The $3.5 billion First Trust Dorsey Wright Focus 5 ETF (NasdaqGM: FV) has helped exchange traded fund investors target some high-flying sectors, but the momentum strategy recently cut its biotech position for a defensive play.

The First Trust Dorsey Wright Focus 5 ETF follows DWA’s relative strength ranking system where sector ETFs are compared to each other to measure price momentum relative to other ETFs in the universe and the top five ranking ETFs are included in the underlying index. The momentum strategy basically bets that hot movers will continue to rise, so investors would essentially be buying high and selling even higher. The relative strength analysis is conducted on a weekly basis.

Since its inception, FV has held about 20% of its portfolio in five smart-beta sector ETFs, including First Trust NYSE Arca Biotechnology Index Fund (NYSEArca: FBT), First Trust Dow Jones Internet Index Fund (NYSEArca: FDN), First Trust Consumer Staples AlphaDEX Fund (NYSEArca: FXG), First Trust Health Care AlphaDEX Fund (NYSEArca: FXH) and First Trust Consumer Discretionary AlphaDEX Fund (NYSEArca: FXD).

However, in a sign of the times, FV has cut its biotech FBT position and replaced it with the First Trust Utilities AlphaDEX Fund (NYSEArca: FXU).

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