ETF Research Center

First Trust Health Care AlphaDEX Fund seeks investment results that correspond to the StrataQuant Health Care AlphaDEX Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$1,176
Currency	USD
Expense ratio	63 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	78
Wgt avg mkt cap (mns)	$45,083
Large cap (>$10bn)	73.7%
Mid cap ($2-10bn)	26.3%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	22.4 %
EXELIXIS INC	2.4 %
HORIZON PHARMA PLC	2.3 %
DEXCOM INC	2.3 %
ALEXION PHARMACEUTICALS INC	2.2 %
CIGNA CORP	2.2 %
ALNYLAM PHARMACEUTICALS INC	2.2 %
CENTENE CORP	2.2 %
WELLCARE HEALTH PLANS INC	2.2 %
UNITEDHEALTH GROUP INC	2.2 %
JAZZ PHARMACEUTICALS PLC	2.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	88.0 %
	IRELAND	7.7 %
	BRITAIN	1.9 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
22.3%	22.3%	6.9%	14.7%	12.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.11	73%
MSCI EAFE	0.91	40%
MSCI Emg. Mkts.	0.60	30%

Technical Indicators
Recent close	$87.10
30d moving avg.	$84.22
Annualized volatility	15.8%
Short interest (ETF)	1.6%
Short interest (Underlying)	4.6%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	71
Turnover	0.5%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$20,066

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FXH

Expense:

63 bp

ALTAR Score™:

6.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FXH
Ticker	Fund Name	Overlap¹ vs FXH (%)	Expense ratio (bp)	Savings vs FXH (bp)	ALTAR Score™ (%)	ALTAR vs FXH (%)
RYH	Invesco S&P Equal Weight Healthcare	55.3	40	23	6.7	+0.0
JHMH	John Hancock Multifactor Health Care	52.5	40	23	6.3	-0.4
IYH	iShares US Healthcare	40.9	43	20	5.9	-0.8
FHLC	Fidelity MSCI Health Care	40.3	8	55	5.5	-1.2
VHT	Vanguard Health Care	40.1	10	53	5.5	-1.1
XLV	Health Care Select Sector SPDR	38.1	13	50	6.8	+0.2
IEHS	iShares Evolved U.S. Healthcare Staples	34.7	18	45	5.6	-1.1
IXJ	iShares S&P Global Healthcare	31.6	46	17	6.0	-0.7
XHS	SPDR S&P Health Care Services	28.1	35	28	5.2	-1.5
IEIH	iShares Evolved U.S. Innovative Healthcare	27.6	18	45	3.8	-2.9
IHF	iShares US Healthcare Providers	25.6	43	20	7.1	+0.4
HTEC	Robo Global Healthcare Technology and Innovation	23.8	68	-5	-0.6	-7.2
FBT	First Trust NYSE-ARCA Biotechnology	23.5	57	6	-0.7	-7.4
LNGR	Global X Longevity Thematic	23.0	50	13	3.2	-3.4
IBB	iShares NASDAQ Biotechnology	22.9	47	16	1.0	-5.7
GDNA	Goldman Sachs Motif Human Evolution	22.1	50	13	1.0	-5.7
PBE	Invesco Dynamic Biotechnology & Genome	22.0	57	6	10.5	+3.8
PJP	Invesco Dynamic Pharmaceuticals	22.0	56	7	10.5	+3.8
XHE	SPDR S&P Health Care Equipment	21.3	35	28	2.0	-4.7
BBH	VanEck Vectors Biotech	20.8	35	28	4.3	-2.3

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 Health Care Alphadex
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	20.8	%
Divided by: Fwd. P/BV	2.9	x
Less: Expense ratio	63	bp
Equals: ALTAR Score	6.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.44	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.