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HSMV - ETF AI Analysis

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HSMV

First Trust Horizon Managed Volatility Small/Mid ETF (HSMV)

Rating:71Outperform
Price Target:
HSMV, the First Trust Horizon Managed Volatility Small/Mid ETF, earns a solid overall rating driven largely by strong, income-oriented holdings like NNN REIT and DT Midstream, which combine solid financial performance, supportive earnings calls, and appealing dividends to underpin the fund’s quality. At the same time, weaker names such as Starwood Property Trust and IdaCorp, with bearish technical trends, leverage or cash flow challenges, and revenue growth issues, modestly weigh on the rating. A key risk factor is the fund’s meaningful exposure to real estate and income-focused companies, which can be sensitive to interest rate changes and sector-specific downturns.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and in recent months, showing positive momentum for investors.
Resilient Top Holdings
Several of the largest positions, including companies in real estate, utilities, and energy, have shown strong or steady performance, helping support the fund’s returns.
Broad Sector Diversification
The fund spreads its investments across many sectors such as real estate, financials, industrials, utilities, and consumer stocks, which can help reduce the impact if one area of the market struggles.
Negative Factors
High Expense Ratio
The fund’s management fee is relatively high for an ETF, which means more of the returns are used to cover costs instead of going to investors.
Heavy Real Estate and Financial Exposure
A large share of the portfolio is concentrated in real estate and financial companies, which can make the fund more sensitive if those sectors face a downturn.
U.S.-Only Geographic Focus
Almost all of the ETF’s assets are invested in U.S. companies, offering little diversification across international markets.

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

HSMV Summary

The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) invests in smaller and mid-sized U.S. companies and does not track a traditional index, but follows an “extended market” theme with a focus on smoother ups and downs. It spreads money across many sectors, including real estate, utilities, and financials, with holdings like Phillips Edison & Company and OGE Energy. Someone might invest in HSMV to seek growth from smaller companies while trying to reduce big swings in value. A key risk is that small and mid-sized stocks can still be volatile and can go up or down with the overall market.
How much will it cost me?The expense ratio for the First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is 0.8%, which means you’ll pay $8 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on small and mid-cap companies with a managed volatility strategy that requires more oversight and research.
What would affect this ETF?The HSMV ETF, focused on small and mid-cap U.S. companies, could benefit from economic growth and innovation in sectors like real estate and financials, which make up a significant portion of its holdings. However, it may face challenges from rising interest rates, which can negatively impact real estate and utilities, or economic slowdowns that could affect smaller companies more severely. Regulatory changes in key sectors or shifts in consumer behavior could also influence its performance.

HSMV Top 10 Holdings

HSMV is leaning heavily on steady, income-oriented real estate names, with NNN REIT, Agree Realty, and Four Corners Property quietly pulling the fund higher as they ride a solid, if unspectacular, uptrend. Phillips Edison and Reliance Steel add some punch, with both rising and helping performance from different corners of the U.S. market. On the flip side, Starwood Property and Ellington Financial have been lagging, acting like small anchors on an otherwise balanced ship. Overall, the ETF is U.S.-focused, tilted toward real estate and utilities rather than flashy growth stories.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Phillips Edison & Company2.15%$760.70K$6.00B25.18%
75
Outperform
OGE Energy1.97%$695.15K$9.78B3.20%
67
Neutral
Ingredion1.60%$566.27K$6.27B-20.68%
65
Neutral
Ellington Financial1.54%$543.86K$1.67B2.93%
72
Outperform
NNN REIT1.54%$543.33K$9.04B10.31%
78
Outperform
IdaCorp1.48%$522.39K$8.27B13.78%
64
Neutral
Starwood Property1.38%$487.90K$5.92B-18.14%
62
Neutral
Agree Realty1.37%$483.53K$9.68B2.48%
75
Outperform
Four Corners Property1.36%$482.55K$2.81B-1.48%
71
Outperform
Graco1.25%$443.26K$12.86B-3.36%
78
Outperform

HSMV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
38.16
Positive
100DMA
37.54
Positive
200DMA
36.82
Positive
Market Momentum
MACD
0.35
Positive
RSI
59.72
Neutral
STOCH
61.54
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For HSMV, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 39.05, equal to the 50-day MA of 38.16, and equal to the 200-day MA of 36.82, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSMV.

HSMV Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$35.54M0.80%
71
Outperform
$89.20M0.69%
69
Neutral
$33.94M1.09%
67
Neutral
$33.61M0.75%
60
Neutral
$28.06M0.59%
69
Neutral
$26.37M0.38%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HSMV
First Trust Horizon Managed Volatility Small/Mid ETF
39.45
4.43
12.65%
OASC
OneAscent Small Cap Core ETF
MYLD
Cambria Micro and SmallCap Shareholder Yield ETF
BCSM
Baron SMID Cap ETF
IVSS
Applied Finance IVS US SMID ETF
BRSM
MFS Blended Research Small-Mid 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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