ETF Research Center

The First Trust NASDAQ Pharmaceutical ETF tracks the most liquid US pharmaceutical companies, weighted according to factors related to value, volatility, and growth.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Sep 20, 2016
Assets (mns)	$21
Currency	USD
Expense ratio	60 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Multi-Factor
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	27
Wgt avg mkt cap (mns)	$88,204
Large cap (>$10bn)	64.5%
Mid cap ($2-10bn)	20.1%
Small cap (<$2bn)	15.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	61.3 %
ABBVIE INC	8.4 %
BRISTOL-MYERS SQUIBB CO	8.3 %
PFIZER INC	8.0 %
HORIZON PHARMA PLC	7.7 %
JOHNSON & JOHNSON	7.7 %
JAZZ PHARMACEUTICALS PLC	4.4 %
CARDINAL HEALTH INC	4.3 %
CATALENT INC	4.3 %
PACIRA PHARMACEUTICALS INC	4.2 %
ZOETIS INC	4.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	80.1 %
	IRELAND	19.6 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
8.0%	10.6%	--	--	6.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.90	81%
MSCI EAFE	0.80	64%
MSCI Emg. Mkts.	0.64	51%

Technical Indicators
Recent close	$24.99
30d moving avg.	$24.52
Annualized volatility	18.6%
Short interest (ETF)	5.4%
Relative strength (RSI)	55

Liquidity measures
Avg. volume (thou.)	8
Turnover	0.9%
Bid/Ask (% of price)	0.34%
ADV underlying (mns)	$5,784

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 98 potential alternatives to the First Trust Nasdaq Pharmaceuticals ETF ETF based on the alternatives' overlap in portfolio holdings with FTXH. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FTXH

Expense:

60 bp

ALTAR Score™:

