With the end of the first quarter of 2025 a couple weeks ago – along with a reprieve in Model changes - we wanted to take time to review the performance and activity of the First Trust ETF Model lineup.
With the end of the first quarter of 2025 a couple weeks ago – along with a reprieve in Model changes - we wanted to take time to review the performance and activity of the First Trust ETF Model lineup.
First Trust Focus Five Model FTRUST5: The First Trust Focus Five Model lost -6.04% during the first quarter, lagging the S&P 500 Index SPX at -4.59%. This quarter saw one change to the strategy as Consumer Discretionary (FXD) was sold and Utilities (FXU) was added in late-March. Moving into the second quarter, the model has continued to shift away from technology focused exposure and into a slightly defensive stance. After last week’s change, the Model maintains exposure to the Internet FDN, Nasdaq-100 Ex-Technology QQXT, Industrials/Producer Durables FXR, Financials FXO, and Utilities FXU.
First Trust Sector Model FTRUST: The First Trust Sector Model lost -5.88% during the fourth quarter, underperforming SPX. The model didn’t witness any changes during the first quarter. After changes in recent weeks to begin Q2, the FTRUST Model has decreased technology exposure and increased exposure to defensive sectors/industries like utilities and food & beverages. The Model now maintains exposure to the Internet FDN), Industrials/Producer Durables FXR, Community Banks QABA, Banks FTXO, Water FIW, Utilities FXU, and Food & Beverages FTXG.
First Trust Size and Style Model FTSIZESTYLE: The First Trust Size and Style Model lost -4.71% in Q1, lagging SPX by 12 basis points. There were no changes to the model over the past three months. The strategy continues to maintain an overweight to the large cap space with Large Cap Core FEX and Large Cap Growth FTC, along with Mid Cap Core FNX.
First Trust Income Model FTINCOME: The First Trust Income Model was down two basis points during the first quarter, outperforming SPX and making it the best-performing model among the First Trust line-up for a fourth quarter in a row. There was one change within the First Trust Income Model this quarter as it sold Large Cap Value FTA and bought Utilities FXU in mid-March. Currently, the Model maintains exposure to Energy Infrastructure EMLP, a Dividend Achievers fund RDVY, Dividend and Momentum DDIV, Utilities FXU, and a European Dividend fund FDD (added earlier in April to replace TDIV).
First Trust Thematic Focus Five Model FTTHEME5.TR: The First Trust Thematic Focus Five Model FTTHEME5.TR lost -1.06% during Q1, besting the S&P 500 Total Return Index TR.SPXX by more than 3%. The model continues to maintain exposure to the following themed funds: NextGen Infrastructure RBLD, Internet FDN, Innovative Transaction & Process LEGR, Smart Grid Infrastructure GRID, and Streaming and Gaming BNGE.
First Trust International Focus Five Model FTRUSTINTL: The First Trust International Focus Five Model gained 4.72% during Q1, lagging its benchmark, the SPDR MSCI ACWI ex-US ETF CWI. There were two changes to the International model this quarter, as the strategy sold Japan FJP and added Global Select Dividend fund FGD in early February before selling FGD and adding the Eurozone fund FEUZ in early March. The model currently maintains exposure to India NFTY, Switzerland FSZ, China FCA, the United Kingdom FKU, and the Eurozone FEUZ.
First Trust Fixed Income Model FTFIXINC.TR: The First Trust Fixed Income Model was up 33 basis points during this last quarter, lagging its benchmark (AGG.TR) by a little over 2%. There was a change to the model this past quarter as it sold Convertibles FCVT and bought Low Duration Mortgage Bonds LMBS in late March. The strategy currently maintains exposure to Senior Loans FTSL, Preferreds FPE, Low Duration Mortgage LMBS, and High Yield HYLS.
