ETF Research Center

First Trust Mid Cap Value AlphaDEX Fund seeks investment results that correspond to the Defined Mid Cap Value Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$56
Currency	USD
Expense ratio	70 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	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	225
Wgt avg mkt cap (mns)	$5,295
Large cap (>$10bn)	4.7%
Mid cap ($2-10bn)	93.4%
Small cap (<$2bn)	1.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	8.3 %
TIMKEN CO	0.9 %
CHEMOURS CO.	0.9 %
BORGWARNER INC	0.9 %
OSHKOSH CORP	0.8 %
KOHLS CORP	0.8 %
JETBLUE AIRWAYS CORP	0.8 %
RELIANCE STEEL & ALUMINUM	0.8 %
PVH CORP	0.8 %
MOHAWK INDUSTRIES INC	0.8 %
REGAL BELOIT CORP	0.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.6 %
	BERMUDA	2.1 %
	IRELAND	0.6 %
	PUERTO RICO	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.
13.2%	2.7%	3.6%	--	7.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.27	74%
MSCI EAFE	1.03	41%
MSCI Emg. Mkts.	0.66	28%

Technical Indicators
Recent close	$34.88
30d moving avg.	$34.53
Annualized volatility	17.8%
Short interest (ETF)	0.2%
Short interest (Underlying)	7.9%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	6
Turnover	0.4%
Bid/Ask (% of price)	0.41%
ADV underlying (mns)	$9,499

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FNK

Expense:

70 bp

ALTAR Score™:

9.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FNK
Ticker	Fund Name	Overlap¹ vs FNK (%)	Expense ratio (bp)	Savings vs FNK (bp)	ALTAR Score™ (%)	ALTAR vs FNK (%)
FNX	First Trust Mid Cap Core Alpadex	57.8	62	8	6.8	-2.4
OMFL	Oppenheimer Russell 1000 Dynamic Multifactor	43.0	29	41	9.7	+0.5
RNMC	First Trust Mid Cap US Equity Select	40.2	60	10	6.7	-2.5
EZM	WisdomTree Midcap Earnings	38.9	38	32	7.8	-1.3
DON	WisdomTree Midcap Dividend	33.3	38	32	7.1	-2.0
IJJ	iShares S&P MidCap 400 Value	32.8	25	45	7.5	-1.6
MDYV	SPDR S&P400 Mid Cap Value	32.8	15	55	7.6	-1.5
JHSC	John Hancock Multifactor Small Cap	32.7	50	20	5.8	-3.4
IVOV	Vanguard S&P Mid-Cap 400 Value	32.6	20	50	7.7	-1.5
FAB	First Trust Multi Cap Value	29.9	71	-1	8.6	-0.6
VBR	Vanguard Small-Cap Value ETF	29.8	7	63	7.8	-1.3
RWK	Invesco S&P MidCap 400 Revenue ETF	29.6	39	31	8.0	-1.1
FLAG	Forensic Accounting	29.3	152	-82	8.9	-0.2
PVAL	Principal Contrarian Value Index	27.8	29	41	7.2	-2.0
SCHM	Schwab US Mid Cap	27.6	4	66	6.4	-2.8
EWMC	Invesco S&P Mid Cap 400 Equal Weight	27.5	40	30	6.8	-2.4
JKL	iShares Morningstar Small Cap Value	26.6	30	40	9.1	-0.0
SFYX	SoFi Next 500	26.2	0	70	5.7	-3.4
IJH	iShares Core S&P MidCap	26.0	7	63	6.4	-2.8
MDY	S&P MidCap 400 SPDR	25.9	24	46	6.2	-3.0

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 Mid Cap Value 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	12.4	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	70	bp
Equals: ALTAR Score	9.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.