N-CSRS 1 vit_ncsrs.htm SEMI-ANNUAL REPORT TO SHAREHOLDERS

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22652

First Trust Variable Insurance Trust
(Exact name of registrant as specified in charter)

120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)

 

W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)

 

registrant’s telephone number, including area code: 630-765-8000

Date of fiscal year end: December 31

Date of reporting period: June 30, 2022

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 

Item 1. Reports to Stockholders.

(a)       The Report to Shareholders is attached herewith.

 

First Trust Variable Insurance Trust
Semi-Annual Report
For the Six Months Ended
June 30, 2022

Table of Contents
First Trust Variable Insurance Trust
Semi-Annual Report
June 30, 2022

2
Fund Performance Overview

3

6

8

10

11

12

17
Portfolio of Investments

19

36

44

45

47

50

52

54

56

66

82

Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”), Energy Income Partners, LLC (“EIP” or the “Sub-Advisor”), and/or Stonebridge Advisors LLC (“Stonebridge” or the “Sub-Advisor”) and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of any series of First Trust Variable Insurance Trust (the “Trust”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that any series (individually called a “Fund” and collectively the “Funds”) of the Trust will achieve its investment objectives. Each Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in a Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Funds.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns and net asset value will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on each Fund’s web page at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment. It includes details about each Fund and presents data and analysis that provide insight into each Fund’s performance.
The statistical information that follows may help you understand each Fund’s performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of the Advisor and/or Sub-Advisors are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in each Fund are spelled out in the prospectus, the statement of additional information, this report and other Fund regulatory filings.
Page 1

Shareholder Letter
First Trust Variable Insurance Trust
Semi-Annual Letter from the Chairman and CEO
June 30, 2022
Dear Shareholders,
First Trust is pleased to provide you with the semi-annual report for the First Trust Variable Insurance Trust (the “Funds”), which contains detailed information about the Funds for the six months ended June 30, 2022.
The trillions of dollars of stimulus funneled into the U.S. financial system by the Federal government throughout the bulk of the coronavirus (“COVID-19”) pandemic was effective in bolstering economic activity, as reflected by some impressive gross domestic product (“GDP”) statistics. It also fueled inflation. I will touch on that angle as well. Data from the U.S. Bureau of Economic Analysis indicates that annualized real GDP growth rates over the four quarters comprising 2021 were 6.3%, 6.7%, 2.3% and 6.9%, respectively. It appears, however, that the upside from those stimulus dollars may be waning. In the first two quarters of 2022, the U.S. economy contracted. Real GDP declined by an annualized 1.6% in the first quarter and declined by an annualized 0.9% in the second quarter. Why the downturn? Well, the lion’s share of the stimulus programs for individuals ended in September 2021. The war between Russia and Ukraine, which commenced in late February 2022, China’s COVID-19 shutdown this year and the ongoing supply chain bottlenecks have also provided a drag on the global economy and securities markets, in my opinion. While the standard definition of a recession is two consecutive quarters of negative GDP growth, the official arbiter of declaring recessions in the U.S. belongs to the National Bureau of Economic Research, and it factors in additional economic indicators in its evaluation process. Even if we were to experience a recession, it does not necessarily mean it will be deep in scope. Currently, the Federal Reserve (the “Fed”) is still hoping to orchestrate a soft landing for the economy, though it admits it will be challenging.
In addition to the recent decline in economic activity, the financial media is paying a good deal of attention to the inverted yield curve in the Treasury market, particularly the spread between the yields on the 2-Year and 10-Year Treasury Note (“T-Note”). As of July 27, 2022, the closing yield on the 2-Year T-Note was 3.00%, 21 basis points (“bps”) above the 2.79% yield on the 10-Year T-Note. The current inversion has only been in play in earnest since July 5, 2022. Yields on shorter-maturity bonds should be lower than those further out on the curve. For the 30-year period ended July 27, 2022, the average yield on the 10-Year T-Note was 113 bps higher than the average yield on the 2-Year T-Note. Historically, such inversions have portended that a recession is likely to arrive in the next 12-24 months. At its meeting on July 27, 2022, the Fed raised the Federal Funds target rate by 75 bps to combat the spike in inflation. The target rate currently sits at 2.50%, marking the upper bound of its 2.25% to 2.50% range. The Fed’s next meeting is scheduled for September 20-21, 2022.
In the current climate, the number one goal is to tame inflation. The Fed has made it clear that it is committed to doing so. The Consumer Price Index stood at a trailing 12-month rate of 9.1% in June 2022, its highest level since 1981. Surging inflation is the number one concern of Americans. It is certainly going to be a hot button issue in the upcoming mid-term elections in November. A recent CNN poll revealed that 75% of Americans consider inflation their top economic concern and only 25% approve of President Joe Biden’s efforts to curtail it. This dovetails into another concern: the markets. With respect to returns, on a year-to-date and 12-month basis, all the major domestic and foreign stock and bond indices were sitting in negative territory, based on their respective total returns through June 30, 2022. Sell-offs are a natural part of market cycles. We all know that prices do not go up in a straight line. As previously noted, the Fed, the economy and the markets are battling some significant headwinds. The good news is we know what they are. Suffice it to say, it will take some time to remedy them. Stay the course!
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Funds again in six months.
Sincerely,
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 2

Fund Performance Overview
First Trust/Dow Jones Dividend & Income Allocation Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Return Comparison
      Average Annual Total Returns
  6 Months Ended
6/30/22
1 Year Ended
6/30/22
5 Years Ended
6/30/22
10 Years Ended
6/30/22
Inception
(5/1/12)
to 6/30/22
Fund Performance          
First Trust/Dow Jones Dividend & Income Allocation Portfolio - Class I -14.92% -10.91% 4.92% 6.85% 6.75%
Index Performance          
Blended Benchmark(1) -17.72% -13.84% 6.13% 7.70% 7.49%
Bloomberg U.S. Corporate Investment-Grade Index(2) -14.39% -14.19% 1.28% 2.62% 2.71%
Russell 3000® Index(3) -21.10% -13.87% 10.60% 12.57% 12.02%
Secondary Blended Benchmark(4) -18.27% -14.45% 6.12% 7.70% 7.50%
Dow Jones Equal Weight U.S. Issued Corporate Bond IndexSM(5) -15.25% -14.97% 1.35% 2.70% 2.81%
Dow Jones U.S. Total Stock Market IndexSM(6) -21.33% -14.24% 10.48% 12.47% 11.92%
    
Return Comparison
      Average Annual
Total Returns
  6 Months
Ended
6/30/22
1 Year
Ended
6/30/22
5 Years
Ended
6/30/22
Inception
(5/1/14)
to 6/30/22
Fund Performance        
First Trust/Dow Jones Dividend & Income Allocation Portfolio - Class II -14.84% -10.66% 5.17% 6.30%
Index Performance        
Blended Benchmark(1) -17.72% -13.84% 6.13% 6.50%
Bloomberg U.S. Corporate Investment-Grade Index(2) -14.39% -14.19% 1.28% 2.24%
Russell 3000® Index(3) -21.10% -13.87% 10.60% 10.44%
Secondary Blended Benchmark(4) -18.27% -14.45% 6.12% 6.51%
Dow Jones Equal Weight U.S. Issued Corporate Bond IndexSM(5) -15.25% -14.97% 1.35% 2.35%
Dow Jones U.S. Total Stock Market IndexSM(6) -21.33% -14.24% 10.48% 10.34%
The returns for the Fund do not reflect the deduction of expenses associated with variable products, such as mortality and expense risk charges, separate account charges, and sales charges or the effect of taxes. These expenses would reduce the overall returns shown.

