First Trust S&P REIT
ALTAR
Score™
6.1% info Recommen-
dation
NEUTRAL
2019E    2020E
P/E
ratio
18.2x P/Sales
ratio
6.5x
P/BV
ratio
2.2x Div.
yield
3.9%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
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
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 %
Total 35.1 %

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 info ** ** ** ** ** ** **
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

Content on this tab for subscribers only

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 %
info 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.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.