FSCC - ETF AI Analysis

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Federated Hermes MDT Small Cap Core ETF (FSCC)

Rating:63Neutral

Price Target:―

FSCC’s rating suggests it is a solid but not top-tier small-cap core ETF, with its quality driven by several strong financial and insurance names. Holdings like Hamilton Insurance Group, Byline Bancorp, and SPS Commerce support the fund through strong financial performance, attractive or reasonable valuations, and positive growth trends, though some show signs of being expensive or technically overbought. On the downside, Janux Therapeutics and a few holdings with cash flow or profitability challenges temper the overall rating, and investors should note the fund’s meaningful exposure to financial and insurance-related companies as a key risk if that sector faces pressure.

Positive Factors

Strong Year-to-Date Performance

The ETF has delivered strong gains so far this year, suggesting its strategy has recently worked well for investors.

Multiple Top Holdings with Strong Momentum

Several of the largest positions, such as BrightSpring Health Services, Liquidia Technologies, and Sphere Entertainment, have shown strong performance, helping drive the fund’s returns.

Broad Sector Diversification Within Small Caps

Holdings spread across health care, financials, industrials, technology, real estate, and other sectors help reduce the impact if any single industry runs into trouble.

Negative Factors

Recent Short-Term Weakness

The ETF has slipped slightly over the past month, showing that returns can be bumpy even when longer-term performance looks strong.

Exposure to Underperforming Holdings

Some top positions like SPS Commerce and Hecla Mining have shown weak performance, which can drag on overall results if the weakness continues.

Heavy Concentration in U.S. Small-Cap Stocks

With almost all assets in U.S. companies and focused on smaller firms, the fund is sensitive to swings in the U.S. small-cap market and offers little geographic diversification.

FSCC Historical Chart

AUM418.42M

RegionNorth America

Expense Ratio0.36%

Beta1.09

IssuerFederated Hermes

Inception DateJul 31, 2024

Dividend Yield0.23%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume275,952

30 Day Avg. Volume82,556

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

45.01

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering310

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FSCC Summary

Federated Hermes MDT Small Cap Core ETF (FSCC) is a U.S. stock fund that focuses on small companies across many industries, including health care, financials, and technology. It doesn’t track a specific index, but instead uses active managers to pick a broad mix of smaller firms. Some of its holdings include American Healthcare REIT and BankUnited. Investors might consider FSCC if they want growth potential and diversification beyond large, well-known companies. However, small-cap stocks can be more volatile, so the ETF’s value can go up and down more sharply with the market.

How much will it cost me?The Federated Hermes MDT Small Cap Core ETF (FSCC) has an expense ratio of 0.36%, which means you’ll pay $3.60 per year for every $1,000 invested. This expense ratio is slightly higher than average because the fund is actively managed, requiring more research and expertise to select small-cap stocks with growth potential.

What would affect this ETF?The FSCC ETF, focused on U.S. small-cap companies across diverse sectors like Industrials, Financials, and Health Care, could benefit from economic growth and innovation in these industries, as smaller firms often thrive in expanding markets. However, it may face challenges from rising interest rates, which can increase borrowing costs for small businesses, and economic slowdowns, which tend to impact smaller companies more significantly. Regulatory changes or sector-specific disruptions could also influence the ETF's performance.

FSCC Top 10 Holdings

FSCC’s story is all about nimble U.S. small caps, with a clear tilt toward health care, financials, and industrials. BrightSpring Health Services and Janux Therapeutics have been rising stars, giving the fund a lift despite their choppy fundamentals. On the financial side, Hamilton Insurance and Slide Insurance are quietly pulling their weight, while BankUnited looks more steady than exciting. In real estate, American Healthcare REIT and Postal Realty are more mixed, occasionally losing steam and keeping overall performance from running too far ahead.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AHR	American Healthcare REIT, Inc.	2.05%	$8.60M	$12.01B	28.06%	64 Neutral
PSTL	Postal Realty	1.25%	$5.26M	$845.75M	48.43%	77 Outperform
HG	Hamilton Insurance Group, Ltd. Class B	1.11%	$4.67M	$3.51B	45.78%	82 Outperform
SLDE	Slide Insurance Holdings, Inc.	1.10%	$4.62M	$2.88B	79.94%	73 Outperform
JANX	Janux Therapeutics Inc	1.10%	$4.59M	$1.24B	-15.60%	45 Neutral
SPHR	Sphere Entertainment	1.09%	$4.59M	$5.11B	191.25%	66 Neutral
BKU	BankUnited	1.07%	$4.51M	$3.30B	18.98%	74 Outperform
SPSC	SPS Commerce	1.03%	$4.31M	$2.99B	-24.95%	77 Outperform
BY	Byline Bancorp	1.01%	$4.25M	$1.76B	34.29%	78 Outperform
CNO	CNO Financial	1.00%	$4.20M	$5.25B	42.80%	72 Outperform

FSCC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

35.89

Negative

100DMA

35.09

Positive

200DMA

32.90

Positive

Market Momentum

MACD

-0.08

Positive

RSI

49.80

Neutral

STOCH

47.33

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSCC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 35.81, equal to the 50-day MA of 35.89, and equal to the 200-day MA of 32.90, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 47.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSCC.

FSCC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FSCC	―	―	$418.42M	0.36%	63 Neutral
SEIS	―	―	$596.67M	0.55%	69 Neutral
SIXS	―	―	$197.89M	0.50%	70 Outperform
SCDV	―	―	$150.39M	0.70%	73 Outperform
FSML	―	―	$150.06M	0.45%	66 Neutral
AFSM	―	―	$128.95M	0.75%	68 Neutral

Performance Comparison

FSCC

Federated Hermes MDT Small Cap Core ETF

35.71

6.26

21.26%

SEIS

SEI Select Small Cap ETF

―

SIXS

ETC 6 Meridian Small Cap Equity ETF

―

SCDV

Bahl & Gaynor Small Cap Dividend ETF

―

FSML

Franklin Small Cap Enhanced ETF

―

AFSM

First Trust Active Factor Small Cap 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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