There are two First Trust Models with changes this week.

First Trust International Model (FTRUSTINTL)

This week, the First Trust International Model is selling the First Trust China AlphaDEX Fund (FCA), which fell below the sell threshold within the Model’s relative strength matrix, and is being replaced by the First Trust International Equity Opportunities Fund (FPXI), which is the highest ranking ETF within the model universe not already owned. While a holding within the International Model, the Chinese fund FCA gained 52%, outperforming the model’s benchmark (ACWX) by more than 12% (12/3/2024 – 6/16/2026).

The new model holding, FPXI, has maintained a positive trend on the default point and figure chart for more than 12 months and returned to a buy signal during the early part of April. This week’s action brought about a fourth buy signal with the double top break at $81, marking a new all-time chart high in the process. The superior trending picture and positive near-term relative strength helps FPXI boast a fund score of 4.91, which is higher than the average score for a fund within the Non-US Equity (4.46) and All Global Equity & Diversified (4.07) groups on the Asset Class Group Scores page.

With the change to the First Trust International Model, the five holdings will rebalance to equally weighted at 20%, and the model will now maintain exposure to Asia-Pacific Ex-Japan (FPA), Europe (FEP), Eurozone (FEUZ), Germany (FGM), and the International Opportunities fund (FPXI).

First Trust Income Model (FTINCOME)

This week, the First Trust Income Model is selling the First Trust Utilities AlphaDEX Fund (FXU), which fell below the sell threshold within the Model’s relative strength matrix, and is being replaced by the First Trust Nasdaq Technology Dividend Index Fund (TDIV), which is the highest ranking ETF within the model universe not already owned. TDIV has maintained a positive trend on the default point and figure chart since November 2022 and returned to a buy signal during the middle of April. This month’s action brought about a new all-time chart high at $128 before reversing into Os and falling to $114 on the chart. The superior trending picture and positive near-term relative strength helps TDIV boast a stellar fund score of 5.58, which is higher than the average score for a fund within the Technology (4.03) and U.S. Large Cap Growth (4.39) groups on the Asset Class Group Scores page.

With the change to the First Trust Income Model, the five holdings will rebalance to equally weighted at 20%, and the model will now maintain exposure to the Dow Jones Global Select (FGD), Morningstar Dividend Leaders (FDL), North American Energy Infrastructure (EMLP), STOXX European Dividend (FDD), and Technology Dividend (TDIV) funds.

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 International (FTRUSTINTL) and Income (FTINCOME) 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, June 24th, 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, June 24th, 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, July 1st, 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)