ETF Research Center

First Trust US IPO Index Fund seeks investment results that correspond generally to the price and yield of an equity index called the U.S. IPOX-100 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 13, 2006
Assets (mns)	$1,299
Currency	USD
Expense ratio	59 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	100
Wgt avg mkt cap (mns)	$46,759
Large cap (>$10bn)	72.4%
Mid cap ($2-10bn)	24.0%
Small cap (<$2bn)	3.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	34.8 %
PAYPAL HOLDINGS INC	5.8 %
THERMO FISHER SCIENTIFIC INC	4.5 %
VERIZON COMMUNICATIONS INC	4.1 %
STRYKER CORP	3.9 %
SEMPRA ENERGY	3.3 %
TAKEDA PHARMACEUTICAL CO. LTD. SPO	3.2 %
FIDELITY NATIONAL INFORMATIO	2.8 %
TYSON FOODS INC-CL A	2.5 %
HERSHEY CO/THE	2.4 %
CELGENE CORP	2.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	89.9 %
	BRITAIN	3.7 %
	JAPAN	3.2 %
	SWITZERLAND	1.9 %
	LUXEMBOURG	1.2 %

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.
24.5%	13.9%	10.3%	16.5%	11.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.00	77%
MSCI EAFE	0.84	46%
MSCI Emg. Mkts.	0.57	36%

Technical Indicators
Recent close	$78.95
30d moving avg.	$76.69
Annualized volatility	13.7%
Short interest (ETF)	0.1%
Short interest (Underlying)	3.3%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	73
Turnover	0.4%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$15,239

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FPX

Expense:

59 bp

ALTAR Score™:

5.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FPX
Ticker	Fund Name	Overlap¹ vs FPX (%)	Expense ratio (bp)	Savings vs FPX (bp)	ALTAR Score™ (%)	ALTAR vs FPX (%)
PWB	Invesco Dynamic Large Cap Growth	13.6	55	4	4.3	-1.3
IPO	Renaissance IPO	13.3	60	-1	-0.7	-6.3
FTC	First Trust Large Cap Growth	12.3	61	-2	3.6	-2.0
PWC	Invesco Dynamic Market	12.0	59	0	7.4	+1.8
IWP	iShares Russell Midcap Growth	12.0	24	35	4.5	-1.1
MILN	Global X Millennials Thematic	12.0	50	9	3.0	-2.6
FXL	First Trust Technology Alphadex	11.7	63	-4	5.6	-0.0
GVIP	Goldman Sachs Hedge Industry VIP	11.6	45	14	5.6	+0.0
JHCS	John Hancock Multifactor Media & Communications	11.3	40	19	6.3	+0.7
JMOM	JPMorgan U.S. Momentum Factor	11.2	12	47	4.3	-1.3
IPAY	ETFMG Prime Mobile Payments	10.7	75	-16	6.1	+0.5
BUL	Pacer US Cash Cows Growth	10.7	60	-1	5.4	-0.2
JKH	iShares Morningstar Mid Cap Growth	10.5	30	29	2.7	-2.9
QMOM	MomentumShares U.S. Quantitative Momentum	10.5	49	10	2.5	-3.1
GIGE	SoFi Gig Economy	10.4	59	0	0.5	-5.1
TPAY	Tortoise Digital Payments Infrastructure Fund	10.3	40	19	5.1	-0.5
FINX	Global X FinTech Thematic	10.3	68	-9	3.3	-2.3
BOSS	Global X Founder-Run Companies	10.1	45	14	3.6	-1.9
IYJ	iShares DJ US Industrials	10.1	42	17	5.4	-0.2
CHGX	Change Finance Diversified Impact US Large Cap Fossil Fuel	9.9	49	10	6.1	+0.6

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 US IPO
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	14.0	%
Divided by: Fwd. P/BV	2.3	x
Less: Expense ratio	59	bp
Equals: ALTAR Score	5.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.46	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.