ETF Research Center

The First Trust Emerging Markets Equity Select ETF tracks an index of emerging market stocks selected for low volatility.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jun 20, 2017
Assets (mns)	$11
Currency	USD
Expense ratio	75 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	249
Wgt avg mkt cap (mns)	$33,540
Large cap (>$10bn)	63.2%
Mid cap ($2-10bn)	35.6%
Small cap (<$2bn)	1.2%
Developed mkts	3.3%
Emerging mkts	96.7%

TOP TEN HOLDINGS
Total	22.7 %
HOUSING DEVELOPMENT FINANCE	3.4 %
QUANTA COMPUTER INC	3.3 %
COMPAL ELECTRONICS	3.0 %
HDFC BANK LIMITED	2.9 %
KOTAK MAHINDRA BANK LTD	2.8 %
ATACADAO SA	1.8 %
KLABIN SA - UNIT	1.6 %
ASIAN PAINTS LTD	1.4 %
LARSEN & TOUBRO LIMITED	1.2 %
AMBEV-SA	1.2 %

TOP COUNTRY EXPOSURE
	INDIA	20.4 %
	CHINA	16.1 %
	TAIWAN	14.5 %
	BRAZIL	13.7 %
	MEXICO	5.1 %
	THAILAND	4.5 %
	SOUTH AFRICA	4.0 %
	INDONESIA	3.4 %
	HONG KONG	3.3 %
	RUSSIA	2.2 %

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.
12.7%	12.7%	--	--	5.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.61	34%
MSCI EAFE	0.90	58%
MSCI Emg. Mkts.	0.82	83%

Technical Indicators
Recent close	$53.27
30d moving avg.	$52.06
Annualized volatility	13.8%
Short interest (ETF)	0.3%
Relative strength (RSI)	72

Liquidity measures
Avg. volume (thou.)	2
Turnover	1.0%
Bid/Ask (% of price)	0.42%
ADV underlying (mns)	$4,547

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

RNEM

Expense:

75 bp

ALTAR Score™:

9.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH RNEM
Ticker	Fund Name	Overlap¹ vs RNEM (%)	Expense ratio (bp)	Savings vs RNEM (bp)	ALTAR Score™ (%)	ALTAR vs RNEM (%)
CEZ	Victory CEMP Emerging Market Volatility Weighted	32.3	50	25	8.6	-0.7
PXH	Invesco FTSE-RAFI Emerging Markets	30.1	50	25	11.4	+2.1
JPEM	JPMorgan Diversified Rtn Emg Mkt Equity	29.8	45	30	8.3	-1.0
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	28.7	30	45	7.9	-1.5
JHEM	John Hancock Multifactor Emerging Markets	28.4	55	20	8.1	-1.2
EELV	Invesco S&P Emg Mkts Low Volatility	27.3	29	46	10.2	+0.8
FNDE	Schwab Fundamental Emg Mkt Large Cap	27.0	39	36	10.3	+1.0
KEMX	KraneShares MSCI Emerging Markets EX China Index	26.7	49	26	8.1	-1.2
QEMM	SPDR MSCI Emerging Markets Quality Mix	26.6	30	45	8.6	-0.8
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	26.4	45	30	8.3	-1.0
SCHE	Schwab Emerging Markets Equity	25.2	13	62	7.9	-1.4
SPEM	SPDR Portfolio Emerging Markets	25.1	11	64	7.8	-1.5
VWO	Vanguard Emerging Markets	25.1	12	63	7.9	-1.4
DVEM	WisdomTree Emerging Markets Dividend	25.0	32	43	10.4	+1.1
EEM	iShares MSCI Emerging Markets	24.4	67	8	7.7	-1.7
GMF	SPDR S&P Emerging Asia Pacific	23.7	49	26	7.4	-1.9
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	23.6	65	10	7.7	-1.7
PBEE	Invesco PureBeta FTSE Emerging Markets	23.0	14	61	8.4	-0.9
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity	22.9	20	55	7.5	-1.8
EMXC	iShares MSCI Emerging Markets ex China	22.4	49	26	8.0	-1.4

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 Emerging Markets Equity Select
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	12.6	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	9.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	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.