6.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FTXH
Ticker	Fund Name	Overlap¹ vs FTXH (%)	Expense ratio (bp)	Savings vs FTXH (bp)	ALTAR Score™ (%)	ALTAR vs FTXH (%)
XPH	SPDR S&P Pharmaceuticals ETF	53.5	35	25	3.8	-3.1
IHE	iShares U.S. Pharmaceuticals ETF	50.2	42	18	5.2	-1.7
PJP	Invesco Dynamic Pharmaceuticals ETF	44.4	56	4	13.0	+6.1
PPH	VanEck Vectors Pharmaceutical ETF	44.2	36	24	11.0	+4.1
IEIH	iShares Evolved U.S. Innovative Healthcare ETF	37.8	18	42	3.4	-3.6
XLV	Health Care Select Sector SPDR Fund	34.2	13	47	7.3	+0.4
IYH	iShares U.S. Healthcare ETF	33.0	43	17	6.3	-0.6
FHLC	Fidelity MSCI Health Care Index ETF	31.9	8	52	5.6	-1.4
VHT	Vanguard Health Care Index Fund	30.9	10	50	5.4	-1.5
JHMH	John Hancock Multifactor Healthcare ETF	25.9	40	20	6.1	-0.8
IXJ	iShares Global Healthcare ETF	25.3	46	14	6.4	-0.5
DURA	VanEck Vectors Morningstar Durable Dividend ETF	23.0	29	31	8.2	+1.3
RYH	Invesco S&P 500 Equal Weight Health Care ETF	17.1	40	20	6.8	-0.1
HDV	iShares Core High Dividend ETF	14.7	8	52	6.8	-0.2
FDL	First Trust Morningstar Dividend Leaders Index Fund	14.4	45	15	9.6	+2.7
DHS	WisdomTree U.S. High Dividend Fund	14.3	38	22	8.2	+1.2
OUSA	O'Shares FTSE US Quality Dividend ETF	13.7	48	12	5.6	-1.3
USMC	Principal U.S. Mega-Cap Multi-Factor Index ETF	13.1	12	48	4.6	-2.4
PWV	Invesco Dynamic Large Cap Value ETF	12.7	56	4	7.7	+0.8
MGV	Vanguard Mega Cap Value ETF	12.2	7	53	6.8	-0.1
HLAL	Wahed FTSE USA Shariah ETF	11.9	50	10	4.1	-2.8
IEHS	iShares Evolved U.S. Healthcare Staples ETF	11.8	18	42	5.4	-1.5
VYM	Vanguard High Dividend Yield Index ETF	11.6	6	54	7.0	+0.1
GBLO	Global Beta Low Beta ETF	11.5	29	31	7.2	+0.3
VIRS	Pacer BioThreat Strategy ETF	11.2	70	-10	4.6	-2.3
VSMV	VictoryShares US Multi-Factor Minimum Volatility ETF	11.2	35	25	6.8	-0.1
VTV	Vanguard Value Index Fund	10.1	4	56	6.8	-0.1
SPHQ	Invesco S&P 500 Quality ETF	10.0	15	45	4.4	-2.5
LVHD	Legg Mason Low Volatility High Dividend ETF	10.0	27	33	7.8	+0.9
NACP	Impact Shares NAACP Minority Empowerment ETF	9.9	75	-15	4.6	-2.4
FXH	First Trust Health Care AlphaDEX Fund	9.9	62	-2	5.0	-1.9
FTCS	First Trust Capital Strength ETF	9.8	58	2	5.1	-1.8
QLV	FlexShares US Quality Low Volatility Index Fund	9.5	22	38	4.7	-2.2
DGRO	iShares Core Dividend Growth ETF	9.5	8	52	6.3	-0.6
DLN	WisdomTree U.S. LargeCap Dividend Fund	9.3	28	32	6.1	-0.9
RAFE	PIMCO RAFI ESG U.S. ETF	9.3	29	31	7.1	+0.2
MTUM	iShares MSCI USA Momentum Factor ETF	9.2	15	45	4.0	-2.9
SDGA	Impact Shares Sustainable Development Goals Global ETF	9.1	75	-15	5.0	-1.9
RNDV	US Equity Dividend Select ETF	8.9	50	10	7.9	+0.9
XLG	Invesco S&P 500 Top 50 ETF	8.7	20	40	4.3	-2.6
PAWZ	ProShares Pet Care ETF	8.6	50	10	2.5	-4.5
CCOR	Core Alternative ETF	8.4	109	-49	4.5	-2.4
SPLV	Invesco S&P 500 Low Volatility ETF	8.4	25	35	5.5	-1.4
JKF	iShares Morningstar Large Cap Value ETF	8.4	25	35	7.1	+0.2
PTH	Invesco DWA Healthcare Momentum ETF	8.4	60	0	-2.5	-9.4
STLV	iShares Factors US Value Style ETF	8.4	25	35	6.9	-0.0
DTN	WisdomTree U.S. Dividend ex-Financials Fund	8.3	38	22	7.5	+0.5
JKD	iShares Morningstar Large-Cap ETF	8.2	20	40	5.4	-1.5
SCHV	Schwab U.S. Large-Cap Value ETF	8.2	4	56	6.3	-0.6
DTD	WisdomTree U.S.Total Dividend Fund	8.2	28	32	6.3	-0.6
FLV	American Century Focused Large Cap Value ETF	8.1	42	18	5.9	-1.0
