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First Trust Enhanced Short Maturity ETF Approves Investment Management Fee Waiver and Reverse Share Split

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First Trust Advisors L.P. (“First Trust”) announced today that the Board of Trustees (“Board”) of First Trust Exchange-Traded Fund IV (the “Trust”), on behalf of First Trust Enhanced Short Maturity ETF (the “Fund”), an actively-managed exchange-traded fund (NASDAQ:FTSM) , has approved an additional waiver of the Fund’s management fees in the amount of 0.10% of the Fund’s average daily net assets for a period of one year beginning October 29, 2014. First Trust serves as the investment advisor to the Fund. The Board has also approved a one-for-two reverse share split for the Fund.

With the additional fee waiver, the Fund’s total annual fund operating expenses after fee waivers and offsets will be 0.25% of the Fund’s average daily net assets. The Fund’s annual unitary management fee is 0.45% of the Fund’s average daily net assets. First Trust previously agreed to waive management fees in the amount of 0.10% of the Fund’s average daily net assets until August 6, 2015 and to reduce management fees by the proportional amount of the Fund’s acquired fund fees and expenses for the Fund’s investment in other investment companies managed by First Trust. Please see the Fund’s prospectus, as supplemented, for more information.

The reverse share split will result in every two outstanding shares being converted into one share, thereby reducing the number of shares outstanding. Once the reverse share split is complete, each shareholder’s account will reflect one-half fewer shares with a net asset value per share that reflects the combined shares. The Fund’s shares will continue to trade under the same ticker symbol, FTSM, and the Fund will be assigned a new CUSIP number, 33739Q408. First Trust currently anticipates the reverse share split will be effective as of the opening of business on The NASDAQ Stock Market, LLC on or about November 10, 2014, subject to all regulatory requirements and other conditions being satisfied.

The Fund launched on August 6, 2014. The Fund’s investment objective is to seek current income, consistent with preservation of capital and daily liquidity. The Fund seeks to achieve its investment objective by investing, under normal conditions, at least 80% of its net assets in a portfolio of U.S. dollar-denominated fixed- and variable-rate instruments issued by U.S. and non-U.S. public and private sector entities. These will include the following types of fixed- and variable-rate debt instruments: corporate and government bonds and notes; agency securities; instruments of non-U.S. issuers in developed markets; privately issued securities; asset-backed securities; mortgage-related securities; municipal bonds; and money market securities.

First Trust, along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $99 billion as of September 30, 2014 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is based in Wheaton, Illinois.

You should consider the investment objective, risk, charges and expenses of the Fund before investing. The prospectus for the Fund contains this and other important information and is available free of charge by calling toll-free 1-800-621-1675 or visiting http://www.ftportfolios.com. The prospectus should be read carefully before investing.

This press release is not intended to, and shall not, constitute an offer to purchase or sell shares of the Fund. Past performance is no assurance of future results. The Fund’s shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. There can be no assurance that the Fund’s investment objective will be achieved. An investment in the Fund involves risks similar to those of investing in a portfolio of securities traded on exchanges. The risks of investing in the Fund are spelled out in its prospectus, shareholder report, and other regulatory filings.

An actively-managed exchange-traded fund is subject to management risk because it is an actively managed portfolio. In managing the Fund’s investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not have the desired result. The Fund is subject to risk associated with investing in mortgage-related and other asset-backed securities, interest rate risk, prepayment risk, credit risk, call risk, cash transaction risk, fixed income securities risk, floating rate loan risk, income risk, investment company risk, new fund risk, non-U.S. securities risk, and volatility risk.

Investors buying or selling Fund shares on the secondary market may incur brokerage commissions. Investors who sell Fund shares may receive less than the share’s net asset value. Unlike shares of open-end funds, investors are generally not able to purchase Fund shares directly from the Fund and individual shares are not redeemable. However, specified large blocks of shares called “creation units” can be purchased from, or redeemed to, the Fund.

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