ETF Research Center

The First Trust RiverFront Dynamic Developed International ETF is an actively-managed fund that seeks capital appreciation from developed-country stocks (including the US) selected using a factor approach. The manager has discretion to currency-hedge up to 100% of the portfolio.

FUND BASICS
Category	International Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Apr 13, 2016
Assets (mns)	$230
Currency	USD
Expense ratio	83 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	301
Wgt avg mkt cap (mns)	$65,704
Large cap (>$10bn)	76.7%
Mid cap ($2-10bn)	18.1%
Small cap (<$2bn)	5.1%
Developed mkts	99.6%
Emerging mkts	0.4%

TOP TEN HOLDINGS
Total	12.6 %
NESTLE SA-REG	2.5 %
ROCHE HOLDING AG-GENUSSCHEIN	1.8 %
NOVARTIS AG-REG	1.6 %
BP PLC	1.2 %
TOYOTA MOTOR CORP	1.1 %
GLAXOSMITHKLINE PLC	1.1 %
AIA GROUP LTD	0.9 %
ASTRAZENECA PLC	0.8 %
ENEL SPA	0.8 %
HSBC HOLDINGS PLC	0.8 %

TOP COUNTRY EXPOSURE
	JAPAN	27.5 %
	BRITAIN	16.3 %
	SWITZERLAND	9.0 %
	FRANCE	7.5 %
	GERMANY	7.4 %
	AUSTRALIA	6.6 %
	SWEDEN	5.0 %
	NETHERLANDS	3.7 %
	ITALY	3.3 %
	HONG KONG	3.0 %

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.
20.4%	20.4%	--	--	7.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.88	69%
MSCI EAFE	1.12	94%
MSCI Emg. Mkts.	0.78	77%

Technical Indicators
Recent close	$59.82
30d moving avg.	$59.88
Annualized volatility	12.7%
Short interest (ETF)	0.0%
Relative strength (RSI)	60

Liquidity measures
Avg. volume (thou.)	13
Turnover	0.3%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$20,777

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

RFDI

Expense:

83 bp

ALTAR Score™:

6.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH RFDI
Ticker	Fund Name	Overlap¹ vs RFDI (%)	Expense ratio (bp)	Savings vs RFDI (bp)	ALTAR Score™ (%)	ALTAR vs RFDI (%)
RFEU	First Trust Riverfront Dynamic Europe	58.8	83	0	6.0	-0.4
EFA	iShares MSCI EAFE	49.2	31	52	6.7	+0.3
DBEF	Xtrackers MSCI EAFE Hedged	48.0	35	48	6.6	+0.2
HFXI	IQ 50 Percent Hedged FTSE Int'l	46.8	20	63	7.0	+0.6
DOL	WisdomTree Int'l Large Cap Dividend	46.6	48	35	7.6	+1.2
PBDM	Invesco PureBeta FTSE Developed ex-North America	46.1	7	76	7.3	+0.9
EFAX	SPDR MSCI EAFE Fossil Fuel Free	46.1	20	63	6.8	+0.4
ESGD	iShares MSCI EAFE ESG Optimized	45.1	20	63	6.7	+0.3
IEFA	iShares Core MSCI EAFE	44.3	7	76	6.9	+0.5
IQSI	IQ Candriam ESG International Equity ETF	43.7	15	68	6.7	+0.3
DWM	WisdomTree DEFA Fund	43.5	48	35	7.5	+1.1
SCHF	Schwab International Equity	43.4	6	77	7.1	+0.8
JHMD	John Hancock Multifactor Developed International	43.2	45	38	7.0	+0.7
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	43.1	35	48	7.7	+1.3
QEFA	SPDR MSCI EAFE Quality Mix	42.8	30	53	6.4	+0.1
PDEV	Principal International Multi-Factor Core Index	41.3	25	58	6.5	+0.1
IDEV	iShares Core MSCI Int'l Developed Markets	41.1	5	78	6.9	+0.5
SPDW	SPDR Portfolio World ex-US	40.4	4	79	6.9	+0.6
VEA	Vanguard Europe Pacific	39.6	5	78	7.1	+0.7

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 Riverfront Dynamic 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	10.9	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	83	bp
Equals: ALTAR Score	6.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.