First Trust Riverfront Dynamic Emerging Markets
ALTAR
Score™
9.7% info Recommen-
dation
OVERWEIGHT
2019E    2020E
P/E
ratio
11.0x P/Sales
ratio
1.1x
P/BV
ratio
1.3x Div.
yield
3.0%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
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
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 %
Total 28.2 %

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 info ** ** ** ** ** ** **
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 %
info 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.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.