ETF Research Center

First Trust ISE Cloud Computing Index Fund is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond generally to the ISE Cloud Computing Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors LP
Website	www.ftportfolios.com
Inception date	Jul 06, 2011
Assets (mns)	$2,456
Currency	USD
Expense ratio	60 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Tiered
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	62
Wgt avg mkt cap (mns)	$198,379
Large cap (>$10bn)	60.3%
Mid cap ($2-10bn)	31.8%
Small cap (<$2bn)	7.9%
Developed mkts	96.1%
Emerging mkts	3.9%

TOP TEN HOLDINGS
Total	37.4 %
ALPHABET INC. CLASS A	4.5 %
MICROSOFT CORP	4.4 %
AMAZON.COM INC	4.3 %
ORACLE CORP	4.0 %
VMWARE INC-CLASS A	4.0 %
ALIBABA GROUP HOLDING LTD. SPONSOR	3.8 %
MONGODB, INC. CLASS A	3.5 %
CENTURYTEL INC	3.1 %
AKAMAI TECHNOLOGIES	3.0 %
CISCO SYSTEMS INC	2.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	89.9 %
	CHINA	3.9 %
	CANADA	3.4 %
	GERMANY	1.4 %
	BRITAIN	0.8 %

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.
25.3%	25.3%	16.8%	--	15.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.92	68%
MSCI EAFE	0.83	46%
MSCI Emg. Mkts.	0.54	33%

Technical Indicators
Recent close	$65.05
30d moving avg.	$61.14
Annualized volatility	13.5%
Short interest (ETF)	0.4%
Relative strength (RSI)	73

Liquidity measures
Avg. volume (thou.)	158
Turnover	0.4%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$23,146

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the First Trust Cloud Computing ETF based on the alternatives' overlap in portfolio holdings with SKYY. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

SKYY

Expense:

60 bp

ALTAR Score™:

2.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SKYY
Ticker	Fund Name	Overlap¹ vs SKYY (%)	Expense ratio (bp)	Savings vs SKYY (bp)	ALTAR Score™ (%)	ALTAR vs SKYY (%)
OGIG	O'Shares Global Internet Giants	35.5	48	12	1.2	-1.3
AIQ	Global X Future Analytics Tech	34.1	68	-8	4.1	+1.6
XNTK	SPDR NYSE Technology	32.3	35	25	4.8	+2.3
IGV	iShares N. American Tech-Software	30.1	46	14	2.8	+0.3
IETC	iShares Evolved U.S. Technology	28.0	18	42	4.3	+1.8
FDN	First Trust DJ Internet	27.1	52	8	2.9	+0.4
CLOU	Global X Cloud Computing	26.6	68	-8	1.0	-1.5
IGM	iShares S&P N. American Technology	26.6	46	14	4.1	+1.6
JHMT	John Hancock Multifactor Technology	26.2	40	20	5.5	+3.1
IYW	iShares US Technology	26.0	42	18	4.7	+2.2
XSW	SPDR S&P Software & Services	26.0	35	25	3.5	+1.0
GDAT	Goldman Sachs Motif Data-Driven World	24.0	50	10	5.4	+2.9
WCLD	WisdomTree Cloud Computing	23.9	45	15	-0.6	-3.1
KOIN	Innovation Shares NextGen Protocol	22.8	95	-35	4.3	+1.9
LRGE	ClearBridge Large Cap Growth ESG	22.4	60	0	3.9	+1.4
XITK	SPDR FactSet Innovative Technology	21.2	45	15	0.6	-1.9
ARKW	ARK Web x.O	20.8	75	-15	-0.8	-3.3
CACG	ClearBridge All Cap Growth	20.3	53	7	4.5	+2.0
VGT	Vanguard Info Tech ETF	20.2	10	50	4.9	+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%.

Content on this tab for subscribers only**

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

Content on this tab for subscribers only

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 Cloud Computing
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.9	%
Divided by: Fwd. P/BV	4.5	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	2.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	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.