ETF Research Center

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

FUND BASICS
Category	International Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$76
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	100
Wgt avg mkt cap (mns)	$13,340
Large cap (>$10bn)	41.5%
Mid cap ($2-10bn)	57.9%
Small cap (<$2bn)	0.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	18.9 %
ADVANTEST CORP	2.9 %
SUMCO CORP	2.1 %
HITACHI HIGH-TECHNOLOGIES CO	1.9 %
YAMAHA MOTOR CO LTD	1.9 %
ITOCHU CORP	1.8 %
TAIYO NIPPON SANSO CORP	1.8 %
TOSOH CORP	1.7 %
AMADA CO LTD	1.6 %
NEC CORP	1.6 %
MITSUI CHEMICALS INC	1.6 %

TOP COUNTRY EXPOSURE
	JAPAN	96.9 %

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.
5.0%	-0.7%	2.6%	--	3.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.79	56%
MSCI EAFE	0.97	73%
MSCI Emg. Mkts.	0.74	69%

Technical Indicators
Recent close	$50.70
30d moving avg.	$49.94
Annualized volatility	12.7%
Short interest (ETF)	0.2%
Relative strength (RSI)	73

Liquidity measures
Avg. volume (thou.)	19
Turnover	1.3%
Bid/Ask (% of price)	0.46%
ADV underlying (mns)	$5,901

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FJP

Expense:

80 bp

ALTAR Score™:

8.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FJP
Ticker	Fund Name	Overlap¹ vs FJP (%)	Expense ratio (bp)	Savings vs FJP (bp)	ALTAR Score™ (%)	ALTAR vs FJP (%)
GSJY	Goldman Sachs ActiveBeta Japan Equity	27.9	25	55	7.8	-1.1
EWJE	iShares MSCI Japan Equal Weighted	27.0	15	65	7.3	-1.6
JPXN	iShares JPX-Nikkei 400	26.4	48	32	7.7	-1.2
JPN	Xtrackers Japan JPX-Nikkei 400 Equity	26.4	9	71	8.1	-0.8
QJPN	SPDR MSCI Japan Quality Mix	26.4	14	66	8.1	-0.8
EWJ	iShares MSCI Japan	26.2	47	33	7.7	-1.2
BBJP	JPMorgan BetaBuilders Japan	25.7	19	61	7.9	-1.0
SCIJ	Global X Scientific Beta Japan	25.7	39	41	7.0	-1.9
DBJP	Xtrackers MSCI Japan Hedged	25.6	45	35	7.7	-1.3
HFXJ	IQ 50 Percent Hedged FTSE Japan	25.4	30	50	7.8	-1.1
EWJV	iShares MSCI Japan Value	25.3	15	65	10.1	+1.2
FLJP	Franklin FTSE Japan	25.2	9	71	8.1	-0.8
FLJH	Franklin FTSE Japan Hedged	25.1	9	71	8.0	-0.9
DXJ	WisdomTree Japan Hedged Equity	24.6	48	32	8.7	-0.2
RFAP	First Trust Riverfront Dynamic Asia Pacific	21.4	83	-3	7.3	-1.6
FDT	First Trust Developed Markets ex-US AlphaDEX	19.5	80	0	8.2	-0.7
IPAC	iShares Core MSCI Pacific	17.7	9	71	7.5	-1.4
JPMV	iShares MSCI Japan Min Volatility	16.8	30	50	6.7	-2.2
IVLU	iShares MSCI Int'l Developed Value Factor	16.5	30	50	10.4	+1.5
VPL	Vanguard Pacific ETF	15.2	9	71	7.8	-1.1

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

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.4	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	8.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.65	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.