ETF Research Center

The First Trust Indxx Innovative Transaction & Process ETF, seeks investment results that correspond generally to the price and yield, before fees and expenses, of an index called the Indxx Blockchain Index.

FUND BASICS
Category	Global Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jan 24, 2018
Assets (mns)	$42
Currency	USD
Expense ratio	65 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	99
Wgt avg mkt cap (mns)	$128,606
Large cap (>$10bn)	96.6%
Mid cap ($2-10bn)	3.4%
Small cap (<$2bn)	0.0%
Developed mkts	78.9%
Emerging mkts	21.1%

TOP TEN HOLDINGS
Total	18.0 %
ADVANCED MICRO DEVICES	2.4 %
NVIDIA CORP	2.1 %
FUJITSU LTD	1.9 %
MICROSOFT CORP	1.7 %
JD.COM INC-ADR	1.7 %
TAIWAN SEMICONDUCTOR-SP ADR	1.7 %
WORLDLINE SA	1.6 %
LONDON STOCK EXCHANGE GROUP	1.6 %
INTEL CORP	1.6 %
ALIBABA GROUP HOLDING LTD. SPONSOR	1.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	34.5 %
	CHINA	7.8 %
	FRANCE	7.6 %
	INDIA	6.6 %
	JAPAN	5.6 %
	SWITZERLAND	5.4 %
	GERMANY	4.1 %
	BRITAIN	3.9 %
	SOUTH KOREA	3.1 %
	SPAIN	3.0 %

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%	15.7%	--	--	4.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.00	92%
MSCI EAFE	1.08	83%
MSCI Emg. Mkts.	0.80	71%

Technical Indicators
Recent close	$30.06
30d moving avg.	$32.67
Annualized volatility	14.8%
Short interest (ETF)	0.0%
Relative strength (RSI)	39

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.1%
Bid/Ask (% of price)	0.44%
ADV underlying (mns)	$49,630

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust Index Digital Transaction & Process Technology ETF ETF based on the alternatives' overlap in portfolio holdings with LEGR. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

LEGR

Expense:

65 bp

ALTAR Score™:

6.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH LEGR
Ticker	Fund Name	Overlap¹ vs LEGR (%)	Expense ratio (bp)	Savings vs LEGR (bp)	ALTAR Score™ (%)	ALTAR vs LEGR (%)
BLCN	Reality Shares Nasdaq NextGen Economy ETF	42.8	68	-3	5.1	-1.6
KOIN	Innovation Shares NextGen Protocol ETF	26.7	95	-30	4.6	-2.1
BLOK	Amplify Transformational Data Sharing ETF	24.5	70	-5	4.3	-2.5
GDAT	Goldman Sachs Motif Data-Driven World Etf	23.9	50	15	6.3	-0.4
XNTK	SPDR Morgan Stanley Technology ETF	22.9	35	30	4.6	-2.1
RYT	Invesco S&P 500 Equal Weight Technology ETF	21.8	40	25	6.8	+0.1
DGT	SPDR Global Dow ETF	21.6	50	15	7.2	+0.5
IXN	iShares Global Tech ETF	20.6	46	19	5.4	-1.3
AIQ	Global X Future Analytics Tech ETF	20.5	68	-3	4.8	-1.9
FONE	First Trust Indxx NextG ETF	19.5	70	-5	6.4	-0.3
USMC	Principal U.S. Mega-Cap Multi-Factor Index ETF	19.2	12	53	5.6	-1.1
QTUM	Defiance Quantum ETF	19.1	40	25	6.3	-0.4
IGM	iShares North American Tech ETF	19.0	46	19	4.6	-2.1
IETC	iShares Evolved U.S. Technology ETF	18.8	18	47	4.7	-2.0
XLK	Technology Select Sector SPDR Fund	18.6	13	52	5.6	-1.1
VGT	Vanguard Information Technology Index Fund	18.3	10	55	5.4	-1.3
FTEC	Fidelity MSCI Information Technology Index ETF	18.3	8	57	5.4	-1.3
EQWL	Invesco Russell Top 200 Equal Weight ETF	18.2	25	40	6.5	-0.3
DRIV	Global X Autonomous & Electric Vehicles ETF	17.3	68	-3	7.2	+0.5
OEF	iShares S&P 100 ETF	16.9	20	45	5.6	-1.1

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%.

Content on this tab for subscribers only**

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

Content on this tab for subscribers only

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 Index Digital Transaction & Process Technology ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.1	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	65	bp
Equals: ALTAR Score	6.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.54	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.