ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$87
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	36
Wgt avg mkt cap (mns)	$30,062
Large cap (>$10bn)	44.8%
Mid cap ($2-10bn)	41.2%
Small cap (<$2bn)	13.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	45.1 %
CONOCOPHILLIPS	5.0 %
MARATHON OIL CORP	4.9 %
CIMAREX ENERGY CO	4.8 %
WPX ENERGY	4.8 %
DEVON ENERGY CORPORATION	4.6 %
PHILLIPS 66	4.6 %
OCCIDENTAL PETROLEUM CORP	4.3 %
CABOT OIL & GAS CORP	4.1 %
CONTINENTAL RESOURCES INC/OK	4.0 %
CHEVRON CORP	4.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.8 %

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.
-17.3%	-36.4%	-16.0%	-3.9%	-5.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.55	46%
MSCI EAFE	1.35	29%
MSCI Emg. Mkts.	0.70	13%

Technical Indicators
Recent close	$9.20
30d moving avg.	$9.52
Annualized volatility	27.6%
Short interest (ETF)	0.1%
Short interest (Underlying)	8.0%
Relative strength (RSI)	51

Liquidity measures
Avg. volume (thou.)	102
Turnover	1.1%
Bid/Ask (% of price)	0.16%
ADV underlying (mns)	$5,853

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FXN

Expense:

63 bp

ALTAR Score™:

4.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FXN
Ticker	Fund Name	Overlap¹ vs FXN (%)	Expense ratio (bp)	Savings vs FXN (bp)	ALTAR Score™ (%)	ALTAR vs FXN (%)
RYE	Invesco S&P Equal Weight Energy ETF	61.9	40	23	3.6	-1.0
JHME	John Hancock Multifactor Energy	58.0	40	23	3.4	-1.2
XOP	SPDR S&P Oil & Gas Exploration	55.0	35	28	3.8	-0.9
FRAK	VanEck Vectors Unconventional Oil & Gas	47.5	54	9	1.7	-2.9
XLE	Energy Select Sector SPDR	44.7	13	50	4.5	-0.2
IYE	iShares DJ US Energy Sector	44.3	42	21	4.1	-0.6
IEO	iShares U.S. Oil & Gas Exploration & Production	44.0	42	21	3.3	-1.4
FENY	Fidelity MSCI Energy	43.6	8	55	4.1	-0.6
VDE	Vanguard Energy ETF	43.4	10	53	4.0	-0.7
FTXN	First Trust Nasdaq Oil & Gas	43.4	60	3	2.7	-2.0
PXE	Invesco Dynamic Energy Exploration & Production	43.2	63	0	1.3	-3.4
XLEY	Cushing Energy & MLP	42.8	65	-2	3.8	-0.9
PXI	Invesco Dynamic Energy Sector	40.0	60	3	-0.7	-5.3
IGE	iShares North American Natural Resources	37.0	46	17	4.1	-0.6
FCG	First Trust ISE-Revere Natural Gas	29.8	60	3	3.6	-1.0
IXC	iShares S&P Global Energy Sector	28.1	46	17	5.2	+0.6
XLSY	Cushing Energy Supply Chain & MLP	25.4	65	-2	5.7	+1.0
FILL	iShares MSCI Global Energy Producers	22.8	39	24	5.7	+1.0
NANR	SPDR S&P N. American Nat. Resources	21.9	35	28	4.2	-0.5
EQRR	ProShares Equities for Rising Rates	19.5	35	28	8.2	+3.5

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 Energy Alphadex
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	3.7	%
Divided by: Fwd. P/BV	0.7	x
Less: Expense ratio	63	bp
Equals: ALTAR Score	4.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.45	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.