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FSML - ETF AI Analysis

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FSML

Franklin Small Cap Enhanced ETF (FSML)

Rating:66Neutral
Price Target:
FSML, the Franklin Small Cap Enhanced ETF, has a solid overall rating driven mainly by strong, profitable holdings like Valley National Bancorp, Korn Ferry, and Oceaneering International, which show healthy financial performance, reasonable valuations, and supportive earnings call sentiment. At the same time, weaker names such as Xenon, with no current revenue or profitability, and more leveraged or cash-flow-challenged holdings like Acadian Asset Management and Polaris, temper the fund’s quality. The main risk factor is its focus on smaller companies, some with weak momentum, high leverage, or limited profitability, which can make the ETF more volatile and sensitive to business setbacks.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the last few months, indicating solid recent momentum.
Healthy Sector Diversification
Holdings are spread across many sectors like health care, financials, technology, and industrials, which helps reduce the impact of weakness in any single industry.
Multiple Strong Top Holdings
Several of the largest positions, especially in health care and related areas, have delivered strong year-to-date performance, supporting the fund’s overall returns.
Negative Factors
Single-Country Concentration
Almost all assets are invested in U.S. companies, which means the fund is heavily exposed to the U.S. economy and market swings.
Moderate Expense Ratio
The fund’s fee is not extremely high but is also not among the lowest, so costs may slightly reduce long-term returns compared with cheaper small-cap ETFs.
Exposure to Volatile Small-Cap Stocks
Because the ETF focuses on small-cap companies, including some that have shown weak or very volatile performance, investors face higher risk during market downturns.

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

FSML Summary

Franklin Small Cap Enhanced ETF (FSML) is an actively managed fund that focuses on smaller U.S. companies, rather than following a fixed index. It spreads investments across many areas of the economy, including health care, financials, technology, and industrials. Some of its notable holdings include Jackson Financial and 10x Genomics. Investors might consider FSML if they want growth potential from smaller, more innovative businesses and broader diversification beyond large, well-known stocks. However, small-cap stocks can be more volatile, so the value of this ETF can go up and down more sharply than funds focused on larger companies.
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 hard into U.S. small-cap health care and financial names, with biotech and regional banks setting the tone. High-octane growers like 10x Genomics and Xenon have been rising, giving the fund a shot of momentum, while TG Therapeutics adds more health care firepower with steadier recent moves. On the financial side, Jackson Financial and Valley National Bancorp are quietly pulling their weight, helping balance out the more volatile biotech bets. A tech tilt via Box adds a modest growth kicker, but overall this is a domestically focused, small-cap stock picker’s playground.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Jackson Financial Incorporation1.44%$2.13M$8.57B43.00%
73
Outperform
Oceaneering International1.40%$2.08M$4.78B114.43%
73
Outperform
10x Genomics1.39%$2.06M$5.97B236.07%
60
Neutral
Korn Ferry1.35%$2.00M$4.26B18.18%
73
Outperform
TG Therapeutics1.29%$1.91M$8.40B55.31%
65
Neutral
Krystal Biotech1.28%$1.89M$10.74B137.72%
80
Outperform
Xenon1.25%$1.85M$6.28B105.07%
48
Neutral
Box1.23%$1.83M$4.36B-3.82%
65
Neutral
Valley National Bancorp1.21%$1.80M$8.03B52.85%
73
Outperform
Acadian Asset Management1.21%$1.79M$2.94B107.55%
66
Neutral

FSML Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
29.45
Negative
100DMA
27.83
Positive
200DMA
Market Momentum
MACD
RSI
STOCH
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 30.03, equal to the 50-day MA of 29.45, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$148.32M0.45%
66
Neutral
$576.94M0.55%
70
Neutral
$309.39M0.36%
64
Neutral
$154.22M0.70%
73
Outperform
$141.14M0.50%
70
Outperform
$119.52M0.75%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSML
Franklin Small Cap Enhanced ETF
29.33
4.18
16.62%
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
AFSM
First Trust Active Factor Small Cap 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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