ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Jun 20, 2017
Assets (mns)	$8
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	361
Wgt avg mkt cap (mns)	$1,770
Large cap (>$10bn)	0.2%
Mid cap ($2-10bn)	32.4%
Small cap (<$2bn)	67.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	18.4 %
PATTERSON COS INC	2.4 %
HEALTHCARE SERVICES GROUP	2.2 %
U.S. PHYSICAL THERAPY INC	2.1 %
NATIONAL HEALTHCARE CORP	2.0 %
LUMINEX CORP	2.0 %
CONMED CORP	2.0 %
ATRION CORPORATION	2.0 %
PLANTRONICS INC	1.3 %
PROGRESS SOFTWARE CORP	1.2 %
SWITCH, INC. CLASS A	1.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.1 %
	BERMUDA	1.2 %
	PUERTO RICO	0.6 %
	NETHERLANDS	0.4 %
	CANADA	0.2 %
	CAYMAN ISLANDS	0.2 %

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.
21.4%	21.4%	--	--	6.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.15	75%
MSCI EAFE	1.16	61%
MSCI Emg. Mkts.	0.67	36%

Technical Indicators
Recent close	$21.91
30d moving avg.	$22.09
Annualized volatility	17.3%
Short interest (ETF)	0.3%
Relative strength (RSI)	56

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.6%
Bid/Ask (% of price)	0.41%
ADV underlying (mns)	$5,238

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

RNSC

Expense:

60 bp

ALTAR Score™:

5.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH RNSC
Ticker	Fund Name	Overlap¹ vs RNSC (%)	Expense ratio (bp)	Savings vs RNSC (bp)	ALTAR Score™ (%)	ALTAR vs RNSC (%)
FYX	First Trust Small Cap Core Alphadex	49.0	66	-6	5.4	-0.5
DES	WisdomTree Smallcap Dividend	48.3	38	22	7.1	+1.2
CSF	Compass EMP US Discovery 500 Enhanced Vol.	38.9	35	25	7.1	+1.2
CSA	Victory CEMP US Small Cap Volatility Wtd	38.7	35	25	7.0	+1.1
ISMD	Inspire Small/Mid Cap Impact	37.7	61	-1	4.8	-1.1
TPSC	Timothy Plan US Small Cap Core	37.5	52	8	6.7	+0.8
FYT	First Trust Small Cap Value AlphaDEX	36.2	76	-16	7.1	+1.2
IJR	iShares Core S&P Small-Cap	35.1	7	53	6.1	+0.2
SLY	SPDR S&P 600 Small Cap	35.0	15	45	6.0	+0.1
DGRS	WisdomTree US Small Cap Dividend Growth	34.9	38	22	8.8	+2.9
VIOO	Vanguard S&P Small-Cap 600	34.8	15	45	5.8	-0.1
EES	WisdomTree SmallCap Earnings	33.9	38	22	8.4	+2.5
EWSC	Invesco S&P Small Cap 600 Equal Weight	33.7	40	20	5.6	-0.3
SLYV	SPDR S&P600 Small Cap Value	29.4	15	45	7.7	+1.8
VIOV	Vanguard S&P Small-Cap 600 Value	29.4	20	40	7.2	+1.3
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity	29.4	29	31	4.7	-1.2
IWN	iShares Russell 2000 Value	29.3	24	36	6.2	+0.3
IJS	iShares S&P 600 SmallCap Value	29.1	25	35	7.5	+1.6
PSC	Principal U.S. Small Cap Index	28.8	38	22	6.4	+0.5
VTWV	Vanguard Russell 2000 Value	28.8	20	40	6.3	+0.4

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:	Small 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	9.9	%
Divided by: Fwd. P/BV	1.5	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	1.65	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.