There were no changes to any of the First Trust Models covered within the report this week.

Continuing the international equity theme over recent weeks, this week narrows the focus to examine the First Trust China AlphaDEX Fund (FCA). Last week’s trading saw FCA rally above the $23 level, returning the fund to a buy signal and flipping the trend back to positive. Along with the trending improvement, FCA reversed back into a column of Xs on its market RS chart against the S&P 500 Equal Weight Index (SPXEWI), suggesting near-term outperformance by the country fund. Coupled with market and peer RS buy signals that have been in place since October last year, FCA maintains a strong technical picture as is exhibited by the ETF’s 5.39 fund score.

The recent rally places the ETF in overbought territory near the top of the 10-week trading band and well above support on the default trend chart in the $17 range. Those seeking exposure to FCA may be best served by looking for chart consolidation and development of support closer to current prices in the lower $20s before considering. Near-term support may be found on the very sensitive 0.10 point per box chart in the $21 to $22 range.

Year-to-date, FCA is up more than 17% and outperforming the MSCI Emerging Markets Index by more than 6%.

FCA has been a holding within the First Trust International Focus Five Model (FTRUSTINTL) since early December 2024.

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 were no changes to any of the First Trust Models covered within the report 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 25th, 2025. 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 Thematic Focus Five Model is Wednesday, June 25th, 2025. Dates prior to 9/13/2023, which is when the First Trust Thematic 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 18th, 2025. Dates prior to 2/22/2012, which is when the First Trust International 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.

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)