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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’s rating reflects a portfolio anchored by several mid-cap companies with strong financial performance and positive earnings outlooks, which supports the fund’s overall quality. Standout holdings like Comfort Systems USA, TechnipFMC, Mueller Industries, Exelixis, and Renaissancere Holdings contribute positively through robust earnings, solid cash flow, and strategic growth initiatives, though some positions such as BorgWarner and Curtiss-Wright face concerns around potential overvaluation or weaker technical trends that slightly temper the fund’s appeal. The main risk is that many top holdings show signs of being relatively expensive or near overbought levels, which could increase volatility if market sentiment shifts.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and in recent months, showing solid momentum.
Broad Sector Diversification
Holdings are spread across many sectors, including industrials, technology, consumer, financials, and health care, which helps reduce the impact of weakness in any single industry.
Multiple Strong Top Holdings
Several of the largest positions have shown strong year-to-date performance, providing a solid foundation for the fund’s returns.
Negative Factors
Higher-Than-Average Fees
The expense ratio is relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Concentrated in U.S. Market
Almost all assets are invested in U.S. companies, offering little geographic diversification if the U.S. market struggles.
Smaller Asset Base
The fund manages a modest amount of assets, which can sometimes mean less trading liquidity and wider bid-ask spreads for investors.

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

AFMC Summary

The First Trust Active Factor Mid Cap ETF (AFMC) is an actively managed fund that focuses on mid-sized U.S. companies, aiming to blend growth potential with some stability. It does not track a fixed index, but instead selects stocks based on company strength and other financial characteristics. The fund spreads investments across many sectors, including industrials, technology, and consumer companies. Well-known names in the portfolio include Casey’s General and BorgWarner. Someone might invest in AFMC for diversification and the growth potential of mid-cap stocks. A key risk is that mid-cap shares can be more volatile and can go up and down with the overall stock 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 all about solid mid-cap momentum, with a clear tilt toward U.S. industrials and tech. Flex has been one of the fund’s real engines, rising steadily on upbeat earnings and growth initiatives, while TechnipFMC and Casey’s General Stores are also pulling their weight with strong, ongoing gains. Names like Curtiss-Wright and Woodward add to the industrial backbone, though their lofty valuations mean the ride could be bumpier. Financials such as Federated Hermes are contributing more quietly, keeping overall performance on a firm, if less flashy, footing.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Casey's General1.53%$2.32M$31.72B84.17%
68
Neutral
TechnipFMC1.51%$2.29M$29.48B153.83%
80
Outperform
Mueller Industries1.41%$2.13M$15.38B88.52%
78
Outperform
Flex1.28%$1.94M$49.54B255.02%
74
Outperform
BorgWarner1.20%$1.82M$12.24B96.20%
65
Neutral
Comfort Systems1.10%$1.67M$70.81B365.45%
80
Outperform
Federated Hermes1.07%$1.62M$4.22B31.39%
72
Outperform
Exelixis1.06%$1.61M$12.24B32.30%
78
Outperform
Renaissancere Holdings1.05%$1.59M$12.90B21.96%
78
Outperform
Curtiss-Wright1.05%$1.59M$27.42B105.19%
74
Outperform

AFMC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
36.98
Positive
100DMA
36.56
Positive
200DMA
35.00
Positive
Market Momentum
MACD
0.60
Negative
RSI
63.14
Neutral
STOCH
70.32
Neutral
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 38.45, equal to the 50-day MA of 36.98, and equal to the 200-day MA of 35.00, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 70.32 is Neutral, 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
$156.22M0.68%
72
Outperform
$590.53M0.20%
71
Outperform
$382.76M0.18%
71
Outperform
$317.70M0.55%
67
Neutral
$158.16M0.80%
75
Outperform
$106.88M0.52%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AFMC
First Trust Active Factor Mid Cap ETF
39.12
8.78
28.94%
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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