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AFMC - ETF AI Analysis

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AFMC

First Trust Active Factor Mid Cap ETF (AFMC)

Rating:72Outperform
Price Target:
AFMC, the First Trust Active Factor Mid Cap ETF, earns a solid overall rating, mainly driven by strong, well-diversified holdings like TechnipFMC, Renaissancere Holdings, Exelixis, and Mueller Industries, which all show healthy financial performance, positive outlooks, and generally supportive technical trends. Some positions such as BorgWarner and Matson face issues like overvaluation, operational challenges, or slower growth, which slightly weigh on the fund’s rating. A key risk factor is that several top holdings show signs of being overbought or potentially overvalued, which could increase volatility if market conditions change.
Positive Factors
Strong Year-To-Date Performance
The ETF has delivered strong gains so far this year, suggesting its strategy has worked well in the recent market environment.
Solid Top Holdings Performance
Most of the largest positions, including companies in energy, consumer, and industrials, have shown strong or steady performance, helping support the fund’s returns.
Broad Sector Diversification
The ETF spreads its investments across many sectors such as industrials, technology, consumer, financials, and health care, which helps reduce the impact if any single industry struggles.
Negative Factors
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns go toward fees instead of staying with investors.
Limited Geographic Diversification
Almost all of the ETF’s holdings are in U.S. companies, so investors are heavily exposed to the U.S. economy and market conditions.
Recent Short-Term Weakness
The ETF has shown slightly weak performance over the past month, which may indicate some short-term volatility or loss of momentum.

AFMC vs. SPDR S&P 500 ETF (SPY)

AFMC Summary

AFMC, the First Trust Active Factor Mid Cap ETF, invests in medium‑sized U.S. companies across many sectors like industrials, technology, and consumer businesses. It doesn’t track a fixed index; instead, managers actively pick mid‑cap stocks they believe have solid financial strength and room to grow. Well‑known names in the fund include Reliance Steel and Casey’s General. Someone might invest in AFMC to diversify beyond large, well-known companies and tap into the growth potential of mid‑sized firms. A key risk is that mid‑cap stocks and active strategies can be more volatile and can go up or down with the overall market.
How much will it cost me?The First Trust Active Factor Mid Cap ETF (AFMC) has an expense ratio of 0.65%, meaning you’ll pay $6.50 per year for every $1,000 invested. This is higher than average because it is actively managed, which involves more research and decision-making compared to passively managed funds that track an index.
What would affect this ETF?The First Trust Active Factor Mid Cap ETF (AFMC) could benefit from economic growth in the U.S., as mid-cap companies often thrive during periods of expansion and innovation, particularly in sectors like Technology and Industrials, which have significant weight in the fund. However, rising interest rates or economic slowdowns could negatively impact mid-cap stocks, especially in sectors like Financials and Consumer Cyclical, which are sensitive to borrowing costs and consumer spending. Regulatory changes or disruptions in key industries could also influence the performance of top holdings such as Flex and United Therapeutics.

AFMC Top 10 Holdings

AFMC’s story is driven by a mix of industrial strength and energy tailwinds, all rooted in U.S. mid-cap names. TechnipFMC, Chord Energy, and Matson have been rising sharply, giving the fund a solid boost from the energy and transportation corners. Casey’s General Stores is also pulling its weight, though its rich valuation hints it could lose some steam. On the flip side, BorgWarner and Mueller Industries have shown more mixed or lagging stretches, acting as mild speed bumps rather than full-on roadblocks. Overall, the ETF leans heavily on industrials and energy within a U.S.-only lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Reliance Steel1.61%$3.22M$21.64B51.34%
74
Outperform
Casey's General1.32%$2.64M$30.86B65.66%
68
Neutral
BorgWarner1.31%$2.61M$13.93B79.99%
65
Neutral
Mueller Industries1.29%$2.58M$15.23B53.16%
78
Outperform
Federated Hermes1.11%$2.21M$4.72B22.44%
72
Outperform
TechnipFMC1.08%$2.15M$27.30B111.98%
80
Outperform
Renaissancere Holdings1.05%$2.10M$13.37B32.44%
78
Outperform
ATI1.04%$2.07M$31.03B212.93%
78
Outperform
Exelixis1.02%$2.04M$13.40B41.57%
78
Outperform
Matson1.00%$1.99M$6.18B101.39%
77
Outperform

AFMC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
40.62
Positive
100DMA
39.33
Positive
200DMA
37.30
Positive
Market Momentum
MACD
0.42
Negative
RSI
65.15
Neutral
STOCH
85.91
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AFMC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 41.10, equal to the 50-day MA of 40.62, and equal to the 200-day MA of 37.30, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 85.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFMC.

AFMC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$204.83M0.68%
72
Outperform
$755.85M0.20%
71
Outperform
$491.91M0.18%
71
Outperform
$296.59M0.55%
67
Neutral
$172.02M0.80%
74
Outperform
$115.33M0.52%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AFMC
First Trust Active Factor Mid Cap ETF
42.00
9.42
28.91%
AVMV
Avantis U.S. Mid Cap Value ETF
AVMC
Avantis U.S. Mid Cap Equity ETF
TMVE
Thrivent Mid Cap Value ETF
GLRY
Inspire Faithward Mid Cap Momentum ESG ETF
AMID
Argent Mid Cap ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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