This week saw two model changes. The First Trust Fixed Income Model sold FIXD and bought HYLS. The First Trust Sector Model bought FTXR.
This week saw two model changes. The First Trust Fixed Income Model sold FIXD and bought HYLS. The First Trust Sector Model bought FTXR.
This week saw changes to two of the First Trust ETF models on the Nasdaq Dorsey Wright research platform. The first change we will cover came in the First Trust Fixed Income Model, which sold the First Trust TCW Opportunistic Fixed Income ETF FIXD as it fell sufficiently out of favor in the model’s relative strength matrix ranking. The model purchased the First Trust Tactical High Yield ETF HYLS as it was the next highest-ranked fund that the model did not already own. This leaves the model with a heavy overweight toward more risk-on areas of fixed income, a transition we have seen across most fixed income relative rankings across the NDW platform. HYLS joins preferreds (FPE), convertible securities (FCVT), and emerging market bonds (FEMB) as the model holdings.
The other model change that occurred this week came as the First Trust Sector Model purchased the First Trust Nasdaq Transportation ETF FTXR. As a refresher, this model compares each of the funds in its inventory against the S&P 500 Index SPX, with those funds that demonstrate positive relative strength against the benchmark being included as model holdings. FTXR has shown significant improvement over the past several weeks, moving to a buy signal in mid-June at $20.50 before continuing higher to most recently reach $23.50, just three boxes shy of its 52-week high. The fund joins 10 other sector representatives as the current model holding, which are depicted below with their respective weightings.
