diff --git a/packages/core/src/render3/component.ts b/packages/core/src/render3/component.ts
index 2895e71664..892e49bd38 100644
--- a/packages/core/src/render3/component.ts
+++ b/packages/core/src/render3/component.ts
@@ -20,7 +20,7 @@ import {CLEAN_PROMISE, addHostBindingsToExpandoInstructions, addToViewTree, crea
 import {ComponentDef, ComponentType, RenderFlags} from './interfaces/definition';
 import {TElementNode, TNode, TNodeType} from './interfaces/node';
 import {PlayerHandler} from './interfaces/player';
-import {RElement, Renderer3, RendererFactory3, domRendererFactory3, isProceduralRenderer} from './interfaces/renderer';
+import {RElement, Renderer3, RendererFactory3, domRendererFactory3} from './interfaces/renderer';
 import {CONTEXT, HEADER_OFFSET, LView, LViewFlags, RootContext, RootContextFlags, TVIEW, TViewType} from './interfaces/view';
 import {writeDirectClass, writeDirectStyle} from './node_manipulation';
 import {enterView, getPreviousOrParentTNode, leaveView, setSelectedIndex} from './state';
@@ -139,7 +139,7 @@ export function renderComponent<T>(
   try {
     if (rendererFactory.begin) rendererFactory.begin();
     const componentView = createRootComponentView(
-        hostRNode, componentDef, rootView, rendererFactory, renderer, null, sanitizer);
+        hostRNode, componentDef, rootView, rendererFactory, renderer, sanitizer);
     component = createRootComponent(
         componentView, componentDef, rootView, rootContext, opts.hostFeatures || null);
 
@@ -169,8 +169,8 @@ export function renderComponent<T>(
  */
 export function createRootComponentView(
     rNode: RElement | null, def: ComponentDef<any>, rootView: LView,
-    rendererFactory: RendererFactory3, hostRenderer: Renderer3, addVersion: string | null,
-    sanitizer: Sanitizer | null): LView {
+    rendererFactory: RendererFactory3, hostRenderer: Renderer3,
+    sanitizer?: Sanitizer | null): LView {
   const tView = rootView[TVIEW];
   ngDevMode && assertDataInRange(rootView, 0 + HEADER_OFFSET);
   rootView[0 + HEADER_OFFSET] = rNode;
@@ -188,14 +188,8 @@ export function createRootComponentView(
       }
     }
   }
-  const viewRenderer = rendererFactory.createRenderer(rNode, def);
-  if (rNode !== null && addVersion) {
-    ngDevMode && ngDevMode.rendererSetAttribute++;
-    isProceduralRenderer(hostRenderer) ?
-        hostRenderer.setAttribute(rNode, 'ng-version', addVersion) :
-        rNode.setAttribute('ng-version', addVersion);
-  }
 
+  const viewRenderer = rendererFactory.createRenderer(rNode, def);
   const componentView = createLView(
       rootView, getOrCreateTComponentView(def), null,
       def.onPush ? LViewFlags.Dirty : LViewFlags.CheckAlways, rootView[HEADER_OFFSET], tNode,
diff --git a/packages/core/src/render3/component_ref.ts b/packages/core/src/render3/component_ref.ts
index 6fb9d8a009..7655bbfa33 100644
--- a/packages/core/src/render3/component_ref.ts
+++ b/packages/core/src/render3/component_ref.ts
@@ -30,8 +30,10 @@ import {TContainerNode, TElementContainerNode, TElementNode} from './interfaces/
 import {RNode, RendererFactory3, domRendererFactory3} from './interfaces/renderer';
 import {LView, LViewFlags, TVIEW, TViewType} from './interfaces/view';
 import {MATH_ML_NAMESPACE, SVG_NAMESPACE} from './namespaces';
-import {stringifyCSSSelectorList} from './node_selector_matcher';
+import {writeDirectClass} from './node_manipulation';
+import {extractAttrsAndClassesFromSelector, stringifyCSSSelectorList} from './node_selector_matcher';
 import {enterView, leaveView} from './state';
+import {setUpAttributes} from './util/attrs_utils';
 import {defaultScheduler} from './util/misc_utils';
 import {getTNode} from './util/view_utils';
 import {createElementRef} from './view_engine_compatibility';
@@ -165,7 +167,6 @@ export class ComponentFactory<T> extends viewEngine_ComponentFactory<T> {
     const rootLView = createLView(
         null, rootTView, rootContext, rootFlags, null, null, rendererFactory, hostRenderer,
         sanitizer, rootViewInjector);
-    const addVersion = rootSelectorOrNode && hostRNode ? VERSION.full : null;
 
