First Trust Active Factor Mid Cap ETF (AFMC)

Overview

The First Trust Active Factor Mid Cap ETF (AFMC) seeks capital appreciation by investing in mid-capitalization U.S. companies using a quantitative, multi-factor model.

Reputation and Reliability

First Trust is a well-established ETF provider with a history of offering innovative and factor-based investment products.

Management Expertise

First Trust employs a team of experienced investment professionals specializing in quantitative analysis and factor-based investing.

Goal

To seek capital appreciation.

Investment Approach and Strategy

Strategy: Employs a quantitative, active management strategy that selects stocks based on factors such as value, momentum, quality, and volatility.

Composition Primarily invests in U.S. mid-cap stocks.

Market Share: Market share data is not available in provided sources.

Total Net Assets (AUM): 43750000

Key Competitors

• IWR (iShares Russell Mid-Cap ETF)
• IJH (iShares Core S&P Mid-Cap ETF)
• VO (Vanguard Mid-Cap ETF)
• SCHM (Schwab U.S. Mid-Cap ETF)

Competitive Landscape

The mid-cap ETF market is highly competitive, dominated by passively managed, index-tracking ETFs. AFMC differentiates itself through its active, factor-based approach. A disadvantage is its higher expense ratio compared to passive competitors. An advantage is the potential to outperform the market through factor selection.

Historical Performance: Historical financial performance data is unavailable in provided sources.

Benchmark Comparison: Benchmark comparison data is unavailable in provided sources.

Expense Ratio: 0.06

Average Trading Volume

Average trading volume is relatively low, indicating moderate liquidity.

Bid-Ask Spread

Bid-ask spread may be wider compared to more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

Economic indicators, interest rates, and overall market sentiment can influence the performance of mid-cap stocks held by AFMC.

Growth Trajectory

Growth trends depend on the effectiveness of the fund's factor-based model in selecting outperforming mid-cap stocks; strategy and holdings are actively managed to adapt to market conditions.

Competitive Edge

AFMC's active, factor-based approach offers a potential advantage over passively managed mid-cap ETFs. Its multi-factor model aims to identify stocks with attractive value, momentum, quality, and volatility characteristics. This approach may lead to superior returns compared to traditional index-tracking strategies. However, active management also carries the risk of underperformance.

Volatility

Volatility is expected to be similar to the mid-cap market, potentially influenced by the fund's factor exposures.

Market Risk

The ETF is subject to market risk, specifically related to the performance of U.S. mid-cap stocks, and sector-specific risks depending on its holdings.

Ideal Investor Profile

Investors seeking capital appreciation through exposure to mid-cap stocks with the potential for outperformance via a factor-based approach may find AFMC suitable.

Market Risk

Suitable for investors with a moderate risk tolerance and a long-term investment horizon, who are willing to pay a higher expense ratio for active management.

First Trust Active Factor Mid Cap ETF (AFMC) is an actively managed ETF focused on U.S. mid-cap stocks, using a quantitative factor-based approach. Its goal is to achieve capital appreciation by selecting stocks based on value, momentum, quality, and volatility factors. While the active management offers potential for outperformance, it comes with a higher expense ratio than passive alternatives. AFMC's suitability is for investors with a long-term investment horizon and moderate risk tolerance who are seeking a factor-driven investment strategy in the mid-cap space.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Market share and performance data may not be current and are subject to change.