FSGS - ETF AI Analysis

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Small Cap US Equity Select ETF (FSGS)

Rating:74Outperform

Price Target:―

FSGS, the Small Cap US Equity Select ETF, has a solid overall rating driven mainly by several strong, growing companies like Catalyst Pharma, Progyny, and Neurocrine, which show robust financial performance, positive earnings commentary, and good growth prospects. These strengths are slightly offset by holdings such as Sprouts Farmers Market and EMCOR Group, where weaker technical trends, valuation concerns, or competitive and regulatory challenges weigh on their outlook. A key risk factor for the ETF is that many top holdings trade at high or premium valuations, which could limit future upside if growth slows.

Positive Factors

Strong Recent Monthly Performance

The ETF has shown strong gains over the past month, indicating positive short-term momentum.

Well-Diversified Across Sectors

Holdings are spread across many different industries, which helps reduce the impact if any one sector struggles.

Several Strong-Performing Top Holdings

Some of the largest positions, such as Clear Secure, IES Holdings, and Sterling Infrastructure, have delivered strong year-to-date performance that supports the fund’s returns.

Negative Factors

Higher Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which can eat into long-term returns.

Mixed Performance Among Top Holdings

Several key holdings, including Paycom, Trade Desk, Duolingo, DocuSign, Erie Indemnity, and Paylocity, have shown weak year-to-date performance, which can drag on overall results.

Very Heavy U.S.-Only Exposure

Almost all assets are invested in U.S. companies, offering little geographic diversification if the U.S. market faces a downturn.

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

AUM28.21M

RegionNorth America

Expense Ratio0.60%

Beta0.89

IssuerFirst Trust

Inception DateJun 20, 2017

Dividend YieldN/A

Asset ClassEquity

Index TrackedSMID Growth Strength Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume10,130

30 Day Avg. Volume2,889

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

36.97

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering100

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FSGS Summary

FSGS is the Small Cap US Equity Select ETF, which follows the SMID Growth Strength Index. It focuses on smaller U.S. companies that are aiming for fast growth, across many sectors like technology, industrials, and health care. Well-known holdings include DocuSign and Duolingo. Someone might invest in this ETF to seek higher long-term growth and to diversify beyond large, well-known stocks, since it spreads money across many small companies. A key risk is that small-cap stocks can be very volatile, so the ETF’s value can rise and fall more sharply than the overall market.

How much will it cost me?The Small Cap US Equity Select ETF (Ticker: FSGS) 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 ETF is actively managed, focusing on small-cap companies with growth potential, which requires more research and management effort.

What would affect this ETF?The Small Cap US Equity Select ETF (FSGS) could benefit from economic growth and innovation in the U.S., particularly in technology and financial sectors, which are its largest exposures. However, it may face challenges from rising interest rates or economic slowdowns, which can negatively impact small-cap companies and growth-focused investments. Regulatory changes or sector-specific disruptions could also influence the performance of its top holdings.

FSGS Top 10 Holdings

FSGS is leaning hard into U.S. small-cap infrastructure and industrial services, with names like Sterling Infrastructure, MYR Group, and Powell Industries doing much of the heavy lifting as they continue to rise on strong backlogs and upbeat earnings. IES Holdings and MasTec add to this construction-and-engineering backbone, keeping the fund firmly tied to the real economy. On the health care side, Catalyst Pharma and Neurocrine are steady contributors, while Progyny has been more mixed, occasionally losing steam. Overall, the ETF is U.S.-only and clearly tilted toward industrial and health care growth stories.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
STRL	Sterling Infrastructure	1.87%	$524.95K	$26.59B	287.50%	71 Outperform
PGNY	Progyny	1.45%	$407.88K	$2.11B	23.55%	79 Outperform
MYRG	MYR Group	1.36%	$383.33K	$7.01B	167.54%	76 Outperform
IESC	IES Holdings	1.31%	$368.08K	$14.47B	156.34%	76 Outperform
DUOL	Duolingo	1.28%	$359.62K	$5.92B	-73.11%	69 Neutral
SNEX	StoneX Group	1.23%	$347.16K	$10.76B	133.01%	58 Neutral
POWL	Powell Industries	1.21%	$341.29K	$11.06B	385.44%	76 Outperform
AAMI	Acadian Asset Management	1.21%	$339.45K	$2.87B	162.36%	66 Neutral
CPRX	Catalyst Pharma	1.20%	$338.11K	$3.84B	35.01%	83 Outperform
ATI	ATI	1.20%	$337.46K	$26.72B	131.77%	78 Outperform

FSGS Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

30.81

Negative

100DMA

30.49

Positive

200DMA

30.73

Positive

Market Momentum

MACD

0.12

Positive

RSI

47.15

Neutral

STOCH

42.86

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSGS, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 30.99, equal to the 50-day MA of 30.81, and equal to the 200-day MA of 30.73, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSGS.

FSGS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FSGS	―	―	$28.21M	0.60%	74 Outperform
ASCE	―	―	$95.33M	0.38%	72 Outperform
OASC	―	―	$87.80M	0.69%	69 Neutral
SMOX	―	―	$72.14M	0.75%	71 Outperform
FSCS	―	―	$57.47M	0.60%	73 Outperform
SSMG	―	―	$3.42M	0.39%	67 Neutral

Performance Comparison

FSGS

Small Cap US Equity Select ETF

30.75

1.94

6.73%

ASCE

Allspring SMID Core ETF

―

OASC

OneAscent Small Cap Core ETF

―

SMOX

Horizon Small/Mid Cap Core Equity ETF

―

FSCS

First Trust Smid Capital Strength Etf

―

SSMG

Virtus Silvant Small/Mid Growth 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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