FSCC - ETF AI Analysis

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Federated Hermes MDT Small Cap Core ETF (FSCC)

Rating:65Neutral

Price Target:―

FSCC, the Federated Hermes MDT Small Cap Core ETF, has a solid overall rating driven mainly by strong, growing companies like Primoris Services, Powell Industries, SPS Commerce, and Mueller Water Products, which show healthy financial performance, strategic growth initiatives, and supportive corporate actions such as buybacks and dividends. The rating is held back somewhat by weaker names like Mirum Pharmaceuticals and BrightSpring Health Services, where high leverage, negative or low profitability, and valuation concerns introduce more risk. The main risk factor is the fund’s exposure to smaller companies with mixed profitability and some overvalued or highly leveraged positions, which can make returns more volatile.

Positive Factors

Broad Sector Diversification

The ETF spreads its investments across many sectors, including industrials, health care, financials, and technology, which helps reduce the impact if any one area of the market struggles.

Supportive Recent Performance

The fund has shown steady gains over the past month, three months, and year-to-date, suggesting its strategy has been working in the current market.

Growing Small-Cap Portfolio

With over $100 million in assets and a mix of small-cap companies that include several strong recent performers among the top holdings, the ETF offers targeted exposure to a segment that can provide growth potential.

Negative Factors

High U.S. Concentration

Almost all of the ETF’s assets are invested in U.S. companies, offering very limited geographic diversification outside the United States.

Moderate Expense Ratio

The fund’s expense ratio is not especially low for an ETF, which means fees may take a noticeable bite out of long-term returns compared with cheaper index alternatives.

Small-Cap Volatility Risk

Because the ETF focuses on small-cap stocks, investors should be prepared for potentially larger price swings and higher risk during market downturns.

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

AUM155.80M

RegionNorth America

Expense Ratio0.36%

Beta1.16

IssuerFederated Hermes

Inception DateJul 31, 2024

Dividend Yield0.27%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume26,888

30 Day Avg. Volume60,348

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

38.79

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering302

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FSCC Summary

Federated Hermes MDT Small Cap Core ETF (FSCC) is an actively managed fund that focuses on small U.S. companies across many industries, rather than tracking a specific index. It holds a wide mix of stocks in areas like industrials, health care, financials, and technology. Examples of companies in the fund include BankUnited and American Healthcare REIT. An investor might consider FSCC to seek long-term growth and add diversification beyond large, well-known stocks. However, small-cap stocks can be more volatile, so the value of this ETF can go up and down more sharply than the overall market.

How much will it cost me?The Federated Hermes MDT Small Cap Core ETF (FSCC) has an expense ratio of 0.36%, which means you’ll pay $3.60 per year for every $1,000 invested. This expense ratio is slightly higher than average because the fund is actively managed, requiring more research and expertise to select small-cap stocks with growth potential.

What would affect this ETF?The FSCC ETF, focused on U.S. small-cap companies across diverse sectors like Industrials, Financials, and Health Care, could benefit from economic growth and innovation in these industries, as smaller firms often thrive in expanding markets. However, it may face challenges from rising interest rates, which can increase borrowing costs for small businesses, and economic slowdowns, which tend to impact smaller companies more significantly. Regulatory changes or sector-specific disruptions could also influence the ETF's performance.

FSCC Top 10 Holdings

FSCC is leaning into U.S. small caps with a clear tilt toward industrials and financials, and a dash of health care risk-taking. Powell Industries and Primoris Services are doing the heavy lifting, with their rising share prices helping power the fund’s recent momentum. Bloom Energy and Mirum Pharmaceuticals add a more speculative, high-growth flavor, also trending higher but with bumpier fundamentals. On the steadier side, Jackson Financial and BankUnited are more mixed, not hurting the fund but not exactly setting the pace either.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AHR	American Healthcare REIT, Inc.	2.66%	$4.05M	$9.79B	78.17%	64 Neutral
PRIM	Primoris Services	1.52%	$2.32M	$7.20B	109.92%	75 Outperform
JXN	Jackson Financial Incorporation	1.33%	$2.02M	$7.74B	29.56%	73 Outperform
SPSC	SPS Commerce	1.31%	$2.00M	$2.38B	-50.30%	77 Outperform
MIRM	Mirum Pharmaceuticals	1.26%	$1.92M	$5.21B	98.57%	56 Neutral
BKU	BankUnited	1.18%	$1.79M	$3.30B	35.43%	74 Outperform
POWL	Powell Industries	1.14%	$1.73M	$5.87B	196.97%	76 Outperform
BTSG	BrightSpring Health Services, Inc.	1.08%	$1.65M	$8.03B	137.36%	67 Neutral
MWA	Mueller Water Products	1.07%	$1.63M	$4.37B	11.50%	77 Outperform
SPHR	Sphere Entertainment	1.06%	$1.62M	$4.01B	218.61%	66 Neutral

FSCC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

31.35

Negative

100DMA

30.57

Negative

200DMA

28.96

Positive

Market Momentum

MACD

-0.18

Positive

RSI

36.90

Neutral

STOCH

42.64

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSCC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 31.48, equal to the 50-day MA of 31.35, and equal to the 200-day MA of 28.96, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 36.90 is Neutral, neither overbought nor oversold. The STOCH value of 42.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSCC.

FSCC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FSCC	―	―	$155.80M	0.36%	65 Neutral
OSCV	―	―	$668.45M	0.79%	69 Neutral
SEIS	―	―	$428.61M	0.55%	70 Outperform
SCDV	―	―	$143.54M	0.70%	73 Outperform
SIXS	―	―	$121.90M	0.52%	71 Outperform
FSML	―	―	$116.08M	0.45%	65 Neutral

Performance Comparison

FSCC

Federated Hermes MDT Small Cap Core ETF

30.11

6.68

28.51%

OSCV

Opus Small Cap Value ETF

―

SEIS

SEI Select Small Cap ETF

―

SCDV

Bahl & Gaynor Small Cap Dividend ETF

―

SIXS

ETC 6 Meridian Small Cap Equity ETF

―

FSML

Franklin Small Cap Enhanced 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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