ETF Research Center

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund investment results that correspond generally to the price and yield of an equity index called the NASDAQ OMX Clean Edge S

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Nov 17, 2009
Assets (mns)	$34
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	56
Wgt avg mkt cap (mns)	$32,984
Large cap (>$10bn)	50.4%
Mid cap ($2-10bn)	38.1%
Small cap (<$2bn)	11.6%
Developed mkts	99.9%
Emerging mkts	0.1%

TOP TEN HOLDINGS
Total	61.0 %
SCHNEIDER ELECTRIC SA	8.1 %
TERNA SPA	8.0 %
PRYSMIAN SPA	7.8 %
RED ELECTRICA CORP. SA	7.5 %
APTIV PLC	7.3 %
ENPHASE ENERGY INC	5.4 %
SOLAREDGE TECHNOLOGIES, INC.	4.8 %
ADVANCED ENERGY INDUSTRIES	4.3 %
ITRON INC	4.1 %
NVENT ELECTRIC PLC	3.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	43.1 %
	ITALY	16.7 %
	FRANCE	8.5 %
	IRELAND	8.3 %
	SPAIN	7.5 %
	SWITZERLAND	4.5 %
	BRITAIN	4.5 %
	JAPAN	3.2 %
	GERMANY	3.1 %
	CANADA	0.3 %

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.
42.8%	42.8%	10.3%	6.7%	7.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.14	67%
MSCI EAFE	1.24	65%
MSCI Emg. Mkts.	0.87	55%

Technical Indicators
Recent close	$56.39
30d moving avg.	$55.07
Annualized volatility	16.9%
Short interest (ETF)	0.1%
Relative strength (RSI)	72

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.3%
Bid/Ask (% of price)	0.13%
ADV underlying (mns)	$12,227

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF based on the alternatives' overlap in portfolio holdings with GRID. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

GRID

Expense:

70 bp

ALTAR Score™:

4.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH GRID
Ticker	Fund Name	Overlap¹ vs GRID (%)	Expense ratio (bp)	Savings vs GRID (bp)	ALTAR Score™ (%)	ALTAR vs GRID (%)
PBW	Invesco WilderHill Clean Energy	15.5	70	0	-1.2	-5.9
GMAN	Goldman Sachs Motif Manufacturing Revolution	14.4	50	20	4.4	-0.3
SNSR	Global X Internet of Things Thematic	14.1	68	2	5.0	+0.3
PZD	Invesco Cleantech	13.4	68	2	4.4	-0.4
IDRV	iShares Self-driving EV & Tech	12.0	47	23	8.2	+3.5
TAN	Invesco Global Solar Energy	11.8	70	0	-1.4	-6.1
QCLN	First Trust NASDAQ Clean Edge Green Energy	11.7	60	10	1.2	-3.5
ACES	ALPS Clean Energy	11.4	65	5	0.4	-4.3
DRIV	Global X Autonomous & Electric Vehicles	10.0	68	2	6.9	+2.2
ICLN	iShares S&P Global Clean Energy	9.9	46	24	3.4	-1.3
XKII	SPDR Kensho Intelligent Structures	9.4	45	25	5.9	+1.2
XKST	SPDR Kensho Smart Mobility	9.3	45	25	3.8	-0.9
XNTK	SPDR NYSE Technology	9.3	35	35	4.7	0.0
TDV	ProShares S&P Technology Dividend Aristocrats	9.1	45	25	4.9	+0.2
BLCN	Reality Shares NASDAQ NextGen Economy	8.6	68	2	5.1	+0.4
XKCP	SPDR Kensho Clean Power	8.5	45	25	-9.8	-14.5
XLK	Technology Select Sector SPDR	8.3	13	57	5.0	+0.3
IYW	iShares US Technology	8.3	42	28	4.6	-0.1
VGT	Vanguard Info Tech ETF	8.2	10	60	4.9	+0.2
FTEC	Fidelity MSCI Info Technology	8.2	8	62	4.9	+0.2

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 NASDAQ Clean Edge Smart Grid Infrastructure
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.4	%
Divided by: Fwd. P/BV	2.5	x
Less: Expense ratio	70	bp
Equals: ALTAR Score	4.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.60	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.