FSCS - ETF AI Analysis

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First Trust Smid Capital Strength Etf (FSCS)

Rating:73Outperform

Price Target:―

FSCS, the First Trust Smid Capital Strength ETF, earns a solid overall rating thanks to several high-quality holdings like Hamilton Insurance Group, Pathward Financial, A10 Networks, The Ensign Group, and The New York Times Company, all of which show strong financial performance, healthy growth initiatives, and generally supportive technical trends. These strengths are partly offset by weaker spots such as Magnolia Oil & Gas and Innoviva, where bearish or overbought technical signals and sector-specific challenges introduce more risk. Investors should also note that multiple holdings face valuation concerns or overbought conditions, which could increase volatility if market sentiment shifts.

Positive Factors

Broad Sector Mix

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 solid gains so far this year, supporting the ETF’s overall performance.

Positive Recent Performance

The ETF has delivered steady gains over the past month, three months, and year to date, indicating recent upward momentum.

Negative Factors

High U.S. Concentration

Almost all of the fund’s assets are invested in U.S. companies, offering little geographic diversification.

Heavy Financials Exposure

A large share of the portfolio is in financial stocks, which could hurt returns if that sector faces pressure.

Above-Average Expense Ratio

The fund’s fee is on the higher side for an ETF, which can slightly reduce investors’ net returns over time.

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

AUM58.64M

RegionNorth America

Expense Ratio0.60%

Beta0.73

IssuerFirst Trust

Inception DateJun 20, 2017

Dividend Yield0.75%

Asset ClassEquity

Index TrackedThe SMID Capital Strength Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume5,157

30 Day Avg. Volume7,414

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

41.60

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering100

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FSCS Summary

FSCS, the First Trust Smid Capital Strength ETF, follows the SMID Capital Strength Index and focuses on mid-sized and smaller U.S. companies with solid financial foundations. It spreads investments across many sectors, including financials, industrials, and technology, and holds names like CF Industries and Coca-Cola Bottling Co. Consolidated. Someone might consider this ETF to seek growth beyond the big, well-known large-cap stocks while still staying diversified across industries. A key risk is that smaller and mid-sized company stocks 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. financials and industrials, and its recent leaders are a mix of steady cash generators and niche growers. Pathward Financial and Hamilton Insurance Group are helping drive returns, with rising share prices reflecting solid balance sheets and upbeat earnings. Consumer names like Coca-Cola Bottling and Inter Parfums add a defensive-but-growing flavor, though their momentum looks a bit mixed after strong runs. AptarGroup and PPG Industries are more of a slow-and-steady industrial backbone, keeping the fund grounded rather than shooting the lights out.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CF	Cf Industries Holdings	1.64%	$959.62K	$20.90B	77.04%	72 Outperform
COKE	Coca-Cola Bottling Co Consolidated	1.45%	$847.40K	$13.96B	59.63%	72 Outperform
MGY	Magnolia Oil & Gas	1.34%	$783.78K	$5.39B	28.39%	65 Neutral
ATEN	A10 Networks	1.27%	$744.68K	$1.51B	28.57%	79 Outperform
CASH	Pathward Financial	1.25%	$730.60K	$1.95B	27.35%	79 Outperform
HG	Hamilton Insurance Group, Ltd. Class B	1.22%	$716.56K	$2.84B	41.54%	82 Outperform
ENSG	The Ensign Group	1.21%	$706.34K	$12.11B	66.06%	78 Outperform
INVA	Innoviva	1.18%	$691.73K	$1.63B	26.34%	61 Neutral
MCRI	Monarch Casino & Resort	1.15%	$675.30K	$1.78B	19.07%	78 Outperform
CHD	Church & Dwight	1.14%	$669.83K	$23.47B	-9.66%	72 Outperform

FSCS Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

36.89

Negative

100DMA

36.25

Negative

200DMA

36.19

Negative

Market Momentum

MACD

-0.33

Positive

RSI

30.60

Neutral

STOCH

17.77

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 36.92, equal to the 50-day MA of 36.89, and equal to the 200-day MA of 36.19, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 30.60 is Neutral, neither overbought nor oversold. The STOCH value of 17.77 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	―	―	$58.64M	0.60%	73 Outperform
OASC	―	―	$70.47M	0.69%	70 Neutral
SMOX	―	―	$54.16M	0.75%	73 Outperform
ASCE	―	―	$49.06M	0.38%	72 Outperform
TMFX	―	―	$31.32M	0.50%	69 Neutral
HSMV	―	―	$29.84M	0.80%	71 Outperform

Performance Comparison

FSCS

First Trust Smid Capital Strength Etf

35.57

1.17

3.40%

OASC

OneAscent Small Cap Core ETF

―

SMOX

Horizon Small/Mid Cap Core Equity 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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