There are two First Trust Models with changes this week.

First Trust International Model (FTRUSTINTL)

As of today’s evaluation, the First Trust International Model (FTRUSTINTL) is removing the First Trust India Nifty 50 Equal Weight ETF (NFTY) as it fell below the sell threshold within the Model’s relative strength matrix. While a holding within the Model, NFTY was able to gain 44% (4/13/2021 – 6/16/2025) and outperform the benchmark ((ACWX)) by 39%. In its place, the International Model will be adding the First Trust Germany AlphaDEX Fund (FGM), which is the highest ranked fund not already owned within the Model’s matrix.

On its trend chart, FGM has maintained a positive trend since January of this year and returned to a buy signal in mid-May as the fund rallied to $55, marking a multi-year high. The fund gave a market RS buy signal in March of this year for the first time in the ETF’s history, which coupled with a peer RS buy signal, suggests an established long-term trend of outperformance has been sustained since.  The weight of positive evidence for FGM brings the fund score up to 5.92 (out of 6).

With the change, the First Trust International Model (FTRUSTINTL) will rebalance the five holdings to equally weighted at 20%, and will maintain exposure to Germany (FGM), China (FCA), Switzerland (FSZ), the United Kingdom (FKU), and the Eurozone (FEUZ).

First Trust Sector Model (FTRUST)

The second Model with a change this week is the First Trust Sector Model (FTRUST) as it buys the First Trust Global Wind Energy ETF (FAN). Recall the First Trust Sector Model utilizes an RS versus benchmark methodology, as opposed to an RS matrix of the model’s full ETF lineup. The First Trust Sector Model’s (FTRUST) process compares each of the funds within the model’s universe to the S&P 500 Index (SPX) on a 6.5% scale RS chart. If the RS chart resides in a column of Xs, the ETF is included within the model’s holdings, while an RS chart residing in a column of Os warrants the fund’s exclusion.

Following Monday’s action, the Model’s RS chart reversed back into a column of Xs, favoring the Wind Energy fund over the market. On the trend chart, FAN has maintained a buy signal since May and saw the trend shift back to positive earlier this month as the ETF rallied to $18.25 during Monday’s trading, marking a 52-week high. This improvement has brought the ETF’s fund score up to near its highest level since early 2021 at 4.38.

With the addition of FAN, the Model will rebalance with eight holdings equally weighted at 12.50%. Underlying holdings for the strategy continue to maintain an overweight to Financials, while also holding exposure to broader Industrials, Utilities, Consumer Non-Cyclical, Energy, and Technology.

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 are two First Trust Models with changes 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, July 2nd, 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)