ETF Research Center

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)	$2,009
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	186
Wgt avg mkt cap (mns)	$30,385
Large cap (>$10bn)	50.0%
Mid cap ($2-10bn)	49.9%
Small cap (<$2bn)	0.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	9.2 %
FAIR ISAAC CORP	1.0 %
LPL FINANCIAL HOLDINGS INC	0.9 %
JEFFERIES FINANCIAL GROUP INC.	0.9 %
BRIGHTHOUSE FINANCIAL, INC.	0.9 %
FISERV INC	0.9 %
EVERCORE PARTNERS INC-CL A	0.9 %
METLIFE INC	0.9 %
AMERICAN INTERNATIONAL GROUP	0.9 %
SVB FINANCIAL GROUP	0.9 %
FIRST AMERICAN FINANCIAL	0.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.8 %
	BERMUDA	3.6 %
	BRITAIN	1.3 %
	PUERTO RICO	0.7 %
	SWITZERLAND	0.4 %

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.
26.3%	26.3%	9.5%	12.4%	6.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.02	82%
MSCI EAFE	0.90	52%
MSCI Emg. Mkts.	0.60	40%

Technical Indicators
Recent close	$33.79
30d moving avg.	$33.42
Annualized volatility	13.7%
Short interest (ETF)	0.1%
Short interest (Underlying)	2.8%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	252
Turnover	0.4%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$18,776

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™:

7.6%

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	50.6	40	23	6.3	-1.3
IEFN	iShares Evolved U.S. Financials	41.7	18	45	7.2	-0.4
IYF	iShares DJ US Financials	37.6	42	21	5.8	-1.8
FNCL	Fidelity MSCI Financials	37.1	8	55	7.1	-0.5
VFH	Vanguard Financials	37.0	10	53	7.1	-0.5
RYF	Invesco S&P Equal Weight Financials	35.7	40	23	7.0	-0.6
KBE	KBW Bank ETF	29.5	35	28	8.1	+0.5
XLF	Financials Select Sector SPDR	29.3	13	50	6.7	-0.9
FTA	First Trust Large Cap Value	28.2	62	1	8.2	+0.6
RWW	Invesco S&P Financials Revenue	27.7	45	18	7.0	-0.6
IYG	iShares DJ US Financial Services	27.2	42	21	6.1	-1.5
AUSF	Global X Adaptive U.S. Factor	26.6	27	36	6.5	-1.1
PY	Principal Shareholder Yield	24.8	29	34	7.7	+0.1
FNK	First Trust Mid Cap Value AlphaDEX	23.2	70	-7	8.7	+1.1
KIE	SPDR S&P Insurance	23.1	35	28	6.9	-0.7
OMFL	Oppenheimer Russell 1000 Dynamic Multifactor	23.0	29	34	9.0	+1.4
KRE	SPDR KBW Regional Banking	23.0	35	28	8.0	+0.4
IAT	iShares DJ US Regional Banks	22.8	42	21	7.4	-0.2
DON	WisdomTree Midcap Dividend	22.2	38	25	7.1	-0.5
IXG	iShares S&P Global Financial Sector	22.0	46	17	8.1	+0.5

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 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	11.5	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	63	bp
Equals: ALTAR Score	7.6	%

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.