ETF Research Center

First Trust Eurozone AlphaDex Fund is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond generally to the price and yield of an index called the NASDAQ AlphaDEX? Eurozone Index.

FUND BASICS
Category	International Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Oct 22, 2014
Assets (mns)	$52
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	150
Wgt avg mkt cap (mns)	$17,938
Large cap (>$10bn)	46.9%
Mid cap ($2-10bn)	50.5%
Small cap (<$2bn)	1.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	12.1 %
GALAPAGOS NV	1.3 %
ARCELORMITTAL SA	1.3 %
DEUTSCHE LUFTHANSA-REG	1.3 %
ASM INTERNATIONAL N.V.	1.2 %
HELLA GMBH & CO. KGAA	1.2 %
PORSCHE AUTOMOBIL HLDG-PFD	1.2 %
BASF SE	1.2 %
SCHAEFFLER AG	1.1 %
ALTICE NV CLASS A	1.1 %
BUZZI UNICEM S.P.A.	1.1 %

TOP COUNTRY EXPOSURE
	GERMANY	30.7 %
	FRANCE	22.3 %
	ITALY	15.1 %
	BELGIUM	6.3 %
	NETHERLANDS	5.8 %
	SPAIN	4.4 %
	LUXEMBOURG	4.3 %
	FINLAND	4.0 %
	AUSTRIA	3.1 %
	IRELAND	1.7 %

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.
19.0%	12.6%	6.0%	--	6.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.98	55%
MSCI EAFE	1.38	89%
MSCI Emg. Mkts.	0.96	69%

Technical Indicators
Recent close	$40.04
30d moving avg.	$39.88
Annualized volatility	16.0%
Short interest (ETF)	0.4%
Relative strength (RSI)	59

Liquidity measures
Avg. volume (thou.)	8
Turnover	0.6%
Bid/Ask (% of price)	1.12%
ADV underlying (mns)	$7,417

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FEUZ

Expense:

80 bp

ALTAR Score™:

6.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FEUZ
Ticker	Fund Name	Overlap¹ vs FEUZ (%)	Expense ratio (bp)	Savings vs FEUZ (bp)	ALTAR Score™ (%)	ALTAR vs FEUZ (%)
FEP	First Trust Europe AlphaDEX	61.1	80	0	7.2	+0.3
EURZ	Xtrackers Eurozone Equity	28.6	9	71	7.0	+0.0
DBEZ	Xtrackers MSCI EMU Hedged	27.1	45	35	6.4	-0.5
FDT	First Trust Developed Markets ex-US AlphaDEX	26.7	80	0	8.0	+1.1
EZU	iShares MSCI Euro Monetary Union	26.5	47	33	6.7	-0.3
FGM	First Trust Germany	24.7	80	0	8.7	+1.7
SCID	Global X Scientific Beta Europe	24.3	38	42	6.4	-0.5
SMEZ	SPDR Euro Stoxx Small Cap	23.1	46	34	5.3	-1.7
JPEU	JPMorgan Diversified Return Europe Equity	21.6	37	43	6.6	-0.4
RFEU	First Trust Riverfront Dynamic Europe	19.5	83	-3	6.2	-0.8
EUSC	WisdomTree Europe Hedged SmallCap Equity Fund	19.0	58	22	7.4	+0.4
IQIN	IQ 500 International	18.9	25	55	8.3	+1.4
GSEU	Goldman Sachs ActiveBeta Europe Equity	18.7	25	55	6.3	-0.6
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	17.8	30	50	6.7	-0.3
FLGR	Franklin FTSE Germany	17.7	9	71	7.9	+1.0
FLEE	Franklin FTSE Europe	17.5	9	71	6.8	-0.1
FLEH	Franklin FTSE Europe Hedged	17.3	9	71	6.9	0.0
IEUR	iShares Core MSCI Europe	17.3	9	71	6.8	-0.2
BBEU	JPMorgan BetaBuilders Europe	17.2	9	71	6.8	-0.1
FEU	SPDR DJ Stoxx 50	17.1	9	71	6.8	-0.2

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 Eurozone 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	9.4	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	6.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.