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 but not top-tier rating, reflecting a mix of strong and more challenged small-cap holdings. Standout positions like Mueller Water Products, Powell Industries, Primoris Services, and Jackson Financial support the fund with robust financial performance, growth initiatives, and generally positive outlooks, while weaker names such as Mirum Pharmaceuticals, Allegiant Travel, and MGPI face profitability, leverage, or valuation issues that weigh on the overall quality. The main risk factor is its focus on smaller companies, where individual business or financial setbacks—especially in more leveraged or less profitable holdings—can have a bigger impact on returns.

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)

AUM150.15M

RegionNorth America

Expense Ratio0.36%

Beta1.15

IssuerFederated Hermes

Inception DateJul 31, 2024

Dividend Yield0.26%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume110,379

30 Day Avg. Volume54,750

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

37.74

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering309

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 leans into U.S. small caps with a clear tilt toward industrials, health care, financials, and tech, and a handful of names are really steering the ship. Powell Industries and Primoris Services are doing the heavy lifting, with rising share prices that give the fund a solid industrial backbone. Mirum Pharmaceuticals has also been climbing, adding some high-octane health care exposure, while regional lenders like BankUnited and FB Financial provide steady, if more modest, support. On the flip side, American Healthcare REIT and MGP Ingredients are losing steam, slightly dragging on an otherwise upbeat, domestically focused portfolio.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AHR	American Healthcare REIT, Inc.	2.63%	$3.88M	$9.66B	83.12%	64 Neutral
PRIM	Primoris Services	1.84%	$2.71M	$8.95B	122.32%	75 Outperform
POWL	Powell Industries	1.73%	$2.55M	$7.19B	177.86%	76 Outperform
MIRM	Mirum Pharmaceuticals	1.44%	$2.11M	$5.16B	103.86%	56 Neutral
JXN	Jackson Financial Incorporation	1.31%	$1.93M	$7.78B	18.37%	73 Outperform
BKU	BankUnited	1.25%	$1.84M	$3.70B	18.81%	74 Outperform
MGPI	MGP Ingredients	1.17%	$1.72M	$557.06M	-22.17%	57 Neutral
MWA	Mueller Water Products	1.10%	$1.62M	$4.60B	11.27%	77 Outperform
FBK	FB Financial	1.08%	$1.59M	$3.19B	13.99%	71 Outperform
SPHR	Sphere Entertainment	1.01%	$1.49M	$3.35B	140.08%	66 Neutral

FSCC Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

31.11

Positive

100DMA

30.31

Positive

200DMA

28.42

Positive

Market Momentum

MACD

0.18

Positive

RSI

47.41

Neutral

STOCH

55.16

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSCC, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 31.74, equal to the 50-day MA of 31.11, and equal to the 200-day MA of 28.42, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 55.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSCC.

FSCC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FSCC	―	―	$150.15M	0.36%	―
OSCV	―	―	$677.68M	0.79%	―
SEIS	―	―	$428.71M	0.55%	―
SCDV	―	―	$143.03M	0.70%	―
SIXS	―	―	$120.73M	0.52%	―
FSML	―	―	$101.76M	0.45%	―

Performance Comparison

FSCC

Federated Hermes MDT Small Cap Core ETF

31.29

4.27

15.80%

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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