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 4.4% 167 Ambarella, Inc. (a) 11,336 95 Axcelis Technologies, Inc. (a) 6,359 109 Impinj, Inc. (a) 9,732 67 Lattice Semiconductor Corp. (a) 3,611 109 MaxLinear, Inc. (a) 3,916 97 Onto Innovation, Inc. (a) 6,886 88 Power Integrations, Inc. 6,295 139 Semtech Corp. (a) 6,420 59 Silicon Laboratories, Inc. (a) 7,395 39 Synaptics, Inc. (a) 4,509 ------------- 66,459 ------------- SOFTWARE -- 12.6% 17 Aspen Technology, Inc. (a) 3,627 201 Box, Inc., Class A (a) 5,176 158 Braze, Inc., Class A (a) 6,506 226 Clear Secure, Inc., Class A (a) 5,184 147 CyberArk Software Ltd. (a) 21,209 80 Descartes Systems Group (The), Inc. (a) 5,632 81 Docebo, Inc. (a) 2,434 265 EngageSmart, Inc. (a) 5,292 186 Envestnet, Inc. (a) 9,741 139 Five9, Inc. (a) 13,637 132 Gitlab, Inc., Class A (a) 7,903 30 Guidewire Software, Inc. (a) 2,151 125 Manhattan Associates, Inc. (a) 17,658 148 nCino, Inc. (a) 4,668 55 Paylocity Holding Corp. (a) 13,255 360 Ping Identity Holding Corp. (a) 10,130 249 PROS Holdings, Inc. (a) 5,192 143 Q2 Holdings, Inc. (a) 5,680 71 Qualys, Inc. (a) 10,785 107 Rapid7, Inc. (a) 6,153 47 Sprout Social, Inc., Class A (a) 2,822 119 SPS Commerce, Inc. (a) 14,532 78 Tenable Holdings, Inc. (a) 3,090 8 Tyler Technologies, Inc. (a) 2,972 221 Varonis Systems, Inc. (a) 6,044 ------------- 191,473 ------------- SPECIALTY RETAIL -- 1.9% 31 Boot Barn Holdings, Inc. (a) 2,065 83 Floor & Decor Holdings, Inc., Class A (a) 6,753 531 Leslie's, Inc. (a) 7,529 33 Murphy USA, Inc. 9,576 357 Sportsman's Warehouse Holdings, Inc. (a) 2,842 ------------- 28,765 ------------- See Notes to Financial Statements Page 9 <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2022 SHARES DESCRIPTION VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) TEXTILES, APPAREL & LUXURY GOODS -- 0.1% 26 Crocs, Inc. (a) $ 1,916 ------------- TRADING COMPANIES & DISTRIBUTORS -- 1.3% 47 Applied Industrial Technologies, Inc. 4,983 254 Core & Main, Inc., Class A (a) 5,987 70 SiteOne Landscape Supply, Inc. (a) 8,761 ------------- 19,731 ------------- TOTAL COMMON STOCKS -- 97.9% 1,484,796 (Cost $1,663,591) ------------- SHARES DESCRIPTION VALUE --------------------------------------------------------------------- MONEY MARKET FUNDS -- 2.2% 33,119 Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 2.06% (b) $ 33,119 (Cost $33,119) ------------- TOTAL INVESTMENTS -- 100.1% 1,517,915 (Cost $1,696,710) NET OTHER ASSETS AND LIABILITIES -- (0.1)% (904) ------------- NET ASSETS -- 100.0% $ 1,517,011 ============= (a) Non-income producing security. (b) Rate shown reflects yield as of August 31, 2022. ADR - American Depositary Receipt ----------------------------- VALUATION INPUTS A summary of the inputs used to value the Fund's investments as of August 31, 2022 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 8/31/2022 PRICES INPUTS INPUTS -------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> Common Stocks*.................................. $ 1,484,796 $ 1,484,796 $ -- $ -- Money Market Funds.............................. 33,119 33,119 -- -- -------------- -------------- -------------- -------------- Total Investments............................... $ 1,517,915 $ 1,517,915 $ -- $ -- ============== ============== ============== ============== </TABLE> * See Portfolio of Investments for industry breakout. Page 10 See Notes to Financial Statements <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 2022 <TABLE> <CAPTION> <S> <C> ASSETS: Investments, at value.................................................. $ 1,517,915 Dividends receivable................................................... 376 --------------- Total Assets........................................................ 1,518,291 --------------- LIABILITIES: Investment advisory fees payable....................................... 1,280 --------------- Total Liabilities................................................... 1,280 --------------- NET ASSETS............................................................. $ 1,517,011 =============== NET ASSETS CONSIST OF: Paid-in capital........................................................ $ 2,014,170 Par value.............................................................. 1,000 Accumulated distributable earnings (loss).............................. (498,159) --------------- NET ASSETS............................................................. $ 1,517,011 =============== NET ASSET VALUE, per share............................................. $ 15.17 =============== Number of shares outstanding (unlimited number of shares authorized, par value $0.01 per share).............................. 100,002 =============== Investments, at cost................................................... $ 1,696,710 =============== </TABLE> See Notes to Financial Statements Page 11 <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) STATEMENT OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2022 (a) <TABLE> <CAPTION> <S> <C> INVESTMENT INCOME: Dividends.............................................................. $ 6,132 Foreign withholding tax................................................ (62) --------------- Total investment income............................................. 6,070 --------------- EXPENSES: Investment advisory fees............................................... 14,517 --------------- Total expenses...................................................... 14,517 --------------- NET INVESTMENT INCOME (LOSS)........................................... (8,447) =============== REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) on: Investments......................................................... (314,364) Foreign currency transactions....................................... (7) --------------- Net realized gain (loss)............................................... (314,371) --------------- Net change in unrealized appreciation (depreciation) on investments.... (178,795) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS)................................ (493,166) --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ (501,613) =============== </TABLE> (a) Inception date is October 13, 2021, 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 SMALL CAP OPPORTUNITIES ETF (MMSC) STATEMENT OF CHANGES IN NET ASSETS <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) --------------- <S> <C> OPERATIONS: Net investment income (loss)......................................................... $ (8,447) Net realized gain (loss)............................................................. (314,371) Net change in unrealized appreciation (depreciation)................................. (178,795) --------------- Net increase (decrease) in net assets resulting from operations...................... (501,613) --------------- SHAREHOLDER TRANSACTIONS: Proceeds from shares sold............................................................ 2,018,624 Cost of shares redeemed.............................................................. -- --------------- Net increase (decrease) in net assets resulting from shareholder transactions........ 2,018,624 --------------- Total increase (decrease) in net assets.............................................. 1,517,011 NET ASSETS: Beginning of period.................................................................. -- --------------- End of period........................................................................ $ 1,517,011 =============== CHANGES IN SHARES OUTSTANDING: Shares outstanding, beginning of period.............................................. -- Shares sold.......................................................................... 100,002 Shares redeemed...................................................................... -- --------------- Shares outstanding, end of period.................................................... 100,002 =============== </TABLE> (a) Inception date is October 13, 2021, which is consistent with the commencement of investment operations and is the date the initial creation units were established. See Notes to Financial Statements Page 13 <PAGE> FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD <TABLE> <CAPTION> PERIOD ENDED 8/31/2022 (a) -------------- <S> <C> Net asset value, beginning of period........................... $ 20.19 -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (loss)................................... (0.08) Net realized and unrealized gain (loss)........................ (4.94) -------- Total from investment operations............................... (5.02) -------- Net asset value, end of period................................. $ 15.17 ======== TOTAL RETURN (b)............................................... (24.86)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 1,517 RATIOS TO AVERAGE NET ASSETS: Ratio of total expenses to average net assets.................. 0.95% (c) Ratio of net investment income (loss) to average net assets.... (0.55)% (c) Portfolio turnover rate (d).................................... 74% </TABLE> (a) Inception date is October 13, 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 14 See Notes to Financial Statements <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 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 ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust currently consists of fifty-six funds that are offering shares. This report covers the First Trust Multi-Manager Small Cap Opportunities ETF (the "Fund"), which trades under the ticker "MMSC" on the 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 (plus borrowing for investment purposes) in equity securities issued by small capitalization companies. The Fund considers small capitalization companies to be those companies with market capitalizations, at the time of investment, within the market capitalization range of the companies comprising the Russell 2000(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 and common stocks issued by non-U.S. companies that are principally traded in the United States. The Fund utilizes a multi-manager approach to provide exposure to the small 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 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 Page 15 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 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, 2022, is included with the Fund's Portfolio of Investments. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, establishing requirements to determine fair value in good faith for purposes of the 1940 Act. The rule permits fund boards to designate a fund's investment adviser to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth recordkeeping requirements associated with fair value determinations. The compliance date for Rule 2a-5 and Rule 31a-4 is September 8, 2022. Effective September 8, 2022 and pursuant to the requirements of Rule 2a-5, the Trust's Board of Trustees designated the Advisor as its valuation designee to perform fair value determinations and approved new Advisor Valuation Procedures for the Trust. 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. FOREIGN CURRENCY The books and records of the Fund 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 would be shown in "Net change in unrealized appreciation (depreciation) on foreign currency translation" on the Statement of Operations. Unrealized gains and losses on Page 16 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 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 Statement 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 Statement of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in "Net realized gain (loss) on investments" on the Statement of Operations. D. 