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)	$830
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	210
Wgt avg mkt cap (mns)	$1,365,850
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	43.1 %
APPLE INC	7.5 %
NVIDIA CORP	7.1 %
US DOLLAR	6.0 %
AMAZON.COM INC	4.4 %
ADVANCED MICRO DEVICES	3.8 %
COSTCO WHOLESALE CORP	3.2 %
BROADCOM INC.	3.1 %
TESLA MOTORS INC	2.9 %
CISCO SYSTEMS INC	2.6 %
NETFLIX INC	2.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	88.3 %
	IRELAND	2.3 %
	CANADA	1.2 %
	BRITAIN	0.6 %
	GERMANY	0.5 %
	SINGAPORE	0.4 %
	FRANCE	0.3 %
	DENMARK	0.2 %
	BERMUDA	0.2 %
	ISRAEL	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru April 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
6.1%	29.3%	11.0%	8.0%	6.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.77	82%
MSCI EAFE	0.51	49%
MSCI Emg. Mkts.	0.42	54%

Technical Indicators
Recent close	$21.48
30d moving avg.	$20.46
Annualized volatility	9.7%
Short interest (ETF)	0.1%
Short interest (Underlying)	3.2%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	537
Turnover	1.4%
Bid/Ask (% of price)	0.10%
ADV underlying (mns)	$148,870

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 30 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™:

3.0%

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 (%)
QRMI	Global X NASDAQ 100 Risk Managed Income ETF	56.1	60	15	3.2	+0.1
QYLG	Global X Nasdaq 100 Covered Call & Growth ETF	55.8	60	15	2.8	-0.3
QCLR	Global X NASDAQ 100 Collar 95-110 ETF	55.4	25	50	3.4	+0.3
QTR	Global X NASDAQ 100 Tail Risk ETF	55.3	26	49	3.0	-0.0
NUSI	Nationwide Nasdaq-100 Risk-Managed Income ETF	49.8	68	7	3.2	+0.1
XRMI	Global X S&P 500 Risk Managed Income ETF	46.9	60	15	4.1	+1.0
XYLD	Global X S&P 500 Covered Call ETF	46.9	60	15	3.9	+0.9
XYLG	Global X S&P 500 Covered Call & Growth ETF	46.4	60	15	3.7	+0.7
XTR	Global X S&P 500 Tail Risk ETF	45.6	26	49	4.0	+0.9
XCLR	Global X S&P 500 Collar 95-110 ETF	45.5	25	50	4.2	+1.2
JEPQ	J.P. Morgan Nasdaq Equity Premium Income ETF	45.2	35	40	3.4	+0.3
SFLR	Innovator Equity Managed Floor ETF	44.5	89	-14	3.3	+0.3
PBP	Invesco S&P 500 BuyWrite ETF	44.1	49	26	4.1	+1.1
ACIO	Aptus Collared Investment Opportunity ETF	43.1	79	-4	3.3	+0.3
FTHI	First Trust BuyWrite Income ETF	37.3	75	0	4.5	+1.4
EFIV	State Street SPDR S&P 500 ESG ETF	37.0	10	65	4.3	+1.3
MMLG	First Trust Multi-Manager Large Growth ETF	35.1	85	-10	1.2	-1.9
GARP	iShares MSCI USA Quality GARP ETF	33.6	15	60	3.2	+0.1
QQQA	ProShares Nasdaq-100 Dorsey Wright Momentum ETF	31.4	58	17	1.1	-2.0
TYLG	Global X Information Technology Covered Call & Growth ETF	28.4	60	15	3.0	-0.0
SIXH	ETC 6 Meridian Hedged Equity Index Option ETF	21.2	82	-7	5.7	+2.7
CCOR	Core Alternative ETF	16.2	107	-32	5.0	+2.0
THNQ	ROBO Global Artificial Intelligence ETF	15.4	68	7	1.3	-1.8
DJIA	Global X Dow 30 Covered Call ETF	14.5	60	15	4.5	+1.5
DYLG	Global X Dow 30 Covered Call & Growth ETF	14.3	60	15	4.4	+1.4
XVOL	Acruence Active Hedge U.S. Equity ETF	13.8	83	-8	3.8	+0.8
DIVO	Amplify CWP Enhanced Dividend Income ETF	9.8	55	20	4.3	+1.3
KNG	FT Vest S&P 500 Dividend Aristocrats Target Income ETF	7.0	75	0	5.1	+2.1
QUSA	VistaShares Target 15 USA Quality Income ETF	5.1	95	-20	0.0	-3.0
IDVO	Amplify International Enhanced Dividend Income ETF	0.9	65	10	5.5	+2.5

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

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	20.3	%
Divided by: Fwd. P/BV	5.4	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	3.0	%

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.