Important Reminder: Due to the next possible evaluation coming very close to the Christmas holiday, this morning’s evaluation of the First Trust Focus Five Model will be the only evaluation done during the month of December. The next evaluation of the First Trust Focus Five Model will be January 11th, 2017.

There is a change to the First Trust Size and Style Model FTSIZESTYLE this month. This month the First Trust Mid Cap Growth AlphaDEX Fund FNY will be removed and the First Trust Small Cap Growth AlphaDEX Fund FYC will be added. Recall that the First Trust Size and Style Model is evaluated on a monthly basis and the strategy is driven by the DALI Size and Style rankings. The Model seeks to hold the top three Size and Style groups and changes are made when there is a change to the top three. The Small Cap space has been among the largest movers to the upside on a relative and absolute basis recently, and this addition to the Size and Style Model provides further evidence of the group’s relative improvement. Evidence of absolute improvement can be seen on the chart of the First Trust Small Cap Growth AlphaDEX Fund FYC. With action during November, FYC was able to break a double top at $34.50 for the fourth consecutive buy signal on the chart since the February 2016 low at $26. Additionally, FYC was able to climb to the $35 level after breaking out, which is a new all-time high for the Fund. Overall, FYC has a fund score of 4.34, which is very close the average score for a fund in the Small Cap space at 4.36. With the change, the FTSIZESTYLE Model will rebalance so that each fund will be equally-weighted at 33%.

This weekly overview is designed to be used as a "radar" screen to bring your attention to potentially important technical changes that may require your attention and potential action. When evaluating the Fund Score, the strongest issues have scores of 4 or higher while those ETFs with scores below a 3 are no longer considered solid citizens.

The ETFs with the most relative strength buy signals (suggesting outperformance) versus the others in the group are listed at the top. These ETFs should be overweighted in the portfolio. Those ETFs with the least amount of relative strength buy signals versus the others in the group are listed at the bottom. These ETFs should be underweighted in the portfolio.

The First Trust ETF Portfolios are designed to identify major sector themes in the market place through the use of the Point & Figure relative strength tools. For more information on the portfolio construction and back testing, see the model info file on the models page.  To enter a portfolio amount and see shares to be purchased as well as modify the portfolio to your specifications, click here. (Note: The First Trust ETF Portfolios will be updated Wednesday mornings by 9:30 am EST) 

Weekly Changes:   There is a change to the First Trust Size and Style (FTSIZESTYLE) Model this month.

* - Dates prior to 1/9/2008, which is when the First Trust Sector ETF Model Portfolio became available in the First Trust Weekly ETF Report, are representative of when the position was added to the backtested model.

* - The next evaluation date for the Focus Five Model is Wednesday, January 11th. Dates prior to 10/20/2009, which is when the First Trust Focus Five ETF Model Portfolio became available in the First Trust Weekly ETF Report, are representative of when the position was added to the backtested model.

Am I better off owning the managed mutual fund or the unmanaged ETF? The table below will help you answer that question. For each of the nine major asset classes and sectors, see the Top 20 mutual funds in NAV compared to the First Trust Universe of ETFs. The results are ordered by Fund Score, from highest to lowest. The Fund Score is a snapshot of the overall health of the fund based upon relative strength versus the broad market, relative strength versus its peers, and other trend measures. Those ETFs and Funds with a score above 3 are considered solid citizens with those having scores of 4 and above ideal candidates for purchase. Those ETFs and Funds with a score below 3 should be examined closer from a technical basis as they are not holding their ground versus the market and their peer group.
 

(Click any link above to see the Fund Score of the First Trust ETFs and the funds with the largest Net Assets in that category)