MMSC - ETF AI Analysis

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

Rating:63Neutral

Price Target:―

The First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) has a balanced overall rating, reflecting both strengths and challenges among its holdings. Strong contributors like Boot Barn, which benefits from robust revenue growth and strategic expansion, and Fabrinet, with its strong financial performance and optimistic future guidance, positively impact the fund's rating. However, weaker holdings such as Irhythm Technologies, which faces profitability challenges and regulatory concerns, and AeroVironment, with financial weaknesses and bearish technical indicators, weigh on the overall score. The fund's exposure to small-cap stocks may also introduce higher volatility as a key risk factor.

Positive Factors

Strong Year-to-Date Performance

The ETF has delivered solid returns so far this year, indicating strong momentum.

Sector Diversification

The fund is spread across multiple sectors, with significant exposure to Technology, Industrials, and Health Care, reducing reliance on any single industry.

Top Holdings Showing Strength

Several top holdings, such as Bloom Energy and Kratos Defense, have shown strong year-to-date performance, supporting the ETF’s overall gains.

Negative Factors

High Expense Ratio

The ETF charges a relatively high expense ratio, which can eat into investor returns over time.

Over-Concentration in U.S. Market

With over 98% of its assets in U.S. companies, the fund lacks meaningful exposure to international markets, limiting geographic diversification.

Underperforming Holdings

Some top holdings, such as Boot Barn and Varonis Systems, have lagged in performance, potentially dragging down overall returns.

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

AUM32.83M

RegionNorth America

Expense Ratio0.95%

Beta1.23

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. Volume43,315

30 Day Avg. Volume10,109

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

28.44

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 small-cap growth companies, which are smaller businesses with high potential for rapid expansion. It uses a multi-manager approach, meaning several experienced asset managers work together to select promising stocks. The ETF includes companies like AeroVironment and Bloom Energy, and it invests heavily in sectors such as technology and industrials. Investors might consider MMSC for its potential to grow quickly and diversify their portfolios with smaller, emerging companies. However, small-cap stocks can be more volatile than larger companies, meaning their prices can rise or fall sharply depending on market conditions.

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

The First Trust Multi-Manager Small Cap Opportunities ETF is leaning heavily into growth-oriented small-cap stocks, with a strong focus on Industrials, Health Care, and Technology. Bloom Energy is rising thanks to robust earnings and improved financials, providing a spark to the fund’s performance. Guardant Health is also climbing, driven by technical momentum and growth potential, despite valuation concerns. On the flip side, AeroVironment and Fabrinet are lagging, weighed down by profitability challenges and mixed technical signals. With its U.S.-centric portfolio, the fund is betting on emerging leaders in dynamic sectors, though some names are struggling to keep pace.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
FN	Fabrinet	1.54%	$521.27K	$14.92B	76.79%	75 Outperform
	―	1.48%	$500.01K	―	―	―
GH	Guardant Health	1.37%	$463.47K	$14.39B	214.26%	58 Neutral
MTSI	MACOM Technology Solutions Holdings	1.28%	$432.35K	$12.44B	23.27%	61 Neutral
AVAV	AeroVironment	1.27%	$430.44K	$13.83B	40.96%	58 Neutral
IRTC	Irhythm Technologies	1.24%	$419.55K	$5.90B	122.56%	40 Underperform
BE	Bloom Energy	1.22%	$413.01K	$22.60B	268.25%	63 Neutral
XMTR	Xometry	1.20%	$405.49K	$2.84B	69.58%	55 Neutral
BOOT	Boot Barn	1.20%	$404.87K	$5.62B	32.86%	77 Outperform
PIPR	Piper Sandler	1.12%	$378.29K	$5.78B	-6.26%	67 Neutral

MMSC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

23.60

Negative

100DMA

22.49

Positive

200DMA

20.80

Positive

Market Momentum

MACD

-0.28

Positive

RSI

49.87

Neutral

STOCH

30.13

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MMSC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 23.56, equal to the 50-day MA of 23.60, and equal to the 200-day MA of 20.80, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 30.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMSC.

MMSC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
MMSC	―	―	$32.83M	0.95%	―
TMFS	―	―	$66.69M	0.85%	―
FSCC	―	―	$58.42M	0.36%	―
AFSM	―	―	$44.60M	0.75%	―
ACSG	―	―	$6.34M	0.49%	―
SAWS	―	―	$1.38M	0.55%	―

Performance Comparison

MMSC

First Trust Multi-Manager Small Cap Opportunities ETF

23.37

0.79

3.50%

TMFS

Motley Fool Small-Cap Growth ETF

―

FSCC

Federated Hermes MDT Small Cap Core ETF

―

AFSM

First Trust Active Factor Small Cap 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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