ETF Research Center

First Trust Large Cap Core AlphaDEX Fund seeks investment results that correspond to the Defined Large Cap Core Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$1,351
Currency	USD
Expense ratio	61 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Tiered
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	376
Wgt avg mkt cap (mns)	$54,211
Large cap (>$10bn)	95.0%
Mid cap ($2-10bn)	5.1%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	5.1 %
SKYWORKS SOLUTIONS INC	0.5 %
BIOGEN IDEC INC	0.5 %
UNITED RENTALS INC	0.5 %
REGENERON PHARMACEUTICALS	0.5 %
VALERO ENERGY CORP	0.5 %
PHILLIPS 66	0.5 %
DISCOVERY COMMUNICATIONS-A	0.5 %
CUMMINS INC	0.5 %
PACCAR INC	0.5 %
EASTMAN CHEMICAL COMPANY	0.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.9 %
	IRELAND	1.8 %
	BRITAIN	0.8 %
	BERMUDA	0.7 %
	SWITZERLAND	0.7 %
	CHINA	0.1 %

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.
19.3%	9.4%	8.1%	12.8%	7.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.11	96%
MSCI EAFE	0.96	61%
MSCI Emg. Mkts.	0.65	46%

Technical Indicators
Recent close	$62.97
30d moving avg.	$61.07
Annualized volatility	13.6%
Short interest (ETF)	0.2%
Short interest (Underlying)	4.4%
Relative strength (RSI)	65

Liquidity measures
Avg. volume (thou.)	68
Turnover	0.3%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$100,116

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FEX

Expense:

61 bp

ALTAR Score™:

6.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FEX
Ticker	Fund Name	Overlap¹ vs FEX (%)	Expense ratio (bp)	Savings vs FEX (bp)	ALTAR Score™ (%)	ALTAR vs FEX (%)
GSEW	Goldman Sachs Equal Weight U.S. Large Cap Equity	60.8	9	52	6.5	+0.1
FTA	First Trust Large Cap Value	58.5	62	-1	8.7	+2.2
RNLC	Large Cap US Equity Select	56.5	60	1	6.4	-0.0
RSP	Invesco S&P 500 Equal Weight	55.7	20	41	6.9	+0.4
SIZE	iShares MSCI USA Size Factor	52.9	15	46	6.4	-0.1
TUSA	First Trust Total US Market AlphaDEX	52.6	70	-9	6.7	+0.3
EUSA	iShares MSCI USA Equal Weight	52.1	15	46	6.6	+0.1
CFO	Victory CEMP US 500 Enhanced Volatility Wtd	50.8	35	26	6.1	-0.3
CFA	Compass EMP US 500 Volatility Weighted	50.8	35	26	6.1	-0.3
JHML	John Hancock Multifactor Large Cap	49.8	34	27	6.0	-0.5
SCIU	Global X Scientific Beta US	49.6	19	42	5.8	-0.7
PQLC	PGIM QMA Strategic Alpha Large-Cap Core	49.6	17	44	7.0	+0.6
FAB	First Trust Multi Cap Value	49.6	71	-10	8.5	+2.1
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity	48.1	9	52	6.4	+0.0
DEUS	Xtrackers Russell 1000 Comprehensive Factor	44.1	17	44	6.4	-0.0
JPUS	JPMorgan Diversified Return U.S. Equity	43.5	19	42	6.3	-0.1
ONEO	SPDR Russell 1000 Momentum Focus	43.4	20	41	6.5	+0.1
FCTR	First Trust Lunt U.S. Factor Rotation	42.9	65	-4	3.5	-2.9
DYNF	BlackRock U.S. Equity Factor Rotation	42.7	30	31	6.6	+0.2
RBUS	Nationwide Risk-Based U.S. Equity	42.7	30	31	6.2	-0.3

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 Large Cap Core 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	14.9	%
Divided by: Fwd. P/BV	2.1	x
Less: Expense ratio	61	bp
Equals: ALTAR Score	6.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.56	CATEGORY AVERAGE	1.55

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.