ETF Research Center

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

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$117
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	50
Wgt avg mkt cap (mns)	$10,076
Large cap (>$10bn)	28.6%
Mid cap ($2-10bn)	63.1%
Small cap (<$2bn)	6.8%
Developed mkts	0.0%
Emerging mkts	100.0%

TOP TEN HOLDINGS
Total	32.7 %
MAGAZINE LUIZA SA	3.9 %
TIM PARTICIPACOES S.A.	3.6 %
SUL AMERICA SA - UNITS	3.5 %
FIBRA UNO ADMINISTRACION SA	3.4 %
COCA-COLA FEMSA SAB-SER L	3.2 %
CIA PARANAENSE DE ENERGI-PFB	3.1 %
NATURA COSMETICOS SA	3.1 %
GERDAU SA-PREF	3.1 %
COSAN SA INDUSTRIA COMERCIO	3.0 %
CIA ENERGETICA MINAS GER-PRF	2.9 %

TOP COUNTRY EXPOSURE
	BRAZIL	69.2 %
	MEXICO	16.0 %
	CHILE	8.9 %
	COLOMBIA	2.1 %

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.
15.9%	14.7%	2.4%	--	-1.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.57	10%
MSCI EAFE	1.03	27%
MSCI Emg. Mkts.	1.01	43%

Technical Indicators
Recent close	$20.41
30d moving avg.	$20.51
Annualized volatility	22.0%
Short interest (ETF)	0.0%
Relative strength (RSI)	48

Liquidity measures
Avg. volume (thou.)	5
Turnover	0.1%
Bid/Ask (% of price)	0.74%
ADV underlying (mns)	$1,347

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FLN

Expense:

80 bp

ALTAR Score™:

5.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLN
Ticker	Fund Name	Overlap¹ vs FLN (%)	Expense ratio (bp)	Savings vs FLN (bp)	ALTAR Score™ (%)	ALTAR vs FLN (%)
FBZ	First Trust Brazil AlphaDEX	58.0	80	0	7.8	+2.4
FLLA	Franklin FTSE Latin America	31.3	19	61	6.2	+0.8
EWZ	iShares MSCI Brazil	30.1	59	21	5.3	-0.1
FLBR	Franklin FTSE Brazil	27.7	19	61	5.6	+0.2
FEM	First Trust Emerging Markets AlphaDEX	22.5	80	0	11.0	+5.6
PACA	Xtrackers MSCI Latin America Pacific Alliance	16.4	45	35	6.5	+1.1
FLMX	Franklin FTSE Mexico	14.0	19	61	6.8	+1.4
EEMO	Invesco S&P Emg Mkts Momentum	13.9	30	50	8.1	+2.7
ILF	iShares S&P Latin America 40	12.2	48	32	6.4	+1.0
EWW	iShares MSCI Mexico	11.5	47	33	6.6	+1.2
BICK	First Trust BICK Index Fund	11.1	64	16	6.1	+0.7
SDEM	Global X SuperDividend Emg Mkts	10.2	67	13	18.5	+13.1
JPEM	JPMorgan Diversified Rtn Emg Mkt Equity	9.8	45	35	8.8	+3.4
ECH	iShares MSCI Chile Capped	8.9	59	21	7.0	+1.6
DWCR	Arrow DWA Country Rotation	8.5	134	-54	4.9	-0.5
EMMF	WisdomTree Emerging Markets Multifactor Fund	7.6	48	32	10.0	+4.6
XCEM	Columbia EM Core ex-China	7.5	16	64	7.6	+2.2
EMGF	iShares Edge MSCI Multifactor Emerging Markets	7.3	45	35	10.1	+4.7
PIE	Invesco DWA Emg. Mkts. Technical Leaders	7.2	90	-10	5.1	-0.3
EMCG	WisdomTree Emg Mkts Consumer Growth	7.2	32	48	6.7	+1.3

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

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.4	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	5.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.49

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.