ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$2,286
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	101
Wgt avg mkt cap (mns)	$67,321
Large cap (>$10bn)	61.9%
Mid cap ($2-10bn)	35.1%
Small cap (<$2bn)	3.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	18.5 %
RINGCENTRAL, INC. CLASS A	2.1 %
SKYWORKS SOLUTIONS INC	2.0 %
DXC TECHNOLOGY CO.	2.0 %
DOCUSIGN, INC.	1.9 %
COUPA SOFTWARE, INC.	1.8 %
ON SEMICONDUCTOR CORPORATION	1.8 %
MICRON TECHNOLOGY INC	1.7 %
CDW CORP/DE	1.7 %
TERADYNE INC	1.7 %
INTEL CORP	1.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.7 %
	BRITAIN	2.3 %

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.
34.9%	25.2%	16.0%	16.4%	10.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.29	71%
MSCI EAFE	1.11	44%
MSCI Emg. Mkts.	0.85	41%

Technical Indicators
Recent close	$70.01
30d moving avg.	$68.68
Annualized volatility	18.4%
Short interest (ETF)	0.3%
Short interest (Underlying)	3.9%
Relative strength (RSI)	68

Liquidity measures
Avg. volume (thou.)	116
Turnover	0.4%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$34,058

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FXL

Expense:

63 bp

ALTAR Score™:

5.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FXL
Ticker	Fund Name	Overlap¹ vs FXL (%)	Expense ratio (bp)	Savings vs FXL (bp)	ALTAR Score™ (%)	ALTAR vs FXL (%)
JHMT	John Hancock Multifactor Technology	42.7	40	23	6.1	+0.5
RYT	Invesco S&P Equal Weight Technology	39.7	40	23	6.4	+0.9
IYW	iShares US Technology	26.1	42	21	5.2	-0.3
FTXL	First Trust Nasdaq Semiconductor	24.5	60	3	6.4	+0.9
QTEC	First Trust NASDAQ 100 Tech	24.3	57	6	6.0	+0.5
VGT	Vanguard Info Tech ETF	23.9	10	53	5.4	-0.1
SPHB	Invesco S&P 500 High Beta	23.9	25	38	7.0	+1.5
IGM	iShares S&P N. American Technology	23.9	46	17	4.6	-1.0
FTEC	Fidelity MSCI Info Technology	23.9	8	55	5.5	-0.1
PEXL	Pacer US Export Leaders	23.9	60	3	6.0	+0.5
LVHB	Elkhorn Lunt Low Vol/High Beta Tactical	23.8	52	11	5.0	-0.6
QMOM	MomentumShares U.S. Quantitative Momentum	23.1	49	14	2.6	-2.9
XSW	SPDR S&P Software & Services	23.0	35	28	4.1	-1.5
SOXX	iShares PHLX SOX Semiconductor	22.9	46	17	6.1	+0.5
QTUM	Defiance Quantum	22.8	40	23	6.4	+0.9
TDIV	First Trust NASDAQ Technology Dividend	21.7	50	13	6.7	+1.2
QQEW	First Trust NASDAQ 100 Equal Weight	21.4	60	3	5.9	+0.3
QQQE	Direxion NASDAQ-100 Equal Weight	21.4	35	28	0.0	-5.5
IGV	iShares N. American Tech-Software	21.3	46	17	3.1	-2.5
PTF	Invesco DWA Technology Momentum	20.9	60	3	1.5	-4.0

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 Technology Alphadex
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	20.3	%
Divided by: Fwd. P/BV	3.3	x
Less: Expense ratio	63	bp
Equals: ALTAR Score	5.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.49	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.