AFMC - ETF AI Analysis

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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 thanks to several strong mid-cap holdings like Woodward, Renaissancere Holdings, and Exelixis, which show robust financial performance, positive earnings outlooks, and supportive technical trends. These strengths are partly offset by names such as Casey's General Stores and BorgWarner, where signs of overvaluation and bearish or weak technical momentum weigh on the fund. A key risk factor is that several top holdings show potential overbought conditions or high valuation metrics, which could increase volatility if market sentiment shifts.

Positive Factors

Broad Sector Diversification

The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.

Mostly Strong Top Holdings

Several of the largest positions, such as Mueller Industries, Comfort Systems, Oshkosh, and Curtiss-Wright, have shown strong year-to-date performance, supporting the ETF’s overall returns.

Solid Recent Performance

The ETF has delivered steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Negative Factors

High U.S. Concentration

Almost all of the fund’s assets are invested in U.S. companies, offering little geographic diversification if the U.S. market weakens.

Relatively High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees.

Some Weak Top Holdings

A few key positions, such as Exelixis and Old Republic International, have shown weak or negative year-to-date performance, which can drag on overall results.

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

AUM135.05M

RegionNorth America

Expense Ratio0.68%

Beta0.90

IssuerFirst Trust

Inception DateDec 03, 2019

Dividend Yield0.92%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume25,383

30 Day Avg. Volume28,031

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

41.19

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering270

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 doesn’t track a fixed index, but instead selects stocks using a rules-based approach. The fund spreads investments across many sectors, including industrials, technology, and financials, and holds companies like BorgWarner and Oshkosh. Someone might invest in AFMC to diversify beyond large, well-known stocks and tap into the growth of mid-cap firms. A key risk is that mid-cap stocks can be more volatile and can go up and 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 right now is all about solid, U.S.-focused mid-caps with an industrial backbone. Comfort Systems and Woodward have been doing the heavy lifting, with rising momentum that helps pull the fund higher, while Lumentum’s surge on AI and cloud optimism adds a tech-powered boost. Oshkosh and BorgWarner are also contributing steadily, reflecting strength in industrial and auto-related names. On the flip side, Mueller Industries and Exelixis are more mixed to lagging, occasionally tapping the brakes on an otherwise broadly constructive, industrial-tilted portfolio.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
FTI	TechnipFMC	1.37%	$1.88M	$25.38B	150.79%	80 Outperform
MLI	Mueller Industries	1.31%	$1.80M	$12.70B	41.56%	78 Outperform
CASY	Casey's General	1.27%	$1.74M	$24.63B	74.11%	68 Neutral
BWA	BorgWarner	1.21%	$1.66M	$11.03B	78.39%	65 Neutral
FHI	Federated Hermes	1.16%	$1.59M	$4.20B	42.89%	72 Outperform
RNR	Renaissancere Holdings	1.10%	$1.50M	$12.90B	22.86%	78 Outperform
CW	Curtiss-Wright	1.10%	$1.50M	$26.05B	131.76%	74 Outperform
EXEL	Exelixis	1.08%	$1.48M	$11.00B	8.21%	78 Outperform
NFG	National Fuel Gas Company	1.07%	$1.46M	$8.83B	25.02%	77 Outperform
WWD	Woodward	1.06%	$1.45M	$22.93B	121.98%	79 Outperform

AFMC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

36.47

Negative

100DMA

35.20

Positive

200DMA

33.92

Positive

Market Momentum

MACD

-0.08

Positive

RSI

39.37

Neutral

STOCH

29.34

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AFMC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 37.13, equal to the 50-day MA of 36.47, and equal to the 200-day MA of 33.92, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 29.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AFMC.

AFMC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
AFMC	―	―	$135.05M	0.68%	72 Outperform
AVMV	―	―	$496.22M	0.20%	72 Outperform
AVMC	―	―	$307.29M	0.18%	71 Outperform
TMVE	―	―	$292.99M	0.55%	67 Neutral
GLRY	―	―	$142.13M	0.80%	75 Outperform
AMID	―	―	$106.25M	0.52%	72 Outperform

Performance Comparison

AFMC

First Trust Active Factor Mid Cap ETF

35.92

6.04

20.21%

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.

Disclaimer

This 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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