First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC US) - Portfolio Construction Methodology

Group 1 - The Dorsey Wright Dynamic Focus Five Index provides a momentum-driven allocation to five First Trust sector/industry ETFs, with a dynamic risk-off capacity through the First Trust Enhanced Short Maturity ETF (FTSM) [1] - The methodology ranks eligible First Trust sector/industry ETFs using a Point & Figure relative-strength matrix, selecting the top five that cover at least three broad sectors and equally weighting them [1] - Evaluations occur twice monthly, during the second and fourth weeks, with an additional evaluation in December, and rebalancing takes place at each evaluation [1] Group 2 - If FTSM ranks within the top 67% of the matrix, the index allocates to FTSM, with its target weight calculated as 100% minus FTSM's percentile rank, subject to a ±33 percentage-point step limit per evaluation [1] - The remaining allocation is split equally across the selected equity ETFs, and deletions outside evaluations are not replaced [1]