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DFMC - ETF AI Analysis

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DFMC

U.S. Micro Cap Portfolio ETF (DFMC)

Rating:61Neutral
Price Target:
DFMC, the U.S. Micro Cap Portfolio ETF, earns a solid overall rating thanks to several strong holdings like CVSA (Adtalem Global Education), FBP (First Bancorp Puerto Rico), and POWL (Powell Industries), which show robust financial performance, positive earnings outlooks, and generally reasonable valuations. These strengths are partly offset by some holdings with valuation concerns, high leverage, or mixed technical signals—such as ENVA and HURN—which introduce added risk, along with the broader risk that comes from focusing on smaller U.S. companies that can be more volatile.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating positive recent momentum.
Broad Sector Diversification
Holdings are spread across many sectors, including financials, industrials, consumer cyclical, technology, and health care, which helps reduce reliance on any single industry.
Multiple Strong Top Holdings
Several of the largest positions, such as TTM Technologies, Argan, Plexus, and Powell Industries, have delivered strong year-to-date performance that supports the fund’s overall returns.
Negative Factors
High U.S. Concentration
The fund is heavily invested in U.S. companies, offering very limited exposure to other countries and making it sensitive to the U.S. market.
Mixed Performance Among Top Holdings
Some key positions, including United States Lime & Minerals, Huron Consulting, and Laureate Education, have shown weak year-to-date performance, which can drag on the ETF’s results.
Moderate Expense Ratio
The ETF’s expense ratio is not especially low, meaning fees take a noticeable, though not extreme, bite out of investor returns over time.

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

DFMC Summary

DFMC is the U.S. Micro Cap Portfolio ETF, an actively managed fund that invests in very small U.S. companies across many sectors instead of tracking a specific index. It focuses on tiny firms that look relatively cheap but profitable, aiming for long-term growth. The fund holds lesser-known names like TTM Technologies and Laureate Education, and spreads money across financials, industrials, tech, health care, and more, which can add diversification and higher growth potential to a larger portfolio. However, micro-cap stocks can be very volatile and harder to trade, so the ETF’s price can swing sharply up and down.
How much will it cost me?This ETF has an expense ratio of 0.41%, which means you’ll pay about $4.10 per year for every $1,000 invested. That’s higher than the cost of many index (passive) ETFs because this fund is actively managed and focuses on harder-to-research micro-cap stocks.
What would affect this ETF?This ETF could benefit if the U.S. economy stays healthy, interest rates stabilize or fall, and smaller companies in areas like financials, industrials, and technology see stronger profits and renewed investor interest, since it focuses on very small U.S. stocks across many sectors. On the negative side, a recession, higher borrowing costs, tighter financial regulations, or a sharp drop in risk appetite could hurt micro-cap companies the most, leading to larger price swings and liquidity challenges for this fund.

DFMC Top 10 Holdings

DFMC’s story is all about tiny U.S. companies trying to punch above their weight, with no single stock dominating the stage. Recent strength from industrial and tech names like Powell Industries, Plexus, TTM Technologies, and Argan has been giving the fund a helpful tailwind, as these rising micro caps benefit from solid backlogs and demand. On the flip side, more defensive or steady names such as United States Lime & Minerals and Laureate Education have been losing a bit of steam, modestly tugging on returns. Overall, it’s a diversified U.S.-only micro-cap bet rather than a sector or single-name gamble.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
TTM Technologies0.57%$40.95M$17.10B534.94%
77
Outperform
Argan0.52%$37.81M$10.16B333.32%
73
Outperform
United States Lime & Minerals0.42%$30.09M$3.07B10.03%
63
Neutral
Enova International0.39%$28.54M$4.29B87.90%
71
Outperform
First Bancorp Puerto Rico0.38%$27.59M$3.78B20.68%
76
Outperform
Huron Consulting0.38%$27.57M$1.95B-20.35%
75
Outperform
Covista0.38%$27.39M$3.98B0.50%
79
Outperform
Laureate Education0.36%$26.08M$4.55B42.20%
73
Outperform
Plexus0.36%$25.74M$7.10B110.63%
75
Outperform
Powell Industries0.35%$25.30M$11.67B449.46%
76
Outperform

DFMC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
100DMA
200DMA
Market Momentum
MACD
1.39
Negative
RSI
65.19
Neutral
STOCH
87.73
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DFMC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 55.29, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 1.39 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 87.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DFMC.

DFMC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$113.64M0.41%
61
Neutral
$935.39M0.59%
69
Neutral
$933.23M0.46%
74
Outperform
$862.88M1.30%
64
Neutral
$851.99M0.29%
73
Outperform
$835.30M0.18%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DFMC
U.S. Micro Cap Portfolio ETF
56.28
5.83
11.56%
SYLD
Cambria Shareholder Yield ETF
MODL
VictoryShares WestEnd U.S. Sector ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
NBCR
Neuberger Berman Core Equity ETF
DSPY
Tema S&P 500 Historical Weight ETF Strategy
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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