FDM - ETF AI Analysis
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First Trust Dow Jones Select MicroCap Index Fund (FDM)
Rating:70Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The fund has shown solid gains so far this year and over the past month, indicating positive recent momentum.
Broad Sector Diversification
Holdings are spread across many sectors, which helps reduce the impact if any one industry runs into trouble.
Several Strong Top Holdings
Many of the largest positions, such as Deluxe, American Public Education, and Douglas Dynamics, have delivered strong year-to-date results that support the fund’s overall performance.
Negative Factors
High Expense Ratio
The fund’s fees are on the higher side for an ETF, which can eat into long-term returns for investors.
Heavy U.S. and Financials Focus
With almost all assets in U.S. stocks and a large tilt toward financial companies, the fund is vulnerable if the U.S. market or financial sector weakens.
Some Lagging Top Holdings
A few key positions, including Dauch Corporation and Tetra Technologies, have shown weak year-to-date performance, which can drag on the fund’s results.
FDM vs. SPDR S&P 500 ETF (SPY)
AUM264.21M
RegionNorth America
Expense Ratio0.60%
Beta0.91
IssuerFirst Trust
Inception DateSep 27, 2005
Dividend Yield1.36%
Asset ClassEquity
Index TrackedDJ Select Micro-Cap
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume12,243
30 Day Avg. Volume9,436
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
108.45Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering147
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FDM Summary
FDM is an ETF that follows the Dow Jones Select Micro-Cap Index, focusing on very small U.S. companies that are early in their growth journey. It holds a wide mix of sectors, with a lot in financials and industrials, and includes names like Deluxe and Sun Country Airlines. Someone might invest in FDM to seek higher growth potential and diversify beyond well-known large companies, adding exposure to smaller, often overlooked businesses. However, micro-cap stocks can be very volatile and risky, so the price of this ETF can move up and down sharply.
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 industrials. Northwest Pipe and Douglas Dynamics have been rising steadily, acting like quiet engines pulling the fund forward, while United Fire Group and Universal Insurance add support from the insurance side with generally constructive trends. On the flip side, Deluxe has been lagging and Stoke Therapeutics looks mixed, occasionally losing steam and dampening overall momentum. With all holdings U.S.-based and no single mega-cap in charge, performance is driven by a broad cast of small, volatile players.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Stoke Therapeutics | 2.09% | $5.46M | $1.81B | 119.74% | 70 Outperform | |
| Northwest Pipe Company | 1.71% | $4.47M | $1.33B | 238.97% | 78 Outperform | |
| Dauch Corporation | 1.66% | $4.33M | $1.29B | 19.56% | 64 Neutral | |
| Tetra Technologies | 1.61% | $4.21M | $1.35B | 178.08% | 77 Outperform | |
| Deluxe | 1.53% | $4.00M | $1.19B | 59.82% | 72 Outperform | |
| United Fire Group | 1.45% | $3.78M | $1.31B | 86.32% | 71 Outperform | |
| USA TODAY | 1.38% | $3.61M | $1.25B | 140.11% | 58 Neutral | |
| Horizon Bancorp | 1.34% | $3.50M | $1.04B | 27.51% | 58 Neutral | |
| Douglas Dynamics | 1.33% | $3.46M | $1.03B | 55.15% | 68 Neutral | |
| Central Pacific Financial | 1.31% | $3.42M | $1.02B | 36.20% | 78 Outperform |
FDM Technical Analysis
Positive
―
Price Trends
88.66
Positive
86.47
Positive
82.54
Positive
Market Momentum
0.84
Positive
54.90
Neutral
55.79
Neutral
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 91.46, equal to the 50-day MA of 88.66, and equal to the 200-day MA of 82.54, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 55.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDM.
FDM Peer Comparison
Comparison Results
Performance Comparison
FDM
First Trust Dow Jones Select MicroCap Index Fund
91.46
20.92
29.66%
SYLD
Cambria Shareholder Yield ETF
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―
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SPHB
Invesco S&P 500 High Beta ETF
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DSPY
Tema S&P 500 Historical Weight ETF Strategy
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―
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OMAH
VistaShares Target 15 Berkshire Select Income ETF
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DFMC
U.S. Micro Cap Portfolio ETF
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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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