There are changes to the First Trust Focus Five (FTRUST5) and Sector (FTRUST) Models this week.

First Trust Focus Five Model (FTRUST5)

This week’s change to the Focus Five Model (FTRUST5) involves the removal of the First Trust Indxx Aerospace & Defense (MISL) due to each falling below the sell threshold within the Model’s relative strength matrix rankings. In its place, the First Trust Nasdaq Oil & Gas ETF (FTXN) is being added, as it is the highest ranked funds not already owned within the Model’s matrix.

On the default point and figure chart, FTXN has maintained a positive trend since June 2025 and returned to a buy signal during the closing days of April by completing a bearish signal reversal pattern at $37.50. Monday’s (5/4) action brought the market RS chart of FTXN against the S&P 500 Equal Weight Index (SPXEWI) back into a column of Xs, increasing the ETF’s fund score up to 5.65, which is a full point higher than the average score for an energy (4.60) fund on the Asset Class Group Scores.

With the change, the model will rebalance the five holdings to equally weighted at 20% and will now maintain exposure to the semiconductors (FTXL), biotechnology (FBT), transportation (FTXR), energy (FXN), and oil & gas (FTXN).

First Trust Sector Model (FTRUST)

There is a change to the First Trust Sector Model (FTRUST) this week as the model is adding the First Trust Nasdaq-100 Technology Sector Index Fund (QTEC).  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 Friday’s (5/1) action, QTEC reversed into Xs after briefly being in a column of Os since March. On the default point and figure trend chart, QTEC reversed into Xs in early April and returned to a buy signal in the latter part of the month by breaking a double top at $250 before continuing on the new all-time highs – with Tuesday’s action seeing the fund move above $275. QTEC maintains a stellar fund score of 5.76, which is a full 1.5 fund score points higher than the average score for Technology (4.18) funds on the Asset Class Group Scores page.

With the change the model to rebalance with ten equally weighted at 10% and now maintains exposure to materials (FXZ), banks (FTXO), pharmaceuticals (FTXH), biotechnology (FBT), semiconductors (FTXL),  utilities (FXU), energy (FXN), wind energy (FAN), green energy (QCLN), and Nasdaq-100 tech (QTEC).

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 changes to the First Trust Focus Five (FTRUST5) and Sector (FTRUST) Models this week.

* - 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, May 20th, 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, May 20th, 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, May 13th, 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)