ETF Research Center

The First Trust RiverFront Dynamic Emerging Markets ETF is an actively managed fund that seeks capital appreciation from emerging market stocks using a factor approach. The manager has discretion to hedge currency exposure up to 100% of the portfolio.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jun 14, 2016
Assets (mns)	$72
Currency	USD
Expense ratio	95 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	146
Wgt avg mkt cap (mns)	$115,480
Large cap (>$10bn)	58.0%
Mid cap ($2-10bn)	26.6%
Small cap (<$2bn)	13.3%
Developed mkts	4.7%
Emerging mkts	95.4%

TOP TEN HOLDINGS
Total	28.2 %
ALIBABA GROUP HOLDING LTD. SPONSOR	6.1 %
TENCENT HOLDINGS LTD	5.0 %
SAMSUNG ELECTRONICS CO LTD	4.9 %
TAIWAN SEMICONDUCTOR MANUFAC	4.5 %
CHINA CONSTRUCTION BANK-H	1.5 %
HYNIX SEMICONDUCTOR INC	1.4 %
LUKOIL OAO	1.3 %
NASPERS LTD-N SHS	1.3 %
SAMSUNG ELECTRONICS-PFD	1.2 %
GAZPROM OAO	1.2 %

TOP COUNTRY EXPOSURE
	CHINA	26.4 %
	SOUTH KOREA	14.4 %
	BRAZIL	12.0 %
	TAIWAN	11.5 %
	RUSSIA	7.8 %
	INDIA	5.1 %
	HONG KONG	4.8 %
	TURKEY	4.7 %
	INDONESIA	4.1 %
	SOUTH AFRICA	2.4 %

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.
20.2%	20.2%	--	--	10.0%

Market Correlations
versus...	Beta	R-squared
S&P500	0.95	50%
MSCI EAFE	1.24	70%
MSCI Emg. Mkts.	1.10	94%

Technical Indicators
Recent close	$65.40
30d moving avg.	$64.81
Annualized volatility	16.3%
Short interest (ETF)	0.0%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	7
Turnover	0.6%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$10,894

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

RFEM

Expense:

95 bp

ALTAR Score™:

9.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH RFEM
Ticker	Fund Name	Overlap¹ vs RFEM (%)	Expense ratio (bp)	Savings vs RFEM (bp)	ALTAR Score™ (%)	ALTAR vs RFEM (%)
EEM	iShares MSCI Emerging Markets	41.3	67	28	7.9	-1.8
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	40.8	45	50	8.5	-1.2
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	39.4	65	30	7.9	-1.8
ESGE	iShares MSCI EM ESG Optimized	39.0	25	70	8.8	-0.9
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	38.9	30	65	8.0	-1.7
IEMG	iShares Core MSCI Emerging Markets	38.1	14	81	8.2	-1.5
EEMA	iShares MSCI Emg Mkts Asia	37.2	50	45	8.2	-1.5
JHEM	John Hancock Multifactor Emerging Markets	37.0	55	40	8.3	-1.4
AAXJ	iShares MSCI Asia ex-Japan	35.9	67	28	7.7	-2.0
FLAX	Franklin FTSE Asia Ex Japan	35.6	19	76	8.1	-1.6
SCHE	Schwab Emerging Markets Equity	34.6	13	82	8.1	-1.6
PBEE	Invesco PureBeta FTSE Emerging Markets	34.1	14	81	8.6	-1.0
BKF	iShares MSCI BRIC	32.6	67	28	7.9	-1.8
XSOE	WisdomTree Emg Mkt ex-SOE	31.8	32	63	6.4	-3.3
VWO	Vanguard Emerging Markets	31.6	12	83	8.2	-1.5
PXH	Invesco FTSE-RAFI Emerging Markets	30.7	50	45	11.8	+2.1
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity	30.4	20	75	7.7	-2.0
KEMX	KraneShares MSCI Emerging Markets EX China Index	30.1	49	46	8.2	-1.5
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	29.8	59	36	12.4	+2.7
FDEM	Fidelity Targeted Emerging Markets Factor	29.8	45	50	8.4	-1.2

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 Riverfront Dynamic Emerging Markets
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	12.5	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	95	bp
Equals: ALTAR Score	9.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.41	CATEGORY AVERAGE	1.48

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.