     // rootView is the parent when bootstrapping
     // TODO(misko): it looks like we are entering view here but we don't really need to as
@@ -179,7 +180,24 @@ export class ComponentFactory<T> extends viewEngine_ComponentFactory<T> {
 
     try {
       const componentView = createRootComponentView(
-          hostRNode, this.componentDef, rootLView, rendererFactory, hostRenderer, addVersion, null);
+          hostRNode, this.componentDef, rootLView, rendererFactory, hostRenderer);
+      if (hostRNode) {
+        if (rootSelectorOrNode) {
+          setUpAttributes(hostRenderer, hostRNode, ['ng-version', VERSION.full]);
+        } else {
+          // If host element is created as a part of this function call (i.e. `rootSelectorOrNode`
+          // is not defined), also apply attributes and classes extracted from component selector.
+          // Extract attributes and classes from the first selector only to match VE behavior.
+          const {attrs, classes} =
+              extractAttrsAndClassesFromSelector(this.componentDef.selectors[0]);
+          if (attrs) {
+            setUpAttributes(hostRenderer, hostRNode, attrs);
+          }
+          if (classes && classes.length > 0) {
+            writeDirectClass(hostRenderer, hostRNode, classes.join(' '));
+          }
+        }
+      }
 
       tElementNode = getTNode(rootLView[TVIEW], 0) as TElementNode;
 
diff --git a/packages/core/src/render3/node_selector_matcher.ts b/packages/core/src/render3/node_selector_matcher.ts
index 6eaf8bca7d..8b539d5bbc 100644
--- a/packages/core/src/render3/node_selector_matcher.ts
+++ b/packages/core/src/render3/node_selector_matcher.ts
@@ -388,4 +388,42 @@ function stringifyCSSSelector(selector: CssSelector): string {
  */
 export function stringifyCSSSelectorList(selectorList: CssSelectorList): string {
   return selectorList.map(stringifyCSSSelector).join(',');
+}
+
+/**
+ * Extracts attributes and classes information from a given CSS selector.
+ *
+ * This function is used while creating a component dynamically. In this case, the host element
+ * (that is created dynamically) should contain attributes and classes specified in component's CSS
+ * selector.
+ *
+ * @param selector CSS selector in parsed form (in a form of array)
+ * @returns object with `attrs` and `classes` fields that contain extracted information
+ */
+export function extractAttrsAndClassesFromSelector(selector: CssSelector):
+    {attrs: string[], classes: string[]} {
+  const attrs: string[] = [];
+  const classes: string[] = [];
+  let i = 1;
+  let mode = SelectorFlags.ATTRIBUTE;
+  while (i < selector.length) {
+    let valueOrMarker = selector[i];
+    if (typeof valueOrMarker === 'string') {
+      if (mode === SelectorFlags.ATTRIBUTE) {
+        if (valueOrMarker !== '') {
+          attrs.push(valueOrMarker, selector[++i] as string);
+        }
+      } else if (mode === SelectorFlags.CLASS) {
+        classes.push(valueOrMarker);
+      }
+    } else {
+      // According to CssSelector spec, once we come across `SelectorFlags.NOT` flag, the negative
+      // mode is maintained for remaining chunks of a selector. Since attributes and classes are
+      // extracted only for "positive" part of the selector, we can stop here.
+      if (!isPositive(mode)) break;
+      mode = valueOrMarker;
+    }
+    i++;
+  }
+  return {attrs, classes};
 }
\ No newline at end of file
diff --git a/packages/core/test/acceptance/view_container_ref_spec.ts b/packages/core/test/acceptance/view_container_ref_spec.ts
index f0b3011774..13f1a2c137 100644
--- a/packages/core/test/acceptance/view_container_ref_spec.ts
+++ b/packages/core/test/acceptance/view_container_ref_spec.ts
@@ -8,7 +8,7 @@
 
