FDM - ETF AI Analysis
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First Trust Dow Jones Select MicroCap Index Fund (FDM)
Rating:69Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past three months and year-to-date, indicating positive recent momentum in its micro-cap holdings.
Leading Holdings Showing Strength
Several of the top positions, such as Tetra Technologies, American Axle, and Sun Country Airlines, have delivered strong year-to-date performance, helping support the fund’s returns.
Broad Sector Diversification
The fund spreads its investments across many sectors, including financials, industrials, consumer cyclical, technology, and others, which helps reduce the impact of weakness in any single industry.
Negative Factors
High Fee Level
The expense ratio is relatively high for an ETF, which means more of the fund’s returns are eaten up by costs over time.
Heavy Tilt to Financials
A large share of the portfolio is invested in financial companies, so a downturn in that sector could hurt the fund more than a more balanced ETF.
Very Concentrated in the U.S. Market
With nearly all assets in U.S. stocks, the fund offers little geographic diversification and is highly exposed to movements in the U.S. economy and markets.
FDM vs. SPDR S&P 500 ETF (SPY)
AUM239.78M
RegionNorth America
Expense Ratio0.60%
Beta0.95
IssuerFirst Trust
Inception DateSep 27, 2005
Dividend Yield1.25%
Asset ClassEquity
Index TrackedDJ Select Micro-Cap
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume5,499
30 Day Avg. Volume7,992
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
104.43Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering150
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FDM Summary
FDM is an ETF that follows the Dow Jones Select Micro-Cap Index, focusing on very small U.S. companies that are early in their growth journey. It holds a wide mix of sectors, with a lot in financial and industrial firms, and includes lesser-known but real businesses like Deluxe and Sun Country Airlines. Someone might invest in FDM to seek higher growth potential and diversify beyond large, well-known stocks. However, micro-cap stocks can be very volatile, harder to trade, and the fund’s value can go up and down more sharply than the overall market.
How much will it cost me?The expense ratio for the First Trust Dow Jones Select MicroCap Index Fund (FDM) is 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is actively managed and focuses on micro-cap stocks, which require more research and management compared to passive funds tracking larger companies.
What would affect this ETF?The First Trust Dow Jones Select MicroCap Index Fund (FDM) could benefit from economic growth and innovation in the U.S., particularly in sectors like financials and technology, which make up a significant portion of its holdings. However, micro-cap stocks are highly sensitive to market volatility, interest rate hikes, and economic downturns, which could negatively impact the fund's performance. Additionally, regulatory changes or challenges in key sectors like healthcare and energy may pose risks to its future growth.
FDM Top 10 Holdings
FDM is a U.S.-focused micro-cap fund where smaller names do the heavy lifting. Financials and industrials dominate the lineup, but recent winners like American Public Education and GigaCloud Technology have been the real spark, rising on improving earnings and upbeat outlooks. Deluxe and Douglas Dynamics are also pulling their weight with steadier, recovery-style moves. On the flip side, Tetra Technologies and Dauch Corporation have been lagging, acting as a bit of an anchor. Overall, performance is driven more by stock-picking in niche U.S. micro-caps than by any single giant name.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Stoke Therapeutics | 2.36% | $5.61M | $2.07B | 363.62% | 70 Outperform | |
| Dauch Corporation | 1.88% | $4.49M | $1.44B | 89.44% | 64 Neutral | |
| Deluxe | 1.69% | $4.02M | $1.30B | 99.11% | 72 Outperform | |
| GigaCloud Technology, Inc. Class A | 1.53% | $3.65M | $1.59B | 251.66% | 82 Outperform | |
| Tetra Technologies | 1.51% | $3.60M | $1.13B | 266.38% | 77 Outperform | |
| Douglas Dynamics | 1.43% | $3.40M | $1.08B | 98.85% | 68 Neutral | |
| American Public Education | 1.41% | $3.36M | $1.05B | 137.27% | 68 Neutral | |
| Business First Bancshares | 1.25% | $2.97M | $936.50M | 29.90% | 76 Outperform | |
| Sun Country Airlines Holdings | 1.24% | $2.94M | $935.89M | 78.41% | 74 Outperform | |
| Cnb Financial | 1.22% | $2.90M | $916.91M | 48.10% | 69 Neutral |
FDM Technical Analysis
Positive
―
Price Trends
84.04
Positive
82.23
Positive
77.80
Positive
Market Momentum
1.15
Negative
64.04
Neutral
95.52
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 83.26, equal to the 50-day MA of 84.04, and equal to the 200-day MA of 77.80, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 95.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDM.
FDM Peer Comparison
Comparison Results
Performance Comparison
FDM
First Trust Dow Jones Select MicroCap Index Fund
86.88
28.56
48.97%
STRV
Strive 500 ETF
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VOTE
Engine No. 1 Transform 500 ETF
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EFIV
SPDR S&P 500 ESG ETF
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SYLD
Cambria Shareholder Yield ETF
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GSSC
Goldman Sachs Activebeta U.S. Small Cap Equity ETF
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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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