Mix-And-Match Sector Fund Boosts Performance

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

Note from the Publisher

For all of you dividend fans out there, I am thrilled to announce that we have added www.DividendInvestor.com to the Eagle family of products. With screening tools, an all-star ranking of dividend stocks, the best dividend calendar on the web, personalized alerts and more, this site is a great complement to our investment products. Check it out today… go to www.DividendInvestor.com now!

Roger Michalski
Publisher, Eagle Financial Publications

We round out our review of the top three best-performing U.S. equity exchange-traded funds (ETFs) of 2015’s first half with the bronze medalist. This fund’s strategy, which differs from the approaches of the two funds that beat it, shows that exceptional returns did not accrue in just one way. However, all three of these strong-performing funds focus on momentum investing. First Trust Dorsey Wright Focus 5 ETF (FV) provides exposure to five different sector funds.

This fund considers sector strength algorithmically, including a calculation based on momentum, the key theme that ties together the top three funds for the half. It rebalances the funds in its holdings on a weekly basis.

As you can see in the chart below, this fund has been increasing steadily in value for some time. It offers a 0.15% dividend yield that may help offset the 0.94% current cost of ownership. Current total assets for the fund are more than $4.2 billion. FV’s performance through the first half of the year was 10.43%, and it has continued to make gains. This fund is up 14.14% year to date.

Exclusive  3 Best ESG Stocks to Buy Now


Current holdings for FV include the First Trust NYSE Arca Biotechnology Index Fund (FBT), 26.78%; First Trust Health Care AlphaDEX Fund (FXH), 20.76%; First Trust Dow Jones Internet Index Fund (FDN), 18.89%; First Trust Consumer Staples AlphaDEX Fund (FXG), 17.18%; and First Trust Consumer Discretionary AlphaDEX Fund (FXD), 16.28%.

If you like First Trust’s track record of choosing the right sectors at the right times to produce results, First Trust Dorsey Wright Focus 5 ETF (FV) could be worth considering for your own portfolio.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

In case you missed it, I encourage you to read my e-letter column from last week about the second-place fund of 2015’s first half. I also invite you to comment in the space provided below.

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor