ETF Research Center

The First Trust Dorsey Wright Momentum & Low Volatility tracks a rules-based equity index consisting of the 50 stocks in the NASDAQ US Large Mid Index that exhibit the lowest levels of volatility while still maintaining high levels of relative strength.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Sep 05, 2018
Assets (mns)	$106
Currency	USD
Expense ratio	60 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Volatility
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	50
Wgt avg mkt cap (mns)	$26,711
Large cap (>$10bn)	57.6%
Mid cap ($2-10bn)	41.2%
Small cap (<$2bn)	1.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	29.0 %
CAPITAL TRUST-CL A	3.8 %
AMERICAN ELECTRIC POWER	2.9 %
WESTAR ENERGY INC	2.8 %
REPUBLIC SERVICES INC	2.8 %
ALLIANT ENERGY CORP	2.8 %
ENTERGY CORP	2.8 %
DTE ENERGY COMPANY	2.8 %
ATMOS ENERGY CORP	2.8 %
OGE ENERGY CORP	2.7 %
NEXTERA ENERGY GROUP	2.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.8 %
	IRELAND	1.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
26.1%	26.1%	--	--	11.0%

Market Correlations
versus...	Beta	R-squared
S&P500	0.55	52%
MSCI EAFE	0.56	37%
MSCI Emg. Mkts.	0.35	23%

Technical Indicators
Recent close	$23.26
30d moving avg.	$22.30
Annualized volatility	13.1%
Short interest (ETF)	0.7%
Relative strength (RSI)	70

Liquidity measures
Avg. volume (thou.)	77
Turnover	1.7%
Bid/Ask (% of price)	0.11%
ADV underlying (mns)	$5,050

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust Dorsey Wright Momentum & Low Volatility ETF based on the alternatives' overlap in portfolio holdings with DVOL. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

DVOL

Expense:

60 bp

ALTAR Score™:

4.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH DVOL
Ticker	Fund Name	Overlap¹ vs DVOL (%)	Expense ratio (bp)	Savings vs DVOL (bp)	ALTAR Score™ (%)	ALTAR vs DVOL (%)
PUI	Invesco DWA Utilities Momentum	39.2	60	0	3.8	-0.4
DDIV	First Trust Dorsey Wright Momentum & Dividend	33.9	60	0	6.3	+2.1
SPLV	Invesco S&P 500 Low Volatility	33.1	25	35	5.0	+0.8
RYU	Invesco S&P Equal Weight Utilities	32.7	40	20	4.7	+0.5
JHMU	John Hancock Multifactor Utilities	32.3	40	20	4.8	+0.6
DWEQ	AdvisorShares Dorsey Wright Alpha Equal Weight ETF	29.0	99	-39	3.4	-0.8
XLU	Utilities Select Sector SPDR	27.8	13	47	4.8	+0.6
FUTY	Fidelity MSCI Utilities	27.5	8	52	4.8	+0.5
VPU	Vanguard Utilities ETF	27.3	10	50	4.7	+0.5
IDU	iShares DJ US Utilities	27.2	43	17	4.5	+0.3
HUSV	First Trust Horizon Managed Volatility Domestic	25.8	70	-10	4.7	+0.4
ECLN	First Trust EIP Carbon Impact	23.6	95	-35	3.1	-1.1
LGLV	SPDR Russell 1000 Low Volatility	23.2	12	48	5.0	+0.8
FXU	First Trust Utilities Alphadex	20.4	63	-3	5.1	+0.9
JXI	iShares S&P Global Utilities	20.4	46	14	4.9	+0.7
UTES	Reaves Utilities	18.6	49	11	4.0	-0.3
KLCD	KFA Large Cap Quality Dividend Index	18.3	41	19	5.1	+0.8
TPHD	Timothy Plan High Dividend Stock	18.2	52	8	6.4	+2.2
USMV	iShares MSCI USA Minimum Volatility	17.6	15	45	5.0	+0.7

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	First Trust Dorsey Wright Momentum & Low Volatility
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	11.2	%
Divided by: Fwd. P/BV	2.3	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	4.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.74	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.