(1) The Blended Benchmark returns are a 50/50 split between the Russell 3000® Index and the Bloomberg U.S. Corporate Investment-Grade Index returns. The Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 50-50 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above.
(2) Bloomberg U.S. Corporate Investment-Grade Index measures the performance of investment grade U.S. corporate bonds. The index includes all publicly issued, dollar-denominated corporate bonds with a minimum of $250 million par outstanding that are investment grade-rated (Baa3/BBB- or higher). The index excludes bonds having less than one year to final maturity as well as floating rate bonds, non-registered private placements, structured notes, hybrids, and convertible securities. (Bloomberg). (The index reflects no deduction for fees, expenses or taxes).
(3) The Russell 3000® Index is composed of 3,000 large U.S. companies, as determined by market capitalization. This index represents approximately 98% of the investable U.S. equity market. (Bloomberg). (The index reflects no deduction for fees, expenses or taxes).
(4) The Secondary Blended Benchmark return is a 50/50 split between the Dow Jones U.S. Total Stock Market IndexSM and the Dow Jones Equal Weight U.S. Issued Corporate Bond IndexSM returns. The Secondary Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 50-50 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Secondary Blended Benchmark for each period shown above.
(5) The Dow Jones Equal Weight U.S. Issued Corporate Bond IndexSM measures the return of readily tradable, high-grade U.S. corporate bonds. The index includes an equally weighted basket of 96 recently issued investment-grade corporate bonds with laddered maturities. (The index reflects no deduction for fees, expenses or taxes).
(6) The Dow Jones U.S. Total Stock Market IndexSM measures all U.S. equity securities that have readily available prices. (The index reflects no deduction for fees, expenses or taxes).
Page 3

Fund Performance Overview (Continued)
First Trust/Dow Jones Dividend & Income Allocation Portfolio (Continued)
Semi-Annual Report
June 30, 2022 (Unaudited)

  
Page 4

Fund Performance Overview (Continued)
First Trust/Dow Jones Dividend & Income Allocation Portfolio (Continued)
Semi-Annual Report
June 30, 2022 (Unaudited)
Credit Quality(7) % of Total
Fixed-Income
Investments
AAA 8.1%
AA- 12.1
A+ 7.7
A 16.0
A- 9.6
BBB+ 15.5
BBB 18.2
BBB- 12.8
Total 100.0%
    
Top Equity Holdings % of Total
Investments
Merck & Co., Inc. 0.5%
Dollar General Corp. 0.5
Northrop Grumman Corp. 0.5
CVB Financial Corp. 0.5
Service Corp. International 0.5
Gilead Sciences, Inc. 0.5
First Interstate BancSystem, Inc., Class A 0.5
Booz Allen Hamilton Holding Corp. 0.5
Progressive (The) Corp. 0.5
UnitedHealth Group, Inc. 0.5
Total 5.0%
    
Top Fixed-Income Holdings by Issuer % of Total
Investments
United States Treasury 3.6%
Bank of America Corp. 2.7
JPMorgan Chase & Co. 2.6
Citigroup, Inc. 2.5
Goldman Sachs Group (The), Inc. 2.3
Morgan Stanley 2.3
CVS Health Corp. 1.1
Charter Communications Operating LLC/Charter Communications Operating Capital 1.0
AT&T, Inc. 0.9
Verizon Communications, Inc. 0.9
Total 19.9%
Sector Allocation % of Total
Investments
Common Stocks  
Financials 19.3%
Industrials 14.4
Consumer Discretionary 5.8
Health Care 5.1
Information Technology 4.3
Materials 3.5
Consumer Staples 2.1
Communication Services 0.5
Total Common Stocks 55.0%
Corporate Bonds and Notes  
Financials 13.6
Utilities 6.0
Health Care 4.4
Communication Services 3.9
Energy 2.8
Information Technology 2.5
Industrials 2.1
Consumer Staples 1.0
Consumer Discretionary 0.4
Materials 0.4
Real Estate 0.1
Total Corporate Bonds and Notes 37.2%
U.S. Government Bonds and Notes 3.6%
Foreign Corporate Bonds and Notes  
Financials 2.1
Energy 0.7
Industrials 0.4
Health Care 0.3
Total Foreign Corporate Bonds and Notes 3.5%
Real Estate Investment Trusts  
Financials 0.7
Total Real Estate Investment Trusts 0.7%
Total 100.0%
    
Fund Allocation % of Net Assets
Common Stocks 54.6%
Corporate Bonds and Notes 36.9
U.S. Government Bonds and Notes 3.6
Foreign Corporate Bonds and Notes 3.5
Real Estate Investment Trusts 0.7
Net Other Assets and Liabilities(8) 0.7
Total 100.0%
 

(7) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, Moody’s Investors Service, Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest rating is used.  Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.
(8) Includes variation margin on futures contracts.
Page 5

Fund Performance Overview (Continued)
First Trust Multi Income Allocation Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Return Comparison
      Average Annual
Total Returns
  6 Months
Ended
6/30/22
1 Year
Ended
6/30/22
5 Years
Ended
6/30/22
Inception
(5/1/14)
to 6/30/22
Fund Performance        
First Trust Multi Income Allocation Portfolio - Class I -9.62% -5.16% 3.54% 3.85%
First Trust Multi Income Allocation Portfolio - Class II -9.52% -4.92% 3.80% 4.10%
Index Performance        
Broad Blended Benchmark(1) -14.68% -11.50% 5.03% 5.31%
Bloomberg U.S. Aggregate Bond Index(2) -10.35% -10.29% 0.88% 1.56%
Russell 3000® Index(3) -21.10% -13.87% 10.60% 10.44%
Asset Class Blended Benchmark(4) -7.47% -4.09% 4.25% 4.16%
The returns for the Fund do not reflect the deduction of expenses associated with variable products, such as mortality and expense risk charges, separate account charges, and sales charges or the effect of taxes. These expenses would reduce the overall returns shown.

