ETF Research Center

The First Trust Dow Jones International Internet ETF tracks a market-cap-weighted index of the 20 largest internet services companies and 20 largest internet commerce companies outside of the United States.

FUND BASICS
Category	International Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Oct 31, 2018
Assets (mns)	$5
Currency	USD
Expense ratio	65 bp
Distributions

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	40
Wgt avg mkt cap (mns)	$117,199
Large cap (>$10bn)	83.7%
Mid cap ($2-10bn)	16.4%
Small cap (<$2bn)	0.0%
Developed mkts	45.1%
Emerging mkts	54.9%

TOP TEN HOLDINGS
Total	59.9 %
ALIBABA GROUP HOLDING LTD. SPONSOR	10.2 %
TENCENT HOLDINGS LTD	9.3 %
NASPERS LTD-N SHS	8.8 %
MEITUAN DIANPING	7.2 %
BAIDU INC - SPON ADR	5.3 %
SHOPIFY, INC. CLASS A	5.1 %
JD.COM INC-ADR	4.5 %
NETEASE.COM INC-ADR	3.5 %
NHN CORP	3.3 %
ADYEN NV	2.8 %

TOP COUNTRY EXPOSURE
	CHINA	46.4 %
	BRITAIN	8.3 %
	SOUTH AFRICA	8.2 %
	JAPAN	6.8 %
	SOUTH KOREA	5.6 %
	CANADA	5.5 %
	NETHERLANDS	4.6 %
	GERMANY	3.7 %
	LUXEMBOURG	2.2 %
	SINGAPORE	1.2 %

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.
28.0%	--	--	--	18.6%

Market Correlations
versus...	Beta	R-squared
S&P500	1.12	83%
MSCI EAFE	1.33	68%
MSCI Emg. Mkts.	1.07	64%

Technical Indicators
Recent close	$22.94
30d moving avg.	$22.32
Annualized volatility	21.2%
Short interest (ETF)	0.1%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	0
Turnover	0.0%
Bid/Ask (% of price)	0.65%
ADV underlying (mns)	$8,623

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FDNI

Expense:

65 bp

ALTAR Score™:

4.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FDNI
Ticker	Fund Name	Overlap¹ vs FDNI (%)	Expense ratio (bp)	Savings vs FDNI (bp)	ALTAR Score™ (%)	ALTAR vs FDNI (%)
EMQQ	Emerging Markets Internet & E-Commerce	47.7	86	-21	3.9	-0.7
KWEB	KraneShares CSI China Internet	44.6	76	-11	3.9	-0.7
TTTN	TigerShares China-U.S. Internet Titans	38.2	59	6	3.9	-0.6
CQQQ	Invesco China Technology	37.2	70	-5	5.3	+0.8
CXSE	WisdomTree China ex-State Owned Enterprises	33.7	32	33	7.0	+2.5
KEMQ	KraneShares EM Consumer Focus	31.2	80	-15	7.8	+3.2
SOCL	Global X Social Media	28.7	65	0	4.4	-0.2
FLCH	Franklin FTSE China	28.0	19	46	10.0	+5.5
CHIL	Global X MSCI China Large-Cap 50	27.7	29	36	10.5	+5.9
PGJ	Invesco Golden Dragon China	26.7	70	-5	3.7	-0.8
GXC	SPDR S&P China ETF	26.6	59	6	9.2	+4.6
MCHI	iShares MSCI China	26.5	59	6	9.4	+4.8
FNI	First Trust ISE Chindia	26.2	59	6	4.0	-0.5
ECON	Columbia Emerging Markets Consumer	24.4	59	6	5.1	+0.5
PNQI	Invesco Nasdaq Internet	24.4	62	3	2.8	-1.7
KALL	KraneShares MSCI China All Shares	24.1	49	16	9.0	+4.5
EBIZ	Global X E-commerce	24.1	68	-3	2.8	-1.7
OGIG	O'Shares Global Internet Giants	23.9	48	17	1.5	-3.1
EEB	Invesco BRIC	22.8	64	1	6.6	+2.1
CN	Xtrackers Harvest MSCI All China	22.0	50	15	9.3	+4.7

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 Dow Jones International 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	19.7	%
Divided by: Fwd. P/BV	3.8	x
Less: Expense ratio	65	bp
Equals: ALTAR Score	4.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.30	CATEGORY AVERAGE	1.63

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.