ETF Research Center

First Trust Consumer Discretionary AlphaDEX Fund seeks investment results that correspond generally to the StrataQuant Consumer Discretionary AlphaDEX Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$363
Currency	USD
Expense ratio	64 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	119
Wgt avg mkt cap (mns)	$26,419
Large cap (>$10bn)	50.8%
Mid cap ($2-10bn)	47.4%
Small cap (<$2bn)	1.7%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	15.8 %
BORGWARNER INC	1.8 %
MOHAWK INDUSTRIES INC	1.7 %
ROKU, INC. CLASS A	1.7 %
CARVANA CO. CLASS A	1.6 %
PVH CORP	1.5 %
TEMPUR-PEDIC INTERNATIONAL	1.5 %
LEAR CORP	1.5 %
FOOT LOCKER INC	1.5 %
SKECHERS USA INC-CL A	1.5 %
COSTCO WHOLESALE CORP	1.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.0 %
	BRITAIN	1.7 %
	IRELAND	0.6 %
	SWITZERLAND	0.3 %
	CHINA	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.
17.8%	7.8%	6.4%	13.2%	7.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.11	82%
MSCI EAFE	0.93	49%
MSCI Emg. Mkts.	0.62	36%

Technical Indicators
Recent close	$43.94
30d moving avg.	$42.68
Annualized volatility	14.8%
Short interest (ETF)	0.2%
Short interest (Underlying)	6.3%
Relative strength (RSI)	65

Liquidity measures
Avg. volume (thou.)	135
Turnover	1.6%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$21,147

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FXD

Expense:

64 bp

ALTAR Score™:

8.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FXD
Ticker	Fund Name	Overlap¹ vs FXD (%)	Expense ratio (bp)	Savings vs FXD (bp)	ALTAR Score™ (%)	ALTAR vs FXD (%)
RCD	Invesco S&P Equal Weight Consumer Discretionary	44.2	40	24	8.4	+0.3
JHMC	John Hancock Multifactor Consumer Discretionary	38.2	40	24	6.0	-2.1
VCR	Vanguard Consumer Discretionary	32.1	10	54	5.5	-2.6
FDIS	Fidelity MSCI Consumer Discrettionary	31.5	8	56	5.4	-2.7
XLY	Consumer Discretionary Select Sector SPDR	27.9	13	51	5.7	-2.4
IYC	iShares DJ US Consumer Services	26.2	42	22	5.1	-3.0
IEDI	iShares Evolved U.S. Discretionary Spending	24.7	18	46	5.0	-3.1
XRT	SPDR S&P Retail	24.2	35	29	8.9	+0.7
RXI	iShares S&P Global Consumer Discretionary	21.9	46	18	6.8	-1.3
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation	19.7	60	4	6.7	-1.5
FNK	First Trust Mid Cap Value AlphaDEX	18.8	70	-6	9.0	+0.9
FTXD	First Trust Nasdaq Retail	17.8	60	4	6.5	-1.6
IEME	iShares Evolved U.S. Media and Entertainment	17.6	18	46	6.8	-1.3
FLQM	Franklin LibertyQ U.S. Mid Cap Equity	17.1	30	34	6.9	-1.2
OMFL	Oppenheimer Russell 1000 Dynamic Multifactor	17.1	29	35	9.5	+1.4
RVRS	Reverse Cap Weighted US Large Cap	17.1	29	35	7.9	-0.2
FLAG	Forensic Accounting	16.9	152	-88	8.5	+0.4
PEZ	Invesco DWA Consumer Discretionary Momentum	16.8	60	4	5.0	-3.2
JPME	JPMorgan Diversified Return U.S. Mid Cap Equity	16.1	24	40	6.1	-2.0
IYK	iShares US Consumer Goods	16.1	42	22	6.4	-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

	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 Consumer Discretionary
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	19.4	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	64	bp
Equals: ALTAR Score	8.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.57	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.