ETF Risk Report: SKYY Buyer beware: Every ETF holds the full risk of its underlying equities Disclosures in the best interest of investors

First Trust ISE Gray Swan Event Risks exist for every equity held by SKYY. Gray swan events include accounting fraud, management failures, failed internal controls, M&A problems, restatements, etc. These risks occur infrequently, but Gray Swan Event Factor for SKYY 1.11% consistently for all equities. Equities account for 92.10% of SKYY’s assets. Most investors ignore these risks until after they are disclosed; whereupon a stock’s price drops precipitously. Just as insurance companies can predict likely costs for a driver’s future car accidents based on the driver’s history, Watchdog Research contacts each ETF asking how they notify investors about we predict the likely cost (price drop) for SKYY following accounting governance risks in equities in their fund. We will publish their response gray swan disclosures within its holdings. The expected when received. price decrease across the SKYY equity portfolio is 1.11%. However, individual equity risks vary signicantly. This report helps investors know their risk exposure.

Inception Date: 07/05/2020 Year-to-Date Return: 0.83% The First Trust Cloud Computing ETF tracks the investment results of the ISE CTA Cloud Computing Net Assets: $5.91b 1-Year Return: 76.13% Thematic Index, a modied-equal-weighted index of companies involved in the cloud computing industry, Price: $95.76 3-Year Return: 26.24% including those that deliver infrastructure--servers, Net Asset Value (NAV): $95.71 5-Year Return: 27.16% storage, and networks; those that deliver a platform for the creation of software in the form of virtualization, Net Expense Ratio: 0.60% Yield: 0.19% middleware, and/or operating systems; and those that deliver software applications. The Fund uses an indexing As of: 03/31/2021 approach to replicate the performance of the Index by investing in the common stocks that comprise it. The Index rebalances and reconstitutes quarterly.

Company Ticker Held Current GSEF Category Value Top Holdings by Value

Microsoft Corp. MSFT Long 0.97% Low $233m This table shows Gray Swan Event Factors for the top ten equity holdings by dollar-value, as of Sep 24, 2021. Arista Networks, Inc. ANET Long 0.58% Low $229m Investors should invest in ETFs only when they adequately Amazon.Com Inc. AMZN Long 0.77% Low $229m understand an ETF’s risks. Buyer beware. ETF prospectuses generally acknowledge that ETF managers Alibaba Group Holdi... BABA Long 2.82% Mid $227m do NO traditional risk analysis on equities in their fund. Alphabet Inc. GOOGL Long 0.46% Low $222m Our Gray Swan Event Factors are meant to inform investors of signicant traditional accounting and Mongodb, Inc. MDB Long 0.52% Low $221m managerial risks for the equities in each ETF.

Vmware, Inc. VMW Long 1.09% Low $217m ETF Risk Reports are published quarterly on dedicated Oracle Corp. ORCL Long 0.50% Low $212m platforms like Factset, Renitiv, Capital IQ etc. Weekly updates are available for a paid subscription. Rackspace Technolog... RXT Long 0.59% Low $208m For more details contact: [email protected] Lumen Technologies Inc LUMN Long - NA $176m

Company Ticker Held Current GSEF Category Value Riskiest Holdings

Intuit Inc. INTU Long 4.62% Mid $39.9m This table shows the individual Gray Swan Event Factors for this ETF’s most at-risk equities as of Sep 24, 2021. Twilio Inc. TWLO Long 3.66% Mid $126m The average equity GSEF across 6,500 public equities is Fastly, Inc. FSLY Long 3.30% Mid $135m 1.25%. Equities with a GSEF between 5% and 10% are considered high risk. Equities with a GSEF above 10% are Zoom Video Communic... ZM Long 3.10% Mid $41.7m extreme risks. Gray Swan Event Factors are derived from skilled analysts Citrix Systems Inc. CTXS Long 2.98% Mid $146m charting 15 years of negative gray swan event disclosures Alibaba Group Holdi... BABA Long 2.82% Mid $227m against stock pri