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AFSM - ETF AI Analysis

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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, which combines robust financial performance, strategic acquisitions, and attractive valuation, and TTM Technologies, which adds solid earnings and sales growth despite some valuation concerns. Holdings such as nLIGHT and Bloom Energy, which face financial challenges, high leverage, or valuation issues, slightly weigh on the fund’s appeal. The main risk factor is its focus on smaller companies, where some holdings show weaker profitability, cash flow issues, or legal and competitive risks that can increase volatility.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.
Generally Strong Recent Performance
The ETF has shown solid gains over the year so far and in recent months, indicating positive recent momentum.
Several Strong Top Holdings
A number of the largest positions, such as TTM Technologies, Hycroft Mining, and Rambus, have delivered strong year-to-date gains that support the fund’s returns.
Negative Factors
High Expense Ratio
The fund charges a relatively high fee, which can eat into long-term returns compared with lower-cost ETFs.
Heavy U.S. Concentration
Almost all of the ETF’s assets are invested in U.S. companies, offering little geographic diversification.
Exposure to Volatile Small-Cap and Cyclical Areas
Its focus on small-cap stocks and meaningful exposure to cyclical sectors like technology, industrials, and consumer cyclical can make the fund more sensitive to market downturns.

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 set index. It invests across many sectors, including technology, health care, and industrials, and holds businesses like TTM Technologies and Cal-Maine Foods. Investors might consider AFSM if they want growth potential from smaller, more innovative companies and added diversification beyond large, well-known stocks. However, small-cap stocks can be more volatile, so the value of this ETF can move 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 into U.S. small-cap innovators, with a clear tilt toward tech and energy names that have been doing the heavy lifting lately. Viavi Solutions, nLIGHT, and Par Pacific are among the standouts, with rising share prices giving the fund a helpful tailwind, while Bloom Energy has also been steadily adding spark. On the flip side, TTM Technologies and Photronics have been more mixed, occasionally losing steam and muting some of those gains. Overall, the fund is diversified across sectors but still driven by a handful of nimble, higher-momentum small caps.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
TTM Technologies1.38%$1.07M$9.87B357.67%
77
Outperform
Peabody Energy Comm1.21%$941.05K$4.81B187.90%
61
Neutral
Viavi Solutions1.07%$830.77K$8.02B207.64%
71
Outperform
Ames National1.05%$813.83K$244.55M55.90%
70
Outperform
Bloom Energy1.04%$806.90K$37.38B555.39%
62
Neutral
nLIGHT0.92%$714.34K$3.59B709.06%
61
Neutral
GigaCloud Technology, Inc. Class A0.90%$700.63K$1.52B175.25%
82
Outperform
Photronics0.90%$695.57K$2.34B92.23%
74
Outperform
Par Pacific Holdings0.88%$681.72K$3.22B360.52%
67
Neutral
National Healthcare0.81%$630.11K$2.50B74.26%
74
Outperform

AFSM Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
34.04
Negative
100DMA
33.45
Negative
200DMA
32.34
Negative
Market Momentum
MACD
-0.40
Negative
RSI
41.02
Neutral
STOCH
54.89
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AFSM, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 33.12, equal to the 50-day MA of 34.04, and equal to the 200-day MA of 32.34, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AFSM.

AFSM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$78.73M0.75%
70
Neutral
$58.04M0.74%
65
Neutral
$23.31M0.74%
72
Outperform
$22.37M0.85%
69
Neutral
$21.41M0.49%
65
Neutral
$13.36M0.80%
63
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AFSM
First Trust Active Factor Small Cap ETF
32.31
4.52
16.26%
SYZ
Lazard US Systematic Small Cap Equity ETF
ALIL
Argent Focused Small Cap ETF
FTKI
First Trust Small Cap BuyWrite Income ETF
ESSC
Eventide Small Cap ETF
SMLL
Harbor Active Small 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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