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MMSC - ETF AI Analysis

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MMSC

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

Rating:64Neutral
Price Target:
MMSC (First Trust Multi-Manager Small Cap Opportunities ETF) has a solid overall rating, suggesting it holds a generally attractive mix of small-cap stocks with some notable strengths and a few clear risks. Strong contributors like Fabrinet, Credo Technology Group, and Powell Industries support the fund with robust financial performance, positive earnings outlooks, and strategic moves that signal growth potential and shareholder focus. However, holdings such as Planet Labs and nLIGHT face profitability and cash flow challenges, and several positions show high or potentially stretched valuations, making valuation risk and some operational uncertainty the main factors that may hold back the ETF’s rating.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating positive recent momentum in its small-cap holdings.
Leading Holdings Showing Solid Gains
Many of the top positions, including technology and industrial names, have delivered strong year-to-date performance, helping drive the fund’s results.
Broad Sector Diversification
The fund spreads its investments across many sectors, with meaningful exposure to industrials, technology, and health care, which helps reduce reliance on any single industry.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the returns are used to cover fees instead of going to investors.
Heavy U.S. Concentration
With the vast majority of assets in U.S. stocks and very limited exposure to other countries, the ETF offers little geographic diversification.
Small Fund Size
The ETF manages a modest amount of assets, which can sometimes lead to lower trading volume and potentially wider bid-ask spreads for investors.

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

MMSC Summary

The First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) focuses on small U.S. companies that are trying to grow quickly, rather than tracking a set index. It uses several professional managers to pick stocks across many areas of the economy, including industrials, technology, and health care. The fund holds lesser-known but growing names such as Bloom Energy and Fabrinet. Someone might invest in this ETF to seek higher long-term growth and to diversify beyond large, well-known companies. However, small-company stocks can be very volatile and may go up and down more 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 and tech, with names like Powell Industries and Bloom Energy doing much of the heavy lifting as they ride strong momentum and solid backlogs. Fabrinet and MACOM add more tech firepower, keeping the fund tied to rising demand for specialized hardware, even if valuations look a bit stretched. On the softer side, VSE has been more mixed lately, losing a bit of steam, while biotech play Praxis feels like a high-risk, high-reward lottery ticket that can add volatility around the edges.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy2.45%$1.18M$81.20B1626.98%
62
Neutral
MACOM Technology Solutions Holdings1.59%$771.31K$23.24B173.27%
64
Neutral
nLIGHT1.53%$738.87K$3.98B770.45%
61
Neutral
Fabrinet1.47%$709.19K$24.33B223.51%
78
Outperform
FirstCash1.34%$649.91K$9.92B69.64%
74
Outperform
Planet Labs PBC1.32%$637.57K$13.74B1047.11%
57
Neutral
Credo Technology Group Holding Ltd1.21%$584.11K$36.57B309.44%
77
Outperform
Lumentum Holdings1.17%$567.16K$67.42B1325.54%
61
Neutral
VSE1.09%$529.55K$5.82B62.99%
67
Neutral
Powell Industries1.08%$521.81K$11.67B449.46%
76
Outperform

MMSC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
25.25
Positive
100DMA
25.21
Positive
200DMA
24.09
Positive
Market Momentum
MACD
0.61
Negative
RSI
64.15
Neutral
STOCH
85.71
Negative
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 26.72, equal to the 50-day MA of 25.25, and equal to the 200-day MA of 24.09, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 64.15 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, 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
$49.98M0.95%
64
Neutral
$93.75M0.75%
70
Neutral
$64.28M0.85%
66
Neutral
$15.56M0.49%
67
Neutral
$7.06M0.55%
72
Outperform
$3.82M0.80%
61
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MMSC
First Trust Multi-Manager Small Cap Opportunities ETF
27.44
8.68
46.27%
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
SGRW
Harbor Active Small Cap 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.
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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