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HSMV - ETF AI Analysis

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HSMV

First Trust Horizon Managed Volatility Small/Mid ETF (HSMV)

Rating:71Outperform
Price Target:
HSMV, the First Trust Horizon Managed Volatility Small/Mid ETF, has a solid overall rating, reflecting a portfolio built around financially strong, income-oriented names with generally stable outlooks. High-quality holdings like NNN REIT, Graco, Agree Realty, and Phillips Edison support the fund’s rating through strong financial performance, positive earnings calls, and, in some cases, attractive dividends, though several positions such as Starwood Property Trust and Four Corners Property Trust face bearish technical trends, leverage or cash flow challenges that modestly weigh on the fund. A key risk factor is the fund’s meaningful exposure to REITs and income-focused financial names, which can be sensitive to interest rates and periods of weaker cash flow.
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 positive year-to-date performance, providing a supportive base for the ETF’s returns.
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 Expense Ratio
The fund’s relatively high fee means more of the returns go to costs instead of staying in investors’ pockets.
Heavy U.S. Concentration
With almost all assets in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. market.
Small Asset Base
The fund manages a modest amount of assets, which can sometimes lead to lower trading volume and wider bid-ask spreads for investors.

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

HSMV Summary

The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) invests in smaller and mid-sized U.S. companies and does not track a specific index. It focuses on many sectors, with larger weights in real estate, financials, and utilities, and aims to smooth out big price swings through a “managed volatility” approach. Well-known holdings include Annaly Capital and Starwood Property. Someone might invest in this ETF to seek long-term growth and diversification beyond large, well-known stocks. A key risk is that small and mid-sized company shares can still be volatile and can go up or down significantly with the market.
How much will it cost me?The expense ratio for the First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is 0.8%, which means you’ll pay $8 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on small and mid-cap companies with a managed volatility strategy that requires more oversight and research.
What would affect this ETF?The HSMV ETF, focused on small and mid-cap U.S. companies, could benefit from economic growth and innovation in sectors like real estate and financials, which make up a significant portion of its holdings. However, it may face challenges from rising interest rates, which can negatively impact real estate and utilities, or economic slowdowns that could affect smaller companies more severely. Regulatory changes in key sectors or shifts in consumer behavior could also influence its performance.

HSMV Top 10 Holdings

HSMV is leaning heavily into U.S. real estate and utilities, so steady names like OGE Energy, IdaCorp, and NNN REIT are doing much of the lifting with generally rising trends over the past few months. Agree Realty and Four Corners Property add to that real-asset backbone, though their recent trading has been a bit choppy. On the weaker side, Ingredion and Ellington Financial have been lagging, acting like a small anchor on returns. Overall, the fund is a U.S.-focused, income-tilted play rather than a high-flying tech story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
OGE Energy2.17%$621.35K$10.03B15.08%
67
Neutral
Phillips Edison & Company2.04%$583.95K$5.16B8.48%
75
Outperform
Ingredion1.97%$562.57K$7.19B-8.78%
65
Neutral
Starwood Property1.60%$456.71K$6.41B-1.82%
62
Neutral
IdaCorp1.59%$454.22K$7.94B27.18%
64
Neutral
NNN REIT1.48%$424.06K$8.07B10.42%
78
Outperform
Ellington Financial1.44%$411.50K$1.51B4.40%
72
Outperform
Graco1.44%$410.68K$13.98B14.20%
78
Outperform
Agree Realty1.43%$410.30K$9.07B6.86%
75
Outperform
Four Corners Property1.39%$396.50K$2.57B-10.05%
71
Outperform

HSMV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
37.01
Negative
100DMA
36.38
Positive
200DMA
35.95
Positive
Market Momentum
MACD
-0.23
Negative
RSI
51.44
Neutral
STOCH
97.86
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For HSMV, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 36.25, equal to the 50-day MA of 37.01, and equal to the 200-day MA of 35.95, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 97.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSMV.

HSMV Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$29.08M0.80%
71
Outperform
$73.11M0.69%
69
Neutral
$55.08M0.38%
72
Outperform
$54.93M0.75%
73
Outperform
$27.37M1.09%
68
Neutral
$26.21M0.75%
63
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HSMV
First Trust Horizon Managed Volatility Small/Mid ETF
36.59
3.00
8.93%
OASC
OneAscent Small Cap Core ETF
ASCE
Allspring SMID Core ETF
SMOX
Horizon Small/Mid Cap Core Equity ETF
MYLD
Cambria Micro and SmallCap Shareholder Yield ETF
BCSM
Baron SMID 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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