tiprankstipranks
Advertisement

AFSM - ETF AI Analysis

Compare

Top Page

AFSM

First Trust Active Factor Small Cap ETF (AFSM)

Rating:70Neutral
Price Target:
AFSM, the First Trust Active Factor Small Cap ETF, earns a solid overall rating thanks to strong contributors like GigaCloud Technology and TTM Technologies, which show robust financial performance, strategic growth moves, and positive momentum. Other holdings such as Credo Technology Group and Photronics also support the fund with good growth prospects and generally attractive valuations, though some face valuation or technical caution signals. Weaker names like nLIGHT and Bloom Energy, which struggle with financial or valuation challenges, plus a general tilt toward higher-valuation, small-cap stocks, add risk and can hold the rating back somewhat.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating positive recent momentum.
Leading Holdings Performing Well
Several of the top positions, especially in technology-related names, have delivered strong year-to-date gains that support the fund’s overall returns.
Broad Sector Diversification
Holdings spread across many sectors, with meaningful weights in technology, health care, industrials, and financials, help reduce the impact of weakness in any single industry.
Negative Factors
High Expense Ratio
The fund’s fee is relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Small-Cap Volatility
Because the ETF focuses on smaller companies, its share price may swing more sharply than funds that hold larger, more established firms.
Heavy U.S. Concentration
With almost all assets invested in U.S. stocks and very little abroad, the fund offers limited geographic diversification if the U.S. market struggles.

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

AFSM Summary

The First Trust Active Factor Small Cap ETF (AFSM) is an actively managed fund that focuses on smaller U.S. companies, rather than tracking a fixed index. It looks for small businesses with attractive traits like solid quality, reasonable prices, and strong recent performance, across many sectors such as technology, health care, and industrials. Its holdings include lesser-known but growing names like Bloom Energy and TTM Technologies. Someone might invest for growth potential and diversification beyond large, famous companies. A key risk is that small-cap stocks can be more volatile and can go up and down more sharply than the overall market.
How much will it cost me?The First Trust Active Factor Small Cap ETF (AFSM) has an expense ratio of 0.75%, meaning you’ll pay $7.50 per year for every $1,000 invested. This is higher than average because the fund is actively managed, which involves more research and decision-making compared to passively managed ETFs that track an index.
What would affect this ETF?The First Trust Active Factor Small Cap ETF (AFSM) could benefit from economic growth and innovation in the U.S., particularly in sectors like technology, healthcare, and financials, which make up a significant portion of its holdings. However, it may face challenges from rising interest rates or economic slowdowns, which can negatively impact small-cap companies and sectors like consumer cyclical and real estate. Regulatory changes or shifts in market sentiment could also influence the performance of its top holdings.

AFSM Top 10 Holdings

AFSM is leaning hard into U.S. small-cap tech, with names like Credo Technology, Vicor, and Viavi Solutions doing much of the heavy lifting as their momentum keeps rising. Bloom Energy has also been a bright spot, giving the portfolio a clean-tech spark. On the steadier side, GigaCloud Technology and Ames National are contributing without much drama, helping smooth out the ride. A few holdings like nLIGHT and Perimeter Solutions show more mixed signals, hinting at some bumps beneath the surface, but overall the fund’s story is one of tech-driven small-cap strength.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy1.89%$1.81M$79.84B1364.98%
62
Neutral
TTM Technologies1.60%$1.53M$16.96B448.19%
77
Outperform
Viavi Solutions1.43%$1.36M$12.49B462.70%
71
Outperform
Vicor1.26%$1.21M$13.33B556.34%
73
Outperform
nLIGHT1.04%$988.87K$4.73B532.05%
61
Neutral
Photronics1.02%$970.10K$3.07B148.35%
74
Outperform
Perimeter Solutions1.00%$957.61K$5.24B163.76%
70
Neutral
Credo Technology Group Holding Ltd0.96%$913.02K$36.63B255.88%
77
Outperform
Ames National0.91%$872.83K$246.85M57.64%
70
Outperform
Axcelis Technologies0.90%$860.25K$4.97B157.14%
78
Outperform

AFSM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
34.81
Positive
100DMA
34.56
Positive
200DMA
33.32
Positive
Market Momentum
MACD
0.77
Positive
RSI
63.52
Neutral
STOCH
56.55
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AFSM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 36.93, equal to the 50-day MA of 34.81, and equal to the 200-day MA of 33.32, indicating a bullish trend. The MACD of 0.77 indicates Positive momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 56.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFSM.

AFSM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$95.48M0.75%
70
Neutral
$64.54M0.61%
64
Neutral
$57.13M0.64%
66
Neutral
$26.47M0.49%
65
Neutral
$25.63M0.74%
71
Outperform
$23.85M0.86%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AFSM
First Trust Active Factor Small Cap ETF
37.54
8.50
29.27%
SYZ
Lazard US Systematic Small Cap Equity ETF
RUSC
US Small Cap Equity Active ETF
ESSC
Eventide Small Cap ETF
ALIL
Argent Focused Small Cap ETF
FTKI
First Trust Small Cap BuyWrite Income 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: ―
Table of Contents
Advertisement