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First Trust Active Factor Small Cap ETF (AFSM)

Rating:70Outperform

Price Target:

$35.00

The First Trust Active Factor Small Cap ETF (AFSM) has a solid overall rating, reflecting its strong portfolio of holdings. Leading contributors include Cal-Maine Foods, which excels in financial stability and valuation, and Comfort Systems USA, which benefits from robust revenue growth and strategic initiatives. However, weaker holdings like Perimeter Solutions and American Healthcare REIT, with valuation concerns and mixed financial performance, may slightly weigh on the fund's rating. A potential risk is the ETF's exposure to smaller companies, which can be more volatile than larger-cap stocks.

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)

AUM45.97M

RegionNorth America

Expense Ratio0.75%

Beta1.02

IssuerFirst Trust

Inception DateDec 03, 2019

Dividend Yield0.66%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume19,828

30 Day Avg. Volume15,520

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

37.88

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering324

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 technology and healthcare names like InterDigital and Halozyme driving much of the fund’s recent momentum. InterDigital’s strong earnings and strategic agreements have kept it rising, while Halozyme has shown mixed results, with recent dips offset by longer-term gains. On the flip side, Cal-Maine Foods has been a drag on performance, struggling with declining growth this year. The fund’s U.S.-focused portfolio is diversified across sectors, but its tilt toward financials, healthcare, and technology gives it a growth-oriented edge.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
FIX	Comfort Systems	1.19%	$542.48K	$35.65B	147.62%	80 Outperform
IDCC	InterDigital	1.10%	$503.97K	$9.88B	148.93%	79 Outperform
CRS	Carpenter Technology	0.97%	$442.61K	$16.12B	90.44%	74 Outperform
REVG	REV Group	0.95%	$435.96K	$2.93B	124.26%	71 Outperform
SANM	Sanmina-Sci	0.87%	$397.66K	$7.36B	92.20%	79 Outperform
TTMI	TTM Technologies	0.87%	$396.65K	$6.56B	200.40%	66 Neutral
HALO	Halozyme	0.86%	$393.25K	$7.63B	29.15%	77 Outperform
AHR	American Healthcare REIT, Inc.	0.80%	$366.52K	$7.60B	65.16%	70 Neutral
CORT	Corcept Therapeutics	0.79%	$360.23K	$7.59B	48.43%	70 Outperform
PRM	Perimeter Solutions	0.78%	$354.06K	$3.13B	58.22%	64 Neutral

AFSM Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

32.43

Negative

100DMA

31.28

Positive

200DMA

29.95

Positive

Market Momentum

MACD

0.04

Negative

RSI

48.32

Neutral

STOCH

64.67

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For AFSM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 32.23, equal to the 50-day MA of 32.43, and equal to the 200-day MA of 29.95, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AFSM.

AFSM Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
AFSM	―	―	$45.97M	0.75%	70 Outperform
OASC	―	―	$59.80M	0.64%	66 Neutral
FSCC	―	―	$55.25M	0.36%	64 Neutral
RFLR	―	―	$31.37M	0.89%	60 Neutral
SMLL	―	―	$22.56M	0.80%	66 Neutral
ALIL	―	―	$18.54M	0.74%	71 Outperform

Performance Comparison

AFSM

First Trust Active Factor Small Cap ETF

32.20

1.90

6.27%

OASC

OneAscent Small Cap Core ETF

―

FSCC

Federated Hermes MDT Small Cap Core ETF

―

RFLR

Innovator U.S. Small Cap Managed Floor ETF

―

SMLL

Harbor Active Small Cap ETF

―

ALIL

Argent Focused 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.

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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