ETF Research Center

First Trust NASDAQ-100-Technology Sector Index objective is investment results that correspond to the price and yield of the NASDAQ-100 Technology Index. The Fund invests in the technology and

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Apr 25, 2006
Assets (mns)	$2,631
Currency	USD
Expense ratio	57 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	39
Wgt avg mkt cap (mns)	$166,475
Large cap (>$10bn)	100.0%
Mid cap ($2-10bn)	0.0%
Small cap (<$2bn)	0.0%
Developed mkts	94.4%
Emerging mkts	5.6%

TOP TEN HOLDINGS
Total	29.3 %
ADVANCED MICRO DEVICES	3.2 %
SKYWORKS SOLUTIONS INC	3.0 %
NVIDIA CORP	3.0 %
APPLE INC	3.0 %
CITRIX SYSTEMS INC	2.9 %
NETEASE.COM INC-ADR	2.9 %
INTEL CORP	2.8 %
NETAPP INC	2.8 %
BAIDU INC - SPON ADR	2.8 %
LAM RESEARCH CORP	2.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	86.2 %
	CHINA	5.6 %
	NETHERLANDS	5.4 %
	ISRAEL	2.6 %

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.
40.8%	29.6%	17.7%	18.3%	13.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.30	76%
MSCI EAFE	1.27	60%
MSCI Emg. Mkts.	0.98	58%

Technical Indicators
Recent close	$93.81
30d moving avg.	$93.33
Annualized volatility	18.0%
Short interest (ETF)	0.3%
Short interest (Underlying)	4.0%
Relative strength (RSI)	65

Liquidity measures
Avg. volume (thou.)	148
Turnover	0.5%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$31,267

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust NASDAQ 100 Tech ETF based on the alternatives' overlap in portfolio holdings with QTEC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

QTEC

Expense:

57 bp

ALTAR Score™:

6.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH QTEC
Ticker	Fund Name	Overlap¹ vs QTEC (%)	Expense ratio (bp)	Savings vs QTEC (bp)	ALTAR Score™ (%)	ALTAR vs QTEC (%)
SMH	VanEck Vectors Semiconductors	45.5	35	22	6.4	+0.3
SOXX	iShares PHLX SOX Semiconductor	44.8	46	11	6.1	+0.1
XNTK	SPDR NYSE Technology	42.2	35	22	5.7	-0.4
RYT	Invesco S&P Equal Weight Technology	41.7	40	17	6.5	+0.4
JHMT	John Hancock Multifactor Technology	41.5	40	17	6.1	+0.0
QQEW	First Trust NASDAQ 100 Equal Weight	38.4	60	-3	5.9	-0.2
QQQE	Direxion NASDAQ-100 Equal Weight	38.4	35	22	0.0	-6.1
IYW	iShares US Technology	35.8	42	15	5.3	-0.8
XSD	SPDR S&P Semiconductors	34.6	35	22	5.1	-1.0
PSI	Invesco Dynamic Semiconductors	33.7	58	-1	5.9	-0.2
FTXL	First Trust Nasdaq Semiconductor	32.9	60	-3	6.6	+0.5
QYLD	Global X NASDAQ 100 Covered Call ETF	31.6	60	-3	4.8	-1.3
QQQ	Invesco QQQ	31.3	20	37	5.2	-0.9
XLK	Technology Select Sector SPDR	30.9	13	44	5.7	-0.4
IGM	iShares S&P N. American Technology	30.5	46	11	4.6	-1.5
TDIV	First Trust NASDAQ Technology Dividend	29.7	50	7	6.8	+0.7
DRIV	Global X Autonomous & Electric Vehicles	29.3	68	-11	7.6	+1.5
AIQ	Global X Future Analytics Tech	29.1	68	-11	4.6	-1.5
GDAT	Goldman Sachs Motif Data-Driven World	28.9	50	7	6.0	-0.1
VGT	Vanguard Info Tech ETF	28.6	10	47	5.5	-0.6

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 100 Tech
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	28.1	%
Divided by: Fwd. P/BV	4.2	x
Less: Expense ratio	57	bp
Equals: ALTAR Score	6.1	%

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.