  

(1) The Broad Blended Benchmark returns are split between the Bloomberg U.S. Aggregate Bond Index (60%) and the Russell 3000® Index (40%). The Broad Blended Benchmark returns are calculated by using the monthly return of the two indices during each month shown above. At the beginning of each month the two indices are rebalanced to a 60% and 40% ratio, respectively, to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Broad Blended Benchmark for each period shown above.
(2) The Bloomberg U.S. Aggregate Bond Index represents the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Bonds included in the index are U.S. dollar denominated; have a fixed rate coupon; carry an investment-grade rating; have at least one year to final maturity; and meet certain criteria for minimum amount of outstanding par value. (The index reflects no deduction for fees, expenses or taxes).
(3) The Russell 3000® Index is composed of 3,000 large U.S. companies, as determined by market capitalization. This index represents approximately 98% of the investable U.S. equity market. (Bloomberg). (The index reflects no deduction for fees, expenses or taxes).
(4) The Asset Class Blended Benchmark is weighted to include nine indexes: Dow Jones U.S. Select Dividend TM Index (15%), ICE BofA Fixed Rate Preferred Securities Index (8%), Alerian MLP Index (15%), S&P U.S. REIT Index (15%), ICE BofA U.S. High Yield Index (8%), S&P/LSTA Leveraged Loan Index (15%), Bloomberg U.S. Corporate Investment-Grade Index (8%), ICE BofA U.S. MBS Index (8%), and ICE BofA U.S. Inflation-Linked Treasury Index (8%).The Asset Class Benchmark returns are calculated by using the monthly return of the nine indices during each period shown above. At the beginning of each month the nine indices are rebalanced to a 15%, 8%, 15%, 15%, 8%, 15%, 8%, 8% and 8% ratio, respectively, to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Asset Class Blended Benchmark for each period shown above.
Page 6

Fund Performance Overview (Continued)
First Trust Multi Income Allocation Portfolio (Continued)
Semi-Annual Report
June 30, 2022 (Unaudited)
Top Ten Holdings % of Total
Investments
First Trust Senior Loan ETF 15.6%
First Trust Tactical High Yield ETF 9.5
First Trust Institutional Preferred Securities and Income ETF 5.3
iShares iBoxx $ Investment Grade Corporate Bond ETF 5.3
First Trust Low Duration Opportunities ETF 3.7
iShares 7-10 Year Treasury Bond ETF 3.7
iShares 1-5 Year Investment Grade Corporate Bond ETF 2.0
First Trust Preferred Securities and Income ETF 1.8
Enterprise Products Partners, L.P. 1.3
Magellan Midstream Partners, L.P. 1.3
Total 49.5%
    
Sector Allocation % of Total
Investments
Exchange-Traded Funds 47.0%
Common Stocks  
Utilities 6.0
Energy 5.4
Information Technology 3.9
Health Care 2.8
Industrials 2.3
Financials 1.8
Consumer Discretionary 1.8
Consumer Staples 0.9
Materials 0.6
Communication Services 0.3
Total Common Stocks 25.8%
Real Estate Investment Trusts  
Financials 11.9
Total Real Estate Investment Trusts 11.9%
U.S. Government Bonds and Notes 7.3%
Master Limited Partnerships  
Energy 5.7
Utilities 0.9
Materials 0.3
Total Master Limited Partnerships 6.9%
U.S. Government Agency Mortgage-Backed Securities 1.1%
Mortgage-Backed Securities 0.0% *
Total 100.0%
    
* Amount is less than 0.1%.
Page 7

Fund Performance Overview (Continued)
First Trust Dorsey Wright Tactical Core Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Return Comparison
      Average Annual
Total Returns
  6 Months
Ended
6/30/22
1 Year
Ended
6/30/22
5 Years
Ended
6/30/22
Inception
(10/30/15)
to 6/30/22
Fund Performance        
First Trust Dorsey Wright Tactical Core Portfolio - Class I -15.90% -14.34% 5.30% 5.12%
First Trust Dorsey Wright Tactical Core Portfolio - Class II -15.84% -14.21% 5.48% 5.26%
Index Performance        
Broad Blended Benchmark(1) -16.11% -10.24% 7.37% 7.60%
Bloomberg U.S. Aggregate Bond Index(2) -10.35% -10.29% 0.88% 1.30%
S&P 500® Index(3) -19.96% -10.62% 11.31% 11.49%
The returns for the Fund do not reflect the deduction of expenses associated with variable products, such as mortality and expense risk charges, separate account charges, and sales charges or the effect of taxes. These expenses would reduce the overall returns shown.

  

(1) The Broad Blended Benchmark return is split between the Bloomberg U.S. Aggregate Bond Index (40%) and the S&P 500® Index (60%). The Broad Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 40% and 60% ratio, respectively, to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Broad Blended Benchmark for each period shown above.
(2) The Bloomberg U.S. Aggregate Bond Index represents the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Bonds included in the index are U.S. dollar denominated; have a fixed rate coupon; carry an investment-grade rating; have at least one year to final maturity; and meet certain criteria for minimum amount of outstanding par value. (The index reflects no deduction for fees, expenses or taxes).
(3) The S&P 500® Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. (The index reflects no deduction for fees, expenses or taxes).
Page 8

Fund Performance Overview (Continued)
First Trust Dorsey Wright Tactical Core Portfolio (Continued)
Semi-Annual Report
June 30, 2022 (Unaudited)
Top Ten Holdings % of Total
Investments
First Trust Nasdaq Oil & Gas ETF 13.9%
First Trust Mid Cap Value AlphaDEX® Fund 9.3
First Trust Energy AlphaDEX® Fund 9.0
First Trust Mid Cap Core AlphaDEX® Fund 8.7
First Trust Nasdaq Food & Beverage ETF 8.7
First Trust Small Cap Value AlphaDEX® Fund 8.7
First Trust Industrials/Producer Durables AlphaDEX® Fund 8.5
First Trust Materials AlphaDEX® Fund 7.7
iShares Core U.S. Aggregate Bond ETF 6.4
SPDR Blackstone Senior Loan ETF 3.8
Total 84.7%
Page 9

Fund Performance Overview (Continued)
First Trust Capital Strength Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Return Comparison
      Average Annual
Total Returns
  6 Months Ended
6/30/22
1 Year Ended
6/30/22
Inception (5/1/20)
to 6/30/22
Fund Performance      
First Trust Capital Strength Portfolio - Class I -16.72% -6.88% 12.71%
First Trust Capital Strength Portfolio - Class II -16.56% -6.57% 13.01%
Index Performance      
S&P 500® Index(1) -19.96% -10.62% 16.17%
The returns for the Fund do not reflect the deduction of expenses associated with variable products, such as mortality and expense risk charges, separate account charges, and sales charges or the effect of taxes. These expenses would reduce the overall returns shown.

  
Top Ten Holdings % of Total
Investments
Merck & Co., Inc. 2.3%
Progressive (The) Corp. 2.3
W.R. Berkley Corp. 2.2
Expeditors International of Washington, Inc. 2.2
Bristol-Myers Squibb Co. 2.2
Johnson & Johnson 2.2
PACCAR, Inc. 2.2
Vertex Pharmaceuticals, Inc. 2.2
Mondelez International, Inc., Class A 2.2
Air Products and Chemicals, Inc. 2.2
Total 22.2%
Sector Allocation % of Total
Investments
Health Care 33.1%
Financials 21.6
Industrials 20.0
Consumer Staples 13.6
Information Technology 9.5
Materials 2.2
Total 100.0%
 

(1) The S&P 500® Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. (The index reflects no deduction for fees, expenses or taxes).
Page 10

Fund Performance Overview (Continued)
First Trust International Developed Capital Strength Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Return Comparison
      Average Annual
Total Returns
  6 Months Ended
6/30/22
1 Year Ended
6/30/22
Inception (5/1/20)
to 6/30/22
Fund Performance      
First Trust International Developed Capital Strength Portfolio - Class I -21.33% -15.88% 11.92%
First Trust International Developed Capital Strength Portfolio - Class II -21.23% -15.67% 12.18%
Index Performance      
MSCI World ex USA Index(1) -18.76% -16.76% 9.47%
The returns for the Fund do not reflect the deduction of expenses associated with variable products, such as mortality and expense risk charges, separate account charges, and sales charges or the effect of taxes. These expenses would reduce the overall returns shown.

