There are multiple First Trust Models with changes this week, including the First Trust Focus Five (FTRUST5), Thematic Focus Five (FTTHEME.TR), Size and Style (FTSIZESTYLE), and Fixed Income (FTFIXINC.TR).
There are multiple First Trust Models with changes this week.
First Trust Focus Five Model
This week’s change to the Focus Five Model involves the removal of both the First Trust Dow Jones Internet Index Fund (FDN) and the First Trust Financials AlphaDEX Fund (FXO) due to each falling below the sell threshold within the Model’s relative strength matrix rankings. In their place, the First Trust Nasdaq Bank ETF (FTXO) and the First Trust Nasdaq Transportation ETF (FTXR) are being added, as they are the highest ranked funds not already owned within the Model’s matrix.
FTXO has maintained a positive trend on the trend chart and superior near-term market relative strength since June 2025, leading to a fund score of 4.96. Meanwhile, FTXR has maintained a positive trend on the trend chart since August 2025 and superior near-term market relative strength since October last year.
With the change, the model will rebalance the five holdings to equally weighted at 20% and will now maintain exposure to the Semiconductors (FTXL), Aerospace & Defense (MISL), Biotechnology (FBT), Banks (FTXO), and Transportation (FTXR).
First Trust Thematic Focus Five Model
There is a change to the First Trust Thematic Focus Five Model (Total Return) (FTTHEME5.TR) this week as it removes the First Trust S-Network Streaming and Gaming ETF (BNGE.TR) as it fell below the sell threshold within the Model’s total return relative strength matrix. In its place, the Model is adding the First Trust S-Network Future Vehicles & Technology ETF (CARZ.TR). On both the default price return and the total return chart, CARZ has maintained a positive trend since May 2025. Along with superior market relative strength, CARZ bolsters a strong fund score of 5.79.
With the change, the model will rebalance the five holdings to equally weighted at 20% and will now maintain exposure to the Clean Energy (QCLN.TR), Transaction & Processing (LEGR.TR), NextG (communications) (NXTG.TR), Smart Grid Infrastructure (GRID.TR), and Future Vehicles & Technology (CARZ.TR).
First Trust Size and Style Model
There is a change to the First Trust Size and Style Model (FTSIZESTYLE) for the first time since June 2025.
For those not familiar with the First Trust Size and Style Model, the strategy is evaluated monthly and is driven by a tally matrix, like our Dynamic Asset Level Investing Rankings (DALI). Proxies representing the specified groups – the nine size and style groups in this case – are ranked within a relative strength matrix. The number of relative strength buy signals for each of the size and style group proxies is then ‘tallied’ in order to determine leadership.
At the beginning of February, Mid Cap Blend eclipsed Mid Cap Growth within the size and style rankings, bringing the Model to remove the First Trust Mid Cap Growth AlphaDEX Fund (FNY) and add the First Trust Mid Cap Core AlphaDEX Fund (FNX).
On the trend chart, FNX has maintained a buy signal and positive trend since May 2025, and more recent action has brought the chart to a new all-time chart high at $138. The fund maintains a score of 4.27, which is superior to the average score for a fund within the Mid Cap (3.82) group on the Asset Class Group Scores page.
With the change, the Model will rebalance the three funds to equally weighted at 33.33%. The Model continues to maintain an overweight to Large Caps and has shifted from a growth tilt to a blend tilt overweight.
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 Tactical High Yield Fund (HYLS.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 Senior Loan Fund (FTXL.TR), which is the highest-ranking ETF in the matrix not already owned. 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), Convertibles (FCVT.TR), and Senior Loans (FTSL.TR). Additionally, the weighted average yield among the ETFs within the model will now be 4.93%. Year-to-date, the First Trust Fixed Income Model has gained 2.9% and is outperforming its benchmark by more than 1% (thru 2/23).
