ETF Research Center

SDVY tracks an equally weighted index of small- and midcap US companies with historically increasing dividends that meet various fundamental criteria.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust
Website	www.ftportfolios.com
Inception date	Nov 01, 2017
Assets (mns)	$11
Currency	USD
Expense ratio	60 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Equal
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	99
Wgt avg mkt cap (mns)	$5,272
Large cap (>$10bn)	9.8%
Mid cap ($2-10bn)	69.4%
Small cap (<$2bn)	20.8%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	11.8 %
ALBEMARLE CORP	1.3 %
PULTE HOMES INC	1.2 %
TOLL BROTHERS INC	1.2 %
MDC HOLDINGS INC	1.2 %
JACK HENRY & ASSOCIATES INC	1.2 %
LOUISIANA-PACIFIC CORP	1.2 %
ENTEGRIS INC	1.1 %
TEXAS ROADHOUSE INC	1.1 %
ARGAN INC	1.1 %
TETRA TECH INC	1.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.8 %
	BERMUDA	1.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-3.9%	8.3%	--	--	1.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.20	83%
MSCI EAFE	1.22	68%
MSCI Emg. Mkts.	0.83	53%

Technical Indicators
Recent close	$21.72
30d moving avg.	$21.61
Annualized volatility	18.4%
Short interest (ETF)	3.3%
Relative strength (RSI)	51

Liquidity measures
Avg. volume (thou.)	5
Turnover	1.0%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$3,653

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the First Trust SMID Cap Rising Dividend Achievers ETF based on the alternatives' overlap in portfolio holdings with SDVY. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

SDVY

Expense:

60 bp

ALTAR Score™:

8.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SDVY
Ticker	Fund Name	Overlap¹ vs SDVY (%)	Expense ratio (bp)	Savings vs SDVY (bp)	ALTAR Score™ (%)	ALTAR vs SDVY (%)
OUSM	O'Shares FTSE Russell Small Cap Quality Dividend	23.7	48	12	6.3	-1.9
EQWM	Invesco Fundamental Pure Mid Core	21.1	25	35	5.1	-3.1
FNK	First Trust Mid Cap Value AlphaDEX	17.8	70	-10	9.2	+1.0
RNMC	First Trust Mid Cap US Equity Select	16.0	60	0	6.4	-1.7
EZM	WisdomTree Midcap Earnings	15.4	38	22	8.5	+0.3
IJJ	iShares S&P MidCap 400 Value	14.4	25	35	7.6	-0.6
IVOV	Vanguard S&P Mid-Cap 400 Value	14.4	20	40	7.7	-0.5
MDYV	SPDR S&P400 Mid Cap Value	14.4	15	45	7.7	-0.5
PY	Principal Shareholder Yield	13.9	29	31	8.1	-0.1
FNX	First Trust Mid Cap Core Alpadex	13.8	62	-2	6.4	-1.8
PSM	Principal U.S. Small-MidCap Multi-Factor Core Index	13.7	20	40	6.7	-1.4
KRE	SPDR KBW Regional Banking	13.6	35	25	8.4	+0.3
KBE	KBW Bank ETF	13.6	35	25	8.5	+0.4
MDY	S&P MidCap 400 SPDR	13.6	24	36	5.6	-2.6
SPMD	SPDR Portfolio Mid Cap	13.6	5	55	5.7	-2.4
IJH	iShares Core S&P MidCap	13.5	7	53	5.7	-2.5
IVOO	Vanguard S&P Mid-Cap 400	13.5	15	45	5.7	-2.5
KBWR	Invesco KBW Regional Bank	13.5	35	25	8.5	+0.3
DON	WisdomTree Midcap Dividend	12.8	38	22	7.1	-1.0
MDYG	SPDR S&P400 Mid Cap Growth	12.4	15	45	3.9	-4.3

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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 SMID Cap Rising Dividend Achievers
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	15.4	%
Divided by: Fwd. P/BV	1.8	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	8.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	CATEGORY AVERAGE	1.56

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.