There is a change to the First Trust Size and Style Model (FTSIZESTYLE); sell Mid Cap Core (FNX), buy Mid Cap Growth (FNY).
There is a change to the First Trust Size and Style Model (FTSIZESTYLE).
For those not familiar with the First Trust Size and Style Model the strategy is evaluated monthly and is driven by a tally matrix, like our Dynamic Asset Level Investing Rankings (DALI). Proxies representing the specified groups – the nine size and style groups in this case – are ranked within a relative strength matrix. The number of relative strength buy signals for each of the size and style group proxies is then ‘tallied’ in order to determine leadership.
At the beginning of June, Mid Cap Growth eclipsed Mid Cap Blend within the size and style rankings, bringing the Model to remove the First Trust Mid Cap Core AlphaDEX Fund (FNX) and add the First Trust Mid Cap Growth AlphaDEX Fund (FNY). This marks the third change to the Model this year with each involving the two aforementioned funds within today’s trade.
On the trend chart, FNY fell to the mid $60s at its April lows but improved to return to a buy signal in the latter part of the month. May’s action brought the trend chart back into a positive trend while the fund moved above $81 with recent action, clearing the 150- and 200-day moving average in the process. Trending improvement in recent months has brought the fund score to just shy of 4 at 3.97; above the All Mid Cap Blend (3.11) and All US Funds (3.37) groups.
With the change, the Model will rebalance the three funds to equally weighted at 33.33%. The Model continues to maintain an overweight to Large Caps and has shifted from a blend to a growth overweight.