  
Top Ten Holdings % of Total
Investments
Unilever PLC 2.3%
BAE Systems PLC 2.3
CGI, Inc. 2.3
Thomson Reuters Corp. 2.2
Intact Financial Corp. 2.2
Aristocrat Leisure Ltd. 2.2
Obic Co., Ltd. 2.2
Kone Oyj, Class B 2.2
Novo Nordisk A.S., Class B 2.2
CSL Ltd. 2.2
Total 22.3%
Sector Allocation % of Total
Investments
Industrials 32.0%
Consumer Staples 16.5
Financials 15.9
Health Care 14.0
Information Technology 10.5
Materials 3.4
Consumer Discretionary 2.2
Communication Services 1.9
Energy 1.9
Real Estate 1.7
Total 100.0%
 

(1) The MSCI World ex USA Index includes developed markets and is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies.
Page 11

Portfolio Management
First Trust/Dow Jones Dividend & Income Allocation Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Advisor
First Trust Advisors L.P. (“First Trust”) is a registered investment advisor based in Wheaton, IL and is the investment advisor to First Trust/Dow Jones Dividend & Income Allocation Portfolio (the “Fund”). In this capacity, First Trust is responsible for the selection and ongoing monitoring of the securities in the Fund’s portfolio and certain other services necessary for the management of the Fund.
Portfolio Management Team
Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director, First Trust
David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director, First Trust
Jon C. Erickson, Senior Vice President, First Trust
Roger F. Testin, Senior Vice President, First Trust
Todd Larson, Senior Vice President, First Trust
Chris A. Peterson, Senior Vice President, First Trust
Eric Maisel, Senior Vice President, First Trust
Page 12

Portfolio Management (Continued)
First Trust Multi Income Allocation Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Advisor
First Trust is a registered investment advisor based in Wheaton, IL and is the investment advisor to the First Trust Multi Income Allocation Portfolio (the “Fund”). In this capacity, First Trust is responsible for the selection and ongoing monitoring of the securities in the Fund’s portfolio and certain other services necessary for the management of the Fund. First Trust manages the Fund’s fixed income investments, as well as a portion of the Fund’s equity investments.
Sub-Advisors
Stonebridge Advisors LLC (“Stonebridge” or the “Sub-Advisor“) is a sub-advisor to the Fund and is a registered investment advisor based in Wilton, CT. Stonebridge specializes in the management of preferred securities and North American equity income securities.
Energy Income Partners, LLC (“EIP” or the “Sub-Advisor”) is a sub-advisor to the Fund and is a registered investment advisor based in Westport, CT. EIP was founded in 2003 to provide professional asset management services in publicly traded energy-related infrastructure companies with above average dividend payout ratios operating pipeline and related storage and handling facilities, electric power transmission and distribution as well as long contracted or regulated power generation from renewables and other sources. The corporate structure of the portfolio companies include C-corporations, partnerships and energy infrastructure real estate investment trusts.
Portfolio Management Team
First Trust
Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director, First Trust
David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director, First Trust
Jon C. Erickson, Senior Vice President, First Trust
Roger F. Testin, Senior Vice President, First Trust
William Housey, Senior Vice President, First Trust
Chris A. Peterson, Senior Vice President, First Trust
Todd Larson, Senior Vice President, First Trust
James Snyder, Senior Vice President, First Trust
Jeremiah Charles, Senior Vice President, First Trust
Stonebridge
Scott Fleming, Portfolio Manager, President and Chief Investment Officer of Stonebridge
Robert Wolf, Senior Portfolio Manager and Senior Vice President of Stonebridge
EIP
James J. Murchie, Co-Portfolio Manager, Co-Founder, Principal and CEO of EIP
Eva Pao, Co-Portfolio Manager, Co-Founder, Principal of EIP
John Tysseland, Co-Portfolio Manager, Principal of EIP
 
Page 13

Portfolio Management (Continued)
First Trust Dorsey Wright Tactical Core Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Advisor
First Trust is a registered investment advisor based in Wheaton, IL and is the investment advisor to First Trust Dorsey Wright Tactical Core Portfolio (the “Fund”). In this capacity, First Trust is responsible for the selection and ongoing monitoring of the securities in the Fund’s portfolio and certain other services necessary for the management of the Fund.
Portfolio Management Team
Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director, First Trust
David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director, First Trust
Jon C. Erickson, Senior Vice President, First Trust
Roger F. Testin, Senior Vice President, First Trust
Todd Larson, Senior Vice President, First Trust
Chris A. Peterson, Senior Vice President, First Trust
Eric R. Maisel, Senior Vice President, First Trust
Page 14

Portfolio Management (Continued)
First Trust Capital Strength Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Advisor
First Trust is a registered investment advisor based in Wheaton, IL and is the investment advisor to First Trust Capital Strength Portfolio (the “Fund”). In this capacity, First Trust is responsible for the selection and ongoing monitoring of the securities in the Fund’s portfolio and certain other services necessary for the management of the Fund.
Portfolio Management Team
Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director, First Trust
David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director, First Trust
Jon C. Erickson, Senior Vice President, First Trust
Roger F. Testin, Senior Vice President, First Trust
Chris A. Peterson, Senior Vice President, First Trust
Page 15

Portfolio Management (Continued)
First Trust International Developed Capital Strength Portfolio
Semi-Annual Report
June 30, 2022 (Unaudited)
Advisor
First Trust is a registered investment advisor based in Wheaton, IL and is the investment advisor to First Trust International Developed Capital Strength Portfolio (the “Fund”). In this capacity, First Trust is responsible for the selection and ongoing monitoring of the securities in the Fund’s portfolio and certain other services necessary for the management of the Fund.
Portfolio Management Team
Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director, First Trust
David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director, First Trust
Jon C. Erickson, Senior Vice President, First Trust
Roger F. Testin, Senior Vice President, First Trust
Chris A. Peterson, Senior Vice President, First Trust
Page 16

First Trust Variable Insurance Trust
Understanding Your Fund Expenses
June 30, 2022 (Unaudited)
As a shareholder of First Trust Dow/Jones Dividend & Income Allocation Portfolio, First Trust Multi Income Allocation Portfolio, First Trust Dorsey Wright Tactical Core Portfolio, First Trust Capital Strength Portfolio or First Trust International Developed Capital Strength Portfolio (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, if any, and other Fund expenses. This Example is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended June 30, 2022.
Actual Expenses
The first three columns of the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the third column under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this six-month period.
Hypothetical Example for Comparison Purposes
The next three columns of the table below provide information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads) or contingent deferred sales charges. Therefore, the hypothetical section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
  Actual Expenses   Hypothetical
(5% Return Before Expenses)
 
