MMSC - ETF AI Analysis

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First Trust Multi-Manager Small Cap Opportunities ETF (MMSC)

Rating:65Neutral

Price Target:―

MMSC, the First Trust Multi-Manager Small Cap Opportunities ETF, has a solid but not top-tier rating, reflecting a mix of strong growth stories and meaningful risks among its small-cap holdings. Higher-quality positions like Rambus and Fabrinet support the fund with strong financial performance, positive earnings commentary, and good exposure to growth areas such as AI, while several other holdings face profitability, cash flow, or valuation challenges that limit the overall rating. The main risk factor is the fund’s focus on smaller companies, many of which have financial instability or high valuations, making the ETF more sensitive to market swings and company-specific setbacks.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains so far this year and in recent months, indicating positive momentum in its small-cap strategy.

Leading Holdings Performing Well

Many of the top positions, including several technology and defense-related names, have delivered strong year-to-date results that support the fund’s overall performance.

Broad Small-Cap Sector Mix

Holdings spread across industrials, health care, technology, and several other sectors help reduce the impact of weakness in any single industry.

Negative Factors

High Expense Ratio

The fund charges a relatively high fee, which can eat into long-term returns compared with lower-cost ETFs.

Heavy U.S. Concentration

With almost all assets in U.S. stocks, the ETF offers little geographic diversification and is highly tied to the U.S. small-cap market.

Sector Concentration in a Few Areas

Large weights in industrials, health care, and technology mean the fund is more exposed if these sectors experience a downturn.

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

AUM42.12M

RegionNorth America

Expense Ratio0.95%

Beta1.22

IssuerFirst Trust

Inception DateOct 13, 2021

Dividend YieldN/A

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume19,218

30 Day Avg. Volume18,779

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

31.43

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering202

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

MMSC Summary

The First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) focuses on fast-growing smaller U.S. companies rather than following a traditional index. It uses several professional managers to pick stocks, mainly in industrials, health care, and technology. Examples of holdings include MACOM Technology Solutions and Rambus, which work in advanced electronics and chips. Someone might invest in this ETF to seek higher long-term growth and to diversify beyond large, well-known companies. However, small-cap stocks can be very volatile, so the ETF’s price can move up and down more sharply than the overall market.

How much will it cost me?The First Trust Multi-Manager Small Cap Opportunities ETF (Ticker: MMSC) has an expense ratio of 0.95%, meaning you’ll pay $9.50 per year for every $1,000 invested. This is higher than average because the fund is actively managed, leveraging multiple asset managers to identify growth opportunities in small-cap stocks.

What would affect this ETF?The First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) could benefit from strong growth in sectors like technology and healthcare, which make up a significant portion of its holdings, especially if innovation and demand in these areas continue to rise. However, small-cap stocks are often more sensitive to economic downturns, interest rate hikes, and market volatility, which could negatively impact the ETF's performance. Additionally, regulatory changes or challenges in the U.S., where the fund is geographically focused, could also influence its future outcomes.

MMSC Top 10 Holdings

This small-cap growth ETF is leaning hard into U.S. industrials, tech, and defense, with names like Kratos Defense and Rambus doing much of the heavy lifting as their shares keep rising on upbeat growth stories tied to defense and AI. MACOM and Karman Holdings are also adding fuel, though their rich valuations make the ride bumpier. On the flip side, AeroVironment’s mixed pattern and Xometry’s recent softness are acting like a small anchor. Overall, performance is being driven by a concentrated group of niche U.S. innovators.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MTSI	MACOM Technology Solutions Holdings	1.76%	$747.13K	$18.31B	98.31%	64 Neutral
VSEC	VSE	1.49%	$633.31K	$5.84B	108.33%	67 Neutral
RMBS	Rambus	1.37%	$580.61K	$10.97B	61.93%	78 Outperform
FN	Fabrinet	1.33%	$565.42K	$17.75B	122.18%	78 Outperform
LASR	nLIGHT	1.30%	$550.82K	$2.86B	423.32%	61 Neutral
BE	Bloom Energy	1.27%	$538.98K	$39.20B	449.94%	62 Neutral
PIPR	Piper Sandler	1.15%	$488.91K	$5.71B	5.46%	67 Neutral
GH	Guardant Health	1.09%	$462.28K	$13.56B	117.89%	61 Neutral
SITM	SiTime Corporation	1.08%	$457.63K	$11.05B	136.87%	61 Neutral
PRAX	Praxis Precision Medicines	1.06%	$448.59K	$8.69B	249.51%	58 Neutral

MMSC Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

25.03

Positive

100DMA

24.35

Positive

200DMA

22.52

Positive

Market Momentum

MACD

>-0.01

Positive

RSI

46.97

Neutral

STOCH

48.48

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MMSC, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 25.56, equal to the 50-day MA of 25.03, and equal to the 200-day MA of 22.52, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MMSC.

MMSC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
MMSC	―	―	$42.12M	0.95%	―
FSML	―	―	$99.71M	0.45%	―
AFSM	―	―	$80.54M	0.75%	―
TMFS	―	―	$69.99M	0.85%	―
ACSG	―	―	$8.36M	0.49%	―
SAWS	―	―	$6.73M	0.55%	―

Performance Comparison

MMSC

First Trust Multi-Manager Small Cap Opportunities ETF

25.03

3.83

18.07%

FSML

Franklin Small Cap Enhanced ETF

―

AFSM

First Trust Active Factor Small Cap ETF

―

TMFS

Motley Fool Small-Cap Growth ETF

―

ACSG

American Century Small Cap Growth Insights ETF

―

SAWS

AAM Sawgrass US Small Cap Quality Growth 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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