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FDM - ETF AI Analysis

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FDM

First Trust Dow Jones Select MicroCap Index Fund (FDM)

Rating:70Neutral
Price Target:
FDM, the First Trust Dow Jones Select MicroCap Index Fund, earns a solid overall rating largely because several key holdings like GigaCloud Technology, Tetra Technologies, and Northwest Pipe Company show strong financial performance, positive earnings calls, and supportive technical trends. These strengths are partly offset by weaker names such as Kodak, which faces profitability and cash flow issues, and holdings with bearish or mixed momentum, creating some risk alongside the opportunity. The main risk factor is that many holdings are smaller, micro-cap companies, which can be more volatile and sensitive to operational and cash flow challenges.
Positive Factors
Strong Recent Performance
The fund has shown solid gains so far this year and over the past month, indicating positive recent momentum.
Broad Sector Diversification
Holdings are spread across many sectors, which helps reduce the impact if any one industry runs into trouble.
Several Strong Top Holdings
Many of the largest positions, such as Deluxe, American Public Education, and Douglas Dynamics, have delivered strong year-to-date results that support the fund’s overall performance.
Negative Factors
High Expense Ratio
The fund’s fees are on the higher side for an ETF, which can eat into long-term returns for investors.
Heavy U.S. and Financials Focus
With almost all assets in U.S. stocks and a large tilt toward financial companies, the fund is vulnerable if the U.S. market or financial sector weakens.
Some Lagging Top Holdings
A few key positions, including Dauch Corporation and Tetra Technologies, have shown weak year-to-date performance, which can drag on the fund’s results.

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

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 financials and industrials, and includes names like Deluxe and Sun Country Airlines. Someone might invest in FDM to seek higher growth potential and diversify beyond well-known large companies, adding exposure to smaller, often overlooked businesses. However, micro-cap stocks can be very volatile and risky, so the price of this ETF can move up and down sharply.
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 a handful of small names are doing the heavy lifting. GigaCloud Technology, Deluxe, and American Public Education have been rising steadily, giving the portfolio a welcome boost, while Stoke Therapeutics adds more punch with its recent upswing. On the flip side, Dauch Corporation and Tetra Technologies have been lagging, occasionally acting like sandbags on performance. With a big tilt toward financials and a mix of industrial and consumer names, the fund is diversified by industry but still firmly rooted in the U.S. micro-cap sandbox.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Stoke Therapeutics2.33%$5.82M$2.07B284.30%
70
Outperform
Deluxe1.86%$4.65M$1.18B71.15%
72
Outperform
Dauch Corporation1.67%$4.19M$1.37B40.44%
64
Neutral
Tetra Technologies1.65%$4.13M$1.33B249.64%
77
Outperform
GigaCloud Technology, Inc. Class A1.49%$3.74M$1.65B225.07%
82
Outperform
American Public Education1.38%$3.45M$1.03B120.03%
68
Neutral
Douglas Dynamics1.36%$3.40M$1.05B77.28%
68
Neutral
Northwest Pipe Company1.36%$3.40M$1.07B198.68%
78
Outperform
Kodak1.32%$3.31M$1.42B128.14%
56
Neutral
Universal Insurance Holdings1.31%$3.27M$1.13B59.30%
69
Neutral

FDM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
84.79
Positive
100DMA
83.99
Positive
200DMA
79.18
Positive
Market Momentum
MACD
1.00
Positive
RSI
56.09
Neutral
STOCH
53.53
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 87.99, equal to the 50-day MA of 84.79, and equal to the 200-day MA of 79.18, indicating a bullish trend. The MACD of 1.00 indicates Positive momentum. The RSI at 56.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.53 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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$253.25M0.60%
70
Neutral
$994.09M0.15%
68
Neutral
$958.14M0.20%
65
Neutral
$935.39M0.59%
69
Neutral
$933.23M0.46%
74
Outperform
$108.63M0.41%
61
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDM
First Trust Dow Jones Select MicroCap Index Fund
88.17
24.54
38.57%
QQQJ
Invesco NASDAQ Next Gen 100 ETF
GSSC
Goldman Sachs Activebeta U.S. Small Cap Equity ETF
SYLD
Cambria Shareholder Yield ETF
MODL
VictoryShares WestEnd U.S. Sector ETF
DFMC
U.S. Micro Cap Portfolio 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.
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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