  Beginning
Account
Value
1/1/2022
Ending
Account
Value
6/30/2022
Expenses Paid
During Period
1/1/2022 -
6/30/2022 (a)
  Beginning
Account
Value
1/1/2022
Ending
Account
Value
6/30/2022
Expenses Paid
During Period
1/1/2022 -
6/30/2022 (a)
Annualized
Expense
Ratios (b)
First Trust/Dow Jones Dividend
& Income Allocation Portfolio
Class I

$ 1,000.00 $ 850.80 $ 5.51   $ 1,000.00 $ 1,018.84 $ 6.01 1.20%
Class II

$ 1,000.00 $ 851.60 $ 4.36   $ 1,000.00 $ 1,020.08 $ 4.76 0.95%
First Trust Multi Income Allocation
Portfolio (c)
Class I

$ 1,000.00 $ 903.80 $ 3.92   $ 1,000.00 $ 1,020.68 $ 4.16 0.83%
Class II

$ 1,000.00 $ 904.80 $ 2.74   $ 1,000.00 $ 1,021.92 $ 2.91 0.58%
First Trust Dorsey Wright Tactical
Core Portfolio (c)
Class I

$ 1,000.00 $ 841.00 $ 3.56   $ 1,000.00 $ 1,020.93 $ 3.91 0.78%
Class II

$ 1,000.00 $ 841.60 $ 2.42   $ 1,000.00 $ 1,022.17 $ 2.66 0.53%
Page 17

First Trust Variable Insurance Trust
Understanding Your Fund Expenses (Continued)
June 30, 2022 (Unaudited)
  Actual Expenses   Hypothetical
(5% Return Before Expenses)
 
  Beginning
Account
Value
1/1/2022
Ending
Account
Value
6/30/2022
Expenses Paid
During Period
1/1/2022 -
6/30/2022 (a)
  Beginning
Account
Value
1/1/2022
Ending
Account
Value
6/30/2022
Expenses Paid
During Period
1/1/2022 -
6/30/2022 (a)
Annualized
Expense
Ratios (b)
First Trust Capital Strength Portfolio
Class I

$ 1,000.00 $ 832.80 $ 5.00   $ 1,000.00 $ 1,019.34 $ 5.51 1.10%
Class II

$ 1,000.00 $ 834.40 $ 3.87   $ 1,000.00 $ 1,020.58 $ 4.26 0.85%
First Trust International Developed
Capital Strength Portfolio
Class I

$ 1,000.00 $ 786.70 $ 5.32   $ 1,000.00 $ 1,018.84 $ 6.01 1.20%
Class II

$ 1,000.00 $ 787.70 $ 4.21   $ 1,000.00 $ 1,020.08 $ 4.76 0.95%
    
(a) Expenses are equal to the annualized expense ratios as indicated in the table multiplied by the average account value over the period (January 1, 2022 through June 30, 2022), multiplied by 181/365 (to reflect the six-month period).
(b) These expense ratios reflect expense caps. First Trust Multi Income Allocation Portfolio expense ratios reflect an additional waiver. See Note 3 in the Notes to Financial Statements.
(c) Annualized expense ratio and expenses paid during the six-month period do not include fees and expenses of the underlying funds in which the Fund invests.
Page 18

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments
June 30, 2022 (Unaudited)
Shares   Description   Value
COMMON STOCKS – 54.6%
    Aerospace & Defense – 1.4%    
18,131  
General Dynamics Corp.

  $4,011,484
9,907  
Lockheed Martin Corp.

  4,259,614
9,780  
Northrop Grumman Corp.

  4,680,414
        12,951,512
    Air Freight & Logistics – 0.5%    
42,391  
Expeditors International of Washington, Inc.

  4,131,427
    Banks – 6.5%    
92,870  
Brookline Bancorp, Inc.

  1,236,100
61,086  
Commerce Bancshares, Inc.

  4,010,296
47,739  
Community Bank System, Inc.

  3,020,924
188,411  
CVB Financial Corp.

  4,674,477
27,680  
FB Financial Corp.

  1,085,610
81,048  
First Commonwealth Financial Corp.

  1,087,664
84,789  
First Financial Bankshares, Inc.

  3,329,664
118,928  
First Interstate BancSystem, Inc., Class A

  4,532,346
62,086  
First Merchants Corp.

  2,211,503
261,348  
Fulton Financial Corp.

  3,776,479
25,131  
Heartland Financial USA, Inc.

  1,043,942
109,552  
Hilltop Holdings, Inc.

  2,920,656
27,905  
Lakeland Financial Corp.

  1,853,450
28,965  
National Bank Holdings Corp., Class A

  1,108,490
33,656  
NBT Bancorp, Inc.

  1,265,129
103,716  
Northwest Bancshares, Inc.

  1,327,565
40,163  
OFG Bancorp

  1,020,140
53,499  
Popular, Inc.

  4,115,678
63,030  
Prosperity Bancshares, Inc.

  4,303,058
38,287  
Sandy Spring Bancorp, Inc.

  1,495,873
39,257  
ServisFirst Bancshares, Inc.

  3,098,162
57,292  
Towne Bank

  1,555,478
41,217  
UMB Financial Corp.

  3,548,784
19,255  
Westamerica BanCorp

  1,071,733
        58,693,201
    Biotechnology – 1.0%    
18,083  
Amgen, Inc.

  4,399,594
73,557  
Gilead Sciences, Inc.

  4,546,558
        8,946,152
    Building Products – 0.8%    
68,445  
A.O. Smith Corp.

  3,742,573
56,675  
UFP Industries, Inc.

  3,861,834
        7,604,407
    Capital Markets – 6.5%    
14,559  
Ameriprise Financial, Inc.

  3,460,383
5,723  
BlackRock, Inc.

  3,485,536
34,449  
Blackstone, Inc.

  3,142,782
38,219  
Cboe Global Markets, Inc.

  4,326,009
18,385  
CME Group, Inc.

  3,763,409
39,284  
Evercore, Inc., Class A

  3,677,375
10,073  
FactSet Research Systems, Inc.

  3,873,774
38,014  
Hamilton Lane, Inc., Class A

  2,553,780
49,806  
Houlihan Lokey, Inc.

  3,931,188
33,098  
Intercontinental Exchange, Inc.

  3,112,536
See Notes to Financial Statements
Page 19

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments (Continued)
June 30, 2022 (Unaudited)
Shares   Description   Value
COMMON STOCKS (Continued)
    Capital Markets (Continued)    
90,398  
Moelis & Co., Class A

  $3,557,161
13,849  
Piper Sandler Cos.

  1,569,923
40,969  
PJT Partners, Inc., Class A

  2,879,301
39,787  
Raymond James Financial, Inc.

  3,557,356
72,630  
SEI Investments Co.

  3,923,473
64,405  
Stifel Financial Corp.

  3,607,968
28,924  
T Rowe Price Group, Inc.

  3,286,056
7,753  
Virtus Investment Partners, Inc.

  1,325,918
        59,033,928
    Chemicals – 2.2%    
26,019  
Balchem Corp.

  3,375,705
30,609  
Celanese Corp.

  3,599,925
33,236  
FMC Corp.

  3,556,584
116,583  
Huntsman Corp.

  3,305,128
11,532  
NewMarket Corp.

  3,470,671
23,164  
Stepan Co.

  2,347,671
        19,655,684
    Commercial Services & Supplies – 1.2%    
124,766  
Rollins, Inc.

