ETF Research Center

First Trust Small Cap Value AlphaDEX Fund seeks investment results that correspond to the Defined Small Cap Value Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 19, 2011
Assets (mns)	$204
Currency	USD
Expense ratio	70 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	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	261
Wgt avg mkt cap (mns)	$1,819
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	35.8%
Small cap (<$2bn)	64.3%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	8.1 %
REDFIN CORPORATION	1.0 %
ACCELERON PHARMA INC	0.9 %
MOMENTA PHARMACEUTICALS INC	0.9 %
EHEALTH INC	0.9 %
FATE THERAPEUTICS INC	0.8 %
VIVINT SOLAR INC	0.8 %
FRESHPET INC	0.8 %
PRINCIPIA BIOPHARMA, INC.	0.7 %
NEVRO CORP	0.7 %
INSTALLED BUILDING PRODUCTS	0.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.0 %
	PUERTO RICO	0.7 %
	BERMUDA	0.6 %
	CAYMAN ISLANDS	0.5 %
	NETHERLANDS	0.2 %

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.
-1.1%	5.0%	9.8%	--	9.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.16	69%
MSCI EAFE	0.96	40%
MSCI Emg. Mkts.	0.58	25%

Technical Indicators
Recent close	$44.92
30d moving avg.	$47.60
Annualized volatility	16.9%
Short interest (ETF)	0.1%
Short interest (Underlying)	5.6%
Relative strength (RSI)	43

Liquidity measures
Avg. volume (thou.)	33
Turnover	0.7%
Bid/Ask (% of price)	0.12%
ADV underlying (mns)	$4,217

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FYC

Expense:

70 bp

ALTAR Score™:

2.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FYC
Ticker	Fund Name	Overlap¹ vs FYC (%)	Expense ratio (bp)	Savings vs FYC (bp)	ALTAR Score™ (%)	ALTAR vs FYC (%)
FYX	First Trust Small Cap Core AlphaDEX Fund	41.4	63	7	5.6	+3.3
IJT	iShares S&P Small-Cap 600 Growth ETF	32.5	25	45	5.3	+2.9
SLYG	SPDR S&P 600 Small Cap Growth ETF	32.5	15	55	5.4	+3.0
VIOG	Vanguard S&P Small-Cap 600 Growth ETF	31.9	16	54	5.2	+2.8
RZG	Invesco S&P Smallcap 600 Pure Growth ETF	26.4	35	35	6.4	+4.1
IWO	iShares Russell 2000 Growth ETF	25.9	24	46	1.2	-1.1
TPSC	Timothy Plan US Small Cap Core ETF	25.9	52	18	7.5	+5.2
CSA	Victory CEMP US Small Cap Volatility Weighted Index ETF	25.7	35	35	7.9	+5.6
CSF	Victory CEMP US Discovery Enhanced Volatility Weighted Idx E	25.7	35	35	7.9	+5.6
VTWG	Vanguard Russell 2000 Growth Index Fund	25.6	15	55	1.3	-1.1
SLY	SPDR S&P 600 Small Cap ETF	25.2	15	55	6.5	+4.2
SPSM	SPDR Portfolio Small Cap ETF	25.2	5	65	6.6	+4.3
IJR	iShares Core S&P Small Cap ETF	25.2	7	63	6.6	+4.2
RNSC	Small Cap US Equity Select ETF	24.5	60	10	6.3	+4.0
VIOO	Vanguard S&P Small-Cap 600 ETF	24.4	10	60	6.4	+4.1
PSC	Principal U.S. Small Cap Index ETF	24.4	38	32	7.1	+4.7
OMFS	Oppenheimer Russell 2000 Dynamic Multifactor ETF	21.4	39	31	5.6	+3.3
EWSC	Invesco S&P Smallcap 600 Equal Weight ETF	21.4	40	30	5.8	+3.5
DWAS	Invesco DWA SmallCap Momentum ETF	21.3	60	10	0.5	-1.9
IWM	iShares Russell 2000 ETF	19.6	19	51	3.8	+1.5

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

	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 Small Cap Growth AlphaDEX Fund
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.3	%
Divided by: Fwd. P/BV	2.7	x
Less: Expense ratio	70	bp
Equals: ALTAR Score	2.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.48	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.