ETF Research Center

The First Trust Dorsey Wright Dynamic Focus 5 ETF tracks an index of global sector and industry ETFs, selected by price momentum and weighted equally. The fund can also allocate to cash in varying amounts based on momentum.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Mar 08, 2016
Assets (mns)	$157
Currency	USD
Expense ratio	88 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	7
Wgt avg mkt cap (mns)	$177,304
Large cap (>$10bn)	50.9%
Mid cap ($2-10bn)	10.9%
Small cap (<$2bn)	0.7%
Developed mkts	62.5%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	100.0 %
FIRST TRUST ENHANCED SHORT MATURIT	37.9 %
FIRST TRUST NASDAQ-100-TECHNOLOGY	12.7 %
FIRST TRUST NASDAQ SEMICONDUCTOR E	12.6 %
FIRST TRUST INDUSTRIALS/PRODUCER D	12.5 %
FIRST TRUST DOW JONES INTERNET IND	12.4 %
FIRST TRUST CONSUMER DISCRETIONARY	11.9 %
US DOLLAR	0.0 %

TOP COUNTRY EXPOSURE
		0.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru March 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
5.7%	6.8%	6.4%	--	7.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.62	70%
MSCI EAFE	0.57	55%
MSCI Emg. Mkts.	0.40	29%

Technical Indicators
Recent close	$32.64
30d moving avg.	$31.54
Annualized volatility	13.2%
Short interest (ETF)	0.0%
Relative strength (RSI)	80

Liquidity measures
Avg. volume (thou.)	7
Turnover	0.2%
Bid/Ask (% of price)	0.34%
ADV underlying (mns)	$34,191

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 2 potential alternatives to the First Trust Dorsey Wright Dynamic Focus 5 ETF ETF based on the alternatives' overlap in portfolio holdings with FVC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FVC

Expense:

88 bp

ALTAR Score™:

2.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FVC
Ticker	Fund Name	Overlap¹ vs FVC (%)	Expense ratio (bp)	Savings vs FVC (bp)	ALTAR Score™ (%)	ALTAR vs FVC (%)
FV	First Trust Dorsey Wright Focus 5 ETF	62.1	90	-2	4.1	+1.9
KRUZ	Unusual Whales Subversive Republican Trading ETF	0.2	75	13	5.0	+2.8

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

	2019	2020	2021	2022	2023	2024E	2025E
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

	2023	2024E	2025E
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 Dorsey Wright Dynamic Focus 5 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	17.6	%
Divided by: Fwd. P/BV	5.7	x
Less: Expense ratio	88	bp
Equals: ALTAR Score	2.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	0.97	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.