ETF Research Center

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

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$9
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	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	50
Wgt avg mkt cap (mns)	$16,062
Large cap (>$10bn)	25.5%
Mid cap ($2-10bn)	72.5%
Small cap (<$2bn)	2.0%
Developed mkts	30.9%
Emerging mkts	69.1%

TOP TEN HOLDINGS
Total	32.9 %
CHINA NATIONAL BUILDING MA-H	3.6 %
CHINA MERCHANTS HLDGS INTL	3.5 %
BEIJING ENTERPRISES HLDGS	3.4 %
CHINA HONGQIAO GROUP LTD	3.4 %
CHINA AOYUAN PROPERTY GROUP	3.3 %
ZHONGSHENG GROUP HOLDINGS	3.3 %
SUNAC CHINA HOLDINGS LTD	3.2 %
YANZHOU COAL MINING CO-H	3.2 %
DONGFENG MOTOR GRP CO LTD-H	3.1 %
CHINA LIANSU GROUP HOLDINGS	3.0 %

TOP COUNTRY EXPOSURE
	CHINA	67.3 %
	HONG KONG	27.7 %

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.
19.2%	19.2%	6.8%	--	1.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.21	50%
MSCI EAFE	1.56	69%
MSCI Emg. Mkts.	1.29	81%

Technical Indicators
Recent close	$26.26
30d moving avg.	$26.54
Annualized volatility	20.7%
Short interest (ETF)	0.0%
Relative strength (RSI)	58

Liquidity measures
Avg. volume (thou.)	1
Turnover	0.3%
Bid/Ask (% of price)	0.96%
ADV underlying (mns)	$1,583

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FCA

Expense:

80 bp

ALTAR Score™:

11.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FCA
Ticker	Fund Name	Overlap¹ vs FCA (%)	Expense ratio (bp)	Savings vs FCA (bp)	ALTAR Score™ (%)	ALTAR vs FCA (%)
FEM	First Trust Emerging Markets AlphaDEX	22.8	80	0	10.0	-1.8
CHIR	Global X MSCI China Real Estate	18.1	65	15	14.3	+2.5
FXI	iShares China Large-Cap	16.8	74	6	13.0	+1.3
TAO	Invesco China Real Estate	14.4	70	10	12.4	+0.7
FLCH	Franklin FTSE China	13.9	19	61	8.8	-2.9
CHIE	Global X MSCI China Energy	13.2	66	14	7.2	-4.6
MCHI	iShares MSCI China	12.5	59	21	8.3	-3.4
GXC	SPDR S&P China ETF	12.2	59	21	8.3	-3.4
EEMD	AAM S&P Emerging Markets High Dividend Value	11.6	50	30	11.5	-0.3
CHIL	Global X MSCI China Large-Cap 50	11.4	29	51	9.6	-2.1
ISEM	Invesco Strategic Emerging Markets	11.0	35	45	9.4	-2.4
EMGF	iShares Edge MSCI Multifactor Emerging Markets	10.8	45	35	9.2	-2.5
CHIM	Global X MSCI China Materials	10.3	65	15	8.6	-3.2
2800-HK	Tracker Fund of Hong Kong	9.8	9	71	9.8	-2.0
KALL	KraneShares MSCI China All Shares	9.7	49	31	8.4	-3.4
CHII	Global X MSCI China Industrials	9.5	66	14	12.1	+0.4
HAO	Invesco China Small Cap ETF	9.4	75	5	10.1	-1.7
BKF	iShares MSCI BRIC	8.5	67	13	7.8	-3.9
CN	Xtrackers Harvest MSCI All China	8.4	50	30	8.4	-3.3
AXJL	WisdomTree Asia Pacific Ex-Japan	8.4	48	32	8.6	-3.1

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 China AlphaDEX
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	10.8	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	11.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.37	CATEGORY AVERAGE	1.48

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.