ETF Research Center

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

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Feb 16, 2012
Assets (mns)	$133
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	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	201
Wgt avg mkt cap (mns)	$1,267
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	24.0%
Small cap (<$2bn)	74.7%
Developed mkts	10.4%
Emerging mkts	89.6%

TOP TEN HOLDINGS
Total	9.6 %
TAIWAN SURFACE MOUNTING TECH	1.0 %
Q TECHNOLOGY (GROUP) CO. LTD.	1.0 %
EVEN CONSTRUTORA E INCORPORA	1.0 %
SISTEMA PJSFC	1.0 %
PEGASUS HAVA TASIMACILIGI AS	1.0 %
RUENTEX DEVELOPMENT CO LTD	0.9 %
RUENTEX INDUSTRIES LTD	0.9 %
HARMONY GOLD MINING CO LTD	0.9 %
UNIMICRON TECHNOLOGY CORP	0.9 %
HANNSTAR BOARD CORP	0.9 %

TOP COUNTRY EXPOSURE
	TAIWAN	24.9 %
	TURKEY	13.5 %
	CHINA	11.0 %
	BRAZIL	10.6 %
	HONG KONG	7.9 %
	SOUTH AFRICA	5.4 %
	INDONESIA	4.4 %
	MEXICO	1.7 %
	POLAND	1.6 %
	PHILIPPINES	1.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
13.9%	14.5%	4.0%	--	4.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.86	32%
MSCI EAFE	1.14	48%
MSCI Emg. Mkts.	1.15	79%

Technical Indicators
Recent close	$36.41
30d moving avg.	$35.68
Annualized volatility	18.3%
Short interest (ETF)	0.0%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	18
Turnover	0.5%
Bid/Ask (% of price)	0.48%
ADV underlying (mns)	$1,157

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FEMS

Expense:

80 bp

ALTAR Score™:

10.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FEMS
Ticker	Fund Name	Overlap¹ vs FEMS (%)	Expense ratio (bp)	Savings vs FEMS (bp)	ALTAR Score™ (%)	ALTAR vs FEMS (%)
DGS	WisdomTree Emg. Mkts. Small Cap Dividend	15.7	63	17	12.2	+1.6
EWX	SPDR S&P Emerging Markets Small Cap	13.4	65	15	7.9	-2.7
EEMS	iShares MSCI Emerging Market Small Cap	12.3	67	13	6.4	-4.1
TUR	iShares MSCI Turkey Investable	10.2	59	21	15.9	+5.4
ECNS	iShares MSCI China Small Cap	9.8	59	21	9.9	-0.6
HAO	Invesco China Small Cap ETF	9.0	75	5	9.5	-1.0
EWZS	iShares MSCI Brazil Small-Cap	8.2	59	21	5.4	-5.2
RFEM	First Trust Riverfront Dynamic Emerging Markets	7.3	95	-15	10.7	+0.1
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	7.1	59	21	10.5	-0.1
BRF	VanEck Vectors Brazil Small Cap	6.8	60	20	8.6	-2.0
EYLD	Cambria Emerging Shareholder Yield	6.6	66	14	10.9	+0.3
UEVM	USAA MSCI Emerging Markets Value Momentum Blend Index	5.3	45	35	13.1	+2.5
PIE	Invesco DWA Emg. Mkts. Technical Leaders	5.3	90	-10	5.1	-5.5
ROAM	Hartford Multifactor Emerging Markets	5.1	44	36	11.1	+0.5
CEY	VictoryShares Emg. Mkt. High Dividend Volatility Wtd.	4.9	50	30	13.4	+2.8
DVYE	iShares Emerging Markets Dividend	4.7	49	31	13.8	+3.2
AVEM	Avantis Emerging Markets Equity	4.7	33	47	8.3	-2.3
SDEM	Global X SuperDividend Emg Mkts	4.7	67	13	18.5	+7.9
DEM	WisdomTree Emerg Mkts High Yield Equity	4.6	63	17	12.4	+1.9
CEZ	Victory CEMP Emerging Market Volatility Weighted	4.2	50	30	9.1	-1.4

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 Small Cap
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	9.2	%
Divided by: Fwd. P/BV	0.8	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	10.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	CATEGORY AVERAGE	1.49

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.