  4,356,829
26,513  
Tetra Tech, Inc.

  3,620,350
15,393  
UniFirst Corp.

  2,650,367
        10,627,546
    Construction & Engineering – 0.4%    
38,827  
EMCOR Group, Inc.

  3,997,628
    Construction Materials – 0.4%    
34,067  
Eagle Materials, Inc.

  3,745,326
    Containers & Packaging – 0.4%    
28,013  
Packaging Corp. of America

  3,851,787
    Diversified Consumer Services – 0.5%    
66,439  
Service Corp. International

  4,592,264
    Diversified Financial Services – 0.4%    
65,908  
Voya Financial, Inc.

  3,923,503
    Diversified Telecommunication Services – 0.5%    
85,845  
Verizon Communications, Inc.

  4,356,634
    Electrical Equipment – 0.4%    
32,836  
AMETEK, Inc.

  3,608,348
    Electronic Equipment, Instruments & Components – 0.6%    
58,036  
Amphenol Corp., Class A

  3,736,358
49,213  
Methode Electronics, Inc.

  1,822,849
        5,559,207
    Food & Staples Retailing – 0.4%    
7,593  
Costco Wholesale Corp.

  3,639,173
    Food Products – 1.2%    
18,640  
Lancaster Colony Corp.

  2,400,459
69,657  
Mondelez International, Inc., Class A

  4,325,003
48,791  
Tyson Foods, Inc., Class A

  4,198,954
        10,924,416
Page 20
See Notes to Financial Statements

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments (Continued)
June 30, 2022 (Unaudited)
Shares   Description   Value
COMMON STOCKS (Continued)
    Health Care Equipment & Supplies – 0.4%    
36,947  
Abbott Laboratories

  $4,014,291
    Health Care Providers & Services – 0.9%    
8,632  
Chemed Corp.

  4,051,774
8,576  
UnitedHealth Group, Inc.

  4,404,891
        8,456,665
    Hotels, Restaurants & Leisure – 0.4%    
52,227  
Texas Roadhouse, Inc.

  3,823,016
    Household Durables – 0.6%    
36,869  
Garmin Ltd.

  3,622,379
79,121  
La-Z-Boy, Inc.

  1,875,959
        5,498,338
    Household Products – 0.5%    
28,618  
Procter & Gamble (The) Co.

  4,114,982
    Insurance – 5.7%    
67,913  
Aflac, Inc.

  3,757,626
31,571  
Allstate (The) Corp.

  4,000,993
32,163  
Cincinnati Financial Corp.

  3,826,754
27,817  
Employers Holdings, Inc.

  1,165,254
89,537  
Fidelity National Financial, Inc.

  3,309,288
67,463  
First American Financial Corp.

  3,570,142
27,797  
Hanover Insurance Group (The), Inc.

  4,065,311
55,601  
Mercury General Corp.

  2,463,124
169,037  
Old Republic International Corp.

  3,779,667
38,362  
Progressive (The) Corp.

  4,460,350
23,622  
RLI Corp.

  2,754,089
16,274  
Safety Insurance Group, Inc.

  1,580,205
41,863  
Selective Insurance Group, Inc.

  3,639,569
31,105  
Stewart Information Services Corp.

  1,547,474
23,932  
Travelers (The) Cos., Inc.

  4,047,619
18,512  
Willis Towers Watson PLC

  3,654,084
        51,621,549
    IT Services – 2.1%    
12,967  
Accenture PLC, Class A

  3,600,287
19,217  
Automatic Data Processing, Inc.

  4,036,339
48,769  
Cognizant Technology Solutions Corp., Class A

  3,291,420
22,194  
Jack Henry & Associates, Inc.

  3,995,364
19,720  
Visa, Inc., Class A

  3,882,671
        18,806,081
    Leisure Products – 0.5%    
48,359  
Acushnet Holdings Corp.

  2,015,603
40,133  
Sturm Ruger & Co., Inc.

  2,554,466
        4,570,069
    Life Sciences Tools & Services – 1.2%    
14,908  
Danaher Corp.

  3,779,476
7,405  
Thermo Fisher Scientific, Inc.

  4,022,989
10,646  
West Pharmaceutical Services, Inc.

  3,219,031
        11,021,496
See Notes to Financial Statements
Page 21

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments (Continued)
June 30, 2022 (Unaudited)
Shares   Description   Value
COMMON STOCKS (Continued)
    Machinery – 5.2%    
7,081  
Alamo Group, Inc.

  $824,441
111,385  
Allison Transmission Holdings, Inc.

  4,282,753
19,626  
Caterpillar, Inc.

  3,508,344
21,320  
Cummins, Inc.

  4,126,060
10,524  
Deere & Co.

  3,151,622
41,659  
Franklin Electric Co., Inc.

  3,051,938
62,722  
Graco, Inc.

  3,726,314
58,144  
ITT, Inc.

  3,909,603
75,064  
Mueller Industries, Inc.

  4,000,161
19,257  
Nordson Corp.

  3,898,387
49,654  
PACCAR, Inc.

  4,088,510
21,281  
Snap-on, Inc.

  4,192,995
51,153  
Toro (The) Co.

  3,876,886
        46,638,014
    Marine – 0.3%    
36,256  
Matson, Inc.

  2,642,337
    Metals & Mining – 0.5%    
23,851  
Reliance Steel & Aluminum Co.

  4,051,331
    Multiline Retail – 0.5%    
19,643  
Dollar General Corp.

  4,821,178
    Pharmaceuticals – 1.5%    
24,676  
Johnson & Johnson

  4,380,237
53,297  
Merck & Co., Inc.

  4,859,087
23,189  
Zoetis, Inc.

  3,985,957
        13,225,281
    Professional Services – 0.9%    
49,784  
Booz Allen Hamilton Holding Corp.

  4,498,483
19,018  
Kforce, Inc.

  1,166,564
38,298  
Robert Half International, Inc.

  2,868,137
        8,533,184
    Road & Rail – 1.9%    
21,777  
JB Hunt Transport Services, Inc.

  3,429,224
86,664  
Knight-Swift Transportation Holdings, Inc.

  4,011,677
28,993  
Landstar System, Inc.

  4,216,162
78,724  
Marten Transport Ltd.

  1,324,138
14,640  
Old Dominion Freight Line, Inc.

  3,751,939
        16,733,140
    Semiconductors & Semiconductor Equipment – 1.2%    
88,235  
Intel Corp.

  3,300,871
47,184  
Power Integrations, Inc.

  3,539,272
23,834  
Texas Instruments, Inc.

  3,662,094
        10,502,237
    Software – 0.4%    
14,184  
Microsoft Corp.

  3,642,877
    Specialty Retail – 2.4%    
21,131  
Advance Auto Parts, Inc.

  3,657,565
48,108  
Best Buy Co., Inc.

  3,136,161
132,355  
Buckle (The), Inc.

  3,664,910
48,342  
Ross Stores, Inc.

  3,395,059
Page 22
See Notes to Financial Statements

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments (Continued)
June 30, 2022 (Unaudited)
Shares   Description   Value
COMMON STOCKS (Continued)
    Specialty Retail (Continued)    
72,185  
TJX (The) Cos., Inc.

