ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	May 10, 2007
Assets (mns)	$566
Currency	USD
Expense ratio	66 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	526
Wgt avg mkt cap (mns)	$1,713
Large cap (>$10bn)	0.2%
Mid cap ($2-10bn)	33.3%
Small cap (<$2bn)	66.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	3.9 %
KEMET CORP	0.4 %
AIRCASTLE LTD	0.4 %
CROCS INC	0.4 %
WINNEBAGO INDUSTRIES	0.4 %
COVETRUS, INC.	0.4 %
ATKORE INTERNATIONAL GROUP INC.	0.4 %
INSTALLED BUILDING PRODUCTS	0.4 %
INPHI CORP	0.4 %
BOOT BARN HOLDINGS, INC.	0.4 %
STONE ENERGY CORP	0.4 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.5 %
	BERMUDA	1.0 %
	CAYMAN ISLANDS	0.5 %
	PUERTO RICO	0.4 %
	NETHERLANDS	0.3 %
	CANADA	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.
13.4%	0.8%	5.8%	11.8%	6.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.27	71%
MSCI EAFE	0.96	34%
MSCI Emg. Mkts.	0.54	18%

Technical Indicators
Recent close	$62.90
30d moving avg.	$61.12
Annualized volatility	18.3%
Short interest (ETF)	0.0%
Short interest (Underlying)	6.6%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	51
Turnover	0.6%
Bid/Ask (% of price)	0.11%
ADV underlying (mns)	$8,053

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FYX

Expense:

66 bp

ALTAR Score™:

5.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FYX
Ticker	Fund Name	Overlap¹ vs FYX (%)	Expense ratio (bp)	Savings vs FYX (bp)	ALTAR Score™ (%)	ALTAR vs FYX (%)
FYT	First Trust Small Cap Value AlphaDEX	57.6	76	-10	7.5	+1.8
RNSC	Small Cap US Equity Select	53.7	60	6	6.2	+0.5
CSF	Compass EMP US Discovery 500 Enhanced Vol.	47.7	35	31	7.3	+1.6
CSA	Victory CEMP US Small Cap Volatility Wtd	47.6	35	31	7.2	+1.5
ISMD	Inspire Small/Mid Cap Impact	43.0	61	5	4.7	-1.0
EES	WisdomTree SmallCap Earnings	43.0	38	28	9.3	+3.6
SLY	SPDR S&P 600 Small Cap	40.4	15	51	6.1	+0.4
IJR	iShares Core S&P Small-Cap	40.3	7	59	6.2	+0.5
FYC	First Trust Small Cap Growth AlphaDEX	39.5	70	-4	2.8	-2.9
VIOO	Vanguard S&P Small-Cap 600	39.1	15	51	6.0	+0.3
EWSC	Invesco S&P Small Cap 600 Equal Weight	38.7	40	26	5.7	+0.0
IJS	iShares S&P 600 SmallCap Value	37.2	25	41	7.3	+1.6
SLYV	SPDR S&P600 Small Cap Value	37.2	15	51	7.5	+1.8
DES	WisdomTree Smallcap Dividend	36.8	38	28	7.3	+1.6
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity	36.6	29	37	5.0	-0.7
IWN	iShares Russell 2000 Value	36.2	24	42	6.5	+0.8
VIOV	Vanguard S&P Small-Cap 600 Value	36.2	20	46	7.3	+1.6
PSC	Principal U.S. Small Cap Index	35.9	38	28	6.3	+0.6
VTWV	Vanguard Russell 2000 Value	35.6	20	46	6.6	+0.9
GSSC	Goldman Sachs Activebeta U.S. Small Cap Equity	35.2	20	46	5.8	+0.1

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

	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 Small Cap Core Alphadex
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.4	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	66	bp
Equals: ALTAR Score	5.7	%

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.