An actively managed ETF that seeks to provide federal, New York State and New York City tax-exempt income

First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that it has launched a new actively managed ETF, the First Trust New York Municipal High Income ETF (NYSE Arca: FMNY) (the “fund”). The fund seeks to provide income that is exempt from regular federal, New York State and New York City income taxes with long-term capital appreciation as a secondary objective. The fund will seek to achieve its investment objectives by investing primarily in municipal debt securities issued by the state of New York.

“As investors prepare for the prospect of higher taxes, we believe demand for tax-free municipal bond ETFs may accelerate in the months ahead,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust. “Our experienced municipal securities team at First Trust employs a rigorous, disciplined approach to managing risk, while seeking to capitalize on yield curve, industry weightings, and individual credit opportunities,” said Issakainen. The First Trust Municipal Securities Team applies both quantitative analysis and fundamental research to seek higher-yielding undervalued securities within the municipal market. In choosing the securities, the portfolio managers seek to take advantage of municipal market inefficiencies through an investment process that practices diligent credit analysis of individual issuers coupled with a thorough understanding of the major opportunities and risks within municipal sectors. They also apply a quantitative total return scenario analysis using multiple interest rate assumptions over different time horizons.

The First Trust Municipal Securities Team sees ample opportunities in municipal securities. In their view, credit fundamentals are improving for many municipal security issuers and taxable equivalent yields are attractive relative to other fixed income asset classes. Given the potential for interest rates to continue to rise as a result of stronger economic growth, the team believes that in the current market, the fund’s long-intermediate focus, coupled with including securities with lower investment grade ratings and high-yield bonds, may provide investors less interest rate sensitivity than longer duration portfolios.*

Johnathan N. Wilhelm, Senior Vice President and Tom Futrell, CFA, Senior Vice President at First Trust, serve as senior portfolio managers of the fund. The two will share responsibilities for the day‑to‑day management of the fund’s investment portfolio.

For more information about First Trust, please contact Ryan Issakainen of First Trust at (630) 765-8689 or RIssakainen@FTAdvisors.com.

About First Trust

First Trust is a federally registered investment advisor and serves as the fund’s investment advisor. First Trust and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust has collective assets under management or supervision of approximately $194 billion as of April 30, 2021 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust and FTP are based in Wheaton, Illinois. For more information, visit http://www.ftportfolios.com.

You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 to obtain a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

Risk Considerations

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share’s net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. If the fund’s authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund’s net asset value and possibly face delisting.

A fund’s shares will change in value and you could lose money by investing in the fund. Market risk is the risk that a particular security owned by a fund or shares of a fund in general may fall in value. In managing a fund’s investment portfolio, the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that a fund’s investment objectives will be achieved.

The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of this COVID-19 pandemic may last for an extended period and will continue to impact the economy for the foreseeable future.

The values of municipal securities may be adversely affected by local political and economic conditions and developments. Events in New York, including economic or political policy changes, tax base erosion, budget deficits and other financial difficulties, and changes in the credit ratings assigned to municipal issuers of New York, are likely to affect the fund’s investments and its performance. Because the fund primarily purchases municipal bonds from New York and may also purchase municipal bonds from U.S. territories, such as Puerto Rico, it is more susceptible to adverse economic, political or regulatory changes affecting municipal bond issuers in those locations. The Puerto Rican economy is reliant on and parallels the economic cycles of the United States, and current economic difficulties in the United States are likely to have an adverse impact on the overall economy of Puerto Rico. The fund will be less diversified geographically than a fund investing across many states.

Municipal securities are subject to numerous additional risks, including credit, call, income, inflation, interest rate, extension and prepayment risks. These risks could result in the decline in a security's value, a decline in a fund's income, increased volatility as interest rates rise or fall, and have an adverse impact on a fund's performance. These risks may be heightened for high yield securities.

Participation interests in municipal leases pose special risks because many leases and contracts contain “non-appropriation” clauses that provide that the governmental issuer has no obligation to make future payments under the lease or contract unless money is appropriated for this purpose by the appropriate legislative body.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Ratings assigned by a credit rating agency are opinions of such entities, not absolute standards of credit quality and they do not evaluate risks of securities. Any shortcomings or inefficiencies in the process of determining credit ratings may adversely affect the credit ratings of the securities held by the fund and their perceived or actual credit risk.

Distressed securities are illiquid or trade in low volumes and thus may be more difficult to value.

The differences in yield between debt securities of different credit quality may increase which may reduce the market value of a fund’s debt securities.

Inventories of municipal securities have decreased in recent years and some municipal securities may have resale restrictions lessening the ability to make a market in these securities. This reduction in market making capacity has the potential to decrease the fund’s ability to buy or sell municipal securities and increase price volatility and trading costs.

There is no assurance that the fund will be able to sell a portfolio security at the price established by a pricing service, which could result in a loss to the fund.

The securities held in an escrow fund pledged to pay the principal and interest of a pre-refunded bond do not guarantee the price of the bond.

Private activity bonds can have a substantially different credit profile than the municipality or public authority that issued them and may be negatively impacted by conditions affecting the credit of the use of the project or the project itself.

Income from municipal bonds could be declared taxable because of, among other things, unfavorable changes in tax laws, adverse interpretations by the Internal Revenue Service or state tax authorities, or noncompliant conduct of a bond issuer. Income from municipal bonds may be subject to the federal alternative minimum tax.

High yield securities, or “junk” bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered to be highly speculative. Distressed municipal securities are speculative and involve substantial risks in addition to the risks of investing in high yield securities that are not in default.

Although the shares of a fund are listed for trading on the Exchange, there can be no assurance that an active trading market for such shares will develop or be maintained.

As the use of Internet technology has become more prevalent in the course of business, a fund has become more susceptible to potential operational risks through breaches in cyber security.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

A fund that effects a significant portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

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

Please see the fund’s prospectus for a complete description of all the risks of investing in the fund.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund’s distributor.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

*Duration is a measure of a bond's sensitivity to interest rate changes that reflects the change in a bond's price given a change in yield.

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