ETF Research Center

The First Trust High Income ETF is an actively managed portfolio of US large-cap stocks, with an overlay of short calls on the S&P 500.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jan 06, 2014
Assets (mns)	$2,374
Currency	USD
Expense ratio	75 bp
Distributions	Monthly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	Yes
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	176
Wgt avg mkt cap (mns)	$1,232,070
Large cap (>$10bn)	83.9%
Mid cap ($2-10bn)	14.2%
Small cap (<$2bn)	0.7%
Developed mkts	100.0%
Emerging mkts	0.1%

TOP TEN HOLDINGS
Total	34.1 %
APPLE INC	8.1 %
NVIDIA CORP	5.6 %
US DOLLAR	3.6 %
JPMORGAN CHASE & CO	2.8 %
GE VERONA	2.6 %
BANK OF AMERICA CORP	2.5 %
ASML HOLDING NV-NY REG SHS	2.3 %
AMAZON.COM INC	2.3 %
COSTCO WHOLESALE CORP	2.3 %
BROADCOM INC.	2.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	83.7 %
	NETHERLANDS	4.4 %
	BRITAIN	3.2 %
	CANADA	2.1 %
	SWITZERLAND	1.2 %
	SOUTH AFRICA	0.5 %
	TAIWAN	0.3 %
	IRELAND	0.2 %
	SPAIN	0.2 %
	BELGIUM	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru July 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
5.4%	13.0%	11.2%	8.2%	7.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.67	81%
MSCI EAFE	0.46	59%
MSCI Emg. Mkts.	0.28	50%

Technical Indicators
Recent close	$23.64
30d moving avg.	$23.60
Annualized volatility	8.6%
Short interest (ETF)	0.2%
Short interest (Underlying)	3.3%
Relative strength (RSI)	55

Liquidity measures
Avg. volume (thou.)	864
Turnover	0.9%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$157,289

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 29 potential alternatives to the First Trust BuyWrite Income ETF ETF based on the alternatives' overlap in portfolio holdings with FTHI. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FTHI

Expense:

75 bp

ALTAR Score™:

4.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FTHI
Ticker	Fund Name	Overlap¹ vs FTHI (%)	Expense ratio (bp)	Savings vs FTHI (bp)	ALTAR Score™ (%)	ALTAR vs FTHI (%)
XRMI	Global X S&P 500 Risk Managed Income ETF	47.5	60	15	4.3	-0.5
XYLG	Global X S&P 500 Covered Call & Growth ETF	47.4	60	15	3.8	-0.9
PBP	Invesco S&P 500 BuyWrite ETF	47.2	49	26	4.2	-0.6
XTR	Global X S&P 500 Tail Risk ETF	47.1	26	49	4.1	-0.7
XCLR	Global X S&P 500 Collar 95-110 ETF	47.0	25	50	4.3	-0.4
SFLR	Innovator Equity Managed Floor ETF	45.9	89	-14	3.4	-1.4
ACIO	Aptus Collared Investment Opportunity ETF	44.0	79	-4	3.5	-1.3
FTQI	First Trust Nasdaq BuyWrite Income ETF	39.5	75	0	3.2	-1.5
QYLD	Global X NASDAQ 100 Covered Call ETF	36.9	60	15	3.3	-1.5
QRMI	Global X NASDAQ 100 Risk Managed Income ETF	36.8	60	15	3.5	-1.2
QYLG	Global X Nasdaq 100 Covered Call & Growth ETF	36.7	60	15	3.1	-1.7
QTR	Global X NASDAQ 100 Tail Risk ETF	36.3	26	49	3.2	-1.5
QCLR	Global X NASDAQ 100 Collar 95-110 ETF	36.1	25	50	3.7	-1.0
NUSI	Nationwide Nasdaq-100 Risk-Managed Income ETF	36.0	68	7	3.3	-1.4
JEPQ	J.P. Morgan Nasdaq Equity Premium Income ETF	31.0	35	40	3.7	-1.1
EFIV	State Street SPDR S&P 500 ESG ETF	29.3	10	65	4.4	-0.4
GARP	iShares MSCI USA Quality GARP ETF	27.5	15	60	3.2	-1.5
SIXH	ETC 6 Meridian Hedged Equity Index Option ETF	23.6	82	-7	5.7	+0.9
DJIA	Global X Dow 30 Covered Call ETF	23.4	60	15	4.5	-0.2
DYLG	Global X Dow 30 Covered Call & Growth ETF	23.3	60	15	4.3	-0.4
CCOR	Core Alternative ETF	21.4	107	-32	5.1	+0.3
TYLG	Global X Information Technology Covered Call & Growth ETF	20.3	60	15	3.2	-1.5
DIVO	Amplify CWP Enhanced Dividend Income ETF	19.8	55	20	4.3	-0.4
THNQ	ROBO Global Artificial Intelligence ETF	13.9	68	7	1.2	-3.6
KNG	FT Vest S&P 500 Dividend Aristocrats Target Income ETF	9.0	75	0	5.0	+0.3
QQQA	ProShares Nasdaq-100 Dorsey Wright Momentum ETF	6.6	58	17	1.1	-3.6
QUSA	VistaShares Target 15 USA Quality Income ETF	5.9	95	-20	0.0	-4.7
IDVO	Amplify International Enhanced Dividend Income ETF	5.0	65	10	5.8	+1.1
HAWX	iShares Currency Hedged MSCI ACWI ex U.S. ETF	0.5	35	40	6.2	+1.5

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

	2020	2021	2022	2023	2024	2025E	2026E
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

	2024	2025E	2026E
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 BuyWrite Income ETF
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	23.2	%
Divided by: Fwd. P/BV	4.2	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	4.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.57

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.