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 overall rating that reflects a mix of strong small-cap winners and a few more challenged names. High-quality holdings like Fabrinet and RBC Bearings, both supported by strong financial performance and positive outlooks, help lift the fund’s quality, while positions such as Praxis Precision Medicines and nLIGHT, which face notable financial and valuation pressures, likely weigh on the rating. The main risk is that many holdings are smaller, often less profitable companies, which can make the ETF more sensitive to financial setbacks and valuation swings in the small-cap space.

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)

AUM44.46M

RegionNorth America

Expense Ratio0.95%

Beta1.24

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. Volume10,285

30 Day Avg. Volume12,407

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

31.39

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering200

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

MMSC is leaning hard into U.S. small-cap growth, with a clear tilt toward industrials and tech names that can move the needle quickly. On the upside, laser and chip-related plays like nLIGHT, Fabrinet, and MACOM have been rising, giving the fund a helpful tech tailwind, while industrial player VSE and RBC Bearings add steady, economically sensitive strength. Bloom Energy and Praxis are more volatile growth bets that have lately helped more than hurt, but health names like Guardant Health and financial firm Piper Sandler have been lagging, occasionally acting as a brake on performance.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
VSEC	VSE	1.56%	$673.19K	$5.86B	80.01%	67 Neutral
MTSI	MACOM Technology Solutions Holdings	1.52%	$656.56K	$15.57B	101.96%	64 Neutral
LASR	nLIGHT	1.45%	$627.27K	$3.27B	532.58%	61 Neutral
FN	Fabrinet	1.37%	$591.17K	$17.53B	152.48%	78 Outperform
BE	Bloom Energy	1.28%	$552.25K	$37.93B	485.74%	62 Neutral
RBC	RBC Bearings	1.10%	$474.95K	$17.48B	56.63%	77 Outperform
PRAX	Praxis Precision Medicines	1.08%	$465.75K	$8.65B	707.04%	58 Neutral
FCFS	FirstCash	1.08%	$464.93K	$8.37B	64.88%	74 Outperform
EZPW	EZCORP	1.05%	$451.96K	$1.56B	89.88%	75 Outperform
PL	Planet Labs PBC	1.03%	$442.96K	$8.56B	535.18%	57 Neutral

MMSC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

25.29

Negative

100DMA

24.60

Negative

200DMA

22.95

Positive

Market Momentum

MACD

-0.14

Positive

RSI

36.81

Neutral

STOCH

27.91

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MMSC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 25.26, equal to the 50-day MA of 25.29, and equal to the 200-day MA of 22.95, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 27.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMSC.

MMSC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
MMSC	―	―	$44.46M	0.95%	65 Neutral
AFSM	―	―	$86.40M	0.75%	70 Neutral
TMFS	―	―	$68.07M	0.85%	65 Neutral
SYZ	―	―	$58.91M	0.74%	66 Neutral
ACSG	―	―	$9.81M	0.49%	67 Neutral
SAWS	―	―	$6.56M	0.55%	71 Outperform

Performance Comparison

MMSC

First Trust Multi-Manager Small Cap Opportunities ETF

24.02

6.10

34.04%

AFSM

First Trust Active Factor Small Cap ETF

―

TMFS

Motley Fool Small-Cap Growth ETF

―

SYZ

Lazard US Systematic Small Cap Equity 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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