This Week in ETF Reports
First Trust Sector Model Change
There are changes to the First Trust Sector ETF Model FTRUST as two ETFs are being added, both in the Financial space. The First Trust Nasdaq Bank ETF FTXO and the First Trust Nasdaq ABA Community Bank ETF QABA were both added to the model as both of these sectors reversed back into a column of X’s on their respective relative strength charts versus the S&P 500. In addition to seeing the relative strength charts reverse up, the fund score of both FTXO and QABA are above 3 suggesting the overall weight of the evidence is positive here. With the addition of FTXO and QABA to the First Trust Sector Model there are now 12 positions held with the model... (Read more)
SSTREET: Buy Regional Banks & Banks
As a refresher, the State Street Sector Model SSTREET monitors the relative strength relationships between each of the sector and industry ETFs in the model universe versus the S&P 500 Index SPX on a 6.5% scale. ETFs that are showing positive relative strength versus the SPX (measured by a column of Xs) are included in the model and are removed only when that relationship reverses into Os. Over the past week of trading, the respective RS charts comparing the SPDR S&P Regional Banking ETF KRE and the SPDR S&P Bank ETF KBE versus the S&P 500 Index reversed up into Xs, warranting their additions to the SSTREET model holdings. This model remains fully invested through sector-based ETFs within the broader State Street family of ETFs and is evaluated on a weekly basis. The number of holdings can vary based on sector leadership within changing markets, and with the addition of XRT, the model is equally weighted across 14 positions at 7.14% each. Year-to-date, the SSTREET model is up 15.31%, outperforming the S&P 500's return of 9.74% (through 11/10)... (Read more)
Invesco Commodity Model Change
There is a change to the Invesco Commodity Model POWRSHARES this week: sell the Invesco DB Gold Fund DGL and buy the Invesco DB Oil Fund DBO. DGL was removed because its rank in the model’s relative strength matrix fell below the threshold to remain a holding in the portfolio... (Read more)