XRLV	Invesco S&P 500 ex-Rate Sensitive Low Volatility ETF	7.9	25	35	5.7	-1.2
PWB	Invesco Dynamic Large Cap Growth ETF	7.8	56	4	3.3	-3.7
XBI	SPDR S&P BIOTECH ETF	7.7	35	25	-2.0	-8.9
REVS	Columbia Research Enhanced Value ETF	7.7	19	41	7.2	+0.3
SDOG	ALPS Sector Dividend Dogs ETF	7.7	40	20	8.8	+1.9
IBBJ	Defiance Nasdaq Junior Biotechnology ETF	7.6	45	15	-1.9	-8.8
RECS	Columbia Research Enhanced Core ETF	7.5	15	45	5.3	-1.6
SYV	SPDR MFS Systematic Value Equity ETF	7.5	60	0	6.8	-0.1
FLLV	Franklin Liberty U.S. Low Volatility ETF	7.4	29	31	5.2	-1.7
QDEF	FlexShares Quality Dividend Defensive Index Fund	7.4	37	23	5.8	-1.1
USDY	Pacific Global US Equity Income ETF	7.4	29	31	7.7	+0.8
ACIO	Aptus Collared Income Opportunity ETF	7.3	79	-19	4.4	-2.6
RFDA	RiverFront Dynamic US Dividend Advantage ETF	7.3	52	8	5.1	-1.8
VOOV	Vanguard S&P 500 Value ETF	7.3	10	50	6.8	-0.1
STLC	iShares Factors US Blend Style ETF	7.3	25	35	5.0	-1.9
IOO	iShares Global 100 ETF	7.2	40	20	4.5	-2.4
VIG	Vanguard Dividend Appreciation Index Fund	7.2	6	54	5.1	-1.8
IWX	iShares Russell Top 200 Value ETF	7.1	20	40	6.3	-0.6
OEF	iShares S&P 100 ETF	7.1	20	40	4.5	-2.4
BTEC	Principal Healthcare Innovators Index ETF	7.1	42	18	-1.9	-8.9
SPXT	ProShares S&P 500 Ex-Technology ETF	7.0	27	33	5.2	-1.7
SHE	SPDR SSGA Gender Diversity Index ETF	7.0	20	40	4.4	-2.5
NULV	Nuveen ESG Large-Cap Value ETF	7.0	35	25	6.7	-0.2
MOAT	VanEck Vectors Morningstar Wide Moat ETF	6.9	49	11	6.3	-0.6
QDYN	FlexShares Quality Dividend Dynamic Index Fund	6.9	37	23	5.7	-1.2
HDIV	QRAFT AI-Enhanced U.S. High Dividend ETF	6.8	75	-15	5.6	-1.4
QDF	FlexShares Quality Dividend Index Fund	6.8	37	23	5.7	-1.2
JQUA	JPMorgan U.S. Quality Factor ETF	6.8	12	48	5.2	-1.8
IVE	iShares S&P 500 Value ETF	6.8	18	42	6.7	-0.2
SPYV	SPDR Portfolio S&P 500 Value ETF	6.8	4	56	6.9	-0.1
SYE	SPDR MFS Systematic Core Equity ETF	6.8	60	0	5.4	-1.5
DEF	Invesco Defensive Equity ETF	6.8	55	5	5.1	-1.8
LSLT	Salt Low truBeta US Market ETF	6.7	60	0	5.7	-1.3
SBIO	ALPS Medical Breakthroughs ETF	6.7	50	10	-1.5	-8.4
WOMN	Impact Shares YWCA Women's Empowerment ETF	6.7	75	-15	3.9	-3.1
DGRW	WisdomTree U.S. Quality Dividend Growth Fund	6.7	28	32	6.2	-0.7
PFM	Invesco Dividend Achievers ETF	6.6	53	7	5.1	-1.8
SPDV	AAM S&P 500 High Dividend Value ETF	6.5	29	31	9.0	+2.1
FDRR	Fidelity Dividend ETF for Rising Rates	6.5	29	31	6.3	-0.6
QUAL	iShares MSCI Usa Quality Factor ETF	6.5	15	45	5.1	-1.8
LEAD	Reality Shares DIVCON Leaders Dividend ETF	6.5	43	17	4.3	-2.6
EQWL	Invesco Russell Top 200 Equal Weight ETF	6.5	25	35	5.8	-1.1
SPMO	Invesco S&P 500 Momentum ETF	6.5	13	47	4.0	-3.0
DIVB	iShares U.S. Dividend & Buyback ETF	6.4	25	35	6.3	-0.7
LNGR	Global X Longevity Thematic ETF	6.4	50	10	3.2	-3.7
DJD	Invesco Dow Jones Industrial Average Dividend ETF	6.4	7	53	6.7	-0.2
FQAL	Fidelity Quality Factor ETF	6.4	29	31	5.2	-1.8

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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 Pharmaceuticals ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	19.7	%
Divided by: Fwd. P/BV	2.6	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	6.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.40	CATEGORY AVERAGE	1.49

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.