Given the performance of international equities, advisors may be looking for international equity ideas. While NDW offers a variety of tools to help cull out potential ideas, there are a variety of model portfolios that can be plugged into an allocation. Among the better performing ETF model portfolios in 2025 is the First Trust International Model (FTRUSTINTL).
Year-to-date through Q2 – and this short time in Q3 – international equities have been the top performing broad asset class, with both developed (EFA) and emerging (EEM) markets outperforming US Equity indices (the second-best performing asset class). While international equities isn’t the top ranked asset class currently, June saw international move up to the top rank within the DALI Asset Class Rankings for a brief period and continue to rank closely, challenging domestic equities (the top ranked asset class within DALI).
Given the performance of international equities, advisors may be looking for international equity ideas. While NDW offers a variety of tools to help cull out potential ideas, there are a variety of model portfolios that can be plugged into an allocation. Among the better performing ETF model portfolios in 2025 is the First Trust International Model (FTRUSTINTL).
The First Trust International Model (FTRUSTINTL) was first introduced on February 22, 2012, and seeks to own certain countries or regions that exhibit leadership while avoiding laggard areas of international equity space. The First Trust International Model uses the relative strength matrix tool to evaluate 14 First Trust international-focused ETFs on a bi-weekly basis. The Model is designed to invest in the top five ranked ETFs, on an equally weighted basis, and maintain exposure to each holding if the ETF maintains sufficient relative strength. If a holding deteriorates significantly versus the others on a relative strength basis it will be sold, and the Model will buy the highest ranked ETF in the matrix that is not already held within the Model. For information on the Model, click here to download the information file. Those who may be seeking a single CUSIP solution that tracks the First Trust International Model (FTRUSTINTL) could consider the First Trust Dorsey Wright International Focus 5 ETF (IFV), which was launched in July 2014.
Along with the broader international equity space, the First Trust International Model (FTRUSTINTL) is positive on a year-to-date basis. Through the end of Q2, the Model was up 19.83% year-to-date, outperforming its benchmark (ACWX) by more than 3%. Intermediate to long-term annualized performance shows strong competition by the Model compared to its benchmark. As of the close on 7/16, FTRUSTINTL has outpaced its benchmark by over 3% on a 1-year basis, while slightly (albeit very slight) underperforming on a 3 and 5 year annualized basis. Since inception in February 2012 though, the First Trust International Model has outperformed its benchmark by just over 7% cumulatively and by 35 basis points on an annualized basis (2/22/2012 to 7/16/2025).
At this time, the Model maintains exposure to China (FCA), Germany (FGM), United Kingdom (FKU), Switzerland (FSZ), and Eurozone (FEUZ), giving the Model an overweight to developed markets. While the Model is currently overweighted to developed markets, that has not always been the case. To help illustrate the ability of relative strength to drive rotation over time, the graphic below shows the historical allocation to developed and emerging markets. When the Model was launched, three of the positions were focused on developed markets, while two offered emerging market exposure. While that 60% overweight persisted for a few years, the strategy has seen shifts between developed and emerging throughout, and at a point was 100% emerging markets in late 2022. This illustrates the dynamic ability of the Model to adapt to the trends within the broader international equity space.
