FDM - ETF AI Analysis
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First Trust Dow Jones Select MicroCap Index Fund (FDM)
Rating:70Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, showing solid momentum in its micro-cap strategy.
Broad Sector Diversification
Holdings spread across financials, industrials, consumer, technology, health care, and other sectors help reduce the impact of weakness in any single industry.
Multiple Strong Top Holdings
Several of the largest positions, such as Northwest Pipe Company, Deluxe, and USA TODAY, have shown strong year-to-date performance, supporting the fund’s overall results.
Negative Factors
Heavy Tilt Toward Financials
A large share of the portfolio is in financial stocks, which increases the fund’s sensitivity to problems in that sector.
U.S.-Only Geographic Exposure
Almost all assets are invested in U.S. companies, offering little diversification across global markets.
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees.
FDM vs. SPDR S&P 500 ETF (SPY)
AUM270.93M
RegionNorth America
Expense Ratio0.60%
Beta0.92
IssuerFirst Trust
Inception DateSep 27, 2005
Dividend Yield1.32%
Asset ClassEquity
Index TrackedDJ Select Micro-Cap
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume11,511
30 Day Avg. Volume9,178
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
111.89Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering146
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FDM Summary
FDM (First Trust Dow Jones Select MicroCap Index Fund) is an ETF that tracks the Dow Jones Select Micro-Cap Index, focusing on very small U.S. companies. These “micro-cap” firms are early-stage or niche businesses across many sectors, with a big tilt toward financial and industrial companies. Top holdings include names like Stoke Therapeutics and Deluxe. Investors might consider FDM if they want growth potential and diversification beyond the usual large, well-known stocks. However, micro-cap stocks can be very volatile and harder to trade, so the fund’s price can swing sharply and may drop more 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 essentially a micro-cap hunting ground, with U.S. financials in the driver’s seat. Names like United Fire Group, Universal Insurance, and Horizon Bancorp give the fund a solid insurance and regional banking backbone, and their generally rising or steady performance has helped support returns. Northwest Pipe and Douglas Dynamics add an industrial tilt, with Northwest Pipe in particular acting as a bright spot after a strong recent run. On the flip side, Stoke Therapeutics and Tetra Technologies have been lagging, occasionally weighing on this otherwise broadly diversified micro-cap portfolio.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Stoke Therapeutics | 2.27% | $6.11M | $2.11B | 144.91% | 70 Outperform | |
| Dauch Corporation | 1.98% | $5.33M | $1.51B | 19.86% | 64 Neutral | |
| GigaCloud Technology, Inc. Class A | 1.71% | $4.60M | $1.92B | 70.86% | 82 Outperform | |
| United Fire Group | 1.48% | $3.99M | $1.40B | 78.78% | 71 Outperform | |
| Tetra Technologies | 1.47% | $3.96M | $1.26B | 120.66% | 77 Outperform | |
| Deluxe | 1.41% | $3.79M | $1.15B | 29.52% | 72 Outperform | |
| Northwest Pipe Company | 1.39% | $3.73M | $1.15B | 131.56% | 78 Outperform | |
| Universal Insurance Holdings | 1.37% | $3.69M | $1.23B | 82.09% | 69 Neutral | |
| Horizon Bancorp | 1.31% | $3.51M | $1.05B | 32.07% | 58 Neutral | |
| Business First Bancshares | 1.30% | $3.48M | $1.03B | 35.66% | 76 Outperform |
FDM Technical Analysis
Positive
―
Price Trends
90.82
Positive
88.15
Positive
84.15
Positive
Market Momentum
1.05
Negative
61.22
Neutral
77.17
Neutral
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 92.51, equal to the 50-day MA of 90.82, and equal to the 200-day MA of 84.15, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 61.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.17 is Neutral, 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
94.39
21.58
29.64%
DSPY
Tema S&P 500 Historical Weight ETF Strategy
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CVLC
Calvert US Large-Cap Core Responsible Index ETF
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EZM
WisdomTree U.S. MidCap Fund
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IUS
Invesco RAFI Strategic US ETF
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DFMC
U.S. Micro Cap Portfolio 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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