ETF Research Center

First Trust NASDAQ Technology Dividend Index Fund is an exchange-traded fund incorporated in the USA. The Fund's objective is invesment results that correspond to the price and yield of the NASDAQ Technology Dividend Index.

FUND BASICS
Category	US Equities
Fund Sponsor	First Trust Advisors
Website	www.ftportfolios.com
Inception date	Aug 15, 2012
Assets (mns)	$1,072
Currency	USD
Expense ratio	50 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	92
Wgt avg mkt cap (mns)	$319,980
Large cap (>$10bn)	91.8%
Mid cap ($2-10bn)	7.5%
Small cap (<$2bn)	0.8%
Developed mkts	93.6%
Emerging mkts	6.4%

TOP TEN HOLDINGS
Total	58.7 %
APPLE INC	9.3 %
INTEL CORP	9.0 %
MICROSOFT CORP	8.1 %
INTL BUSINESS MACHINES CORP	7.4 %
CISCO SYSTEMS INC	7.1 %
BROADCOM INC.	4.1 %
QUALCOMM INC	4.1 %
ORACLE CORP	4.0 %
TEXAS INSTRUMENTS INC	3.5 %
VMWARE INC-CLASS A	2.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	82.5 %
	CANADA	4.1 %
	NETHERLANDS	2.7 %
	BRAZIL	1.9 %
	HONG KONG	1.8 %
	LUXEMBOURG	1.6 %
	MEXICO	1.3 %
	IRELAND	1.2 %
	SOUTH KOREA	0.9 %
	FRANCE	0.6 %

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.
28.5%	19.4%	10.8%	--	13.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.06	85%
MSCI EAFE	0.98	60%
MSCI Emg. Mkts.	0.74	54%

Technical Indicators
Recent close	$41.32
30d moving avg.	$41.57
Annualized volatility	13.9%
Short interest (ETF)	0.5%
Short interest (Underlying)	2.7%
Relative strength (RSI)	60

Liquidity measures
Avg. volume (thou.)	90
Turnover	0.4%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$23,574

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

TDIV

Expense:

50 bp

ALTAR Score™:

6.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH TDIV
Ticker	Fund Name	Overlap¹ vs TDIV (%)	Expense ratio (bp)	Savings vs TDIV (bp)	ALTAR Score™ (%)	ALTAR vs TDIV (%)
JHMT	John Hancock Multifactor Technology	50.9	40	10	6.1	-0.7
XLK	Technology Select Sector SPDR	43.7	13	37	5.7	-1.1
IYW	iShares US Technology	43.6	42	8	5.3	-1.5
VGT	Vanguard Info Tech ETF	42.5	10	40	5.5	-1.3
FTEC	Fidelity MSCI Info Technology	42.4	8	42	5.5	-1.3
IXN	iShares S&P Global Technology	38.6	46	4	5.4	-1.4
IGM	iShares S&P N. American Technology	37.8	46	4	4.6	-2.1
IETC	iShares Evolved U.S. Technology	33.9	18	32	4.9	-1.9
QYLD	Global X NASDAQ 100 Covered Call ETF	31.7	60	-10	4.8	-2.0
QQQ	Invesco QQQ	31.4	20	30	5.2	-1.6
QTEC	First Trust NASDAQ 100 Tech	29.7	57	-7	6.1	-0.7
RYT	Invesco S&P Equal Weight Technology	29.6	40	10	6.5	-0.3
TDV	ProShares S&P Technology Dividend Aristocrats	28.7	45	5	5.3	-1.5
SOXX	iShares PHLX SOX Semiconductor	28.6	46	4	6.1	-0.6
SMH	VanEck Vectors Semiconductors	28.6	35	15	6.4	-0.4
XNTK	SPDR NYSE Technology	28.3	35	15	5.7	-1.1
XLG	Invesco S&P Top 50	26.5	20	30	5.2	-1.6
DRIV	Global X Autonomous & Electric Vehicles	26.1	68	-18	7.6	+0.9
FDRR	Fidelity Dividend for Rising Rates	25.7	29	21	7.8	+1.1
QDYN	FlexShares Quality Dividend Dynamic	25.5	37	13	6.8	-0.0

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 Technology Dividend
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	21.2	%
Divided by: Fwd. P/BV	2.9	x
Less: Expense ratio	50	bp
Equals: ALTAR Score	6.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	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.