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FSCS - ETF AI Analysis

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FSCS

First Trust Smid Capital Strength Etf (FSCS)

Rating:73Outperform
Price Target:
FSCS, the First Trust Smid Capital Strength ETF, earns a solid overall rating thanks to several high-quality holdings with strong financial performance and growth prospects, such as Neurocrine (NBIX) and Incyte (INCY), which benefit from robust profitability, positive earnings commentary, and promising R&D pipelines. Additional support comes from companies like SEI Investments (SEIC) and A10 Networks (ATEN), which show healthy growth and generally favorable technical trends. The main risk factor is that some holdings, including Inter Parfums (IPAR) and Globe Life (GL), show bearish or weak technical signals and cash flow or cost-management concerns, which can weigh on short-term performance.
Positive Factors
Broad Sector Mix
The fund spreads its investments across many sectors, which helps reduce the impact if any one industry runs into trouble.
Several Strong-Performing Holdings
A number of the top positions, especially in industrial and financial names, have shown strong gains this year, supporting overall returns.
Positive Recent Performance
The ETF has delivered steady gains over the past month, three months, and year to date, indicating solid recent momentum.
Negative Factors
High U.S. Concentration
Almost all of the fund’s assets are invested in U.S. companies, offering little diversification across global markets.
Notable Weak Top Holdings
Several of the largest positions, particularly in consumer-focused companies, have shown weak performance this year, which can drag on the fund.
Above-Average 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.

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

FSCS Summary

FSCS, the First Trust Smid Capital Strength ETF, follows the SMID Capital Strength Index and focuses on mid-sized and smaller U.S. companies with solid financial strength. It spreads investments across many sectors, including financials, industrials, consumer goods, and health care, giving investors broad exposure beyond the usual large, well-known stocks. Well-known names in the fund include Ulta Beauty and McCormick & Company. Someone might invest in FSCS for growth potential and diversification into smaller companies that may be overlooked. A key risk is that these stocks can be more volatile and can go up and down sharply with the market.
How much will it cost me?The First Trust Smid Capital Strength ETF (FSCS) has an expense ratio of 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, focusing on mid-sized and smaller companies with strong financial health, which requires more research and management effort.
What would affect this ETF?The First Trust Smid Capital Strength ETF could benefit from economic growth and innovation in mid-sized and smaller U.S. companies, especially in sectors like technology and financials, which are heavily weighted in the fund. However, it may face challenges from rising interest rates, which could impact smaller firms' borrowing costs, or economic slowdowns that disproportionately affect these companies. Regulatory changes in key sectors like financials and technology could also influence the ETF's performance.

FSCS Top 10 Holdings

FSCS leans heavily into U.S. financials and industrials, and that’s where most of the action is. Regional lenders like First Bancorp Puerto Rico and OFG Bancorp have been rising steadily, giving the fund a helpful tailwind, while insurer W.R. Berkley adds more quiet strength. On the industrial side, names like Curtiss-Wright and Crane have been climbing, acting as key engines for performance. In contrast, Allegion and Stifel Financial look a bit mixed, occasionally losing steam and modestly tempering the fund’s otherwise upbeat trajectory.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Marketaxess Holdings1.40%$820.33K$5.71B-22.51%
68
Neutral
Allegion1.15%$676.09K$13.38B-3.27%
72
Outperform
Mueller Industries1.10%$647.53K$14.69B56.42%
78
Outperform
MSA Safety1.10%$647.44K$7.35B8.46%
75
Outperform
Ulta Beauty1.09%$641.29K$22.05B3.77%
78
Outperform
Artisan Partners1.07%$629.08K$3.18B-9.64%
73
Outperform
Hanover Insurance1.07%$626.83K$8.10B35.56%
77
Outperform
Federated Hermes1.07%$626.80K$4.55B25.27%
72
Outperform
Exponent1.06%$624.60K$3.24B-3.27%
78
Outperform
Buckle1.06%$624.47K$2.25B-9.89%
72
Outperform

FSCS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
36.52
Positive
100DMA
36.07
Positive
200DMA
36.05
Positive
Market Momentum
MACD
0.43
Negative
RSI
65.37
Neutral
STOCH
83.45
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSCS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 37.33, equal to the 50-day MA of 36.52, and equal to the 200-day MA of 36.05, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 65.37 is Neutral, neither overbought nor oversold. The STOCH value of 83.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSCS.

FSCS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$59.41M0.60%
73
Outperform
$89.20M0.69%
69
Neutral
$35.21M0.80%
71
Outperform
$33.94M1.09%
67
Neutral
$33.61M0.75%
60
Neutral
$33.08M0.50%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSCS
First Trust Smid Capital Strength Etf
38.31
2.47
6.89%
OASC
OneAscent Small Cap Core ETF
HSMV
First Trust Horizon Managed Volatility Small/Mid ETF
MYLD
Cambria Micro and SmallCap Shareholder Yield ETF
BCSM
Baron SMID Cap ETF
TMFX
Motley Fool Next Index 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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