  $4,031,532
18,737  
Tractor Supply Co.

  3,632,167
        21,517,394
    Textiles, Apparel & Luxury Goods – 0.8%    
48,304  
Columbia Sportswear Co.

  3,457,600
113,172  
Steven Madden Ltd.

  3,645,270
        7,102,870
    Trading Companies & Distributors – 1.4%    
62,948  
Boise Cascade Co.

  3,744,777
73,619  
Fastenal Co.

  3,675,060
27,029  
Rush Enterprises, Inc., Class A

  1,302,798
14,355  
Watsco, Inc.

  3,428,261
        12,150,896
   
Total Common Stocks

  493,329,369
    (Cost $486,899,808)    
REAL ESTATE INVESTMENT TRUSTS – 0.7%
    Diversified REITs – 0.4%    
17,254  
PS Business Parks, Inc.

  3,229,086
    Industrial REITs – 0.3%    
278,536  
LXP Industrial Trust

  2,991,477
   
Total Real Estate Investment Trusts

  6,220,563
    (Cost $7,211,059)    
    
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES – 36.9%
    Aerospace & Defense – 1.2%            
$1,000,000  
Boeing (The) Co.

  1.43%   02/04/24   956,693
500,000  
Boeing (The) Co.

  2.75%   02/01/26   465,561
1,000,000  
Boeing (The) Co.

  2.20%   02/04/26   902,287
500,000  
Boeing (The) Co.

  2.70%   02/01/27   446,572
500,000  
Boeing (The) Co.

  3.25%   02/01/28   448,026
250,000  
Boeing (The) Co.

  3.20%   03/01/29   216,932
500,000  
Boeing (The) Co.

  2.95%   02/01/30   417,476
500,000  
Boeing (The) Co.

  3.63%   02/01/31   435,151
1,000,000  
Boeing (The) Co.

  5.71%   05/01/40   938,291
1,500,000  
Boeing (The) Co.

  3.75%   02/01/50   1,055,499
500,000  
Northrop Grumman Corp.

  2.93%   01/15/25   489,982
500,000  
Northrop Grumman Corp.

  3.25%   01/15/28   475,950
750,000  
Northrop Grumman Corp.

  4.03%   10/15/47   671,453
250,000  
Northrop Grumman Corp.

  5.25%   05/01/50   265,844
1,000,000  
Raytheon Technologies Corp.

  4.63%   11/16/48   984,655
250,000  
Raytheon Technologies Corp.

  3.13%   07/01/50   193,151
1,000,000  
Raytheon Technologies Corp.

  2.82%   09/01/51   723,186
500,000  
Textron, Inc.

  2.45%   03/15/31   412,400
        10,499,109
    Air Freight & Logistics – 0.4%            
1,000,000  
FedEx Corp.

  2.40%   05/15/31   845,215
1,750,000  
FedEx Corp.

  3.25%   05/15/41   1,374,986
See Notes to Financial Statements
Page 23

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments (Continued)
June 30, 2022 (Unaudited)
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Air Freight & Logistics (Continued)            
$1,500,000  
FedEx Corp.

  4.55%   04/01/46   $1,357,565
        3,577,766
    Banks – 8.0%            
2,050,000  
Bank of America Corp. (a)

  1.84%   02/04/25   1,977,444
2,000,000  
Bank of America Corp. (a)

  0.98%   04/22/25   1,884,355
500,000  
Bank of America Corp. (a)

  3.09%   10/01/25   484,826
500,000  
Bank of America Corp. (a)

  2.46%   10/22/25   477,243
750,000  
Bank of America Corp. (a)

  2.02%   02/13/26   704,484
400,000  
Bank of America Corp.

  4.45%   03/03/26   399,165
2,500,000  
Bank of America Corp. (a)

  3.38%   04/02/26   2,428,631
950,000  
Bank of America Corp.

  3.50%   04/19/26   928,332
1,000,000  
Bank of America Corp. (a)

  1.20%   10/24/26   897,434
500,000  
Bank of America Corp. (a)

  3.56%   04/23/27   481,657
450,000  
Bank of America Corp. (a)

  2.55%   02/04/28   410,178
500,000  
Bank of America Corp. (a)

  3.71%   04/24/28   477,906
475,000  
Bank of America Corp. (a)

  4.38%   04/27/28   468,720
500,000  
Bank of America Corp. (a)

  3.59%   07/21/28   472,737
1,091,000  
Bank of America Corp. (a)

  3.42%   12/20/28   1,018,643
1,000,000  
Bank of America Corp. (a)

  2.09%   06/14/29   858,397
500,000  
Bank of America Corp. (a)

  4.27%   07/23/29   482,872
500,000  
Bank of America Corp. (a)

  3.97%   02/07/30   473,639
500,000  
Bank of America Corp. (a)

  3.19%   07/23/30   449,709
500,000  
Bank of America Corp. (a)

  2.88%   10/22/30   438,020
500,000  
Bank of America Corp. (a)

  1.90%   07/23/31   401,087
1,000,000  
Bank of America Corp. (a)

  1.92%   10/24/31   798,980
500,000  
Bank of America Corp. (a)

  2.57%   10/20/32   414,089
750,000  
Bank of America Corp. (a)

  2.97%   02/04/33   641,452
500,000  
Bank of America Corp. (a)

  4.57%   04/27/33   488,201
1,500,000  
Bank of America Corp. (a)

  2.48%   09/21/36   1,168,289
500,000  
Bank of America Corp. (a)

  4.08%   04/23/40   442,387
1,000,000  
Bank of America Corp. (a)

  2.68%   06/19/41   724,558
2,000,000  
Bank of America Corp. (a)

  3.31%   04/22/42   1,579,371
500,000  
Bank of America Corp. (a)

  3.95%   01/23/49   428,738
500,000  
Bank of America Corp. (a)

  4.33%   03/15/50   453,126
500,000  
Bank of America Corp. (a)

  2.83%   10/24/51   345,848
750,000  
Bank of America Corp. (a)

  2.97%   07/21/52   537,304
5,000,000  
Citigroup, Inc. (a)

  0.78%   10/30/24   4,772,593
2,000,000  
Citigroup, Inc. (a)

  0.98%   05/01/25   1,876,942
2,000,000  
Citigroup, Inc. (a)

  2.01%   01/25/26   1,877,473
500,000  
Citigroup, Inc. (a)

  3.11%   04/08/26   481,020
3,000,000  
Citigroup, Inc. (a)

  1.12%   01/28/27   2,656,847
3,000,000  
Citigroup, Inc. (a)

  1.46%   06/09/27   2,660,818
350,000  
Citigroup, Inc.

  4.45%   09/29/27   343,548
500,000  
Citigroup, Inc.

  4.13%   07/25/28   481,111
500,000  
Citigroup, Inc. (a)

  3.98%   03/20/30   470,191
1,000,000  
Citigroup, Inc. (a)

  2.98%   11/05/30   876,060
500,000  
Citigroup, Inc. (a)

  2.67%   01/29/31   425,990
2,000,000  
Citigroup, Inc. (a)

  2.56%   05/01/32   1,651,951
1,000,000  
Citigroup, Inc. (a)

  3.06%   01/25/33   852,183
500,000  
Citigroup, Inc. (a)

  3.88%   01/24/39   434,770
1,500,000  
Citigroup, Inc. (a)

  2.90%   11/03/42   1,092,192
750,000  
Citigroup, Inc.