 import {CommonModule, DOCUMENT} from '@angular/common';
 import {computeMsgId} from '@angular/compiler';
-import {Compiler, Component, ComponentFactoryResolver, Directive, DoCheck, ElementRef, EmbeddedViewRef, ErrorHandler, NO_ERRORS_SCHEMA, NgModule, OnInit, Pipe, PipeTransform, QueryList, Renderer2, RendererFactory2, RendererType2, Sanitizer, TemplateRef, ViewChild, ViewChildren, ViewContainerRef, ɵsetDocument} from '@angular/core';
+import {Compiler, Component, ComponentFactoryResolver, Directive, DoCheck, ElementRef, EmbeddedViewRef, ErrorHandler, Injector, NO_ERRORS_SCHEMA, NgModule, OnInit, Pipe, PipeTransform, QueryList, RendererFactory2, RendererType2, Sanitizer, TemplateRef, ViewChild, ViewChildren, ViewContainerRef, ɵsetDocument} from '@angular/core';
 import {Input} from '@angular/core/src/metadata';
 import {ngDevModeResetPerfCounters} from '@angular/core/src/util/ng_dev_mode';
 import {TestBed, TestComponentRenderer} from '@angular/core/testing';
@@ -251,6 +251,98 @@ describe('ViewContainerRef', () => {
       // Also test with selector that has element name in uppercase
       runTestWithSelectors('SVG[some-attr]', 'MATH[some-attr]');
     });
+
+    it('should apply attributes and classes to host element based on selector', () => {
+      @Component({
+        selector: '[attr-a=a].class-a:not(.class-b):not([attr-b=b]).class-c[attr-c]',
+        template: 'Hello'
+      })
+      class HelloComp {
+      }
+
+      @NgModule({entryComponents: [HelloComp], declarations: [HelloComp]})
+      class HelloCompModule {
+      }
+
+      @Component({
+        template: `
+          <div id="factory" attr-a="a-original" class="class-original"></div>
+          <div id="vcr">
+            <ng-container #container></ng-container>
+          </div>
+        `
+      })
+      class TestComp {
+        @ViewChild('container', {read: ViewContainerRef}) vcRef !: ViewContainerRef;
+
+        private helloCompFactory = this.cfr.resolveComponentFactory(HelloComp);
+
+        constructor(public cfr: ComponentFactoryResolver, public injector: Injector) {}
+
+        createComponentViaVCRef() {
+          this.vcRef.createComponent(this.helloCompFactory);  //
+        }
+
+        createComponentViaFactory() {
+          this.helloCompFactory.create(this.injector, undefined, '#factory');
+        }
+      }
+
+      TestBed.configureTestingModule({declarations: [TestComp], imports: [HelloCompModule]});
+      const fixture = TestBed.createComponent(TestComp);
+      fixture.detectChanges();
+      fixture.componentInstance.createComponentViaVCRef();
+      fixture.componentInstance.createComponentViaFactory();
+      fixture.detectChanges();
+
+      // Verify host element for a component created via  `vcRef.createComponent` method
+      const vcrHostElement = fixture.nativeElement.querySelector('#vcr > div');
+
+      expect(vcrHostElement.classList.contains('class-a')).toBe(true);
+      // `class-b` should not be present, since it's wrapped in `:not()` selector
+      expect(vcrHostElement.classList.contains('class-b')).toBe(false);
+      expect(vcrHostElement.classList.contains('class-c')).toBe(true);
+
+      expect(vcrHostElement.getAttribute('attr-a')).toBe('a');
+      // `attr-b` should not be present, since it's wrapped in `:not()` selector
+      expect(vcrHostElement.getAttribute('attr-b')).toBe(null);
+      expect(vcrHostElement.getAttribute('attr-c')).toBe('');
+
+      // Verify host element for a component created using `factory.createComponent` method when
+      // also passing element selector as an argument
+      const factoryHostElement = fixture.nativeElement.querySelector('#factory');
+
+      if (ivyEnabled) {
+        // In Ivy, if selector is passed when component is created, matched host node (found using
+        // this selector) retains all attrs/classes and selector-based attrs/classes should *not* be
+        // added
+
+        //  Verify original attrs and classes are still present
+        expect(factoryHostElement.classList.contains('class-original')).toBe(true);
+        expect(factoryHostElement.getAttribute('attr-a')).toBe('a-original');
+
+        // Make sure selector-based attrs and classes were not added to the host element
+        expect(factoryHostElement.classList.contains('class-a')).toBe(false);
+        expect(factoryHostElement.getAttribute('attr-c')).toBe(null);
+
+      } else {
+        // In View Engine, selector-based attrs/classes are *always* added to the host element
+
+        expect(factoryHostElement.classList.contains('class-a')).toBe(true);
+        // `class-b` should not be present, since it's wrapped in `:not()` selector
+        expect(factoryHostElement.classList.contains('class-b')).toBe(false);
+        expect(factoryHostElement.classList.contains('class-c')).toBe(true);
+        // Make sure classes are overridden with ones used in component selector
+        expect(factoryHostElement.classList.contains('class-original')).toBe(false);
+
+        // Note: `attr-a` attr is also present on host element, but we update the value with the
+        // value from component selector (i.e. using `[attr-a=a]`)
+        expect(factoryHostElement.getAttribute('attr-a')).toBe('a');
+        // `attr-b` should not be present, since it's wrapped in `:not()` selector
+        expect(factoryHostElement.getAttribute('attr-b')).toBe(null);
+        expect(factoryHostElement.getAttribute('attr-c')).toBe('');
+      }
+    });
   });
 
