HSMV - AI Analysis

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

Rating:71Outperform

Price Target:

$41.36

The ETF HSMV has a solid overall rating, suggesting it offers a balanced mix of quality holdings with potential for steady performance. Strong contributors like Agree Realty (ADC), with its robust financials, positive earnings sentiment, and attractive dividend yield, help bolster the fund's rating. However, weaker holdings such as Annaly Capital (NLY), which faces challenges from high leverage and declining profitability, may have slightly held back the overall score. A key risk factor for the ETF is its exposure to companies with liquidity and cash flow concerns, which could impact stability during market downturns.

Positive Factors

Strong Sector Diversification

The ETF is spread across 11 sectors, reducing the risk of a downturn in any single industry.

Steady Holdings Performance

Several top holdings, such as IdaCorp and OGE Energy, have shown strong year-to-date gains, supporting the fund’s overall performance.

Managed Volatility Strategy

The fund’s focus on small and mid-cap stocks with managed volatility may appeal to investors seeking stability in this market segment.

Negative Factors

High Expense Ratio

The ETF charges a relatively high expense ratio compared to many other funds, which could eat into investor returns over time.

Weak Recent Performance

The fund has struggled in the short term, with negative returns over the past month and three months.

Overwhelming U.S. Exposure

With nearly all assets concentrated in U.S. companies, the fund lacks geographic diversification and is vulnerable to domestic market risks.

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

AUM27.02M

RegionNorth America

Expense Ratio0.80%

Beta0.59

IssuerFirst Trust

Inception DateApr 06, 2020

Dividend Yield1.81%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,203

30 Day Avg. Volume3,519

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

41.36

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering151

HSMV Summary

The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is an investment fund that focuses on small and mid-sized companies in the U.S., offering a mix of growth potential and risk management. It includes businesses like Innoviva and Post Holdings, and covers sectors such as real estate, financials, and utilities. This ETF is designed for investors who want diversification and exposure to smaller companies that may have room to grow, while aiming to reduce risk through a managed volatility strategy. However, new investors should be aware that small and mid-sized companies can be more volatile, which means the value of the ETF can go up and down significantly with market changes.

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

The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) leans heavily into real estate and financials, with a notable focus on U.S.-based small and mid-cap companies. Real estate names like Agree Realty are rising steadily, buoyed by strong revenue growth and investment guidance, while Gaming and Leisure Properties is lagging due to mixed technical signals and credit concerns. Utilities stocks, such as IdaCorp, are shining with robust earnings growth, adding stability to the fund. However, holdings like Four Corners Property are dragging performance with bearish momentum and cash flow challenges. Overall, the fund’s sector concentration provides a mix of defensive and growth-oriented plays, but some weaker names are holding back its full potential.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
EFC	Ellington Financial	1.68%	$453.16K	$1.33B	6.96%	65 Neutral
OGE	OGE Energy	1.67%	$450.67K	$9.34B	16.11%	69 Neutral
FCPT	Four Corners Property	1.60%	$431.94K	$2.56B	-14.11%	74 Outperform
GLPI	Gaming and Leisure	1.60%	$431.36K	$12.68B	-10.89%	74 Outperform
STWD	Starwood Property	1.58%	$427.05K	$6.84B	-6.82%	67 Neutral
NJR	New Jersey Resources	1.56%	$420.99K	$4.63B	-1.46%	75 Outperform
IDA	IdaCorp	1.53%	$411.70K	$7.30B	32.38%	69 Neutral
INGR	Ingredion	1.38%	$372.65K	$7.58B	-12.87%	69 Neutral
ADC	Agree Realty	1.37%	$368.88K	$8.60B	0.22%	79 Outperform
NLY	Annaly Capital	1.25%	$337.95K	$13.45B	9.80%	63 Neutral

HSMV Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

36.19

Negative

100DMA

35.95

Negative

200DMA

35.63

Positive

Market Momentum

MACD

-0.06

Negative

RSI

43.33

Neutral

STOCH

57.06

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For HSMV, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 35.86, equal to the 50-day MA of 36.19, and equal to the 200-day MA of 35.63, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 57.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSMV.

HSMV Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
HSMV	―	―	$27.02M	0.80%	71 Outperform
ASCE	―	―	$33.49M	0.38%	71 Outperform
SAEF	―	―	$25.76M	0.59%	66 Neutral
MYLD	―	―	$15.69M	1.09%	67 Neutral
EPSB	―	―	$3.44M	0.88%	69 Neutral
SMAP	―	―	$1.27M	0.60%	71 Outperform

Performance Comparison

HSMV

First Trust Horizon Managed Volatility Small/Mid ETF

35.67

-0.39

-1.08%

ASCE

Allspring SMID Core ETF

―

SAEF

Schwab Ariel ESG ETF

―

MYLD

Cambria Micro and SmallCap Shareholder Yield ETF

―

EPSB

Harbor SMID Cap Core ETF

―

SMAP

Amplify Small-Mid Cap Equity 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.

Disclaimer

This 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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