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. The Fund did not pay a distribution during its fiscal period ended August 31, 2022. As of August 31, 2022, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income................. $ (4,995) Accumulated capital and other gain (loss)..... (296,685) Net unrealized appreciation (depreciation).... (196,479) E. INCOME TAXES The 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, 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 period ended 2022 remains open to federal and state audit. As of August 31, 2022, 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, 2022, for federal income tax purposes, the Fund had $296,685 capital loss carryforwards available, 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 Fund's shareholders. 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, 2022, the Fund incurred and elected to defer net late year ordinary or capital losses as follows: Qualified Late Year Losses ----------------------------------------- Ordinary Losses Capital Losses ---------------- -------------- $ 4,995 $ -- 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 Page 17 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 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 period ended August 31, 2022, the adjustments for the Fund were as follows: Accumulated Accumulated Net Realized Net Investment Gain (Loss) Paid-in Income (Loss) on Investments Capital -------------- -------------- -------------- $ 3,452 $ 2 $ (3,454) As of August 31, 2022, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: Gross Gross Net Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation (Depreciation) (Depreciation) -------------- -------------- -------------- -------------- $ 1,714,394 $ 106,194 $ (302,673) $ (196,479) 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 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 0.95% 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 Driehaus Capital Management LLC ("DCM") and Stephens Investment Management Group, LLC ("SIMG") (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, DCM and SIMG 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 0.35% of the average daily net assets of the Fund (i.e., for each sub-advisor, 0.35% 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 an index fund. Page 18 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 Additionally, the Lead Independent Trustee and the Chairs 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 Chairs 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, 2022, the cost of purchases and proceeds from sales of investments, excluding short-term investments and in-kind transactions, were $1,267,877 and $1,263,933, respectively. For the fiscal period ended August 31, 2022, the cost of in-kind purchases and proceeds from in-kind sales were $1,974,210 and $0, 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 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 October 8, 2023. Page 19 <PAGE> -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 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 no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed. Page 20 <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 Small Cap Opportunities ETF (the "Fund"), a series of the First Trust Exchange-Traded Fund VIII, including the portfolio of investments, as of August 31, 2022, the related statement of operations, the statement of changes in net assets, and the financial highlights for the period from October 13, 2021 (commencement of operations) through August 31, 2022, 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, 2022, and the results of its operations, the changes in its net assets, and the financial highlights for the period from October 13, 2021 (commencement of operations) through August 31, 2022, 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, 2022, 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, 2022 We have served as the auditor of one or more First Trust investment companies since 2001. Page 21 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 (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 There were no distributions made by the Fund during the Fund's fiscal period ended August 31, 2022; therefore, no analysis for the corporate dividends received deduction and qualified dividend income was 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 22 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 (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, has ceased making LIBOR available as a reference rate over a phase-out period that began December 31, 2021. There is no assurance that any alternative reference rate, including the Secured Overnight Financing Rate ("SOFR") will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. 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 23 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 (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. Market risk is the risk that a particular security, or shares of a fund in general, may fall in value. 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. In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed "reasonably" normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. These events also adversely affect the prices and liquidity of a fund's portfolio securities or other instruments and could result in disruptions in the trading markets. Any of such circumstances could have a materially negative impact on the value of a fund's shares and result in increased market volatility. During any such events, a fund's shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on a fund's shares may widen. 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. VALUATION RISK. The valuation of certain securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial markets, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. A fund may hold investments in sizes smaller than institutionally sized round lot positions (sometimes referred to as odd lots). However, third-party pricing services generally provide evaluations on the basis of institutionally-sized round lots. If a fund sells certain of its investments in an odd lot transaction, the sale price may be less than the value at which such securities have been held by the fund. Odd lots often trade at lower prices than institutional round lots. There is no assurance that the fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the fund. