ETF Research Center

First Trust NASDAQ Clean Edge Green Energy Index Fund seeks investment results that correspond generally to the price and yield of the NASDAQ Clean Edge U.S. Liquid Series Index, which tracks cl

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Feb 14, 2007
Assets (mns)	$132
Currency	USD
Expense ratio	60 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	42
Wgt avg mkt cap (mns)	$10,134
Large cap (>$10bn)	10.8%
Mid cap ($2-10bn)	70.8%
Small cap (<$2bn)	17.9%
Developed mkts	96.4%
Emerging mkts	3.6%

TOP TEN HOLDINGS
Total	54.6 %
TESLA MOTORS INC	10.9 %
UNIVERSAL DISPLAY CORP	6.9 %
ON SEMICONDUCTOR CORPORATION	6.9 %
BROOKFIELD RENEWABLE PARTNERS LP	6.4 %
HEXCEL CORP	5.1 %
ACUITY BRANDS INC	3.9 %
ALBEMARLE CORP	3.8 %
CREE INC	3.8 %
LITTELFUSE INC	3.6 %
SOLAREDGE TECHNOLOGIES, INC.	3.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	86.2 %
	BERMUDA	6.4 %
	CHINA	2.3 %
	CANADA	2.1 %
	BRITAIN	2.1 %
	CHILE	0.7 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
31.3%	18.9%	6.2%	5.6%	1.6%

Market Correlations
versus...	Beta	R-squared
S&P500	1.19	72%
MSCI EAFE	1.06	47%
MSCI Emg. Mkts.	0.81	45%

Technical Indicators
Recent close	$23.63
30d moving avg.	$22.70
Annualized volatility	16.9%
Short interest (ETF)	0.6%
Short interest (Underlying)	8.3%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	17
Turnover	0.3%
Bid/Ask (% of price)	0.12%
ADV underlying (mns)	$4,051

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

QCLN

Expense:

60 bp

ALTAR Score™:

1.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH QCLN
Ticker	Fund Name	Overlap¹ vs QCLN (%)	Expense ratio (bp)	Savings vs QCLN (bp)	ALTAR Score™ (%)	ALTAR vs QCLN (%)
ACES	ALPS Clean Energy	50.6	65	-5	0.6	-0.7
PBW	Invesco WilderHill Clean Energy	45.3	70	-10	-1.8	-3.2
GEX	VanEck Vectors Global Alternative Energy	33.9	63	-3	3.8	+2.5
XKCP	SPDR Kensho Clean Power	27.7	45	15	2.8	+1.5
ICLN	iShares S&P Global Clean Energy	23.9	46	14	3.7	+2.4
PBD	Invesco Gbl Clean Energy	22.3	75	-15	-1.5	-2.9
TAN	Invesco Global Solar Energy	19.6	70	-10	-3.2	-4.6
PZD	Invesco Cleantech	19.5	68	-8	4.6	+3.3
BOON	NYSE Pickens Oil Response	15.6	85	-25	3.4	+2.1
XSD	SPDR S&P Semiconductors	14.3	35	25	4.8	+3.5
LIT	Global X Lithium & Battery Tech ETF	13.8	75	-15	4.8	+3.5
YLCO	Global X YieldCo & Renewable Energy Income	12.5	65	-5	4.5	+3.2
GRID	First Trust NASDAQ Clean Edge Smart Grid Infrastructure	11.0	70	-10	4.9	+3.6
ARKQ	ARK Industrial Innovation	10.9	75	-15	0.8	-0.5
ARKW	ARK Web x.O	10.4	75	-15	-0.8	-2.1
XKII	SPDR Kensho Intelligent Structures	10.2	45	15	6.3	+5.0
KOMP	SPDR Kensho New Economies Composite	9.8	20	40	3.7	+2.4
ARKK	ARK Innovation	9.7	75	-15	-4.4	-5.7
XKST	SPDR Kensho Smart Mobility	9.3	45	15	5.8	+4.4
GMAN	Goldman Sachs Motif Manufacturing Revolution	9.0	50	10	4.7	+3.3

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 Green Energy
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	5.0	%
Divided by: Fwd. P/BV	2.6	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	1.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	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.