ETF Research Center

First Trust NYSE Arca Biotechnology Index Fund seeks investment results that correspond to the price and yield of an equity index called the Amex Biotechnology Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Jun 23, 2006
Assets (mns)	$1,820
Currency	USD
Expense ratio	57 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	30
Wgt avg mkt cap (mns)	$23,555
Large cap (>$10bn)	47.7%
Mid cap ($2-10bn)	46.3%
Small cap (<$2bn)	6.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	38.2 %
INTERCEPT PHARMACEUTICALS IN	4.6 %
QIAGEN NV	4.1 %
ALNYLAM PHARMACEUTICALS INC	4.1 %
BIOGEN IDEC INC	3.8 %
SEATTLE GENETICS INC	3.8 %
ACADIA PHARMACEUTICALS INC	3.6 %
SAREPTA THERAPEUTICS INC	3.6 %
VERTEX PHARMACEUTICALS INC	3.5 %
REGENERON PHARMACEUTICALS	3.5 %
AGIOS PHARMACEUTICALS INC	3.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	89.5 %
	NETHERLANDS	4.1 %
	IRELAND	3.2 %
	SPAIN	3.1 %

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.
18.3%	4.9%	7.6%	18.5%	16.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.50	58%
MSCI EAFE	1.28	35%
MSCI Emg. Mkts.	1.08	41%

Technical Indicators
Recent close	$148.55
30d moving avg.	$140.51
Annualized volatility	23.7%
Short interest (ETF)	0.1%
Short interest (Underlying)	7.1%
Relative strength (RSI)	74

Liquidity measures
Avg. volume (thou.)	96
Turnover	0.8%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$4,616

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FBT

Expense:

57 bp

ALTAR Score™:

-0.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FBT
Ticker	Fund Name	Overlap¹ vs FBT (%)	Expense ratio (bp)	Savings vs FBT (bp)	ALTAR Score™ (%)	ALTAR vs FBT (%)
BBH	VanEck Vectors Biotech	61.6	35	22	4.5	+5.3
BBP	BioShares Biotech Products	49.2	79	-22	-3.7	-2.9
IBB	iShares NASDAQ Biotechnology	43.2	47	10	0.4	+1.1
XBI	SPDR S&P Biotech ETF	36.5	35	22	-4.4	-3.6
IEIH	iShares Evolved U.S. Innovative Healthcare	27.6	18	39	4.3	+5.1
GNOM	Global X Genomics & Biotechnology	26.7	68	-11	-5.3	-4.5
BTEC	Principal Healthcare Innovators Index	24.3	42	15	-4.2	-3.5
IDNA	iShares Genomics Immunology and Healthcare	23.4	47	10	-4.3	-3.6
LNGR	Global X Longevity Thematic	19.7	50	7	3.3	+4.1
FXH	First Trust Health Care Alphadex	19.6	63	-6	7.0	+7.8
RYH	Invesco S&P Equal Weight Healthcare	15.8	40	17	7.0	+7.7
QQXT	First Trust NASDAQ-100 Ex-Tech	15.8	60	-3	5.8	+6.5
SBIO	ALPS Medical Breakthroughs	15.6	50	7	-5.0	-4.3
JHMH	John Hancock Multifactor Health Care	15.2	40	17	6.6	+7.3
IYH	iShares US Healthcare	15.1	43	14	6.2	+6.9
CNCR	Loncar Cancer Immunotherapy	14.4	79	-22	-3.5	-2.7
FHLC	Fidelity MSCI Health Care	14.1	8	49	5.7	+6.5
VHT	Vanguard Health Care	14.1	10	47	5.8	+6.6
PJP	Invesco Dynamic Pharmaceuticals	14.1	56	1	9.2	+9.9
PBE	Invesco Dynamic Biotechnology & Genome	14.0	57	0	-0.5	+0.2

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 NYSE-ARCA Biotechnology
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	-0.8	%
Divided by: Fwd. P/BV	4.9	x
Less: Expense ratio	57	bp
Equals: ALTAR Score	-0.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.41	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.