ETF Research Center

First Trust Morningstar Dividend Leaders Index Fund seeks investment results that correspond to the price and yield of an equity index called the Morningstar Dividend Leaders Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Mar 15, 2006
Assets (mns)	$1,846
Currency	USD
Expense ratio	45 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	100
Wgt avg mkt cap (mns)	$146,576
Large cap (>$10bn)	93.2%
Mid cap ($2-10bn)	6.3%
Small cap (<$2bn)	0.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	60.5 %
AT&T INC	10.0 %
EXXON MOBIL CORP	9.8 %
VERIZON COMMUNICATIONS INC	7.0 %
CHEVRON CORP	6.5 %
WELLS FARGO & CO	5.8 %
PHILIP MORRIS INTERNATIONAL	5.4 %
ABBVIE INC	4.6 %
ALTRIA GROUP INC	4.5 %
INTL BUSINESS MACHINES CORP	4.2 %
BROADCOM INC.	2.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.7 %
	IRELAND	1.3 %
	BRITAIN	0.8 %

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.
24.4%	24.4%	10.2%	12.6%	7.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.78	73%
MSCI EAFE	0.73	53%
MSCI Emg. Mkts.	0.45	35%

Technical Indicators
Recent close	$32.56
30d moving avg.	$32.45
Annualized volatility	11.0%
Short interest (ETF)	0.2%
Short interest (Underlying)	2.5%
Relative strength (RSI)	59

Liquidity measures
Avg. volume (thou.)	184
Turnover	0.3%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$15,146

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FDL

Expense:

45 bp

ALTAR Score™:

8.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FDL
Ticker	Fund Name	Overlap¹ vs FDL (%)	Expense ratio (bp)	Savings vs FDL (bp)	ALTAR Score™ (%)	ALTAR vs FDL (%)
DHS	WisdomTree Equity Income	50.9	38	7	7.6	-0.7
HDV	iShares High Dividend	47.5	8	37	6.9	-1.4
SPHD	Invesco S&P 500 High Dividend	39.7	30	15	7.5	-0.8
WBIY	WBI Power Factor High Dividend	39.5	70	-25	9.7	+1.4
SDOG	ALPS Sector Dividend Dogs	36.9	40	5	9.6	+1.2
JKF	iShares Morningstar Large Value	36.2	25	20	7.4	-1.0
SPYD	SPDR Portfolio S&P 500 High Dividend	36.2	7	38	8.8	+0.5
RDIV	Invesco S&P Ultra Dividend Revenue ETF	34.8	39	6	9.9	+1.6
ACIO	Aptus Collared Income Opportunity	33.4	79	-34	6.8	-1.5
SPDV	AAM S&P 500 High Dividend Value	32.5	29	16	10.3	+1.9
OYLD	Invesco Russell 1000 Yield Factor ETF	31.8	19	26	6.8	-1.5
PEY	Invesco High Yield Equity Dividend Acheivers	31.2	53	-8	6.3	-2.1
DTN	WisdomTree Dividend Ex-Financials	30.6	38	7	7.8	-0.6
DURA	VanEck Vectors Morningstar Durable Dividend	30.1	29	16	6.5	-1.8
DEW	WisdomTree Global Equity Income	29.9	58	-13	8.0	-0.3
DVY	iShares Select Dividend	29.7	39	6	7.6	-0.7
VYM	Vanguard High Dividend Yield ETF	29.4	6	39	6.9	-1.4
PWV	Invesco Dynamic Large Cap Value	29.1	55	-10	8.1	-0.3
USDY	Pacific Global US Equity Income	28.1	29	16	7.1	-1.2
SCHD	Schwab US Dividend Equity	27.8	6	39	7.0	-1.3

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 Morningstar Dividend Leaders
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	16.5	%
Divided by: Fwd. P/BV	1.9	x
Less: Expense ratio	45	bp
Equals: ALTAR Score	8.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.66	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.