ETF Research Center

First Trust Dow Jones Internet Index Fund seeks investment results that correspond to the price and yield of an equity index called Dow Jones Internet Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Jun 23, 2006
Assets (mns)	$8,351
Currency	USD
Expense ratio	52 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	42
Wgt avg mkt cap (mns)	$251,701
Large cap (>$10bn)	74.8%
Mid cap ($2-10bn)	21.0%
Small cap (<$2bn)	4.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	50.8 %
AMAZON.COM INC	8.8 %
FACEBOOK	7.5 %
CISCO SYSTEMS INC	5.4 %
SALESFORCE.COM INC	5.2 %
NETFLIX INC	4.8 %
PAYPAL HOLDINGS INC	4.6 %
ALPHABET INC. CLASS A	4.5 %
ALPHABET INC. CLASS C	4.5 %
TWITTER INC	2.8 %
EBAY INC	2.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	100.0 %

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.
19.3%	19.3%	17.8%	18.7%	15.1%

Market Correlations
versus...	Beta	R-squared
S&P500	1.10	61%
MSCI EAFE	1.01	43%
MSCI Emg. Mkts.	0.72	37%

Technical Indicators
Recent close	$148.19
30d moving avg.	$139.68
Annualized volatility	17.0%
Short interest (ETF)	0.7%
Short interest (Underlying)	5.1%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	277
Turnover	0.5%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$20,657

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust DJ Internet ETF based on the alternatives' overlap in portfolio holdings with FDN. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FDN

Expense:

52 bp

ALTAR Score™:

2.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FDN
Ticker	Fund Name	Overlap¹ vs FDN (%)	Expense ratio (bp)	Savings vs FDN (bp)	ALTAR Score™ (%)	ALTAR vs FDN (%)
PNQI	Invesco Nasdaq Internet	45.1	62	-10	2.4	-0.5
ENTR	ERShares Entrepreneur 30	36.7	49	3	3.5	+0.6
IGM	iShares S&P N. American Technology	32.7	46	6	4.1	+1.2
XWEB	SPDR S&P Internet	32.6	35	17	1.8	-1.2
TTTN	TigerShares China-U.S. Internet Titans	31.5	59	-7	3.6	+0.7
PLAT	WisdomTree Modern Tech Platforms	31.4	45	7	2.7	-0.3
OGIG	O'Shares Global Internet Giants	31.1	48	4	1.2	-1.7
IETC	iShares Evolved U.S. Technology	29.9	18	34	4.3	+1.4
QYLD	Global X NASDAQ 100 Covered Call ETF	28.2	60	-8	4.5	+1.5
QQQ	Invesco QQQ	27.3	20	32	4.7	+1.8
SKYY	First Trust Cloud Computing	27.1	60	-8	2.5	-0.4
XLC	Communication Services Select Sector SPDR	24.1	13	39	5.7	+2.7
FCOM	Fidelity MSCI Communication Services	23.5	8	44	4.9	+2.0
VOX	Vanguard Communication Services	23.5	10	42	4.8	+1.9
MILN	Global X Millennials Thematic	23.4	50	2	2.7	-0.2
IYW	iShares US Technology	22.7	42	10	4.7	+1.8
IWY	iShares Russell Top 200 Growth	22.6	20	32	4.6	+1.7
GIGE	SoFi Gig Economy	22.5	59	-7	0.3	-2.7
MGK	Vanguard Mega Cap 300 Growth	22.2	7	45	4.6	+1.7

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 DJ Internet
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	17.5	%
Divided by: Fwd. P/BV	5.1	x
Less: Expense ratio	52	bp
Equals: ALTAR Score	2.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.41	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.