ETF Research Center

The First Trust Lunt US Factor Rotation ETF tracks an index of US large-cap stocks. Exposure rotates among four investment factors, selected by a risk-adjusted relative strength score. The fund aims to outperform the broad market over time.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jul 25, 2018
Assets (mns)	$68
Currency	USD
Expense ratio	65 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Equal
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	162
Wgt avg mkt cap (mns)	$75,231
Large cap (>$10bn)	92.6%
Mid cap ($2-10bn)	7.4%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	15.4 %
DXC TECHNOLOGY CO.	2.6 %
CONCHO RESOURCES INC	1.7 %
HALLIBURTON CO	1.6 %
ULTA SALON COSMETICS & FRAGR	1.5 %
DEVON ENERGY CORPORATION	1.5 %
MOSAIC CO/THE	1.4 %
MSCI INC-A	1.3 %
CIGNA CORP	1.3 %
MASTERCARD INC-CLASS A	1.3 %
MARATHON OIL CORP	1.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.0 %
	IRELAND	1.3 %
	BRITAIN	1.2 %
	BERMUDA	0.9 %
	CHINA	0.4 %

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.
30.9%	30.9%	--	--	9.1%

Market Correlations
versus...	Beta	R-squared
S&P500	0.98	91%
MSCI EAFE	1.07	77%
MSCI Emg. Mkts.	0.75	59%

Technical Indicators
Recent close	$22.62
30d moving avg.	$22.79
Annualized volatility	17.5%
Short interest (ETF)	0.0%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	9
Turnover	0.3%
Bid/Ask (% of price)	0.20%
ADV underlying (mns)	$47,352

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FCTR

Expense:

65 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FCTR
Ticker	Fund Name	Overlap¹ vs FCTR (%)	Expense ratio (bp)	Savings vs FCTR (bp)	ALTAR Score™ (%)	ALTAR vs FCTR (%)
PSET	Principal Price Setters	34.8	29	36	5.2	-1.1
FEX	First Trust Large Cap Core Alphadex	33.5	61	4	6.1	-0.2
FTA	First Trust Large Cap Value	31.0	62	3	8.3	+2.1
RPV	Invesco S&P 500 Pure Value ETF	30.2	35	30	10.7	+4.5
RNLC	Large Cap US Equity Select	29.6	60	5	6.0	-0.2
GSEW	Goldman Sachs Equal Weight U.S. Large Cap Equity	28.4	9	56	5.8	-0.5
SPHB	Invesco S&P 500 High Beta	27.6	25	40	6.5	+0.2
RWL	Invesco S&P 500 Revenue ETF	27.6	39	26	7.3	+1.0
LVHB	Elkhorn Lunt Low Vol/High Beta Tactical	27.6	52	13	6.2	-0.1
RSP	Invesco S&P 500 Equal Weight	26.8	20	45	6.4	+0.2
EPS	WisdomTree Earnings 500	26.1	8	57	6.6	+0.3
PQLC	PGIM QMA Strategic Alpha Large-Cap Core	25.9	17	48	6.7	+0.4
SPGP	Invesco S&P 500 GARP	25.7	35	30	7.6	+1.3
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity	25.5	9	56	5.8	-0.5
DYNF	BlackRock U.S. Equity Factor Rotation	25.2	30	35	6.2	-0.0
SPVU	Invesco S&P 500 Value	25.2	13	52	10.4	+4.1
KRMA	Global X Conscious Companies	25.1	43	22	5.4	-0.8
JHML	John Hancock Multifactor Large Cap	24.6	34	31	5.6	-0.6
QUS	SPDR MSCI USA Quality Mix	24.6	15	50	5.6	-0.6
DIVB	iShares U.S. Dividend & Buyback	24.5	25	40	6.5	+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 Lunt U.S. Factor Rotation
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.3	%
Divided by: Fwd. P/BV	1.9	x
Less: Expense ratio	65	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.59	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.