tiprankstipranks
Advertisement

FDM - ETF AI Analysis

Compare

Top Page

FDM

First Trust Dow Jones Select MicroCap Index Fund (FDM)

Rating:70Neutral
Price Target:
FDM, the First Trust Dow Jones Select MicroCap Index Fund, earns a solid overall rating driven mainly by strong, growing companies like GigaCloud Technology, Tetra Technologies, and Northwest Pipe Company, which show robust financial performance, positive earnings calls, and supportive technical trends. At the same time, weaker names such as Horizon Bancorp, with more troubled financials and valuation challenges, slightly weigh on the fund’s quality. The main risk factor is the fund’s focus on micro-cap stocks, which can be more volatile and sensitive to cash flow and profitability issues than larger, more established companies.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, showing solid momentum in its micro-cap strategy.
Broad Sector Diversification
Holdings spread across financials, industrials, consumer, technology, health care, and other sectors help reduce the impact of weakness in any single industry.
Multiple Strong Top Holdings
Several of the largest positions, such as Northwest Pipe Company, Deluxe, and USA TODAY, have shown strong year-to-date performance, supporting the fund’s overall results.
Negative Factors
Heavy Tilt Toward Financials
A large share of the portfolio is in financial stocks, which increases the fund’s sensitivity to problems in that sector.
U.S.-Only Geographic Exposure
Almost all assets are invested in U.S. companies, offering little diversification across global markets.
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees.

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

FDM Summary

FDM (First Trust Dow Jones Select MicroCap Index Fund) is an ETF that tracks the Dow Jones Select Micro-Cap Index, focusing on very small U.S. companies. These “micro-cap” firms are early-stage or niche businesses across many sectors, with a big tilt toward financial and industrial companies. Top holdings include names like Stoke Therapeutics and Deluxe. Investors might consider FDM if they want growth potential and diversification beyond the usual large, well-known stocks. However, micro-cap stocks can be very volatile and harder to trade, so the fund’s price can swing sharply and may drop more than the overall market.
How much will it cost me?The expense ratio for the First Trust Dow Jones Select MicroCap Index Fund (FDM) is 0.6%, which means you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is actively managed and focuses on micro-cap stocks, which require more research and management compared to passive funds tracking larger companies.
What would affect this ETF?The First Trust Dow Jones Select MicroCap Index Fund (FDM) could benefit from economic growth and innovation in the U.S., particularly in sectors like financials and technology, which make up a significant portion of its holdings. However, micro-cap stocks are highly sensitive to market volatility, interest rate hikes, and economic downturns, which could negatively impact the fund's performance. Additionally, regulatory changes or challenges in key sectors like healthcare and energy may pose risks to its future growth.

FDM Top 10 Holdings

FDM is essentially a micro-cap hunting ground, with a heavy tilt toward U.S. financials and a supporting cast in tech and health care. Recent gains are being led by names like QuinStreet and Seneca Foods, which have been rising steadily and giving the fund some welcome lift. Rigel Pharmaceuticals and Adamas Trust add to the momentum, though their risk profiles keep things interesting. On the flip side, PagerDuty’s mixed performance and Root’s lagging trend act as small speed bumps. Overall, it’s a U.S.-focused, micro-cap story driven by a few energetic winners.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Quinstreet1.80%$4.84M$1.09B22.32%
69
Neutral
PagerDuty1.74%$4.65M$1.09B-17.38%
63
Neutral
Seneca Foods1.58%$4.25M$1.35B76.54%
70
Outperform
Rigel1.41%$3.78M$868.24M19.64%
78
Outperform
Apogee1.40%$3.76M$841.62M-8.29%
64
Neutral
GCM Grosvenor1.36%$3.64M$2.78B5.86%
60
Neutral
Orrstown Financial Services1.35%$3.62M$825.34M20.40%
81
Outperform
Adamas Trust1.34%$3.60M$880.82M35.73%
60
Neutral
PennyMac Mortgage1.33%$3.58M$814.47M-24.13%
58
Neutral
Financial Institutions1.32%$3.54M$807.17M48.03%
61
Neutral

FDM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
92.67
Positive
100DMA
90.02
Positive
200DMA
85.89
Positive
Market Momentum
MACD
<0.01
Positive
RSI
55.64
Neutral
STOCH
86.72
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 93.39, equal to the 50-day MA of 92.67, and equal to the 200-day MA of 85.89, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 86.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDM.

FDM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$269.46M0.60%
70
Neutral
$985.62M0.15%
73
Outperform
$981.55M0.19%
72
Outperform
$981.20M0.18%
71
Outperform
$960.73M0.75%
71
Outperform
$194.61M0.41%
61
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDM
First Trust Dow Jones Select MicroCap Index Fund
93.70
19.00
25.44%
CVLC
Calvert US Large-Cap Core Responsible Index ETF
IUS
Invesco RAFI Strategic US ETF
VFMF
Vanguard U.S. Multifactor ETF
FTQI
First Trust Hedged BuyWrite Income ETF
DFMC
U.S. Micro Cap Portfolio 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: ―
Table of Contents
Advertisement