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE 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"). Page 24 <PAGE> -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (CONTINUED) -------------------------------------------------------------------------------- FIRST TRUST MULTI-MANAGER SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 (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 18, 2022 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 16, 2021 through the Liquidity Committee's annual meeting held on March 17, 2022 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 SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 (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, Edward-Elmhurst Medical 220 None (1951) Group; Physician and Officer, o Since Inception Wheaton Orthopedics (1990 to 2021) Thomas R. Kadlec, Trustee o Indefinite Term Retired; President, ADM Investors 220 Director, National Futures (1957) Services, Inc. (Futures Commission Association and ADMIS o Since Inception Merchant) (2010 to July 2022) Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMISHong Kong Ltd., and Futures Industry Association Denise M. Keefe, Trustee o Indefinite Term Executive Vice President, Advocate 220 Director and Board Chair (1964) Aurora Health and President, of Advocate Home Health o Since 2021 Advocate Aurora Continuing Health Services, Advocate Home Division (Integrated Healthcare Care Products and System) Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director and Board Chair of RML Long Term Acute Care Hospitals; and Director of Senior Helpers (since 2021) Robert F. Keith, Trustee o Indefinite Term President, Hibs Enterprises 220 Formerly, Director of (1956) (Financial and Management Trust Company of Illinois o Since Inception Consulting) Niel B. Nielson, Trustee o Indefinite Term Senior Advisor (2018 to Present), 220 None (1954) Managing Director and Chief o Since Inception Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ James A. Bowen(1), Trustee, o Indefinite Term Chief Executive Officer, First 220 None Chairman of the Board Trust 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 SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 (UNAUDITED) <TABLE> <CAPTION> POSITION AND TERM OF OFFICE NAME AND OFFICES AND LENGTH OF PRINCIPAL OCCUPATIONS 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, First (1966) Executive Officer Trust Advisors L.P. and First Trust Portfolios L.P.; o Since Inception Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) Donald P. Swade Treasurer, Chief Financial o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1972) Officer and Chief First Trust Portfolios L.P. Accounting Officer o Since Inception W. Scott Jardine Secretary and Chief Legal o Indefinite Term General Counsel, First Trust Advisors L.P. and First (1960) Officer Trust Portfolios L.P.; Secretary and General Counsel, o Since Inception BondWave LLC; Secretary, Stonebridge Advisors LLC Daniel J. Lindquist Vice President o Indefinite Term Managing Director, First Trust Advisors L.P. and First (1970) Trust Portfolios L.P. o Since Inception Kristi A. Maher Chief Compliance Officer o Indefinite Term Deputy General Counsel, First Trust Advisors L.P. and (1966) and Assistant Secretary First Trust Portfolios L.P. o Since Inception Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1966) First Trust Portfolios L.P. o Since Inception Stan Ueland Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P. and (1970) 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 SMALL CAP OPPORTUNITIES ETF (MMSC) AUGUST 31, 2022 (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 2022 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 Driehaus Capital Management LLC 25 East Erie Street Chicago, IL 60611 Stephens Investment Management Group, LLC 111 Center Street Little Rock, Arkansas 72201 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 320 South Canal Street Chicago, IL 60606 <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 $819,125 for the fiscal year ended August 31, 2021 and $1,060,313 for the fiscal year ended August 31, 2022.
(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, 2021 and $0 for the fiscal year ended August 31, 2022.
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, 2021 and $0 for the fiscal year ended August 31, 2022.
(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 $107,971 for the fiscal year ended August 31, 2021 and $478,151 for the fiscal year ended August 31, 2022. These fees were for tax consultation and/or tax return preparation and professional services rendered for PFIC (Passive Foreign Investment Company) Identification Services.
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, 2021 and $0 for the fiscal year ended August 31, 2022.
(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, 2021 and $0 for the fiscal year ended August 31, 2022.
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, 2021 and $0 for the fiscal year ended August 31, 2022.
(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, 2021, were $107,971 for the registrant, $23,200 for the registrant’s investment advisor and $29,500 for the registrant’s distributor; and for the fiscal year ended August 31, 2022 were $478,151 for the registrant, $16,500 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, Denise M. Keefe, 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 7, 2022 |
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 7, 2022 |
By (Signature and Title)* | /s/ Donald P. Swade | |
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | November 7, 2022 |
* Print the name and title of each signing officer under his or her signature.