ETF Research Center

First Trust Emerging Markets AlphaDEX Fund is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond to the Defined Emerging Markets Index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$691
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	150
Wgt avg mkt cap (mns)	$12,025
Large cap (>$10bn)	22.9%
Mid cap ($2-10bn)	74.7%
Small cap (<$2bn)	1.9%
Developed mkts	10.7%
Emerging mkts	89.3%

TOP TEN HOLDINGS
Total	12.9 %
IMPALA PLATINUM HOLDINGS LTD	1.6 %
INTER RAO JSC	1.3 %
TIM PARTICIPACOES S.A.	1.3 %
TATA STEEL LIMITED	1.3 %
ZOOMLION HEAVY INDUSTRY - H	1.3 %
SUL AMERICA SA - UNITS	1.3 %
EREGLI DEMIR VE CELIK FABRIK	1.3 %
KGHM POLSKA MIEDZ S.A.	1.3 %
ZHONGSHENG GROUP HOLDINGS	1.2 %
EQUATORIAL ENERGIA SA - ORD	1.1 %

TOP COUNTRY EXPOSURE
	CHINA	25.1 %
	BRAZIL	19.5 %
	TURKEY	8.7 %
	HONG KONG	7.4 %
	SOUTH AFRICA	5.3 %
	INDIA	5.1 %
	RUSSIA	4.6 %
	TAIWAN	4.6 %
	POLAND	4.4 %
	MEXICO	2.5 %

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.
20.5%	20.5%	7.4%	--	1.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.89	40%
MSCI EAFE	1.22	62%
MSCI Emg. Mkts.	1.09	85%

Technical Indicators
Recent close	$27.59
30d moving avg.	$26.03
Annualized volatility	17.1%
Short interest (ETF)	0.0%
Relative strength (RSI)	80

Liquidity measures
Avg. volume (thou.)	168
Turnover	0.7%
Bid/Ask (% of price)	0.13%
ADV underlying (mns)	$3,819

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FEM

Expense:

80 bp

ALTAR Score™:

9.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FEM
Ticker	Fund Name	Overlap¹ vs FEM (%)	Expense ratio (bp)	Savings vs FEM (bp)	ALTAR Score™ (%)	ALTAR vs FEM (%)
FLN	First Trust Latin America AlphaDEX	23.2	80	0	4.9	-4.8
FCA	First Trust China AlphaDEX	22.8	80	0	11.3	+1.6
EMGF	iShares Edge MSCI Multifactor Emerging Markets	20.7	45	35	9.1	-0.7
UEVM	USAA MSCI Emerging Markets Value Momentum Blend Index	20.6	45	35	12.4	+2.6
EMMF	WisdomTree Emerging Markets Multifactor Fund	18.3	48	32	8.6	-1.1
FBZ	First Trust Brazil AlphaDEX	17.7	80	0	6.8	-3.0
CEZ	Victory CEMP Emerging Market Volatility Weighted	17.6	50	30	8.6	-1.2
EEMO	Invesco S&P Emg Mkts Momentum	17.3	30	50	7.5	-2.3
PXH	Invesco FTSE-RAFI Emerging Markets	16.7	50	30	11.4	+1.7
JPEM	JPMorgan Diversified Rtn Emg Mkt Equity	16.6	45	35	8.3	-1.5
FLLA	Franklin FTSE Latin America	16.4	19	61	5.7	-4.1
DGRE	WisdomTree Emg Mkt Dividend Growth	16.1	32	48	8.3	-1.5
FLBR	Franklin FTSE Brazil	15.6	19	61	5.1	-4.6
EMEM	Virtus Glovista Emerging Markets	15.4	67	13	8.6	-1.1
EWZ	iShares MSCI Brazil	15.2	59	21	4.8	-4.9
ECOW	Pacer Emerging Markets Cash Cows 100	14.7	70	10	9.9	+0.1
CEY	VictoryShares Emg. Mkt. High Dividend Volatility Wtd.	14.7	50	30	12.5	+2.7
ROAM	Hartford Multifactor Emerging Markets	14.2	44	36	10.5	+0.8
ISEM	Invesco Strategic Emerging Markets	14.0	35	45	9.1	-0.7
FNDE	Schwab Fundamental Emg Mkt Large Cap	13.7	39	41	10.3	+0.5

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 Emerging Markets AlphaDEX
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	11.3	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	9.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.50	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.