ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$84
Currency	USD
Expense ratio	65 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	51
Wgt avg mkt cap (mns)	$13,625
Large cap (>$10bn)	37.7%
Mid cap ($2-10bn)	59.5%
Small cap (<$2bn)	2.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	33.5 %
NEWMONT MINING CORP	3.9 %
CROWN HOLDINGS INC	3.8 %
ALBEMARLE CORP	3.5 %
OWENS CORNING	3.5 %
WESTROCK CO.	3.3 %
RELIANCE STEEL & ALUMINUM	3.2 %
SCOTTS MIRACLE-GRO CO-CL A	3.2 %
OLIN CORP	3.1 %
LYONDELLBASELL INDU-CL A	3.0 %
DOMTAR CORP	3.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.9 %
	BRITAIN	4.5 %
	IRELAND	1.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-7.9%	0.8%	5.7%	9.0%	6.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.33	75%
MSCI EAFE	1.38	67%
MSCI Emg. Mkts.	0.99	59%

Technical Indicators
Recent close	$33.74
30d moving avg.	$38.26
Annualized volatility	18.6%
Short interest (ETF)	0.0%
Short interest (Underlying)	5.0%
Relative strength (RSI)	34

Liquidity measures
Avg. volume (thou.)	78
Turnover	3.1%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$5,073

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust Materials AlphaDEX Fund ETF based on the alternatives' overlap in portfolio holdings with FXZ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FXZ

Expense:

65 bp

ALTAR Score™:

8.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FXZ
Ticker	Fund Name	Overlap¹ vs FXZ (%)	Expense ratio (bp)	Savings vs FXZ (bp)	ALTAR Score™ (%)	ALTAR vs FXZ (%)
JHMA	John Hancock Multifactor Materials ETF	49.9	40	25	7.4	-1.0
VAW	Vanguard Materials Index Fund	38.8	10	55	6.9	-1.5
RTM	Invesco S&P 500 Equal Weight Materials ETF	38.5	40	25	6.7	-1.7
FMAT	Fidelity MSCI Materials Index ETF	38.1	8	57	6.9	-1.5
IYM	iShares U.S. Basic Materials ETF	31.1	42	23	6.2	-2.2
XLB	Materials Select Sector SPDR Fund	30.7	13	52	6.6	-1.8
PYZ	Invesco DWA Basic Materials Momentum ETF	29.7	60	5	5.7	-2.7
PAVE	Global X U.S. Infrastructure Development ETF	18.6	47	18	6.2	-2.2
MXI	iShares Global Materials ETF	18.2	46	19	7.0	-1.4
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF	17.0	60	5	7.0	-1.4
XME	SPDR S&P Metals & Mining ETF	16.6	35	30	3.2	-5.2
QVAL	Alpha Architect U.S. Quantitative Value ETF	15.9	49	16	12.8	+4.4
EQRR	ProShares Equities for Rising Rates ETF	14.3	35	30	8.6	+0.2
TPHD	Timothy Plan High Dividend Stock ETF	13.6	52	13	7.3	-1.1
CUT	Invesco MSCI Global Timber ETF	12.7	55	10	9.6	+1.2
DVP	Deep Value ETF	11.3	59	6	14.9	+6.5
SLX	VanEck Vectors Steel ETF	10.9	56	9	17.5	+9.1
WBIY	WBI Power Factor High Dividend ETF	10.8	70	-5	12.3	+3.9
FNK	First Trust Mid Cap Value AlphaDEX Fund	10.8	70	-5	10.5	+2.1

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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 Materials AlphaDEX Fund
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	14.1	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	65	bp
Equals: ALTAR Score	8.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.62	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.