ETF Research Center

First Trust S&P REIT Index Fund seeks investment results that correspond generally to the S&P REIT Composite Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$198
Currency	USD
Expense ratio	50 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	154
Wgt avg mkt cap (mns)	$18,620
Large cap (>$10bn)	56.9%
Mid cap ($2-10bn)	38.0%
Small cap (<$2bn)	5.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	35.1 %
PROLOGIS INC	5.6 %
SIMON PROPERTY GROUP INC	4.9 %
EQUINIX INC	4.6 %
WELLTOWER, INC.	3.4 %
PUBLIC STORAGE	3.3 %
AVALONBAY COMMUNITIES INC	3.0 %
EQUITY RESIDENTIAL	3.0 %
REALTY INCOME CORP	2.5 %
DIGITAL REALTY TRUST INC	2.5 %
VENTAS INC	2.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.8 %

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.
26.7%	22.1%	7.6%	12.9%	5.1%

Market Correlations
versus...	Beta	R-squared
S&P500	0.51	25%
MSCI EAFE	0.35	10%
MSCI Emg. Mkts.	0.19	5%

Technical Indicators
Recent close	$26.07
30d moving avg.	$26.64
Annualized volatility	12.5%
Short interest (ETF)	1.1%
Short interest (Underlying)	3.1%
Relative strength (RSI)	47

Liquidity measures
Avg. volume (thou.)	92
Turnover	1.2%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$5,960

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust S&P REIT ETF based on the alternatives' overlap in portfolio holdings with FRI. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FRI

Expense:

50 bp

ALTAR Score™:

6.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FRI
Ticker	Fund Name	Overlap¹ vs FRI (%)	Expense ratio (bp)	Savings vs FRI (bp)	ALTAR Score™ (%)	ALTAR vs FRI (%)
USRT	iShares Core. U.S. REIT	97.6	8	42	6.6	+0.5
BBRE	JPMorgan BetaBuilders MSCI U.S. REIT	97.5	11	39	6.4	+0.3
FREL	Fidelity MSCI Real Estate	78.4	8	42	6.2	+0.1
IYR	iShares U.S. Real Estate	73.8	42	8	5.9	-0.2
SCHH	Schwab US REIT	73.2	7	43	6.5	+0.4
RWR	SPDR Dow Jones REIT ETF	73.2	25	25	6.3	+0.2
PSR	Invesco Active US Real Estate	70.0	35	15	5.5	-0.6
VNQ	Vanguard REIT ETF	68.6	12	38	6.1	+0.0
REET	iShares Global REIT	65.2	14	36	6.3	+0.2
PPTY	PPTY-U.S. Diversified Real Estate	64.4	53	-3	5.4	-0.8
RWO	SPDR DJ Global Real Estate	56.9	50	0	6.1	-0.0
ICF	iShares Cohen & Steers Realty Majors	56.7	34	16	5.3	-0.8
XLRE	Real Estate Select Sector SPDR	56.5	13	37	5.4	-0.7
FFR	First Trust FTSE EPRA/NAREIT Global Real Estate	54.4	60	-10	6.3	+0.2
GRI	Cohen & Steers Global Realty	50.7	55	-5	5.8	-0.3
EWRE	Invesco S&P 500 Equal Weight Real Estate	50.0	40	10	5.6	-0.5
GQRE	FlexShares Global Quality Real Estate	44.7	45	5	6.5	+0.4
REZ	iShares Residential Real Estate Capped	37.4	48	2	5.2	-0.9
RORE	Hartford Multifactor REIT	33.0	45	5	13.0	+6.9

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 S&P REIT
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	13.9	%
Divided by: Fwd. P/BV	2.1	x
Less: Expense ratio	50	bp
Equals: ALTAR Score	6.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	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.