First Trust Emerging Markets Equity Select
ALTAR
Score™
9.3% info Recommen-
dation
OVERWEIGHT
2019E    2020E
P/E
ratio
12.9x P/Sales
ratio
0.7x
P/BV
ratio
1.3x Div.
yield
3.5%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
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
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 %
Total 22.7 %

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 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 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 %
info 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.
 

 

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.