ETF Research Center

The Large Cap US Equity Select ETF tracks a dividend-selected, tier-weighted index of Large-Cap U.S. Equities.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jun 20, 2017
Assets (mns)	$20
Currency	USD
Expense ratio	60 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	389
Wgt avg mkt cap (mns)	$79,428
Large cap (>$10bn)	96.8%
Mid cap ($2-10bn)	3.2%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	7.2 %
SKYWORKS SOLUTIONS INC	0.8 %
CENTURYTEL INC	0.8 %
AT&T INC	0.8 %
NVIDIA CORP	0.8 %
APPLE INC	0.7 %
VERIZON COMMUNICATIONS INC	0.7 %
LAM RESEARCH CORP	0.7 %
APPLIED MATERIALS INC	0.7 %
DXC TECHNOLOGY CO.	0.7 %
SS&C TECHNOLOGIES HOLDINGS	0.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.9 %
	IRELAND	2.1 %
	BERMUDA	0.8 %
	SWITZERLAND	0.6 %
	CHINA	0.3 %
	BRITAIN	0.1 %

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.
30.7%	30.7%	--	--	11.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.04	96%
MSCI EAFE	1.03	75%
MSCI Emg. Mkts.	0.66	54%

Technical Indicators
Recent close	$25.43
30d moving avg.	$24.77
Annualized volatility	13.9%
Short interest (ETF)	1.9%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	3
Turnover	0.4%
Bid/Ask (% of price)	0.34%
ADV underlying (mns)	$103,490

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

RNLC

Expense:

60 bp

ALTAR Score™:

5.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH RNLC
Ticker	Fund Name	Overlap¹ vs RNLC (%)	Expense ratio (bp)	Savings vs RNLC (bp)	ALTAR Score™ (%)	ALTAR vs RNLC (%)
GSEW	Goldman Sachs Equal Weight U.S. Large Cap Equity	66.7	9	51	5.7	-0.2
RSP	Invesco S&P 500 Equal Weight	63.7	20	40	6.4	+0.4
EUSA	iShares MSCI USA Equal Weight	58.4	15	45	5.8	-0.1
SIZE	iShares MSCI USA Size Factor	57.7	15	45	5.9	-0.1
JHML	John Hancock Multifactor Large Cap	57.3	34	26	5.6	-0.4
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity	53.8	9	51	5.8	-0.2
FEX	First Trust Large Cap Core Alphadex	52.1	61	-1	6.0	+0.1
CFO	Victory CEMP US 500 Enhanced Volatility Wtd	51.5	35	25	5.8	-0.2
CFA	Compass EMP US 500 Volatility Weighted	51.5	35	25	5.8	-0.2
SCIU	Global X Scientific Beta US	51.1	19	41	5.5	-0.4
PBP	Invesco S&P 500 Buy/Write	49.5	49	11	5.2	-0.7
JPUS	JPMorgan Diversified Return U.S. Equity	49.5	19	41	6.0	+0.0
HSPX	Global X S&P 500 Covered Call	49.3	65	-5	5.0	-1.0
SPY	S&P 500 SPDR	49.1	9	51	5.5	-0.4
IVV	iShares Core S&P 500	49.1	4	56	5.6	-0.4
VV	Vanguard Large-Cap ETF	49.0	4	56	5.5	-0.5
PBUS	Invesco PureBeta MSCI USA	48.9	4	56	5.6	-0.3
BBUS	JP Morgan Betabuilders U.S. Equity	48.9	2	58	5.3	-0.7
VOO	Vanguard S&P 500 ETF	48.9	3	57	5.6	-0.3
EPS	WisdomTree Earnings 500	48.4	8	52	6.5	+0.6

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:	Large Cap US Equity Select
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	16.9	%
Divided by: Fwd. P/BV	2.6	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	5.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.55

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.