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FSML - ETF AI Analysis

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FSML

Franklin Small Cap Enhanced ETF (FSML)

Rating:65Neutral
Price Target:
FSML, the Franklin Small Cap Enhanced ETF, has a solid overall rating driven by strong contributors like IES Holdings and FormFactor, which benefit from robust financial performance, bullish momentum, and promising growth initiatives. Gulfport Energy also supports the fund’s quality with healthy operations and production growth, though some holdings such as BridgeBio Pharma and Guardant Health face financial and valuation challenges that temper the ETF’s rating. A key risk factor is exposure to several companies with high valuations and cash flow or profitability concerns, which could increase volatility for investors.
Positive Factors
Broad Sector Diversification
The ETF spreads its investments across many sectors, which can help reduce the impact if any one industry runs into trouble.
Generally Strong Top Holdings
Most of the largest positions have shown strong or steady performance so far this year, supporting the fund’s overall returns.
Positive Recent Performance
The fund has delivered solid gains both year-to-date and over the past month, indicating recent momentum in its small-cap strategy.
Negative Factors
High U.S. Concentration
With almost all assets in U.S. stocks, the ETF offers very little geographic diversification and is heavily tied to the U.S. market.
Moderate Expense Ratio
The fund’s fee is not especially low for an ETF, which can slightly reduce long-term returns compared with cheaper options.
Some Weak Top Holdings
A few of the largest positions have shown weak or negative performance this year, which can drag on the fund if those stocks do not recover.

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

FSML Summary

The Franklin Small Cap Enhanced ETF (FSML) is an actively managed fund that focuses on smaller U.S. companies, rather than tracking a set index. It uses a rules-based approach to pick promising small-cap stocks across many sectors, including financials, health care, and technology. Well-known names in the fund include Jackson Financial and Commercial Metals Company. Someone might invest in FSML to seek long-term growth and to diversify beyond large, familiar companies. However, small-cap stocks can be more volatile, so the ETF’s price can move up and down more sharply than the overall market.
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 innovators, with a clear tilt toward tech, industrials, and health care. Bloom Energy, nLIGHT, and FormFactor have been the real spark plugs lately, with rising momentum that’s helping pull the fund higher. Kulicke & Soffa and IES Holdings are also adding some steady industrial and semiconductor punch. On the flip side, Guardant Health and BridgeBio Pharma have been lagging, acting like a bit of a brake on returns. Overall, performance is being driven by a handful of nimble, higher-growth U.S. names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy2.20%$2.42M$33.53B507.88%
62
Neutral
nLIGHT1.69%$1.86M$3.01B594.98%
61
Neutral
Gulfport Energy1.61%$1.77M$3.99B16.68%
67
Neutral
Box1.52%$1.67M$3.23B-24.43%
65
Neutral
Core Natural Resources1.47%$1.62M$5.62B42.90%
57
Neutral
Guardant Health1.47%$1.61M$11.31B102.35%
61
Neutral
IES Holdings1.45%$1.59M$8.80B167.53%
76
Outperform
Formfactor1.44%$1.59M$7.12B223.12%
68
Neutral
Kulicke & Soffa1.40%$1.55M$3.23B87.36%
61
Neutral
BridgeBio Pharma1.39%$1.53M$13.45B100.64%
59
Neutral

FSML Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
25.71
Negative
100DMA
200DMA
Market Momentum
MACD
-0.41
Positive
RSI
36.81
Neutral
STOCH
25.24
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSML, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 24.76, equal to the 50-day MA of 25.71, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSML.

FSML Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$112.39M0.45%
65
Neutral
$644.78M0.79%
70
Outperform
$432.16M0.55%
70
Outperform
$164.56M0.36%
65
Neutral
$134.99M0.70%
73
Outperform
$122.06M0.52%
70
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSML
Franklin Small Cap Enhanced ETF
23.90
-1.31
-5.20%
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: ―
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