First Trust Feature | Nasdaq Dorsey Wright

First Trust Feature

Published: November 5, 2025

This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.

There are two changes to the First Trust Sector Model (FTRUST); sell FIW and FXR.

There are two changes to the First Trust Sector Model (FTRUST) with the removal of both the First Trust Water ETF (FIW) and the First Trust Industrials/Producer Durables AlphaDEX Fund (FXR). 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 process compares each of the funds in 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 in the model’s holdings, while an RS chart residing in a column of Os warrants the fund’s exclusion. Following last Wednesday’s (10/28) action, the Model’s RS chart comparing FIW to SPX reversed back into a column of Os for the first time since November 2016, while FXR reversed into Os on its Model RS chart following action on 11/3 after having been in a column of Xs since January 2021. With the removal of both funds, the First Trust Sector Model will rebalance with six holdings to equally weighted at 16.67% and maintain an overweight technology.

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DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. First Trust has arranged with Dorsey, Wright to provide this specialized ETF page on the First Trust ETFs. The Point & Figure analysis, models and resulting rankings, including any information, data or commentary included therein, are created and provided solely by Dorsey, Wright & Associates. Such analysis, models and rankings should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including First Trust ETF shares. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. Neither First Trust nor Dorsey Wright through this ETF page provide investment advice or recommendations regarding any security, fund or market. As the investment professional making the final decision with respect to allocations, including any related suitability, fiduciary or other legal obligation, please remember to adhere to all applicable laws, regulations and rules, including NASD Rules 2090 and 2111 (Know Your Customer). The percentage of the portfolio devoted to any ETF is at the sole discretion of the financial advisor or the customer, and not Dorsey, Wright & Associates or First Trust. If you are not familiar with Point & Figure methodology, we suggest you read “Point & Figure Charting, 4th Edition” by Thomas J. Dorsey and visit the PnF University, www.dorseywright.com. If you are not familiar with the First Trust ETF product, or Exchange Traded Funds (ETFs), we suggest you visit www.ftportfolios.com.