ETF Research Center

First Trust Brazil AlphaDEX Fund seeks investment results that correspond to the Defined Brazil Index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$115
Currency	USD
Expense ratio	80 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Brown Brothers Harriman & Co
Weighting	Tiered
Index replication	Full
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	49
Wgt avg mkt cap (mns)	$7,718
Large cap (>$10bn)	19.8%
Mid cap ($2-10bn)	61.7%
Small cap (<$2bn)	9.4%
Developed mkts	0.0%
Emerging mkts	100.0%

TOP TEN HOLDINGS
Total	33.3 %
SUL AMERICA SA - UNITS	4.0 %
CIA PARANAENSE DE ENERGI-PFB	3.8 %
JBS SA	3.6 %
SAO PAULO ALPARGATAS SA-PREF	3.5 %
TIM PARTICIPACOES S.A.	3.5 %
TELEFONICA BRASIL SA PFD	3.2 %
BRADESPAR SA -PREF	3.1 %
CENTRAIS ELETRICAS BRAS-PR B	2.9 %
MAGAZINE LUIZA SA	2.9 %
BRF - BRASIL FOODS SA	2.8 %

TOP COUNTRY EXPOSURE
	BRAZIL	95.8 %

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.
25.1%	24.0%	5.1%	--	-2.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.16	1%
MSCI EAFE	0.45	4%
MSCI Emg. Mkts.	0.69	13%

Technical Indicators
Recent close	$17.11
30d moving avg.	$16.29
Annualized volatility	26.6%
Short interest (ETF)	0.3%
Relative strength (RSI)	53

Liquidity measures
Avg. volume (thou.)	9
Turnover	0.1%
Bid/Ask (% of price)	0.73%
ADV underlying (mns)	$1,593

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FBZ

Expense:

80 bp

ALTAR Score™:

6.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FBZ
Ticker	Fund Name	Overlap¹ vs FBZ (%)	Expense ratio (bp)	Savings vs FBZ (bp)	ALTAR Score™ (%)	ALTAR vs FBZ (%)
FLN	First Trust Latin America AlphaDEX	58.8	80	0	5.0	-1.9
EWZ	iShares MSCI Brazil	34.7	59	21	4.7	-2.3
FLBR	Franklin FTSE Brazil	33.0	19	61	5.0	-1.9
FLLA	Franklin FTSE Latin America	25.5	19	61	5.7	-1.2
EWZS	iShares MSCI Brazil Small-Cap	21.3	59	21	4.5	-2.4
FEM	First Trust Emerging Markets AlphaDEX	19.4	80	0	10.7	+3.8
EEMO	Invesco S&P Emg Mkts Momentum	15.0	30	50	7.8	+0.9
BICK	First Trust BICK Index Fund	11.3	64	16	5.5	-1.4
EMGF	iShares Edge MSCI Multifactor Emerging Markets	9.7	45	35	9.9	+2.9
JPEM	JPMorgan Diversified Rtn Emg Mkt Equity	9.3	45	35	8.8	+1.9
SDEM	Global X SuperDividend Emg Mkts	8.5	67	13	17.4	+10.5
DWCR	Arrow DWA Country Rotation	8.4	134	-54	5.0	-2.0
EMMF	WisdomTree Emerging Markets Multifactor Fund	7.9	48	32	10.0	+3.1
REDV	Invesco Emerging Markets Ultra Dividend Revenue ETF	7.7	46	34	17.8	+10.9
RFEM	First Trust Riverfront Dynamic Emerging Markets	7.0	95	-15	10.5	+3.5
PIE	Invesco DWA Emg. Mkts. Technical Leaders	6.9	90	-10	5.2	-1.8
BKF	iShares MSCI BRIC	6.9	67	13	8.6	+1.6
BRF	VanEck Vectors Brazil Small Cap	6.9	60	20	7.4	+0.4
XCEM	Columbia EM Core ex-China	6.8	16	64	7.5	+0.6
EMCG	WisdomTree Emg Mkts Consumer Growth	6.5	32	48	6.6	-0.3

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 Brazil AlphaDEX
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	11.6	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	6.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.55	CATEGORY AVERAGE	1.49

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.