If You Invested in First Trust Smith Unconstrained Plus Bond ETF (UCON)

First Trust Smith Unconstrained Bond ETF (UCON) is an exchange-traded fund that is a series of First Trust Exchange-Traded Fund VIII. According to fund disclosures, First Trust Advisors L.P. ("FTA") serves as the investment advisor to the fund, and Smith Capital Investors, LLC ("Smith Capital") serves as the investment sub-advisor. The fund is associated with the fixed income market, as indicated by its name and its inclusion in communications alongside First Trust Smith Opportunistic Fixed Income ETF.

UCON was previously known as First Trust TCW Unconstrained Plus Bond ETF. Shareholders approved changes that resulted in the fund being renamed First Trust Smith Unconstrained Bond ETF and in the appointment of Smith Capital as the investment sub-advisor under a new investment sub-advisory agreement. These changes were approved as part of a broader governance and advisory update for certain series of First Trust Exchange-Traded Fund VIII.

Investment advisory and sub-advisory structure

FTA is described as a federally registered investment advisor that serves as investment advisor to UCON. FTA and its affiliate, First Trust Portfolios L.P. ("FTP"), are privately held companies based in Wheaton, Illinois and provide investment-related services across vehicles such as unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTP is identified as a FINRA-registered broker-dealer and distributor of mutual fund shares and exchange-traded fund creation units.

Smith Capital acts as the investment sub-advisor to UCON under an investment sub-advisory agreement. As sub-advisor, Smith Capital is responsible for, among other things, the selection and ongoing monitoring of the securities in the fund’s investment portfolio. Smith Capital is described as providing a disciplined, fundamentally driven approach to fixed-income investment management and advisory services.

Manager of Managers Structure

UCON participates in a "manager of managers" structure that applies to certain funds within First Trust Exchange-Traded Fund VIII. Under this structure, FTA and the trust, subject to approval by the Board of Trustees, may enter into and materially amend investment sub-advisory agreements with affiliated and unaffiliated sub-advisors for the fund without obtaining shareholder approval. The structure also permits disclosure of certain advisory and sub-advisory fee information on an aggregate, rather than individual, basis in specified disclosure documents.

This framework is intended to give the Board and FTA flexibility in overseeing and adjusting sub-advisory relationships for UCON and other affected funds, while maintaining board-level oversight and compliance with applicable regulations.

Governance and board oversight

UCON is overseen by the Board of Trustees of First Trust Exchange-Traded Fund VIII. Shareholders of UCON vote together with shareholders of other series of the trust on certain governance matters, such as the election or re-election of trustees. Proxy materials describe how shareholders of record as of a specified record date are entitled to vote at special meetings of shareholders and outline the process for voting by mail, phone, internet, or in person.

The Board of Trustees is responsible for supervising the operations of the trust and its series, including UCON, and for approving advisory and sub-advisory agreements. Proxy statements explain that the Board may propose that shareholders elect or re-elect trustees to provide flexibility for future board appointments within the limits of the Investment Company Act of 1940.

Shareholder information

Fund communications state that each fund’s daily closing price, net asset value per share, and other information can be obtained through First Trust’s information channels. Shareholders receive proxy materials when their vote is requested on matters such as trustee elections or approval of advisory-related structures. These materials include questions and answers to help explain the proposals, voting requirements, and how costs associated with proxy solicitations are shared among affected funds.

Disclosures emphasize that information provided by FTA is not intended to constitute an investment recommendation or individualized investment advice. Financial professionals are described as being responsible for independently evaluating investment risks and determining whether investments are appropriate for their clients.

Key characteristics

• Fund type: Exchange-traded fund, series of First Trust Exchange-Traded Fund VIII.
• Focus: Fixed income exposure as indicated by the fund’s name and association with other fixed income funds.
• Advisor: First Trust Advisors L.P., a federally registered investment advisor.
• Sub-advisor: Smith Capital Investors, LLC, responsible for selecting and monitoring portfolio securities.
• Former name: First Trust TCW Unconstrained Plus Bond ETF.
• Governance: Overseen by a Board of Trustees; shareholders participate in elections and other proposals via proxy voting.
• Manager of managers: Structure allowing board-approved changes to sub-advisors without additional shareholder votes, within defined parameters.