ETF Research Center

First Trust Asia Pacific ex-Japan AlphaDEX Fund seeks investment results that correspond to the Defined Asia Pacific ex-Japan Index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$20
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)	$17,552
Large cap (>$10bn)	41.1%
Mid cap ($2-10bn)	58.6%
Small cap (<$2bn)	0.3%
Developed mkts	66.2%
Emerging mkts	33.8%

TOP TEN HOLDINGS
Total	18.0 %
BLUESCOPE STEEL LTD	2.0 %
FORTESCUE METALS GROUP LTD	2.0 %
HYNIX SEMICONDUCTOR INC	1.9 %
SINO BIOPHARMACEUTICAL	1.8 %
QANTAS AIRWAYS LTD	1.8 %
BEACH PETROLEUM LTD	1.7 %
LG CORP	1.7 %
NAGACORP LTD	1.7 %
CK ASSET HOLDINGS LIMITED	1.7 %
WOOLWORTHS LIMITED	1.7 %

TOP COUNTRY EXPOSURE
	AUSTRALIA	32.6 %
	SOUTH KOREA	29.7 %
	HONG KONG	26.2 %
	NEW ZEALAND	4.6 %
	SINGAPORE	2.7 %
	CAMBODIA	1.7 %
	BERMUDA	1.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
8.8%	8.8%	3.2%	--	1.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.89	49%
MSCI EAFE	1.15	68%
MSCI Emg. Mkts.	0.95	79%

Technical Indicators
Recent close	$28.83
30d moving avg.	$28.36
Annualized volatility	15.3%
Short interest (ETF)	0.3%
Relative strength (RSI)	60

Liquidity measures
Avg. volume (thou.)	22
Turnover	3.1%
Bid/Ask (% of price)	1.19%
ADV underlying (mns)	$3,432

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FPA

Expense:

80 bp

ALTAR Score™:

8.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FPA
Ticker	Fund Name	Overlap¹ vs FPA (%)	Expense ratio (bp)	Savings vs FPA (bp)	ALTAR Score™ (%)	ALTAR vs FPA (%)
FHK	First Trust Hong Kong	27.2	80	0	8.9	+0.5
SCIX	Global X Scientific Beta Asia ex-Japan	27.2	38	42	5.8	-2.5
FKO	First Trust South Korea AlphaDEX	26.5	80	0	11.3	+3.0
FLKR	Franklin FTSE South Korea	21.9	9	71	9.7	+1.3
EWY	iShares MSCI Korea	21.7	59	21	9.1	+0.7
BBAX	JPMorgan BetaBuilders Developed Asia ex-Japan	21.5	19	61	6.2	-2.1
FAUS	First Trust Australia	20.7	80	0	4.8	-3.6
EPP	iShares MSCI Pacific ex-Japan	20.6	48	32	6.1	-2.3
FDT	First Trust Developed Markets ex-US AlphaDEX	19.2	80	0	7.8	-0.5
FLAU	Franklin FTSE Australia	18.4	9	71	5.8	-2.5
EWA	iShares MSCI Australia	16.5	47	33	5.5	-2.9
TAO	Invesco China Real Estate	16.1	70	10	12.4	+4.1
ZHOK	SPDR Solactive Hong Kong	14.4	14	66	6.8	-1.6
FLHK	Franklin FTSE Hong Kong	14.1	9	71	7.1	-1.2
AXJL	WisdomTree Asia Pacific Ex-Japan	13.6	48	32	8.6	+0.3
JPIN	JPMorgan Diversified Rtn. Int'l Equity	12.0	38	42	7.1	-1.2
VPL	Vanguard Pacific ETF	11.9	9	71	7.5	-0.9
EWH	iShares MSCI Hong Kong	11.7	48	32	6.8	-1.6
IMOM	MomentumShares Int'l Quantitative Momentum	11.3	59	21	4.0	-4.4
BICK	First Trust BICK Index Fund	10.9	64	16	5.0	-3.3

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 Asia Pac Ex-Japan 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	8.1	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	8.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.48

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.