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)	$1,160
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	79
Wgt avg mkt cap (mns)	$43,269
Large cap (>$10bn)	76.0%
Mid cap ($2-10bn)	24.0%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	23.5 %
SEATTLE GENETICS INC	2.7 %
BIOGEN IDEC INC	2.5 %
MOLINA HEALTHCARE INC	2.4 %
HORIZON PHARMA PLC	2.3 %
JAZZ PHARMACEUTICALS PLC	2.3 %
ALEXION PHARMACEUTICALS INC	2.3 %
MEDNAX INC	2.3 %
DEXCOM INC	2.2 %
BIO-RAD LABORATORIES-CL A	2.2 %
INSULET CORP	2.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	89.7 %
	IRELAND	6.1 %
	BRITAIN	1.9 %
	NETHERLANDS	0.9 %

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.
20.6%	6.2%	6.6%	15.1%	12.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.12	73%
MSCI EAFE	0.89	39%
MSCI Emg. Mkts.	0.64	32%

Technical Indicators
Recent close	$83.42
30d moving avg.	$79.73
Annualized volatility	15.8%
Short interest (ETF)	1.8%
Short interest (Underlying)	4.6%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	84
Turnover	0.6%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$18,701

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™:

7.0%

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	58.9	40	23	7.0	-0.0
JHMH	John Hancock Multifactor Health Care	55.8	40	23	6.6	-0.4
FHLC	Fidelity MSCI Health Care	41.1	8	55	5.7	-1.3
VHT	Vanguard Health Care	41.0	10	53	5.9	-1.1
IYH	iShares US Healthcare	40.9	43	20	6.2	-0.8
XLV	Health Care Select Sector SPDR	38.8	13	50	7.2	+0.2
IEHS	iShares Evolved U.S. Healthcare Staples	36.3	18	45	5.9	-1.1
IXJ	iShares S&P Global Healthcare	32.2	46	17	6.3	-0.7
XHS	SPDR S&P Health Care Services	29.6	35	28	6.0	-1.0
IEIH	iShares Evolved U.S. Innovative Healthcare	27.2	18	45	4.4	-2.6
GDNA	Goldman Sachs Motif Human Evolution	24.6	50	13	1.0	-6.0
PJP	Invesco Dynamic Pharmaceuticals	24.0	56	7	9.3	+2.3
PBE	Invesco Dynamic Biotechnology & Genome	24.0	57	6	-0.5	-7.5
XHE	SPDR S&P Health Care Equipment	23.2	35	28	2.1	-4.9
IHI	iShares DJ US Medical Devices	22.9	43	20	3.8	-3.2
HTEC	Robo Global Healthcare Technology and Innovation	22.8	68	-5	-0.1	-7.0
LNGR	Global X Longevity Thematic	21.9	50	13	3.3	-3.7
IHF	iShares US Healthcare Providers	21.9	43	20	7.3	+0.3
PTH	Invesco DWA Healthcare Momentum	21.1	60	3	-1.2	-8.2
FBT	First Trust NYSE-ARCA Biotechnology	19.6	57	6	-0.7	-7.7

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	2.7	x
Less: Expense ratio	63	bp
Equals: ALTAR Score	7.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.45	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.