The First Trust NASDAQ Smartphone Index Fund is an exchange-traded fund. The Fund seeks investment results that correspond generally to the price and yield (before the Funds fees and expenses) of an equity index called the Nasdaq CTA Smartphone Index. The index is designed to track the performance of companies engaged in the smartphone segment of the telecom and technology sectors. To be eligible for the index, issuers of the securities must be classified as a smartphone company as determined by the Consumer Technology Association. Component securities must be listed on an index-eligible global stock exchange, as determined by the NASDAQ OMX, have a minimum worldwide market capitalization of $250 million, have a minimum free float of 20%, and have a minimum three-month average daily dollar trading volume of $1 million. 45% of the index weight is allocated to Handsets, 45% of the index weight is allocated to Software Applications and Hardware Components, and 10% of the index weight is allocated to Network Providers. Index components are equally weighted within each business segment. Index components are reconstituted semi-annually and rebalanced quarterly.