ETF Research Center

The Defiance Next Gen Connectivity ETF seeks to track the total return performance, before fees and expenses, of the Bluestar 5G Communications Index. Companies in the index are engaged in the research & development or commercialization of systems and ma

FUND BASICS
Category	US Equities
Fund Sponsor	Defiance ETFs
Website	www.defianceetfs.com
Inception date	Mar 04, 2019
Assets (mns)	$126
Currency	USD
Expense ratio	30 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	67
Wgt avg mkt cap (mns)	$44,542
Large cap (>$10bn)	59.3%
Mid cap ($2-10bn)	22.1%
Small cap (<$2bn)	18.6%
Developed mkts	98.8%
Emerging mkts	1.2%

TOP TEN HOLDINGS
Total	40.7 %
SKYWORKS SOLUTIONS INC	6.3 %
MARVELL TECHNOLOGY GROUP LTD	5.1 %
ANALOG DEVICES INC	5.0 %
ERICSSON (LM) TEL-SP ADR	4.3 %
XILINX INC	4.0 %
AT&T INC	3.4 %
KEYSIGHT TECHNOLOGIES INC	3.4 %
MACDONALD DETTWILER & ASSOC	3.2 %
NOKIA CORP-SPON ADR	3.2 %
VERIZON COMMUNICATIONS INC	2.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	78.4 %
	BERMUDA	5.1 %
	SWEDEN	4.3 %
	FINLAND	3.2 %
	LUXEMBOURG	2.0 %
	ISRAEL	1.9 %
	BRITAIN	1.0 %
	HONG KONG	0.9 %
	CHINA	0.7 %
	NETHERLANDS	0.6 %

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.
0.6%	--	--	--	0.6%

Market Correlations
versus...	Beta	R-squared
S&P500	--	--
MSCI EAFE	--	--
MSCI Emg. Mkts.	--	--

Technical Indicators
Recent close	$25.36
30d moving avg.	$24.64
Annualized volatility	0.0%
Short interest (ETF)	1.2%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	49
Turnover	1.0%
Bid/Ask (% of price)	0.10%
ADV underlying (mns)	$8,268

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Defiance Next Gen Connectivity ETF ETF based on the alternatives' overlap in portfolio holdings with FIVG. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FIVG

Expense:

30 bp

ALTAR Score™:

6.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FIVG
Ticker	Fund Name	Overlap¹ vs FIVG (%)	Expense ratio (bp)	Savings vs FIVG (bp)	ALTAR Score™ (%)	ALTAR vs FIVG (%)
FONE	First Trust Cea Smartphone	27.9	70	-40	6.4	+0.2
XTL	SPDR S&P Telecom	25.7	35	-5	5.2	-0.9
XSD	SPDR S&P Semiconductors	20.5	35	-5	4.9	-1.3
IGN	iShares S&P N. American Tech- MM & Networking	19.8	46	-16	6.6	+0.4
IYZ	iShares U.S. Telecommunications	19.4	42	-12	8.1	+2.0
TDIV	First Trust NASDAQ Technology Dividend	17.7	50	-20	6.6	+0.4
SOXX	iShares PHLX SOX Semiconductor	16.9	46	-16	6.0	-0.2
RYT	Invesco S&P Equal Weight Technology	16.9	40	-10	6.6	+0.4
JHMT	John Hancock Multifactor Technology	16.7	40	-10	6.0	-0.1
SMH	VanEck Vectors Semiconductors	16.0	35	-5	6.2	+0.1
FTXL	First Trust Nasdaq Semiconductor	15.4	60	-30	6.2	+0.1
BUL	Pacer US Cash Cows Growth	15.4	60	-30	5.4	-0.8
QTEC	First Trust NASDAQ 100 Tech	15.3	57	-27	6.1	-0.1
PXQ	Invesco Dynamic Networking	13.3	63	-33	4.1	-2.1
FXL	First Trust Technology Alphadex	13.0	63	-33	5.6	-0.5
TCLD	Tortoise Cloud Infrastructure Fund	12.9	40	-10	5.0	-1.1
PSI	Invesco Dynamic Semiconductors	12.9	58	-28	5.6	-0.6
GDAT	Goldman Sachs Motif Data-Driven World	12.9	50	-20	5.7	-0.5
SNSR	Global X Internet of Things Thematic	12.5	68	-38	5.5	-0.7
OYLD	Invesco Russell 1000 Yield Factor ETF	12.1	19	11	7.1	+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:	Defiance Next Gen Connectivity ETF
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	14.7	%
Divided by: Fwd. P/BV	2.3	x
Less: Expense ratio	30	bp
Equals: ALTAR Score	6.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.55	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.