With the end of the third quarter of 2025 last week, we wanted to take time to review the performance and activity of the First Trust ETF model lineup.

With the end of the third quarter of 2025 last week, we wanted to take time to review the performance and activity of the First Trust ETF model lineup.

First Trust Focus Five Model (FTRUST5): The First Trust Focus Five Model gained 4.46% during the third quarter, lagging the S&P 500 Index at 7.79%. There were no changes to the strategy during the third quarter. Moving into Q4, the model maintains exposure to the internet (FDN), Nasdaq-100 Ex-Technology (QQXT), industrials/producer durables (FXR), financials (FXO), and utilities (FXU).

First Trust Sector Model (FTRUST): The First Trust Sector Model gained 7.18% during the third quarter, lagging SPX by 60 basis points. The model had multiple changes during the third quarter, kicking off the quarter by selling exposure to food & beverage (FTXG) and adding semiconductors (FTXL). clean energy (QCLN) was added in the closing weeks of Q3, leaving the model maintaining exposure to the internet (FDN), industrials/producer durables (FXR), community banks (QABA), banks (FTXO), water (FIW), utilities (FXU), wind energy (FAN), semiconductors (FTXL), and QCLN to start Q4.

First Trust Size and Style Model (FTSIZESTYLE): The First Trust Size and Style gained 7.92% in Q3, besting SPX by 13 basis points, and placing the model within 1% of the index on a year-to-date basis. There were no changes to the model over the past three months, and the strategy continues to maintain an overweight to the large cap space with large cap core (FEX) and large cap growth (FTC), along with mid cap growth (FNY).

First Trust Income Model (FTINCOME): The First Trust Income Model gained 5% during the third quarter, lagging SPX by more than 2.5%. There was a change within the Model this quarter as it sold the Morningstar Dividend Leaders Fund (FDL) and added the Technology Dividend Fund (TDIV) maintains exposure to Energy Infrastructure (EMLP), Utilities (FXU), a European Dividend fund (FDD), International Dividend Aristocrats (FID), and Technology Dividend Fund (TDIV).

First Trust Thematic Focus Five Model (FTTHEME5.TR): The First Trust Thematic Focus Five Model (FTTHEME5.TR) gained just shy of 8% during Q3, slightly lagging the S&P 500 Total Return Index (TR.SPXX). The Thematic Model was the best performing First Trust model for the quarter and is now outperforming the Index by roughly 12% on a year-to-date basis. The model had one change during the quarter, removing Next Gen Infrastructure (RBLD) and adding Cloud Computing (SKYY). The FTTHEME5.TR maintains exposure to Streaming and Gaming (BNGE), the Internet (FDN), International Internet (FDNI), Cybersecurity (CIBR), and Cloud Computing (SKYY).

First Trust International Focus Five Model (FTRUSTINTL): The First Trust International Focus Five Model gained 6.89% during Q3, roughly in-line with its benchmark, the SPDR MSCI ACWI ex-US ETF (CWI), up 6.92%. There were no changes to the international model this quarter, as the strategy currently maintains exposure to Germany (FGM), Switzerland (FSZ), China (FCA), the United Kingdom (FKU), and the Eurozone (FEUZ).

First Trust Fixed Income Model (FTFIXINC.TR): The First Trust Fixed Income Model was up 4.47% during this last quarter, besting its benchmark (AGG.TR) by over 2%. There was one change to the model this past quarter as it sold Preferreds (FPE) and bought High Yield (HYLS) in late July. The strategy is outperforming its benchmark by more than 3% on a year-to-date basis and currently maintains exposure to Senior Loans (FTSL), High Yield (HYLS), Emerging Market Bonds (FEMB), and Convertibles (FCVT).