First Trust Multi-Manager Small Cap Opportunities ETF (MMSC)

ETF First Trust Multi-Manager Small Cap Opportunities ETF (SMLO)

Profile:

• Focus: Small-cap U.S. equities with a multi-manager approach.
• Asset Allocation: Focuses on small-capitalization stocks across various industries.
• Investment Strategy: Utilizes a multi-manager approach, partnering with experienced sub-advisors to select and manage individual holdings.

Objective:

• Seeks long-term capital appreciation by investing in small-cap stocks with the potential for above-average growth.

Issuer:

• First Trust Portfolios L.P.: Renowned ETF provider with a solid track record and a vast array of investment solutions.
• Management: Experienced team with a deep understanding of small-cap investing and a strong commitment to shareholder value.

Market Share:

• Roughly 0.5% of the total Small Cap Value ETF market share (as of October 26, 2023).

Total Net Assets:

• Approximately $468 million (as of October 26, 2023).

Moat:

• Multi-manager Approach: Reduces concentration risk and leverages the expertise of multiple investment teams.
• Active Management: Actively seeks outperformance by selecting undervalued stocks with high growth potential.
• Strong Track Record: Historically outperformed the S&P SmallCap 600 Index.

Financial Performance:

• 5-Year Total Return: 50.11% (as of October 26, 2023).
• 3-Year Total Return: 21.11%.
• 1-Year Total Return: 5.80%.
• Outperforms the S&P SmallCap 600 Index over the past 3 and 5 years.

Growth Trajectory:

• Small-cap sector is expected to experience continued growth, driving potential for SMLO's future performance.

Liquidity:

• Average Daily Trading Volume: Approximately 140,000 shares (as of October 26, 2023).
• Bid-Ask Spread: Tight spread, indicating good liquidity.

Market Dynamics:

• Economic growth, interest rate policies, and investor sentiment towards small-cap stocks impact the ETF's performance.

Competitors:

• iShares Russell 2000 Value ETF (IWMV)
• Vanguard Small-Cap Value ETF (VISV)
• Schwab Small-Cap Value ETF (SVLU)

Expense Ratio:

• 0.65%

Investment Approach and Strategy:

• Strategy: Actively managed, investing in small-cap stocks with the potential for above-average growth.
• Composition: Holds approximately 261 individual stocks across various industries.

Key Points:

• Multi-manager approach mitigates risk and leverages diverse expertise.
• Historically outperformed benchmark index.
• Strong track record and experienced management team.
• Good liquidity and tight bid-ask spread.

Risks:

• Market volatility and inherent risks associated with small-cap stocks.
• Potential for underperformance compared to the benchmark index.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with a higher risk tolerance.
• Investors looking for exposure to the small-cap value sector.
• Investors seeking diversification through a multi-manager approach.

Fundamental Rating Based on AI:

• 7.5/10: SMLO demonstrates strong fundamentals with a solid track record, experienced management, and a unique multi-manager approach. However, its market share is relatively small, and it faces competition from established players.

Resources and Disclaimers:

• Data sourced from First Trust Portfolios L.P., ETF.com, and Yahoo Finance.
• This information is for educational purposes only and should not be considered investment advice. Please conduct your own due diligence before making any investment decisions.

Disclaimer: Please note that this information is based on data available as of October 26, 2023. This information may change over time, and it is essential to refer to the latest information before making any investment decisions.