ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$186
Currency	USD
Expense ratio	69 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)	$29,849
Large cap (>$10bn)	49.7%
Mid cap ($2-10bn)	36.3%
Small cap (<$2bn)	14.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	4.8 %
CHARTER COMMUNICATIONS, INC. CLASS	0.5 %
OLD DOMINION FREIGHT LINE	0.5 %
SEATTLE GENETICS INC	0.5 %
COPART INC	0.5 %
FMC CORP	0.5 %
CDW CORP/DE	0.5 %
TESLA MOTORS INC	0.5 %
TELEDYNE TECHNOLOGIES INC	0.5 %
TRANSDIGM GROUP INC	0.5 %
RINGCENTRAL, INC. CLASS A	0.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.5 %
	BERMUDA	1.5 %
	IRELAND	1.1 %
	BRITAIN	0.3 %
	PUERTO RICO	0.2 %
	SWITZERLAND	0.2 %
	CHINA	0.2 %
	CAYMAN ISLANDS	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
25.4%	12.6%	10.0%	13.5%	8.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.08	82%
MSCI EAFE	0.93	50%
MSCI Emg. Mkts.	0.65	39%

Technical Indicators
Recent close	$75.94
30d moving avg.	$75.02
Annualized volatility	14.5%
Short interest (ETF)	0.0%
Short interest (Underlying)	4.4%
Relative strength (RSI)	65

Liquidity measures
Avg. volume (thou.)	8
Turnover	0.3%
Bid/Ask (% of price)	0.29%
ADV underlying (mns)	$79,764

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FAD

Expense:

69 bp

ALTAR Score™:

3.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FAD
Ticker	Fund Name	Overlap¹ vs FAD (%)	Expense ratio (bp)	Savings vs FAD (bp)	ALTAR Score™ (%)	ALTAR vs FAD (%)
FTC	First Trust Large Cap Growth	49.8	61	8	3.7	+0.3
VFMO	Vanguard U.S. Momentum Factor	45.0	13	56	3.1	-0.3
FEX	First Trust Large Cap Core Alphadex	39.0	61	8	6.4	+3.0
TUSA	First Trust Total US Market AlphaDEX	34.6	70	-1	6.6	+3.2
VXF	Vanguard Extended Market	34.5	7	62	3.3	-0.1
PBSM	Invesco PureBeta MSCI USA Small Cap	33.4	6	63	5.3	+2.0
IWP	iShares Russell Midcap Growth	32.9	24	45	4.5	+1.2
VB	Vanguard Smallcap ETF	32.8	5	64	5.5	+2.1
JMOM	JPMorgan U.S. Momentum Factor	32.8	12	57	4.3	+0.9
JHMM	John Hancock Multifactor Mid Cap	32.2	44	25	5.9	+2.5
IWR	iShares Russell Midcap	32.1	19	50	5.9	+2.5
FSMD	Fidelity Small-Mid Factor ETF	32.1	29	40	6.4	+3.0
DEUS	Xtrackers Russell 1000 Comprehensive Factor	31.8	17	52	6.4	+3.0
ONEO	SPDR Russell 1000 Momentum Focus	31.6	20	49	6.5	+3.1
CFA	Compass EMP US 500 Volatility Weighted	31.4	35	34	6.1	+2.7
CFO	Victory CEMP US 500 Enhanced Volatility Wtd	31.4	35	34	6.1	+2.7
GSEW	Goldman Sachs Equal Weight U.S. Large Cap Equity	31.1	9	60	6.0	+2.6
FNY	First Trust Mid Cap Growth AlphaDEX	30.3	70	-1	3.6	+0.3
USEQ	Invesco Russell 1000 Enhanced Equal Weight	29.9	29	40	6.6	+3.3
USLB	Invesco Russell 1000 Low Beta Equal Weight	29.8	35	34	5.8	+2.4

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 Growth
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	14.3	%
Divided by: Fwd. P/BV	3.5	x
Less: Expense ratio	69	bp
Equals: ALTAR Score	3.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.56

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.