  4.75%   05/18/46   675,009
500,000  
Citigroup, Inc.

  4.65%   07/23/48   469,553
1,000,000  
JPMorgan Chase & Co. (a)

  0.56%   02/16/25   943,558
Page 24
See Notes to Financial Statements

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments (Continued)
June 30, 2022 (Unaudited)
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Banks (Continued)            
$2,000,000  
JPMorgan Chase & Co. (a)

  0.82%   06/01/25   $1,872,406
3,500,000  
JPMorgan Chase & Co. (a)

  0.97%   06/23/25   3,275,980
500,000  
JPMorgan Chase & Co. (a)

  2.30%   10/15/25   477,113
500,000  
JPMorgan Chase & Co. (a)

  2.60%   02/24/26   476,214
1,000,000  
JPMorgan Chase & Co. (a)

  4.08%   04/26/26   987,973
500,000  
JPMorgan Chase & Co. (a)

  1.05%   11/19/26   445,724
500,000  
JPMorgan Chase & Co. (a)

  1.04%   02/04/27   443,543
500,000  
JPMorgan Chase & Co. (a)

  1.58%   04/22/27   446,314
1,000,000  
JPMorgan Chase & Co. (a)

  1.47%   09/22/27   878,927
550,000  
JPMorgan Chase & Co. (a)

  2.95%   02/24/28   510,722
975,000  
JPMorgan Chase & Co. (a)

  4.32%   04/26/28   961,168
500,000  
JPMorgan Chase & Co. (a)

  3.54%   05/01/28   475,192
500,000  
JPMorgan Chase & Co. (a)

  3.51%   01/23/29   468,951
1,000,000  
JPMorgan Chase & Co. (a)

  2.07%   06/01/29   861,864
500,000  
JPMorgan Chase & Co. (a)

  4.20%   07/23/29   483,638
500,000  
JPMorgan Chase & Co. (a)

  3.70%   05/06/30   466,526
500,000  
JPMorgan Chase & Co. (a)

  2.96%   05/13/31   433,159
500,000  
JPMorgan Chase & Co. (a)

  1.76%   11/19/31   396,808
1,000,000  
JPMorgan Chase & Co. (a)

  2.58%   04/22/32   842,491
1,000,000  
JPMorgan Chase & Co. (a)

  2.96%   01/25/33   861,579
1,000,000  
JPMorgan Chase & Co. (a)

  4.59%   04/26/33   986,704
1,000,000  
JPMorgan Chase & Co. (a)

  2.53%   11/19/41   720,645
2,000,000  
JPMorgan Chase & Co. (a)

  3.16%   04/22/42   1,564,542
500,000  
JPMorgan Chase & Co. (a)

  4.26%   02/22/48   449,762
750,000  
JPMorgan Chase & Co. (a)

  3.96%   11/15/48   641,171
500,000  
JPMorgan Chase & Co. (a)

  3.90%   01/23/49   425,819
2,000,000  
JPMorgan Chase & Co. (a)

  3.33%   04/22/52   1,535,742
500,000  
Wells Fargo & Co. (a)

  2.41%   10/30/25   477,029
500,000  
Wells Fargo & Co. (a)

  2.16%   02/11/26   470,983
550,000  
Wells Fargo & Co.

  3.00%   04/22/26   525,004
750,000  
Wells Fargo & Co.

  4.75%   12/07/46   692,102
        72,235,426
    Beverages – 0.7%            
875,000  
Anheuser-Busch Cos., LLC/Anheuser-Busch InBev Worldwide, Inc.

  4.70%   02/01/36   842,600
1,100,000  
Anheuser-Busch Cos., LLC/Anheuser-Busch InBev Worldwide, Inc.

  4.90%   02/01/46   1,041,789
250,000  
Anheuser-Busch Inbev Worldwide, Inc.

  4.75%   01/23/29   255,076
250,000  
Anheuser-Busch Inbev Worldwide, Inc.

  4.90%   01/23/31   257,237
750,000  
Anheuser-Busch Inbev Worldwide, Inc.

  4.38%   04/15/38   691,986
250,000  
Anheuser-Busch Inbev Worldwide, Inc.

  4.35%   06/01/40   225,226
250,000  
Anheuser-Busch Inbev Worldwide, Inc.

  4.60%   04/15/48   226,213
250,000  
Anheuser-Busch Inbev Worldwide, Inc.

  5.55%   01/23/49   257,339
250,000  
Anheuser-Busch Inbev Worldwide, Inc.

  4.50%   06/01/50   226,582
750,000  
Anheuser-Busch Inbev Worldwide, Inc.

  4.75%   04/15/58   677,617
250,000  
Anheuser-Busch Inbev Worldwide, Inc.

  5.80%   01/23/59   262,408
250,000  
Constellation Brands, Inc.

  2.25%   08/01/31   203,592
500,000  
Keurig Dr. Pepper, Inc.

  3.95%   04/15/29   478,393
500,000  
Keurig Dr. Pepper, Inc.

  4.05%   04/15/32   469,730
        6,115,788
    Biotechnology – 1.1%            
1,000,000  
AbbVie, Inc.

  2.60%   11/21/24   970,093
1,000,000  
AbbVie, Inc.

  2.95%   11/21/26   949,193
See Notes to Financial Statements
Page 25

First Trust/Dow Jones Dividend & Income Allocation Portfolio
Portfolio of Investments (Continued)
June 30, 2022 (Unaudited)
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
CORPORATE BONDS AND NOTES (Continued)
    Biotechnology (Continued)            
$250,000  
AbbVie, Inc.

  4.25%   11/14/28   $248,328
1,225,000  
AbbVie, Inc.

  4.05%   11/21/39   1,099,382
275,000  
AbbVie, Inc.

  4.40%   11/06/42   251,693
300,000  
AbbVie, Inc.

  4.70%   05/14/45   284,644
250,000  
AbbVie, Inc.

  4.88%   11/14/48   242,897
1,000,000  
AbbVie, Inc.

  4.25%   11/21/49   893,010
500,000  
Amgen, Inc.

  1.90%   02/21/25   477,912
500,000  
Amgen, Inc.

  3.00%   02/22/29   462,483
500,000  
Amgen, Inc.

  2.45%   02/21/30   437,523
1,000,000  
Amgen, Inc.

  2.00%   01/15/32   817,578
500,000  
Amgen, Inc.

  3.35%   02/22/32   460,238
750,000  
Amgen, Inc.

  3.15%   02/21/40   598,735
1,000,000  
Amgen, Inc.

  2.80%   08/15/41   746,684
750,000  
Amgen, Inc.

  3.38%   02/21/50   578,498
500,000  
Amgen, Inc.

  4.20%   02/22/52   441,488
        9,960,379
    Building Products – 0.1%            
1,000,000  
Masco Corp.

  2.00%   02/15/31   788,885
    Capital Markets – 4.6%            
500,000  
Goldman Sachs Group (The), Inc.

  3.63%   02/20/24