ETF Research Center

The First Trust Low Beta Income ETF is an actively managed portfolio of US large-cap stocks, with an options overlay of short calls and long puts 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)	$742
Currency	USD
Expense ratio	75 bp
Distributions	Monthly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	Yes
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	179
Wgt avg mkt cap (mns)	$1,491,010
Large cap (>$10bn)	91.0%
Mid cap ($2-10bn)	7.5%
Small cap (<$2bn)	1.3%
Developed mkts	99.9%
Emerging mkts	0.1%

TOP TEN HOLDINGS
Total	47.7 %
APPLE INC	7.9 %
NVIDIA CORP	7.3 %
MICROSOFT CORP	7.1 %
ADVANCED MICRO DEVICES	4.6 %
BROADCOM INC.	4.1 %
META PLATFORMS INC	4.0 %
AMAZON.COM INC	3.8 %
TESLA MOTORS INC	3.5 %
US DOLLAR	2.9 %
PALANTIR TECHNOLOGIES INC. CLASS A	2.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	90.0 %
	BRITAIN	1.5 %
	IRELAND	1.0 %
	ISRAEL	0.9 %
	CANADA	0.8 %
	CHINA	0.6 %
	ITALY	0.3 %
	DENMARK	0.3 %
	SINGAPORE	0.2 %
	ARGENTINA	0.2 %

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.
11.3%	16.7%	12.0%	6.9%	6.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.66	77%
MSCI EAFE	0.28	18%
MSCI Emg. Mkts.	0.17	8%

Technical Indicators
Recent close	$20.75
30d moving avg.	$20.59
Annualized volatility	9.7%
Short interest (ETF)	0.1%
Short interest (Underlying)	3.2%
Relative strength (RSI)	64

Liquidity measures
Avg. volume (thou.)	181
Turnover	0.5%
Bid/Ask (% of price)	0.10%
ADV underlying (mns)	$148,870

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 32 potential alternatives to the First Trust Nasdaq BuyWrite Income ETF ETF based on the alternatives' overlap in portfolio holdings with FTQI. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FTQI

Expense:

75 bp

ALTAR Score™:

3.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FTQI
Ticker	Fund Name	Overlap¹ vs FTQI (%)	Expense ratio (bp)	Savings vs FTQI (bp)	ALTAR Score™ (%)	ALTAR vs FTQI (%)
QYLD	Global X NASDAQ 100 Covered Call ETF	61.3	60	15	3.6	+0.1
QRMI	Global X NASDAQ 100 Risk Managed Income ETF	61.3	60	15	3.6	+0.0
QYLG	Global X Nasdaq 100 Covered Call & Growth ETF	61.0	60	15	3.7	+0.1
QCLR	Global X NASDAQ 100 Collar 95-110 ETF	60.6	25	50	4.0	+0.5
QTR	Global X NASDAQ 100 Tail Risk ETF	60.5	26	49	4.1	+0.5
NUSI	Nationwide Nasdaq-100 Risk-Managed Income ETF	59.0	68	7	3.6	+0.1
JEPQ	J.P. Morgan Nasdaq Equity Premium Income ETF	55.6	35	40	3.9	+0.4
XYLD	Global X S&P 500 Covered Call ETF	51.1	60	15	4.3	+0.7
XRMI	Global X S&P 500 Risk Managed Income ETF	51.0	60	15	4.3	+0.7
XYLG	Global X S&P 500 Covered Call & Growth ETF	50.5	60	15	4.3	+0.8
SFLR	Innovator Equity Managed Floor ETF	50.3	89	-14	3.8	+0.2
XTR	Global X S&P 500 Tail Risk ETF	49.6	26	49	4.7	+1.2
XCLR	Global X S&P 500 Collar 95-110 ETF	49.6	25	50	4.7	+1.2
PBP	Invesco S&P 500 BuyWrite ETF	49.6	49	26	4.4	+0.9
FTHI	First Trust BuyWrite Income ETF	48.3	75	0	4.7	+1.1
ACIO	Aptus Collared Investment Opportunity ETF	46.8	79	-4	4.0	+0.5
MMLG	First Trust Multi-Manager Large Growth ETF	43.7	85	-10	2.0	-1.6
EFIV	SPDR S&P 500 ESG ETF	42.4	10	65	5.1	+1.5
GARP	iShares MSCI USA Quality GARP ETF	37.1	15	60	3.9	+0.4
TYLG	Global X Information Technology Covered Call & Growth ETF	30.3	60	15	3.8	+0.2
QQQA	ProShares Nasdaq-100 Dorsey Wright Momentum ETF	27.1	58	17	2.9	-0.6
CCOR	Core Alternative ETF	19.9	107	-32	5.3	+1.8
DJIA	Global X Dow 30 Covered Call ETF	19.7	60	15	5.0	+1.4
THNQ	ROBO Global Artificial Intelligence ETF	19.6	68	7	2.3	-1.2
DYLG	Global X Dow 30 Covered Call & Growth ETF	19.4	60	15	5.0	+1.4
SIXH	ETC 6 Meridian Hedged Equity Index Option ETF	18.8	82	-7	6.8	+3.2
DIVO	Amplify CWP Enhanced Dividend Income ETF	17.6	55	20	4.8	+1.2
XVOL	Acruence Active Hedge U.S. Equity ETF	16.7	83	-8	4.1	+0.5
LCG	Sterling Capital Focus Equity ETF	10.5	59	16	3.0	-0.6
QUSA	VistaShares Target 15 USA Quality Income ETF	9.2	95	-20	0.0	-3.5
KNG	FT Vest S&P 500 Dividend Aristocrats Target Income ETF	5.6	75	0	6.0	+2.4
IDVO	Amplify International Enhanced Dividend Income ETF	1.0	65	10	5.2	+1.6

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

	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 Nasdaq BuyWrite Income ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	23.6	%
Divided by: Fwd. P/BV	5.5	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	3.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.58

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.