FDM - ETF AI Analysis

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First Trust Dow Jones Select MicroCap Index Fund (FDM)

Rating:67Neutral

Price Target:―

The ETF FDM has a balanced overall rating, reflecting a mix of strong and weaker holdings. GigaCloud Technology (GCT) stands out as a key contributor due to its strong financial performance, strategic expansion, and attractive valuation, which enhance its growth potential. On the other hand, Stoke Therapeutics (STOK) and ODP face challenges such as valuation concerns and declining revenues, which may have slightly weighed on the fund's rating. A potential risk for the ETF is its exposure to holdings with mixed financial performance and technical volatility, which could impact stability.

Positive Factors

Strong Year-to-Date Performance

The ETF has shown solid gains year-to-date, indicating positive momentum for investors.

Sector Diversification

The fund is spread across multiple sectors, including financials, industrials, and consumer cyclical, reducing reliance on any single industry.

Focused Microcap Exposure

The ETF provides targeted exposure to microcap companies, offering unique growth opportunities not found in larger-cap funds.

Negative Factors

High Financial Sector Concentration

Over 40% of the portfolio is allocated to financials, increasing vulnerability to sector-specific risks.

Weak Recent Performance

The ETF has declined over the past month, which may signal short-term volatility or challenges.

Limited Geographic Diversification

With nearly 100% exposure to U.S. companies, the fund lacks international diversification, making it sensitive to domestic market conditions.

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

AUM214.20M

RegionNorth America

Expense Ratio0.60%

Beta0.97

IssuerFirst Trust

Inception DateSep 27, 2005

Dividend Yield1.28%

Asset ClassEquity

Index TrackedDJ Select Micro-Cap

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume5,590

30 Day Avg. Volume7,152

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

91.56

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering152

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FDM Summary

The First Trust Dow Jones Select MicroCap Index Fund (FDM) is an ETF that focuses on micro-cap companies, which are the smallest publicly traded firms in the U.S. market. It follows the Dow Jones Select MicroCap Index and includes businesses across various sectors, such as financials, industrials, and technology. Some of its top holdings include Stoke Therapeutics and Ameresco. Investors might consider FDM for its potential to uncover high-growth opportunities in smaller, innovative companies. However, it’s important to know that micro-cap stocks can be very volatile, meaning their prices can rise and fall quickly, making this ETF a higher-risk investment.

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

The First Trust Dow Jones Select MicroCap Index Fund (FDM) is heavily tilted toward financials, which make up over 40% of its portfolio, with notable contributions from names like Hanmi Financial and Universal Insurance Holdings. Both have shown steady growth recently, helping to buoy the fund’s performance. On the other hand, stocks like Ameresco and Stoke Therapeutics have been lagging, tempering the fund’s momentum. With its focus on U.S.-based micro-cap companies, FDM offers exposure to niche players with high-risk, high-reward potential, though its reliance on financials adds a layer of sector concentration to watch closely.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
STOK	Stoke Therapeutics	2.40%	$5.29M	$1.74B	163.10%	70 Outperform
TTI	Tetra Technologies	1.66%	$3.66M	$1.18B	125.26%	77 Outperform
GCT	GigaCloud Technology, Inc. Class A	1.44%	$3.17M	$1.49B	79.46%	82 Outperform
DLX	Deluxe	1.41%	$3.09M	$960.91M	-8.08%	68 Neutral
PLYM	Plymouth Industrial Reit	1.39%	$3.05M	$983.26M	16.43%	67 Neutral
AMRC	Ameresco	1.38%	$3.04M	$1.71B	22.19%	61 Neutral
HAFC	Hanmi Financial	1.24%	$2.73M	$846.24M	10.38%	77 Outperform
CPF	Central Pacific Financial	1.23%	$2.71M	$833.80M	2.60%	80 Outperform
TRST	TrustCo Bank	1.20%	$2.65M	$802.92M	22.26%	78 Outperform
ODP	ODP	1.20%	$2.64M	$843.30M	-1.02%	60 Neutral

FDM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

75.60

Positive

100DMA

74.73

Positive

200DMA

69.97

Positive

Market Momentum

MACD

1.46

Negative

RSI

74.86

Negative

STOCH

93.28

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 77.10, equal to the 50-day MA of 75.60, and equal to the 200-day MA of 69.97, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 74.86 is Negative, neither overbought nor oversold. The STOCH value of 93.28 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

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FDM	―	―	$214.20M	0.60%	―
VOTE	―	―	$940.88M	0.05%	―
FYX	―	―	$933.31M	0.60%	―
EZM	―	―	$907.44M	0.38%	―
OUSM	―	―	$906.23M	0.48%	―
PLDR	―	―	$863.56M	0.60%	―

Performance Comparison

FDM

First Trust Dow Jones Select MicroCap Index Fund

81.77

10.72

15.09%

VOTE

Engine No. 1 Transform 500 ETF

―

FYX

First Trust Small Cap Core AlphaDEX Fund

―

EZM

WisdomTree U.S. MidCap Fund

―

OUSM

OShares U.S. Small-Cap Quality Dividend ETF

―

PLDR

Putnam Sustainable Leaders 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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