First Trust International Model Universe Updates: The First Trust Brazil Index Fund was recently closed, removing one name from the current inventory of the International Focus Five model. Funds are being evaluated for potential updates to the eligible universe in light of this event.  Any updates to the inventory will be announced at the next change event. 

Following Friday’s action, the bullish percent for the S&P Mid Cap 400 Index (^BPSPMID) reversed into Xs, indicating an increase in stocks maintaining point and figure buy signals. Among the mid cap funds to rally recently is the First Trust Mid Cap Growth AlphaDEX (FNY), which is a holding within the First Trust Size and Style Model (FTSIZESTYLE).

FNY maintains a fund score of 4.49, which is higher than the average fund for a fund within the global mid cap (3.80) and US mid cap growth (4.03) groups. FNY has maintained positive near-term relative strength against the market as defined by the S&P 500 Equal Weight Index (SPXEWI) since July 2023.

On the default point and figure chart, FNY has sustained a single column of Xs since returning to a buy signal in late April, following that up with a positive trend flip in May. For better perspective on recent action, below is the more sensitive 0.50 point per box chart. After returning to a buy signal on 8/12, FNY gave a second buy signal by breaking a double top at $86.50 during Friday’s (8/22) trading. This week’s action brought about a 2025 chart high at $87.50 and bring the chart within two boxes of its all-time chart high for the 0.50 point per box chart at $88.50. Initial support can be found in the upper $82 to $83 range, while additional can be found in the $77 to $79 range.

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, September 10th, 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, September 10th, 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, September 3rd, 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)