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)	$145
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	151
Wgt avg mkt cap (mns)	$38,777
Large cap (>$10bn)	74.9%
Mid cap ($2-10bn)	25.1%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	9.5 %
DEUTSCHE TELEKOM AG	1.0 %
ASSICURAZIONI GENERALI	1.0 %
SWISSCOM AG	1.0 %
SINGAPORE AIRLINES LTD	1.0 %
SEKISUI HOUSE LTD	0.9 %
AXA SA	0.9 %
SWISS PRIME SITE-REG	0.9 %
HONGKONG ELECTRIC HOLDINGS	0.9 %
AGEAS	0.9 %
GIVAUDAN-REG	0.9 %

TOP COUNTRY EXPOSURE
	JAPAN	26.4 %
	BRITAIN	10.4 %
	FRANCE	9.2 %
	SWITZERLAND	9.0 %
	SINGAPORE	8.7 %
	AUSTRALIA	6.6 %
	GERMANY	6.2 %
	HONG KONG	4.2 %
	SPAIN	4.2 %
	SWEDEN	3.3 %

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.
13.3%	11.5%	--	--	7.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.52	45%
MSCI EAFE	0.76	83%
MSCI Emg. Mkts.	0.57	76%

Technical Indicators
Recent close	$34.08
30d moving avg.	$33.76
Annualized volatility	9.3%
Short interest (ETF)	0.8%
Relative strength (RSI)	73

Liquidity measures
Avg. volume (thou.)	41
Turnover	1.0%
Bid/Ask (% of price)	0.20%
ADV underlying (mns)	$11,220

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 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™:

6.1%

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 (%)
IDLV	Invesco S&P Int'l Developed Low Volatility	50.7	25	55	6.4	+0.3
EFAV	iShares MSCI EAFE Minimum Volatility	43.6	20	60	5.9	-0.2
EUMV	iShares MSCI Europe Min Volatility	40.1	25	55	5.3	-0.8
RBIN	Nationwide Risk-Based International Equity	39.8	42	38	7.4	+1.3
IDHD	Invesco S&P Intl Developed High Div Low Volatility	36.9	30	50	6.5	+0.4
DWMF	WisdomTree International Multifactor Fund	33.6	38	42	6.4	+0.4
QLVD	FlexShares Developed Mkts ex-US Quality Low Volatility	31.7	32	48	6.7	+0.6
RNDM	First Trust Developed International Equity Select	31.1	65	15	6.4	+0.4
QEFA	SPDR MSCI EAFE Quality Mix	30.3	30	50	6.6	+0.6
FDEV	Fidelity Targeted International Factor	29.5	39	41	6.9	+0.9
DOL	WisdomTree Int'l Large Cap Dividend	28.2	48	32	7.7	+1.7
MVIN	Natixis Seeyond International Minimum Volatility	28.2	55	25	6.2	+0.2
EFV	iShares MSCI EAFE Value	26.5	38	42	9.0	+3.0
ESGD	iShares MSCI EAFE ESG Optimized	25.5	20	60	6.9	+0.8
EFA	iShares MSCI EAFE	25.5	31	49	7.0	+0.9
JHMD	John Hancock Multifactor Developed International	25.3	45	35	7.3	+1.2
CIZ	Compass EMP Dev. 500 Enhanced Vol. Wgt.	25.2	45	35	6.9	+0.9
EFAX	SPDR MSCI EAFE Fossil Fuel Free	25.1	20	60	7.2	+1.1
CIL	Victory CEMP International Volatility Wtd	25.0	45	35	6.9	+0.9
MFDX	PIMCO RAFI Dynamic Multi-Factor International Equity	25.0	39	41	6.3	+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 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	1.3	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	6.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.78	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.