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