There are two First Trust Models with changes this week.

First Trust Focus Five Model

This marks the fifth change to the First Trust Focus Five Model (FTRUST5) since the start of 2025 as is removing the First Trust Utilities AlphaDEX Fund (FXU) due to the fund falling below the sell threshold within the Model’s relative strength matrix rankings. In its place, the First Trust NYSE Arca Biotechnology Index Fund (FBT) is being added, which is the highest fund not already owned within the Model’s matrix. The fund has maintained a positive trend since June last year and currently shows positive near and long-term relative strength against the market, leading the ETF to sustain a strong fund score of 5.52. 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), Aerospace & Defense (MISL), and Biotechnology (FBT).

First Trust Thematic Focus Five Model

There are two changes 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 Cloud Computing ETF (SKYY.TR) and the First Trust Nasdaq Cybersecurity ETF (CIBR.TR), as both fell below the sell threshold within the Model’s total return relative strength matrix. In its place, the Model is adding the First Trust Indxx Innovative Transaction & Process ETF (LEGR.TR) and the First Trust Indxx NextG ETF (NXTG.TR). LEGR and NXTG have maintained a positive trend on their default point and figure trend chart since May of last year and currently show positive near and long-term relative strength against the market, leading the ETFs to sustain strong fund scores of 5.55 and 5.47, respectively. 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), S-Network Streaming and Gaming (BNGE.TR), Clean Energy (QCLN.TR), Transaction & Processing (LEGR.TR), and NextG (communications) (NXTG.TR).

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 two First Trust Models with changes this week; the First Trust Focus Five (FTRUST5) and First Trust Thematic Focus Five (Total Return) (FTTHEME5.TR) Models.

* - 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, February 11th, 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, February 11th, 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, February  4th, 2026. 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)