First Trust Financial Alphadex
ALTAR
Score™
8.0% info Recommen-
dation
SPECULATIVE
2019E    2020E
P/E
ratio
12.0x P/Sales
ratio
2.2x
P/BV
ratio
1.4x Div.
yield
2.7%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
First Trust Financial AlphaDEX Fund seeks investment results that correspond to the StrataQuant Financial AlphaDEX Index.

FUND BASICS
Category US Equities
Fund Sponsor First Trust Advisors LP
Website www.ftportfolios.com
Inception date May 10, 2007
Assets (mns) $1,898
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 185
Wgt avg mkt cap (mns) $27,558
Large cap (>$10bn) 48.4%
Mid cap ($2-10bn) 51.4%
Small cap (<$2bn) 0.2%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
WESTERN UNION CO 1.1 %
ONEMAIN HOLDINGS, INC. 1.0 %
MGIC INVESTMENT CORP 1.0 %
JANUS HENDERSON GROUP PLC 1.0 %
BANK OF THE OZARKS 1.0 %
ASSURED GUARANTY LTD 0.9 %
SYNCHRONY FINANCIAL 0.9 %
CAPITAL ONE FINANCIAL CORP 0.9 %
LPL FINANCIAL HOLDINGS INC 0.9 %
JEFFERIES FINANCIAL GROUP INC. 0.9 %
Total 9.6 %

TOP COUNTRY EXPOSURE
UNITED STATES 92.7 %
BERMUDA 5.2 %
BRITAIN 1.1 %
PUERTO RICO 0.7 %
SWITZERLAND 0.2 %






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.
19.6% 9.5% 9.0% 12.5% 5.8%

Market Correlations
versus... Beta R-squared
S&P500 1.06 79%
MSCI EAFE 0.83 41%
MSCI Emg. Mkts. 0.54 28%

Technical Indicators
Recent close $32.73
30d moving avg. $31.88
Annualized volatility 14.4%
Short interest (ETF) 0.1%
Short interest (Underlying) 2.8%
Relative strength (RSI) 68

Liquidity measures
Avg. volume (thou.) 302
Turnover 0.5%
Bid/Ask (% of price) 0.06%
ADV underlying (mns) $25,057

Distributions


FINDING ALTERNATIVE FUNDS

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

Benchmark ticker: FXO Expense: 63 bp ALTAR Score™: 8.0%


ALTERNATIVE ETFs BASED ON OVERLAP WITH FXO
Ticker Fund
Name
Overlap1
vs FXO
(%)
Expense
ratio
(bp)
Savings
vs FXO
(bp)
ALTAR
Score™
(%)
ALTAR
vs FXO
(%)
JHMF John Hancock Multifactor Financials 47.0 40 23 6.7 -1.3
IEFN iShares Evolved U.S. Financials 39.4 18 45 7.5 -0.5
IYF iShares DJ US Financials 36.2 42 21 6.2 -1.8
FNCL Fidelity MSCI Financials 34.4 8 55 7.5 -0.6
VFH Vanguard Financials 34.1 10 53 7.4 -0.6
RYF Invesco S&P Equal Weight Financials 32.1 40 23 7.5 -0.5
AUSF Global X Adaptive U.S. Factor 28.2 27 36 8.2 +0.2
KBE KBW Bank ETF 27.7 35 28 8.3 +0.3
IYG iShares DJ US Financial Services 26.6 42 21 6.5 -1.5
XLF Financials Select Sector SPDR 26.3 13 50 7.1 -0.9
FTA First Trust Large Cap Value 26.3 62 1 8.7 +0.7
RWW Invesco S&P Financials Revenue 25.2 45 18 7.4 -0.6
PY Principal Shareholder Yield 24.8 29 34 8.0 -0.0
OMFL Oppenheimer Russell 1000 Dynamic Multifactor 23.0 29 34 9.6 +1.6
FEX First Trust Large Cap Core Alphadex 22.3 61 2 6.4 -1.6
KIE SPDR S&P Insurance 22.1 35 28 7.2 -0.8
FNK First Trust Mid Cap Value AlphaDEX 22.0 70 -7 9.0 +1.0
KRE SPDR KBW Regional Banking 21.7 35 28 8.3 +0.3
IAT iShares DJ US Regional Banks 21.1 42 21 7.6 -0.5
USEQ Invesco Russell 1000 Enhanced Equal Weight 20.9 29 34 6.7 -1.3

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 info ** ** ** ** ** ** **
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 Financial Alphadex
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 11.6 %
Divided by: Fwd. P/BV 1.3 x
Less: Expense ratio 63 bp
Equals: ALTAR Score 8.0 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.59 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.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.