There is a change to the First Trust Income Model ([FTINCOME]) this week; sell DDIV, buy FDL.
There is a change to the First Trust Income Model (FTINCOME) this week.
This week FTINCOME has its fourth change in just over two months as the model is selling the First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) after falling below the sell threshold within the model’s relative strength matrix. In its place, the Income Model is adding the First Trust Morningstar Dividend Leaders Fund (FDL), which is the highest-ranking fund with the model matrix not already owned.
On the default point and figure trend chart, FDL has maintained a positive trend since January 2024, and returned to a buy signal during the latter part of April before rallying to the middle of the 10-week trading band at $41.50. The fund has maintained positive near-term relative strength against the market as defined by the S&P 500 Equal Weight Index (SPXEWI) since early March this year, helping the ETF register an acceptable fund score of 3.11. Year-to-date, FDL is up 2.9% and outperforming SPX by more than 2%, while maintaining a current yield north of 4%.
With the change, the First Trust Income Model will rebalance the five holdings to equally weighted at 20%. Along with maintaining exposure to the Dividend Achievers fund (FDL), the Model now maintains exposure to Energy Infrastructure (EMLP), International Dividend Aristocrats (FID), European Dividend stocks (FDD), and Utilities (FXU).
