ETF Research Center

First Trust Multi Cap Value AlphaDEX Fund seeks investment results that correspond to the Defined Multi Cap Value Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$87
Currency	USD
Expense ratio	71 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Tiered
Index replication	Full
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	675
Wgt avg mkt cap (mns)	$31,858
Large cap (>$10bn)	51.5%
Mid cap ($2-10bn)	34.9%
Small cap (<$2bn)	13.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	4.7 %
LENNAR CORP-CL A	0.5 %
MICRON TECHNOLOGY INC	0.5 %
FOX CORPORATION CLASS A	0.5 %
DELTA AIR LINES INC	0.5 %
DR HORTON INC	0.5 %
EXELON CORP	0.5 %
TEXTRON INC	0.5 %
METLIFE INC	0.5 %
CONCHO RESOURCES INC	0.5 %
NORWEGIAN CRUISE LINE HOLDIN	0.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.2 %
	BERMUDA	1.3 %
	BRITAIN	0.8 %
	IRELAND	0.8 %
	SWITZERLAND	0.5 %
	PUERTO RICO	0.2 %
	CAYMAN ISLANDS	0.1 %
	NETHERLANDS	0.1 %

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.
23.7%	23.7%	5.9%	11.0%	7.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.16	81%
MSCI EAFE	1.08	58%
MSCI Emg. Mkts.	0.70	42%

Technical Indicators
Recent close	$58.32
30d moving avg.	$57.48
Annualized volatility	15.6%
Short interest (ETF)	0.5%
Short interest (Underlying)	6.4%
Relative strength (RSI)	72

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.1%
Bid/Ask (% of price)	0.30%
ADV underlying (mns)	$64,409

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust Multi Cap Value ETF based on the alternatives' overlap in portfolio holdings with FAB. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FAB

Expense:

71 bp

ALTAR Score™:

8.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FAB
Ticker	Fund Name	Overlap¹ vs FAB (%)	Expense ratio (bp)	Savings vs FAB (bp)	ALTAR Score™ (%)	ALTAR vs FAB (%)
TUSA	First Trust Total US Market AlphaDEX	56.9	70	1	6.2	-1.8
VFVA	Vanguard U.S. Value Factor	51.1	13	58	8.7	+0.8
FTA	First Trust Large Cap Value	50.2	62	9	8.1	+0.2
FEX	First Trust Large Cap Core Alphadex	49.0	61	10	6.0	-2.0
JVAL	JPMorgan U.S. Value Factor	38.1	12	59	8.2	+0.2
USEQ	Invesco Russell 1000 Enhanced Equal Weight	38.0	29	42	6.3	-1.7
IWS	iShares Russell Midcap Value	36.9	24	47	6.5	-1.4
OVLU	Invesco Russell 1000 Value Factor ETF	36.6	19	52	7.5	-0.5
RSP	Invesco S&P 500 Equal Weight	36.5	20	51	6.3	-1.6
OMFL	Oppenheimer Russell 1000 Dynamic Multifactor	36.1	29	42	8.9	+0.9
PQLC	PGIM QMA Strategic Alpha Large-Cap Core	34.6	17	54	6.6	-1.4
CFA	Compass EMP US 500 Volatility Weighted	34.6	35	36	5.8	-2.2
CFO	Victory CEMP US 500 Enhanced Volatility Wtd	34.6	35	36	5.8	-2.2
ONEO	SPDR Russell 1000 Momentum Focus	34.3	20	51	6.6	-1.4
VLU	SPDR S&P 1500 Value Tilt	34.2	12	59	7.0	-0.9
EQAL	Invesco Russel 1000 Equal Weight	34.1	20	51	5.5	-2.4
SIZE	iShares MSCI USA Size Factor	33.0	15	56	5.8	-2.1
EUSA	iShares MSCI USA Equal Weight	33.0	15	56	5.8	-2.2
DEUS	Xtrackers Russell 1000 Comprehensive Factor	32.7	17	54	6.4	-1.5
ONEV	SPDR Russell 1000 Low Volatility Focus	32.5	20	51	6.7	-1.3

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%.

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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

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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 Multi Cap Value
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	11.7	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	71	bp
Equals: ALTAR Score	8.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.60	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.