There are two First Trust Models with changes this week.
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.
