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