AFSM - ETF AI Analysis

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First Trust Active Factor Small Cap ETF (AFSM)

Rating:69Neutral

Price Target:―

The First Trust Active Factor Small Cap ETF (AFSM) has a solid overall rating, reflecting a mix of strong performers and some challenges among its holdings. Catalyst Pharma stands out as a key contributor, driven by robust revenue growth, profitability, and attractive valuation, which positively impacts the fund's rating. On the other hand, Perimeter Solutions and American Healthcare REIT slightly weigh down the score due to valuation concerns and profitability challenges. Investors should note the ETF's exposure to small-cap stocks, which can bring higher growth potential but also increased volatility.

Positive Factors

Strong Top Holdings

Several of the ETF's largest positions, like InterDigital and Comfort Systems, have delivered strong year-to-date gains, supporting overall performance.

Sector Diversification

The ETF spreads its investments across multiple sectors, including Financials, Health Care, and Technology, reducing reliance on any single industry.

Healthy Year-to-Date Performance

The fund has shown positive year-to-date returns, indicating resilience in its portfolio despite short-term fluctuations.

Negative Factors

High Geographic Concentration

Nearly all of the ETF's holdings are in U.S. companies, limiting exposure to international markets and diversification.

Lagging Holdings

Some top holdings, such as Cal-Maine Foods and Halozyme, have underperformed year-to-date, potentially dragging on overall returns.

Relatively High Expense Ratio

The ETF charges a higher expense ratio compared to many passive funds, which could reduce net returns for investors over time.

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

AUM67.94M

RegionNorth America

Expense Ratio0.75%

Beta0.99

IssuerFirst Trust

Inception DateDec 03, 2019

Dividend Yield0%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume59,058

30 Day Avg. Volume26,600

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

39.20

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering316

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

AFSM Summary

The First Trust Active Factor Small Cap ETF (AFSM) is an investment fund that focuses on small-cap companies, which are typically smaller, agile businesses with growth potential. It uses an active management strategy to select stocks based on factors like value, quality, and momentum. Some of its top holdings include InterDigital and Comfort Systems, which represent innovative and dynamic industries. Investors might consider AFSM for diversification and the opportunity to benefit from the growth of smaller companies. However, it’s important to note that small-cap stocks can be more volatile and may experience larger price swings compared to larger, more established companies.

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

The First Trust Active Factor Small Cap ETF (AFSM) is leaning heavily on the dynamism of small-cap stocks, with a notable tilt toward healthcare, financials, and technology. Standouts like Carpenter Technology and Perimeter Solutions are rising stars, benefiting from strong demand and strategic growth, while InterDigital is lagging slightly due to mixed technical signals and ongoing challenges. Comfort Systems and TTM Technologies add steady momentum, showcasing robust financial performance. With its U.S.-centric focus and a diverse mix of sectors, the fund balances innovation with stability, though some holdings face valuation concerns.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
TTMI	TTM Technologies	1.09%	$732.54K	$7.59B	185.28%	77 Outperform
PRM	Perimeter Solutions	1.05%	$703.72K	$4.20B	121.61%	70 Neutral
CALM	Cal-Maine Foods	0.99%	$666.97K	$4.21B	-19.64%	84 Outperform
FIX	Comfort Systems	0.87%	$587.55K	$34.14B	109.36%	77 Outperform
AHR	American Healthcare REIT, Inc.	0.87%	$582.17K	$8.86B	65.96%	68 Neutral
GCT	GigaCloud Technology, Inc. Class A	0.85%	$568.30K	$1.50B	95.09%	82 Outperform
TILE	Interface	0.84%	$564.48K	$1.67B	9.38%	72 Outperform
IDCC	InterDigital	0.80%	$537.80K	$9.12B	82.28%	76 Outperform
PLAB	Photronics	0.79%	$532.99K	$2.14B	37.07%	74 Outperform
HALO	Halozyme	0.79%	$530.46K	$7.32B	29.60%	73 Outperform

AFSM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

32.26

Positive

100DMA

32.01

Positive

200DMA

30.21

Positive

Market Momentum

MACD

0.41

Negative

RSI

62.89

Neutral

STOCH

77.63

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 32.47, equal to the 50-day MA of 32.26, and equal to the 200-day MA of 30.21, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 77.63 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
AFSM	―	―	$67.94M	0.75%	―
FSCC	―	―	$66.29M	0.36%	―
ALIL	―	―	$21.38M	0.74%	―
SMLL	―	―	$16.32M	0.80%	―
AFSC	―	―	$13.97M	0.65%	―
SCDS	―	―	$7.43M	0.40%	―

Performance Comparison

AFSM

First Trust Active Factor Small Cap ETF

33.57

1.89

5.97%

FSCC

Federated Hermes MDT Small Cap Core ETF

―

ALIL

Argent Focused Small Cap ETF

―

SMLL

Harbor Active Small Cap ETF

―

AFSC

abrdn Focused U.S. Small Cap Active ETF

―

SCDS

JPMorgan Fundamental Data Science Small Core 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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