ETF Research Center

The First Trust Horizons Managed Volatility Developed International ETF is an active fund of low expected volatility mid- and large-cap stocks from developed markets.

FUND BASICS
Category	International Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Aug 24, 2016
Assets (mns)	$162
Currency	USD
Expense ratio	80 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	150
Wgt avg mkt cap (mns)	$39,783
Large cap (>$10bn)	75.2%
Mid cap ($2-10bn)	24.8%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	9.4 %
SWISS PRIME SITE-REG	1.0 %
SWISSCOM AG	1.0 %
DEUTSCHE TELEKOM AG	1.0 %
HONGKONG ELECTRIC HOLDINGS	1.0 %
SINGAPORE AIRLINES LTD	0.9 %
ROCHE HOLDING AG-GENUSSCHEIN	0.9 %
ASCENDAS REAL ESTATE INV TRT	0.9 %
ZURICH FINANCIAL SERVICES AG	0.9 %
SWISS LIFE HOLDING AG-REG	0.9 %
AGEAS	0.9 %

TOP COUNTRY EXPOSURE
	JAPAN	26.0 %
	BRITAIN	10.3 %
	SINGAPORE	10.1 %
	SWITZERLAND	9.4 %
	AUSTRALIA	9.0 %
	FRANCE	8.6 %
	GERMANY	6.5 %
	SPAIN	4.1 %
	HONG KONG	3.8 %
	NETHERLANDS	2.2 %

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.
15.0%	15.0%	--	--	7.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.53	51%
MSCI EAFE	0.76	85%
MSCI Emg. Mkts.	0.53	72%

Technical Indicators
Recent close	$34.49
30d moving avg.	$34.16
Annualized volatility	9.0%
Short interest (ETF)	0.5%
Relative strength (RSI)	59

Liquidity measures
Avg. volume (thou.)	17
Turnover	0.4%
Bid/Ask (% of price)	0.25%
ADV underlying (mns)	$9,256

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust Horizon Managed Volatility Developed Int'l ETF based on the alternatives' overlap in portfolio holdings with HDMV. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

HDMV

Expense:

80 bp

ALTAR Score™:

5.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH HDMV
Ticker	Fund Name	Overlap¹ vs HDMV (%)	Expense ratio (bp)	Savings vs HDMV (bp)	ALTAR Score™ (%)	ALTAR vs HDMV (%)
EFAV	iShares MSCI EAFE Minimum Volatility	46.9	20	60	5.5	-0.4
IDLV	Invesco S&P Int'l Developed Low Volatility	46.1	25	55	6.2	+0.3
EUMV	iShares MSCI Europe Min Volatility	40.7	25	55	5.1	-0.8
RBIN	Nationwide Risk-Based International Equity	37.0	42	38	7.1	+1.2
DWMF	WisdomTree International Multifactor Fund	36.1	38	42	6.0	+0.1
IDHD	Invesco S&P Intl Developed High Div Low Volatility	34.0	30	50	6.4	+0.4
QEFA	SPDR MSCI EAFE Quality Mix	31.5	30	50	6.4	+0.5
QLVD	FlexShares Developed Mkts ex-US Quality Low Volatility	30.7	32	48	6.6	+0.7
MVIN	Natixis Seeyond International Minimum Volatility	28.5	55	25	6.0	+0.1
DOL	WisdomTree Int'l Large Cap Dividend	28.4	48	32	7.5	+1.6
RNDM	First Trust Developed International Equity Select	28.4	65	15	6.1	+0.2
EFV	iShares MSCI EAFE Value	26.6	38	42	8.8	+2.8
FDEV	Fidelity Targeted International Factor	26.5	39	41	6.7	+0.8
TPIF	Timothy Plan International	26.0	62	18	6.3	+0.4
EFA	iShares MSCI EAFE	25.6	31	49	6.6	+0.7
DBEF	Xtrackers MSCI EAFE Hedged	24.9	35	45	6.5	+0.6
ESGD	iShares MSCI EAFE ESG Optimized	24.7	20	60	6.6	+0.7
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	24.6	35	45	7.5	+1.6
JHMD	John Hancock Multifactor Developed International	24.5	45	35	6.9	+1.0

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 Horizon Managed Volatility Developed Int'l
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	9.1	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	5.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.79	CATEGORY AVERAGE	1.63

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.