   describe('insert', () => {
diff --git a/packages/core/test/render3/node_selector_matcher_spec.ts b/packages/core/test/render3/node_selector_matcher_spec.ts
index 42cfa7b0de..17c8550a62 100644
--- a/packages/core/test/render3/node_selector_matcher_spec.ts
+++ b/packages/core/test/render3/node_selector_matcher_spec.ts
@@ -10,7 +10,7 @@ import {createTNode} from '@angular/core/src/render3/instructions/shared';
 
 import {AttributeMarker, TAttributes, TNode, TNodeType} from '../../src/render3/interfaces/node';
 import {CssSelector, CssSelectorList, SelectorFlags} from '../../src/render3/interfaces/projection';
-import {getProjectAsAttrValue, isNodeMatchingSelector, isNodeMatchingSelectorList, stringifyCSSSelectorList} from '../../src/render3/node_selector_matcher';
+import {extractAttrsAndClassesFromSelector, getProjectAsAttrValue, isNodeMatchingSelector, isNodeMatchingSelectorList, stringifyCSSSelectorList} from '../../src/render3/node_selector_matcher';
 
 function testLStaticData(tagName: string, attrs: TAttributes | null): TNode {
   return createTNode(null !, null, TNodeType.Element, 0, tagName, attrs);
@@ -569,3 +569,51 @@ describe('stringifyCSSSelectorList', () => {
     ])).toBe('[id],button[id="value"],div:not([foo]),div:not(p.bar):not(.baz)');
   });
 });
+
+describe('extractAttrsAndClassesFromSelector', () => {
+  const cases = [
+    [
+      ['div', '', ''],
+      [],
+      [],
+    ],
+    [
+      ['div', 'attr-a', 'a', 'attr-b', 'b', 'attr-c', ''],
+      ['attr-a', 'a', 'attr-b', 'b', 'attr-c', ''],
+      [],
+    ],
+    [
+      ['div', 'attr-a', 'a', SelectorFlags.CLASS, 'class-a', 'class-b', 'class-c'],
+      ['attr-a', 'a'],
+      ['class-a', 'class-b', 'class-c'],
+    ],
+    [
+      ['', 'attr-a', 'a', SelectorFlags.CLASS, 'class-a', SelectorFlags.ATTRIBUTE, 'attr-b', 'b'],
+      ['attr-a', 'a', 'attr-b', 'b'],
+      ['class-a'],
+    ],
+    [
+      [
+        '', '', '', SelectorFlags.ATTRIBUTE, 'attr-a', 'a',
+        (SelectorFlags.CLASS | SelectorFlags.NOT), 'class-b'
+      ],
+      ['attr-a', 'a'],
+      [],
+    ],
+    [
+      [
+        '', '', '', (SelectorFlags.CLASS | SelectorFlags.NOT), 'class-a',
+        (SelectorFlags.ATTRIBUTE | SelectorFlags.NOT), 'attr-b', 'b'
+      ],
+      [],
+      [],
+    ],
+  ];
+  cases.forEach(([selector, attrs, classes]) => {
+    it(`should process ${JSON.stringify(selector)} selector`, () => {
+      const extracted = extractAttrsAndClassesFromSelector(selector);
+      expect(extracted.attrs).toEqual(attrs as string[]);
+      expect(extracted.classes).toEqual(classes as string[]);
+    });
+  });
+});
\ No newline at end of file