ETF Research Center

The First Trust Nasdaq Oil & Gas ETF tracks an index composed of 50 U.S. oil and gas companies. Holdings are selected by their liquidity, and weighted based on volatility, value, and growth factors.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Sep 20, 2016
Assets (mns)	$5
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	49
Wgt avg mkt cap (mns)	$56,482
Large cap (>$10bn)	67.5%
Mid cap ($2-10bn)	26.9%
Small cap (<$2bn)	5.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	59.6 %
CHEVRON CORP	7.6 %
OGE ENERGY CORP	7.5 %
EXXON MOBIL CORP	7.5 %
KINDER MORGAN INC	7.5 %
ONEOK INC	7.4 %
VALERO ENERGY CORP	5.0 %
PHILLIPS 66	4.4 %
HOLLYFRONTIER CORP	4.4 %
MARATHON PETROLEUM	4.2 %
CONOCOPHILLIPS	4.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.9 %
	BERMUDA	0.3 %
	SWITZERLAND	0.3 %

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.
-2.6%	-24.6%	--	--	-7.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.37	44%
MSCI EAFE	1.26	32%
MSCI Emg. Mkts.	0.64	14%

Technical Indicators
Recent close	$15.85
30d moving avg.	$15.83
Annualized volatility	24.9%
Short interest (ETF)	0.6%
Relative strength (RSI)	54

Liquidity measures
Avg. volume (thou.)	11
Turnover	3.7%
Bid/Ask (% of price)	0.50%
ADV underlying (mns)	$6,915

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust Nasdaq Oil & Gas ETF based on the alternatives' overlap in portfolio holdings with FTXN. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FTXN

Expense:

60 bp

ALTAR Score™:

2.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FTXN
Ticker	Fund Name	Overlap¹ vs FTXN (%)	Expense ratio (bp)	Savings vs FTXN (bp)	ALTAR Score™ (%)	ALTAR vs FTXN (%)
JHME	John Hancock Multifactor Energy	63.7	40	20	3.4	+0.8
RYE	Invesco S&P Equal Weight Energy ETF	56.0	40	20	3.6	+0.9
IYE	iShares DJ US Energy Sector	53.7	42	18	4.1	+1.4
XLE	Energy Select Sector SPDR	53.0	13	47	4.5	+1.8
FENY	Fidelity MSCI Energy	52.8	8	52	4.1	+1.4
VDE	Vanguard Energy ETF	52.6	10	50	3.9	+1.3
XLEY	Cushing Energy & MLP	46.7	65	-5	3.7	+1.1
PXI	Invesco Dynamic Energy Sector	46.6	60	0	-0.7	-3.3
IGE	iShares North American Natural Resources	46.3	46	14	4.1	+1.4
FXN	First Trust Energy Alphadex	43.4	63	-3	4.6	+1.9
IEO	iShares U.S. Oil & Gas Exploration & Production	39.0	42	18	3.3	+0.6
XOP	SPDR S&P Oil & Gas Exploration	38.3	35	25	3.6	+1.0
IXC	iShares S&P Global Energy Sector	36.0	46	14	5.2	+2.5
PXE	Invesco Dynamic Energy Exploration & Production	33.1	63	-3	1.2	-1.4
FILL	iShares MSCI Global Energy Producers	29.6	39	21	5.6	+3.0
XLSY	Cushing Energy Supply Chain & MLP	26.4	65	-5	5.6	+2.9
NANR	SPDR S&P N. American Nat. Resources	26.1	35	25	4.2	+1.5
FRAK	VanEck Vectors Unconventional Oil & Gas	25.0	54	6	1.7	-0.9
TPYP	Tortoise North American Pipeline	22.5	40	20	4.8	+2.1
MLPX	Global X MLP & Energy Infrastructure	22.5	45	15	4.3	+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%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
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

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 Nasdaq Oil & Gas
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	3.7	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	2.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.54	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.