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FSCS - ETF AI Analysis

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FSCS

First Trust Smid Capital Strength Etf (FSCS)

Rating:73Outperform
Price Target:
FSCS, the First Trust Smid Capital Strength ETF, has a solid overall rating, mainly because many of its top holdings show strong financial performance and reasonable valuations. Standout positions like Hamilton Insurance Group and Pathward Financial support the fund with healthy balance sheets, attractive pricing, and positive growth outlooks, while A10 Networks and Mueller Water Products add further strength through revenue growth and strategic initiatives. Some holdings such as Magnolia Oil & Gas and Casey's General Stores face bearish technical trends or valuation concerns, and several names show overbought signals, highlighting market-timing and price-risk as key factors that may temper the fund’s rating.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.
Generally Strong Top Holdings
Most of the largest positions have shown strong year-to-date gains, which has supported the ETF’s overall results.
Positive Recent Performance
The ETF has delivered a positive return so far this year and has shown especially strong gains over the past month.
Negative Factors
High Expense Ratio
The fund’s fees are relatively high for an ETF, which can eat into long-term returns for investors.
Single-Country Concentration
All of the ETF’s holdings are in U.S. companies, offering no geographic diversification if the U.S. market weakens.
Recent Short-Term Volatility
The ETF’s negative three-month performance suggests it can experience noticeable short-term ups and downs.

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

FSCS Summary

The First Trust Smid Capital Strength ETF (FSCS) tracks the SMID Capital Strength Index, focusing on mid-sized and smaller U.S. companies with solid financial foundations. It spreads investments across many sectors, including financials, industrials, consumer companies, and more. Well-known holdings include The New York Times and Snap-on. Someone might invest in this ETF to seek long-term growth and diversify beyond the biggest, most familiar large-cap stocks. A key risk is that smaller and mid-sized company shares can be more volatile, so the ETF’s value can go up and down more sharply with the market.
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

FSCS leans heavily into U.S. mid- and small-cap names, with a clear tilt toward financials and industrials rather than the usual Big Tech suspects. Recent strength from consumer-facing names like Casey’s General Stores and Buckle, along with industrial players Watsco and Hubbell, has been giving the fund a healthy tailwind. Magnolia Oil & Gas has been more of a mixed bag, and homebuilder NVR is losing a bit of steam this year, modestly weighing on results. Overall, performance is being driven by steady, domestically focused workhorses rather than flashy growth stories.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Valmont1.22%$710.63K$9.75B69.85%
71
Outperform
SEI Investments Company1.14%$665.01K$10.86B17.07%
79
Outperform
Mueller Industries1.12%$653.97K$15.04B87.40%
78
Outperform
Watsco1.08%$630.01K$17.91B0.24%
71
Outperform
Casey's General1.08%$629.12K$29.55B77.11%
68
Neutral
Magnolia Oil & Gas1.08%$629.06K$5.59B35.30%
65
Neutral
OFG Bancorp1.08%$628.28K$1.96B17.57%
78
Outperform
Cohen & Steers1.06%$618.26K$3.48B-10.55%
60
Neutral
Gentex1.06%$617.54K$5.10B9.50%
70
Outperform
Simpson Manufacturing Co1.06%$617.35K$7.48B21.24%
74
Outperform

FSCS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
36.16
Positive
100DMA
36.30
Positive
200DMA
36.12
Positive
Market Momentum
MACD
0.19
Negative
RSI
58.12
Neutral
STOCH
57.58
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSCS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 35.99, equal to the 50-day MA of 36.16, and equal to the 200-day MA of 36.12, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 57.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSCS.

FSCS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$58.24M0.60%
73
Outperform
$77.66M0.69%
69
Neutral
$64.26M0.38%
72
Outperform
$58.88M0.75%
73
Outperform
$31.07M0.50%
69
Neutral
$30.34M0.80%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSCS
First Trust Smid Capital Strength Etf
36.46
2.69
7.97%
OASC
OneAscent Small Cap Core ETF
ASCE
Allspring SMID Core ETF
SMOX
Horizon Small/Mid Cap Core Equity 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.
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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