ETF Research Center

The First Trust Nasdaq Artificial Intelligence and Robotics ETF tracks a modified equal-weighted index of roughly 90 all-cap, global companies involved in artificial intelligence or robotics.

FUND BASICS
Category	Global Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Feb 21, 2018
Assets (mns)	$69
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	99
Wgt avg mkt cap (mns)	$36,954
Large cap (>$10bn)	41.3%
Mid cap ($2-10bn)	37.9%
Small cap (<$2bn)	20.8%
Developed mkts	94.9%
Emerging mkts	5.1%

TOP TEN HOLDINGS
Total	23.0 %
AVEVA GROUP PLC	2.5 %
HEXAGON AB-B SHS	2.4 %
QINETIQ GROUP PLC	2.4 %
ANSYS INC	2.3 %
NUANCE COMMUNICATIONS INC	2.3 %
BLUE PRISM GROUP PLC	2.3 %
AEROVIRONMENT INC	2.3 %
OBIC CO LTD	2.2 %
ILLUMINA INC	2.2 %
TOPCON CORP	2.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	50.0 %
	JAPAN	15.9 %
	BRITAIN	7.1 %
	FRANCE	5.6 %
	ISRAEL	3.8 %
	SOUTH KOREA	2.5 %
	SWEDEN	2.4 %
	CHINA	1.9 %
	GERMANY	1.8 %
	SWITZERLAND	1.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
30.9%	17.5%	--	--	8.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.40	89%
MSCI EAFE	1.38	64%
MSCI Emg. Mkts.	1.06	54%

Technical Indicators
Recent close	$33.56
30d moving avg.	$32.84
Annualized volatility	22.0%
Short interest (ETF)	0.5%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	10
Turnover	0.5%
Bid/Ask (% of price)	0.11%
ADV underlying (mns)	$29,009

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust Nasdaq Artificial Intelligence & Robotics ETF based on the alternatives' overlap in portfolio holdings with ROBT. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

ROBT

Expense:

65 bp

ALTAR Score™:

2.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ROBT
Ticker	Fund Name	Overlap¹ vs ROBT (%)	Expense ratio (bp)	Savings vs ROBT (bp)	ALTAR Score™ (%)	ALTAR vs ROBT (%)
ROBO	Robo Global Robotics & Automation	36.0	95	-30	3.6	+1.2
GMAN	Goldman Sachs Motif Manufacturing Revolution	23.9	50	15	4.8	+2.3
IRBO	iShares Robotics and Artificial Intelligence	19.4	47	18	1.9	-0.5
ARKQ	ARK Industrial Innovation	17.7	75	-10	0.9	-1.6
LOUP	Innovator Loup Frontier Tech	16.3	70	-5	2.7	+0.2
BOTZ	Global X Robotics & Artificial Intelligence Thematic	15.9	68	-3	3.7	+1.2
QTUM	Defiance Quantum	15.3	40	25	6.4	+4.0
IFLY	ETFMG Drone Economy Strategy	15.0	75	-10	0.8	-1.7
DTEC	ALPS Disruptive Technologies	14.3	50	15	3.4	+1.0
JHMT	John Hancock Multifactor Technology	12.9	40	25	6.1	+3.6
PRNT	3D Printing	12.5	66	-1	-0.4	-2.9
RYT	Invesco S&P Equal Weight Technology	12.4	40	25	6.4	+4.0
XKST	SPDR Kensho Smart Mobility	12.1	45	20	5.9	+3.4
XT	iShares Exponential Technologies	11.8	47	18	5.2	+2.7
AIQ	Global X Future Analytics Tech	11.7	68	-3	4.5	+2.1
GDAT	Goldman Sachs Motif Data-Driven World	11.6	50	15	6.0	+3.5
TTAC	TrimTabs All Cap US Free-Cash-Flow	11.5	59	6	4.8	+2.4
IGV	iShares N. American Tech-Software	10.8	46	19	3.1	+0.6
QQEW	First Trust NASDAQ 100 Equal Weight	10.3	60	5	5.9	+3.4
QQQE	Direxion NASDAQ-100 Equal Weight	10.3	35	30	0.0	-2.5

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 Nasdaq Artificial Intelligence & Robotics
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	8.8	%
Divided by: Fwd. P/BV	2.8	x
Less: Expense ratio	65	bp
Equals: ALTAR Score	2.5	%

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.