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First Trust Small Cap Growth AlphaDEX® Fund (FYC)
Investment Objective/Strategy - The First Trust Small Cap Growth AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the Defined Small Cap Growth Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The Defined Small Cap Growth Index is an “enhanced” index created and administered by Standard & Poor’s which employs the AlphaDEX® stock selection methodology to select stocks from the S&P SmallCap 600 Growth Index.
  • Standard & Poor’s constructs the Defined Small Cap Growth Index by ranking the stocks from the S&P SmallCap 600 Growth Index against all the stocks in the S&P 600 Index on growth factors including 3-, 6- and 12-month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets.
  • Stocks which are classified solely as growth, based on S&P style designations, receive their score from the above growth factors.
  • Stocks which S&P allocates between both growth and value receive their best score between the above growth and value factors. Only those that receive a higher growth score are eligible for inclusion in the Defined Small Cap Growth Index.
  • The remaining stocks are then ranked according to their score. The bottom 25% is eliminated and the top 75% is selected for the Defined Small Cap Growth Index.
  • The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
  • The index is reconstituted and rebalanced quarterly.
Fund Overview
TickerFYC
Fund TypeSmall Cap Growth
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York
CUSIP33737M300
Intraday NAVFYCIV
Fiscal Year-End07/31
ExchangeNYSE Arca
Inception4/19/2011
Inception Price$20.08
Inception NAV$20.08
Gross Expense Ratio
(1/31/2013)		0.70%
Net Expense Ratio0.70%
Rebalance FrequencyQuarterly
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until November 30, 2014.
Current Fund Data (as of 5/20/2013)
Closing NAV1$25.01
Closing Share Price2$25.17
Bid/Ask Midpoint$25.01
Bid/Ask Discount0.01%
Total Net Assets$11,253,363
Outstanding Shares450,002
Daily Volume20,599
Average 30-Day Daily Volume3,160
Closing Share Price 52-Week High/Low$25.17 / $19.13
Closing NAV 52-Week High/Low$25.09 / $19.26
Number of Holdings193
Fund Characteristics (as of 4/30/2013)3
Median Market Cap.$1,200
Maximum Market Cap.$3,995
Minimum Market Cap.$244
Price/Earnings21.37
Price/Book2.82
Price/Cash Flow13.44
Price/Sales1.33
Top 10 Holdings (as of 5/20/2013)
Holding Percent
Virtus Investment Partners Inc. 1.10%
Lumber Liquidators Holdings Inc. 1.06%
Inter Parfums Inc. 1.04%
Multimedia Games, Inc. 1.03%
Ruth's Hospitality Group Inc. 1.02%
Medidata Solutions, Inc. 1.01%
Financial Engines, Inc. 1.01%
The Ryland Group, Inc. 0.99%
PAREXEL International Corporation 0.99%
Haverty Furniture Companies, Inc. 0.97%
Bid/Ask Midpoint and NAV History (Since Inception)
Past performance is not indicative of future results.
Volume (Since Inception)
Bid/Ask Midpoint vs. NAV (as of 3/31/2013)
Number of Days Bid/Ask Midpoint Above NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
3/31/2013 26 0 0 0
12/31/2012 15 0 0 0
9/30/2012 40 3 0 0
6/30/2012 41 1 0 0
Number of Days Bid/Ask Midpoint Below NAV
Quarter Ended 0-49
Basis Points		 50-99
Basis Points		 100-199
Basis Points		 >=200
Basis Points
3/31/2013 31 3 0 0
12/31/2012 47 0 0 0
9/30/2012 19 1 0 0
6/30/2012 20 1 0 0

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Sector Breakdown (as of 5/20/2013)
Consumer Discretionary 23.08%
Consumer Staples 4.53%
Energy 3.11%
Financials 15.29%
Health Care 13.81%
Industrials 12.67%
Information Technology 19.16%
Materials 7.00%
Telecommunication Services 0.73%
Utilities 0.62%
Month End Performance (as of 4/30/2013)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
NAV 4.10% 10.49% 11.74% N/A N/A N/A 8.51%
After Tax Held 4.10% 10.49% 11.56% N/A N/A N/A 8.42%
After Tax Sold 2.32% 5.94% 6.68% N/A N/A N/A 6.51%
Market Price 4.01% 10.50% 11.75% N/A N/A N/A 8.49%
Index Performance **
Defined Small Cap Growth Index 4.33% 10.81% 12.64% N/A N/A N/A 9.34%
S&P Small Cap 600 Growth Index 4.91% 11.27% 15.48% N/A N/A N/A 10.67%
Quarter End Performance (as of 3/28/2013)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
NAV 12.08% 12.08% 13.62% N/A N/A N/A 9.67%
After Tax Held 12.08% 12.08% 13.44% N/A N/A N/A 9.58%
After Tax Sold 6.84% 6.84% 7.74% N/A N/A N/A 7.41%
Market Price 12.04% 12.04% 13.42% N/A N/A N/A 9.63%
Index Performance **
Defined Small Cap Growth Index 12.31% 12.31% 14.55% N/A N/A N/A 10.51%
S&P Small Cap 600 Growth Index 11.92% 11.92% 15.34% N/A N/A N/A 11.48%

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost. You can obtain performance information which is current through the most recent month-end by visiting ftportfolios.com.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are based on the midpoint of the bid/ask spread. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Past performance is not a guarantee of future results. Performance information for the Defined Small Cap Growth Index is for illustrative purposes only and does not represent actual fund performance. No representation is being made that any investment will achieve performance similar to that shown. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. All index returns assume that dividends are reinvested when they are received.

The gross expense ratio for this fund is 0.70%. Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of the fund from exceeding 0.70% per year, at least until November 30, 2014.

The S&P SmallCap 600 Growth Index contains those stocks with growth characteristics from the 600 stocks used to measure small cap U.S. stock market performance.

Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's shares outstanding.
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 All market capitalization numbers are in USD$ Millions.
4 Inception Date is 4/19/2011

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the NYSE Arca, Inc.

The fund's return may not match the return of the Defined Small Cap Growth Index.  The fund may not be fully invested at times. Securities held by the fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units.

Risk Considerations

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular stock owned by the fund, fund shares or stocks in general may fall in value.

The fund may invest in securities issued by companies concentrated in a particular industry. The fund invests in small capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

The fund is classified as "non-diversified." A non-diversified fund generally may invest a larger percentage of its assets in the securities of a smaller number of issuers. As a result, the fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies.

The Defined Small Cap Growth Index is the exclusive property of Standard and Poor's, a division of the McGraw-Hill Companies, Inc. ("S&P"). First Trust Portfolios L.P. has contracted with S&P to create, calculate and maintain the Index. STANDARD & POOR'S and S&P are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's does not make any representation regarding the advisability of investing in the fund.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P.

First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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