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FSCC - ETF AI Analysis

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FSCC

Federated Hermes MDT Small Cap Core ETF (FSCC)

Rating:64Neutral
Price Target:
FSCC, the Federated Hermes MDT Small Cap Core ETF, has a solid but not top-tier rating, reflecting a mix of strong and more challenged small-cap holdings. Positive contributors include Hamilton Insurance Group, Postal Realty, SPS Commerce, Hecla Mining, and BankUnited, which show strong financial performance, supportive valuations or dividends, and generally favorable trends. However, weaker names like Liquidia Technologies and Mirum Pharmaceuticals, which face high leverage, negative profitability, and valuation concerns, along with some holdings showing expensive valuations or cash flow challenges, introduce risk and help explain why the fund’s rating is not higher.
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 vs. SPDR S&P 500 ETF (SPY)

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 U.S. small caps with a tilt toward industrials, health care, and financials. Recent strength from names like Bloom Energy, Powell Industries, and Arteris has given the fund a spark, as these more growth-oriented holdings have been rising and adding momentum. On the steadier side, BankUnited and CNO Financial are quietly supporting returns without much drama. Offsetting some of that progress, American Healthcare REIT has been lagging, showing that not every bet in this diversified small-cap mix is paying off at the moment.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
American Healthcare REIT, Inc.2.22%$6.91M$12.02B51.18%
64
Neutral
BrightSpring Health Services, Inc.1.59%$4.93M$14.24B240.66%
67
Neutral
SPS Commerce1.27%$3.95M$2.28B-54.91%
77
Outperform
Postal Realty1.26%$3.93M$796.13M63.30%
77
Outperform
Liquidia Technologies1.14%$3.53M$7.19B390.37%
57
Neutral
Hamilton Insurance Group, Ltd. Class B1.10%$3.41M$3.45B60.11%
82
Outperform
BankUnited1.09%$3.40M$3.49B16.16%
74
Outperform
Sphere Entertainment1.08%$3.37M$5.09B205.94%
66
Neutral
Hecla Mining Company1.08%$3.36M$10.26B143.47%
74
Outperform
Indivior1.07%$3.32M$4.93B150.00%
66
Neutral

FSCC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
35.29
Positive
100DMA
33.34
Positive
200DMA
31.91
Positive
Market Momentum
MACD
0.09
Positive
RSI
48.08
Neutral
STOCH
28.12
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSCC, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 36.15, equal to the 50-day MA of 35.29, and equal to the 200-day MA of 31.91, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 28.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSCC.

FSCC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$313.57M0.36%
64
Neutral
$567.75M0.55%
70
Neutral
$152.17M0.70%
73
Outperform
$147.62M0.45%
66
Neutral
$140.22M0.50%
70
Outperform
$110.90M0.75%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSCC
Federated Hermes MDT Small Cap Core ETF
35.58
8.46
31.19%
SEIS
SEI Select Small Cap ETF
SCDV
Bahl & Gaynor Small Cap Dividend ETF
FSML
Franklin Small Cap Enhanced ETF
SIXS
ETC 6 Meridian Small Cap Equity 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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