ETF Research Center

First Trust Value Line Dividend Index Fund seeks to track the performance of the Value Line Dividend Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Aug 26, 2003
Assets (mns)	$9,042
Currency	USD
Expense ratio	70 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Equal
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	195
Wgt avg mkt cap (mns)	$65,562
Large cap (>$10bn)	76.4%
Mid cap ($2-10bn)	21.0%
Small cap (<$2bn)	2.6%
Developed mkts	99.0%
Emerging mkts	1.0%

TOP TEN HOLDINGS
Total	6.0 %
LEGGETT & PLATT INC	0.6 %
INTL FLAVORS & FRAGRANCES	0.6 %
DOW, INC.	0.6 %
CVS CAREMARK CORP	0.6 %
AMGEN INC	0.6 %
ROCKWELL AUTOMATION INC	0.6 %
BOEING CO	0.6 %
ABB LTD-SPON ADR	0.6 %
GARMIN LTD	0.6 %
AIR PRODUCTS & CHEMICALS INC	0.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	81.2 %
	CANADA	6.6 %
	BRITAIN	2.6 %
	SWITZERLAND	2.6 %
	BERMUDA	1.6 %
	IRELAND	1.0 %
	JAPAN	1.0 %
	FRANCE	1.0 %
	DENMARK	0.5 %
	INDIA	0.5 %

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.
24.4%	15.0%	10.6%	13.3%	12.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.72	82%
MSCI EAFE	0.66	57%
MSCI Emg. Mkts.	0.43	40%

Technical Indicators
Recent close	$35.44
30d moving avg.	$35.34
Annualized volatility	9.6%
Short interest (ETF)	0.4%
Short interest (Underlying)	3.1%
Relative strength (RSI)	59

Liquidity measures
Avg. volume (thou.)	1,190
Turnover	0.5%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$44,836

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FVD

Expense:

70 bp

ALTAR Score™:

5.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FVD
Ticker	Fund Name	Overlap¹ vs FVD (%)	Expense ratio (bp)	Savings vs FVD (bp)	ALTAR Score™ (%)	ALTAR vs FVD (%)
JMIN	JPMorgan U.S. Minimum Volatility	40.0	12	58	5.6	-0.2
JDIV	JPMorgan U.S. Dividend	36.5	12	58	7.5	+1.7
RBUS	Nationwide Risk-Based U.S. Equity	36.4	30	40	6.1	+0.3
SCHV	Schwab U.S. Large-Cap Value	34.4	4	66	7.0	+1.2
VYM	Vanguard High Dividend Yield ETF	33.8	6	64	7.2	+1.5
USDY	Pacific Global US Equity Income	33.6	29	41	7.5	+1.7
DLN	WisdomTree Large Cap Dividend	32.8	28	42	6.5	+0.8
OYLD	Invesco Russell 1000 Yield Factor ETF	32.5	19	51	7.1	+1.3
OUSA	O'Shares FTSE U.S. Quality Dividend	31.8	48	22	6.0	+0.2
RNDV	US Equity Dividend Select	31.7	50	20	7.7	+1.9
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	31.4	19	51	5.6	-0.1
DTD	WisdomTree Total Dividend	31.4	28	42	6.6	+0.9
FLQL	Franklin LibertyQ U.S. Equity	31.3	15	55	6.9	+1.2
VTV	Vanguard Value ETF	30.9	4	66	7.2	+1.4
QUS	SPDR MSCI USA Quality Mix	30.8	15	55	6.0	+0.2
DGRO	iShares Core Dividend Growth	30.6	8	62	6.5	+0.7
SPLV	Invesco S&P 500 Low Volatility	30.6	25	45	5.2	-0.5
LVHB	Elkhorn Lunt Low Vol/High Beta Tactical	30.6	52	18	5.0	-0.7
JPUS	JPMorgan Diversified Return U.S. Equity	30.2	19	51	6.3	+0.6
KRMA	Global X Conscious Companies	30.2	43	27	5.7	-0.1

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

	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

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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 Value Line Dividend
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	14.5	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	70	bp
Equals: ALTAR Score	5.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.74	CATEGORY AVERAGE	1.56

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.