FSCS - ETF AI Analysis

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First Trust Smid Capital Strength Etf (FSCS)

Rating:72Outperform

Price Target:

$39.00

The ETF FSCS demonstrates solid overall quality, driven by strong contributions from holdings like Hamilton Insurance Group (HG) and The New York Times Company (NYT). HG stands out with its robust financial performance, undervaluation, and bullish momentum, while NYT benefits from growth in digital subscriptions and advertising, despite valuation concerns. However, holdings such as Woodward (WWD) and Graham Holdings (GHC) slightly temper the ETF's rating due to mixed technical indicators and valuation risks. The fund's diverse holdings mitigate risks, though some stocks show potential overbought conditions, which investors should monitor.

Positive Factors

Strong Performing Holdings

Several top holdings, such as Leidos Holdings and Adtalem Global Education, have delivered strong year-to-date gains, supporting the fund’s overall performance.

Sector Diversification

The ETF spreads its investments across multiple sectors, including financials, industrials, and technology, reducing reliance on any single industry.

Moderate Expense Ratio

The fund’s expense ratio is reasonable compared to actively managed ETFs, helping investors retain more of their returns.

Negative Factors

Underperforming Holdings

Several top holdings, such as GoDaddy and Morningstar, have experienced weak year-to-date performance, which could drag on the fund’s returns.

High Geographic Concentration

The ETF is heavily concentrated in U.S. companies, offering little exposure to international markets and limiting diversification.

Small Asset Base

The fund’s relatively low assets under management may result in less liquidity and higher trading costs for investors.

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

AUM48.56M

RegionNorth America

Expense Ratio0.60%

Beta0.76

IssuerFirst Trust

Inception DateJun 20, 2017

Dividend Yield0.78%

Asset ClassEquity

Index TrackedThe SMID Capital Strength Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume2,475

30 Day Avg. Volume3,271

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

41.46

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering101

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FSCS Summary

The First Trust Smid Capital Strength ETF (FSCS) is an investment fund that focuses on mid-sized and smaller companies with strong financial health. It follows the SMID Capital Strength Index and includes firms like Dynatrace and Leidos Holdings. This ETF is ideal for investors looking to diversify their portfolios and tap into the growth potential of companies outside the large-cap mainstream. However, new investors should be aware that its performance can be influenced by economic conditions affecting smaller companies, which may be more volatile than larger, established firms.

How much will it cost me?The First Trust Smid Capital Strength ETF (FSCS) has an expense ratio of 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, focusing on mid-sized and smaller companies with strong financial health, which requires more research and management effort.

What would affect this ETF?The First Trust Smid Capital Strength ETF could benefit from economic growth and innovation in mid-sized and smaller U.S. companies, especially in sectors like technology and financials, which are heavily weighted in the fund. However, it may face challenges from rising interest rates, which could impact smaller firms' borrowing costs, or economic slowdowns that disproportionately affect these companies. Regulatory changes in key sectors like financials and technology could also influence the ETF's performance.

FSCS Top 10 Holdings

The First Trust Smid Capital Strength ETF is leaning heavily on financials and industrials, which together make up over half of its portfolio. Adtalem Global Education is a standout performer, rising on strong earnings and bullish momentum, while Leidos Holdings is also steady, benefiting from strategic initiatives and acquisitions. On the flip side, GoDaddy and Morningstar are dragging the fund with bearish trends and declining growth. With its U.S.-focused exposure and emphasis on mid-sized companies, the ETF offers a unique mix of innovation and resilience, though some holdings are struggling to keep pace.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
COKE	Coca-Cola Bottling Co Consolidated	1.28%	$622.56K	$13.98B	32.20%	71 Outperform
EXPD	Expeditors International	1.20%	$581.01K	$18.65B	16.98%	67 Neutral
NYT	New York Times	1.17%	$568.20K	$10.35B	22.57%	79 Outperform
G	Genpact	1.15%	$557.74K	$7.57B	-1.61%	78 Outperform
QLYS	Qualys	1.13%	$546.76K	$4.96B	-6.00%	77 Outperform
GHC	Graham Holdings	1.12%	$543.66K	$4.63B	17.11%	75 Outperform
HG	Hamilton Insurance Group, Ltd. Class B	1.12%	$543.04K	$2.53B	38.24%	81 Outperform
JKHY	Jack Henry & Associates	1.12%	$543.00K	$12.00B	-3.11%	77 Outperform
MLI	Mueller Industries	1.12%	$542.85K	$11.86B	17.41%	78 Outperform
DOV	Dover	1.11%	$540.36K	$24.64B	-9.33%	76 Outperform

FSCS Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

35.99

Negative

100DMA

36.23

Negative

200DMA

35.50

Negative

Market Momentum

MACD

-0.29

Positive

RSI

37.71

Neutral

STOCH

7.39

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSCS, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 35.32, equal to the 50-day MA of 35.99, and equal to the 200-day MA of 35.50, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 7.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSCS.

FSCS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FSCS	―	―	$48.56M	0.60%	72 Outperform
SMDX	―	―	$98.62M	0.35%	70 Neutral
OASC	―	―	$62.35M	0.69%	66 Neutral
ASCE	―	―	$32.69M	0.38%	71 Outperform
TMFX	―	―	$31.68M	0.50%	68 Neutral
HSMV	―	―	$26.81M	0.80%	70 Outperform

Performance Comparison

FSCS

First Trust Smid Capital Strength Etf

34.68

-3.06

-8.11%

SMDX

Intech S&P Small-Mid Cap Diversified Alpha ETF

―

OASC

OneAscent Small Cap Core ETF

―

ASCE

Allspring SMID Core ETF

―

TMFX

Motley Fool Next Index ETF

―

HSMV

First Trust Horizon Managed Volatility Small/Mid 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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