DEFINED LARGE CAP VALUE INDEX

The Defined Large Cap Value Index is a modified equal-dollar weighted index designed by S&P to objectively identify and select stocks from the S&P 500/Citigroup Value Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.

FIRST TRUST LARGE CAP VALUE OPPO

The First Trust Large Cap Value Opportunities AlphaDEX(TM) 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 fees and expenses, of an equity index called the Defined Large Cap Value Opportunities Index. There can be no assurances that the Fund Objectives will be met. The Defined Large Cap Value Opportunities Index is an enhanced index created and administered by Standard & Poor s which employs the AlphaDEXTM stock selection methodology to select stocks from the S&P 500/Citigroup Value Index. Standard & Poor s constructs the Defined Large Cap Value Opportunities Index by ranking the stocks from the S&P 500/Citigroup Value Index against all the stocks in the S&P 500 Index on growth factors including three, six 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 value, based on S&P/Citigroup style designations, receive their score from the above value factors. Stocks which S&P/Citigroup allocates between both growth and value receive their best score between the above growth and value factors. Only those that receive a higher value score are eligible for inclusion in the Defined Large Cap Value Opportunities 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 Large Cap Value Opportunities 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.

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