ETF Research Center

First Trust Europe AlphaDEX Fund seeks investment results that correspond to the Defined Europe Index.

FUND BASICS
Category	International Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$500
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	200
Wgt avg mkt cap (mns)	$19,205
Large cap (>$10bn)	46.2%
Mid cap ($2-10bn)	50.9%
Small cap (<$2bn)	2.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	9.9 %
AVAST PLC	1.1 %
ASM INTERNATIONAL N.V.	1.1 %
INTL CONSOLIDATED AIRLINE-DI	1.1 %
BELLWAY PLC	1.0 %
ALTICE NV CLASS A	1.0 %
BOOHOO.COM PLC	0.9 %
PADDY POWER PLC	0.9 %
GALAPAGOS NV	0.9 %
ANGLO AMERICAN PLC	0.9 %
JD SPORTS FASHION PLC	0.9 %

TOP COUNTRY EXPOSURE
	BRITAIN	22.8 %
	GERMANY	19.4 %
	FRANCE	12.2 %
	SWEDEN	9.5 %
	ITALY	9.4 %
	BELGIUM	4.4 %
	NETHERLANDS	3.8 %
	SWITZERLAND	2.8 %
	LUXEMBOURG	2.7 %
	DENMARK	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.
24.8%	24.8%	7.4%	--	4.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.95	60%
MSCI EAFE	1.29	91%
MSCI Emg. Mkts.	0.88	73%

Technical Indicators
Recent close	$37.49
30d moving avg.	$37.48
Annualized volatility	14.8%
Short interest (ETF)	0.0%
Relative strength (RSI)	61

Liquidity measures
Avg. volume (thou.)	49
Turnover	0.4%
Bid/Ask (% of price)	0.24%
ADV underlying (mns)	$7,868

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FEP

Expense:

80 bp

ALTAR Score™:

7.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FEP
Ticker	Fund Name	Overlap¹ vs FEP (%)	Expense ratio (bp)	Savings vs FEP (bp)	ALTAR Score™ (%)	ALTAR vs FEP (%)
FEUZ	First Trust Eurozone AlphaDex	59.9	80	0	7.1	-0.1
FDT	First Trust Developed Markets ex-US AlphaDEX	43.2	80	0	7.9	+0.7
JPEU	JPMorgan Diversified Return Europe Equity	30.8	37	43	6.3	-0.9
SCID	Global X Scientific Beta Europe	30.7	38	42	6.2	-1.0
GSEU	Goldman Sachs ActiveBeta Europe Equity	23.6	25	55	6.2	-1.0
RFEU	First Trust Riverfront Dynamic Europe	23.5	83	-3	6.0	-1.2
UIVM	USAA MSCI International Value Momentum Blend Index	21.7	35	45	7.9	+0.7
FKU	First Trust United Kingdom	21.7	80	0	7.1	-0.1
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	21.4	30	50	6.4	-0.7
FLEE	Franklin FTSE Europe	21.1	9	71	6.7	-0.5
IEUR	iShares Core MSCI Europe	20.9	9	71	6.7	-0.5
FLEH	Franklin FTSE Europe Hedged	20.8	9	71	6.7	-0.5
BBEU	JPMorgan BetaBuilders Europe	20.8	9	71	6.6	-0.5
VGK	Vanguard FTSE Europe	20.7	9	71	6.7	-0.5
FEU	SPDR DJ Stoxx 50	20.6	9	71	6.7	-0.5
DDEZ	WisdomTree Dynamic Currency Hedged Europe Equity	20.6	43	37	6.1	-1.1
IEV	iShares S&P Europe 350	20.4	59	21	6.2	-1.0
EURZ	Xtrackers Eurozone Equity	20.3	9	71	6.9	-0.3
DBEU	Xtrackers Europe Hedged	20.3	45	35	6.2	-1.0
DBEZ	Xtrackers MSCI EMU Hedged	19.9	45	35	6.3	-0.9

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 Europe AlphaDEX
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.5	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	7.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	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.