There is a change to the First Trust International Model this week.

The change to the FTRUSTINTL Model this week is the removal of the First Trust Brazil AlphaDEX Fund FBZ and, in its place, the addition of the First Trust Developed Markets Ex-US AlphaDEX Fund FDT. Although recent weakness from a relative strength standpoint has led to its removal, FBZ was able to gain 19.23% while it was a holding within the Model (6/28/2016 to 6/6/2017). The new holding, FDT, provides a strong technical picture as exhibited by its current fund score of 4.64. This score places the Fund above the average group scores for the Non-US and Global Developed Markets groups at 4.02 and 3.68. After reversing back into X’s in January at $48.50, FDT has continued to improve from an absolute and relative perspective. With recent action, FDT rallied to clear its June 2014 high at $54 by moving above $55 in May. Since then, FDT has bettered its high by moving up to $56 this month. Year-to-date, FDT has gained 18.85%, which puts the Fund within the 93rd percentile out of all funds on the DWA database. With the addition of FDT, the First Trust International Model will now be overweight Developed Markets by 60%. 

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 International Model this week.

* - 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, June 21st. 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.

* - The next evaluation date for the International Focus Five Model is Wednesday, June 14th.

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)