tiprankstipranks
Advertisement

FSML - ETF AI Analysis

Compare

Top Page

FSML

Franklin Small Cap Enhanced ETF (FSML)

Rating:66Neutral
Price Target:
FSML, the Franklin Small Cap Enhanced ETF, has a solid overall rating that reflects a mix of strong growth stories and notable financial risks among its holdings. Standout contributors like IES Holdings and Bread Financial support the fund’s quality with strong financial performance, positive earnings commentary, and generally favorable technical trends, while names such as Axsome Therapeutics and BridgeBio Pharma add risk due to negative profitability, high leverage, and valuation concerns. The main risk factor is the fund’s exposure to several smaller companies with high valuations and financial instability, which can increase volatility even as they offer growth potential.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and over the past month, showing solid recent momentum.
Leading Holdings Showing Strength
Several of the largest positions, such as Bloom Energy and FormFactor, have posted strong year-to-date performance, helping support the fund’s returns.
Broad Sector Diversification
The fund spreads its investments across many sectors, including industrials, health care, technology, and financials, which helps reduce the impact of weakness in any single industry.
Negative Factors
Higher-Than-Index Expense Ratio
The fund’s expense ratio is moderate but not especially low for an ETF, meaning fees take a noticeable bite out of long-term returns compared with cheaper index options.
U.S.-Only Geographic Exposure
Almost all assets are invested in U.S. companies, so investors do not get the potential diversification benefits of international markets.
Mixed Performance Among Top Holdings
A few key positions, such as Guardant Health and Box, have shown weak year-to-date performance, which can drag on the fund if these stocks continue to lag.

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

FSML Summary

The Franklin Small Cap Enhanced ETF (FSML) is an actively managed fund that invests in smaller U.S. companies across many sectors, including industrials, health care, and technology. It does not track a set index, but instead uses a rules-based approach to pick stocks it believes have strong growth potential. Well-known holdings include Bloom Energy and Box. Investors might consider FSML if they want growth and diversification through a wide mix of small U.S. companies. However, small-cap stocks can be more volatile than larger, more established companies, so the share price can move up and down more sharply.
How much will it cost me?This ETF has an annual expense ratio of 0.45%, which means you’ll pay about $4.50 per year for every $1,000 you invest. That’s higher than the cost of many index (passive) ETFs because this fund is actively managed, using a more involved strategy to pick small-cap stocks.
What would affect this ETF?This U.S. small-cap ETF could benefit if the economy stays healthy, interest rates stabilize or fall, and innovation in areas like financials, health care, and industrials supports faster growth for smaller companies. On the other hand, a recession, higher borrowing costs, or tighter regulations on banks, insurers, and health care firms could hurt many of its holdings and make small-cap stocks more volatile and vulnerable than larger, more established companies.

FSML Top 10 Holdings

FSML is leaning into U.S. small-cap innovation, with a noticeable tilt toward tech, health care, and industrial names. Bloom Energy has been one of the fund’s spark plugs lately, rising on growth hopes despite valuation worries, while FormFactor and Kulicke & Soffa add more fuel from the semiconductor and equipment side. On the health care front, Axsome and BridgeBio are climbing but remain volatile given ongoing losses. Guardant Health and Box have been more mixed to lagging, occasionally acting as a brake on what is otherwise a growth-focused, domestically concentrated portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy3.13%$3.92M$60.39B1232.54%
62
Neutral
Formfactor1.85%$2.31M$10.10B476.35%
68
Neutral
nLIGHT1.63%$2.04M$3.71B909.05%
61
Neutral
Kulicke & Soffa1.58%$1.97M$4.18B183.55%
61
Neutral
IES Holdings1.47%$1.84M$10.55B229.98%
76
Outperform
Axsome Therapeutics1.46%$1.82M$9.42B83.19%
57
Neutral
Guardant Health1.37%$1.72M$11.13B113.73%
61
Neutral
Box1.37%$1.72M$3.30B-18.32%
65
Neutral
Bread Financial Holdings1.37%$1.71M$3.59B101.21%
72
Outperform
BridgeBio Pharma1.33%$1.66M$15.06B128.83%
59
Neutral

FSML Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
25.64
Positive
100DMA
200DMA
Market Momentum
MACD
0.51
Negative
RSI
72.46
Negative
STOCH
97.10
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSML, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 25.43, equal to the 50-day MA of 25.64, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 72.46 is Negative, neither overbought nor oversold. The STOCH value of 97.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSML.

FSML Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$124.09M0.45%
66
Neutral
$672.58M0.79%
70
Outperform
$492.92M0.55%
70
Outperform
$202.44M0.36%
65
Neutral
$140.62M0.70%
73
Outperform
$127.01M0.50%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSML
Franklin Small Cap Enhanced ETF
27.57
2.36
9.36%
OSCV
Opus Small Cap Value ETF
SEIS
SEI Select Small Cap ETF
FSCC
Federated Hermes MDT Small Cap Core ETF
SCDV
Bahl & Gaynor Small Cap Dividend ETF
SIXS
ETC 6 Meridian Small Cap Equity 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: ―
Table of Contents
Advertisement