ETF Research Center

The Developed International Equity Select ETF tracks an index of developed international ex-US equities, selected for low volatility and weighted according to a tiered methodology: first market-cap followed by modified equal weights.

FUND BASICS
Category	International Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jun 20, 2017
Assets (mns)	$31
Currency	USD
Expense ratio	65 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	442
Wgt avg mkt cap (mns)	$51,882
Large cap (>$10bn)	70.9%
Mid cap ($2-10bn)	28.7%
Small cap (<$2bn)	0.3%
Developed mkts	95.6%
Emerging mkts	4.4%

TOP TEN HOLDINGS
Total	18.7 %
SEKISUI HOUSE LTD	3.2 %
JAPAN TOBACCO INC	2.7 %
ROYAL DUTCH SHELL PLC-A SHS	2.5 %
ROCHE HOLDING AG-GENUSSCHEIN	2.1 %
NOVARTIS AG-REG	2.0 %
CRODA INTERNATIONAL PLC	1.6 %
SANOFI-AVENTIS	1.3 %
ORICA LTD	1.2 %
WEST JAPAN RAILWAY CO	1.1 %
JAPAN AIRLINES CO LTD	1.1 %

TOP COUNTRY EXPOSURE
	BRITAIN	14.6 %
	JAPAN	13.6 %
	FRANCE	11.0 %
	SWITZERLAND	10.5 %
	AUSTRALIA	6.9 %
	GERMANY	6.9 %
	CANADA	6.4 %
	NETHERLANDS	4.6 %
	SOUTH KOREA	4.5 %
	HONG KONG	3.2 %

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.
19.9%	19.9%	--	--	4.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.64	73%
MSCI EAFE	0.80	90%
MSCI Emg. Mkts.	0.55	75%

Technical Indicators
Recent close	$52.26
30d moving avg.	$52.15
Annualized volatility	9.8%
Short interest (ETF)	0.1%
Relative strength (RSI)	56

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.3%
Bid/Ask (% of price)	0.45%
ADV underlying (mns)	$19,190

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

RNDM

Expense:

65 bp

ALTAR Score™:

6.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH RNDM
Ticker	Fund Name	Overlap¹ vs RNDM (%)	Expense ratio (bp)	Savings vs RNDM (bp)	ALTAR Score™ (%)	ALTAR vs RNDM (%)
GSEU	Goldman Sachs ActiveBeta Europe Equity	38.5	25	40	6.2	-0.1
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	37.7	30	35	6.4	+0.2
FLEE	Franklin FTSE Europe	37.7	9	56	6.7	+0.5
BBEU	JPMorgan BetaBuilders Europe	37.5	9	56	6.6	+0.4
FLEH	Franklin FTSE Europe Hedged	37.4	9	56	6.7	+0.4
IEUR	iShares Core MSCI Europe	37.1	9	56	6.7	+0.5
QEFA	SPDR MSCI EAFE Quality Mix	36.7	30	35	6.4	+0.2
DBEU	Xtrackers Europe Hedged	36.7	45	20	6.2	-0.0
GSIE	Goldman Sachs ActiveBeta Int'l Equity	36.5	25	40	6.4	+0.1
EFA	iShares MSCI EAFE	36.3	31	34	6.7	+0.5
IEV	iShares S&P Europe 350	36.3	59	6	6.2	-0.0
SCHF	Schwab International Equity	36.2	6	59	7.1	+0.9
HFXI	IQ 50 Percent Hedged FTSE Int'l	36.2	20	45	7.0	+0.8
CIZ	Compass EMP Dev. 500 Enhanced Vol. Wgt.	35.7	45	20	6.8	+0.5
CIL	Victory CEMP International Volatility Wtd	35.7	45	20	6.8	+0.6
PBDM	Invesco PureBeta FTSE Developed ex-North America	35.7	7	58	7.3	+1.1
FEU	SPDR DJ Stoxx 50	35.6	9	56	6.7	+0.4
PDEV	Principal International Multi-Factor Core Index	35.6	25	40	6.5	+0.2
VGK	Vanguard FTSE Europe	35.3	9	56	6.7	+0.5

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 Developed International Equity Select
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	10.6	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	65	bp
Equals: ALTAR Score	6.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.72	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.