There are multiple First Trust Models with changes this week including: the First Trust Focus Five Model, First Trust Focus Five with Cash Model, First Trust Thematic Focus Five Model, and First Trust Fixed Income (Total Return) Model. 

First Trust Focus Five Model

There is a change to the First Trust Focus Five Model (FTRUST5).

This marks the fourth change to the First Trust Focus Five Model this year and involves the removal of the First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) as it fell below the sell threshold in the Model’s relative strength matrix. In its place, the Focus Five Model is adding the First Trust Indxx Aerospace & Defense ETF (MISL), the most recent addition to the Model’s inventory. Although the fund gave a sell signal on the default trend chart in early November, the long-term technical picture for the fund remains positive. The fund has maintained a positive trend since October 2022 and currently shows positive near and long-term relative strength against the market, leading the ETF to sustain a strong fund score of 5.58. With the change, the model will rebalance the five holdings to equally weighted at 20% and will now maintain exposure to the Internet (FDN), Financials (FXO), Semiconductors (FTXL), Utilities (FXU), and Aerospace & Defense (MISL).

First Trust Focus Five with Cash

Along with the change to the holdings of the Focus Five, there is a change to the First Trust Focus Five with Cash Model  as the Cash allocation will decrease from 41% to 8% due to the cash proxy dropping below the ranking threshold for raising or maintaining cash. The five targeted sector representatives will account for the remaining 92% of the allocation in an equal-weighted fashion (approximately 18.4% per sector).

First Trust Thematic Focus Five Model

There is also a change to the First Trust Thematic Focus Five Model (Total Return) (FTTHEME5.TR) this week.

The change this week involves the removal of the First Trust Dow Jones International Internet ETF (FDNI.TR), which fell below the sell threshold within the Model’s total return relative strength matrix. In its place, the Model is adding the First Trust Nasdaq Clean Edge Green Energy Index Fund (QCLN)/(QCLN.TR). The Green Energy Fund has maintained a positive trend on both the price return and total return charts since May of this year and action in the latter part of November saw the fund return to a buy signal. QCLN maintains a fund score of 4.81, which is higher than the average score for a fund within the Energy (3.74) and All US (3.92) groups on the Asset Class Group Scores page. With the change, the model will rebalance the five holdings to equally weighted at 20% and will now maintain exposure to the Internet (FDN.TR), Cloud Computing (SKYY.TR), Cybersecurity (CIBR.TR), S-Network Streaming and Gaming (BNGE.TR), and Clean Energy (QCLN.TR).

First Trust Fixed Income Model

There is a change to the First Trust Fixed Income Model (Total Return) (FTFIXINC.TR) this week as the model removes the First Trust Senior Loan Fund (FTSL.TR) as it fell below the sell threshold within the model’s relative strength matrix. In its place, the model is adding the First Trust SSI Strategic Convertible Securities ETF (FCVT.TR), which is the highest-ranking ETF in the matrix not already owned. This marks the seventh trade in the model in 2025 as it continues to adapt to trends within the Fixed Income space. With the change, the model will rebalance the four holdings equally to 25% and will maintain exposure to Preferreds (FPE.TR), Emerging Markets (FEMB.TR), High Yield (HYLS.TR), and Convertibles (FCVT.TR). Additionally, the weighted average yield among the ETFs within the model will now be 4.91%. Year-to-date, the First Trust Fixed Income Model has gained 10% and is outperforming its benchmark by 3.5% (thru 12/9).

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 are multiple First Trust Models with changes this week including: the First Trust Focus Five Model, First Trust Focus Five with Cash Model, First Trust Thematic Focus Five Model, and First Trust Fixed Income (Total Return) Model. 

* - 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, January 7th, 2026. 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, January 7th, 2026. 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, December 31st, 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)