AFSM
First Trust Active Factor Small Cap ETF
📎 Investment Objective
The First Trust Active Factor Small Cap ETF (AFSM) seeks to provide long-term capital appreciation by investing in a portfolio of small-cap U.S. equities selected using a multi-factor investment approach.
Overview
ETF tracking First Trust Active Factor Small Cap ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The First Trust Active Factor Small Cap ETF (AFSM) seeks to provide long-term capital appreciation by investing in a portfolio of small-cap U.S. equities selected using a multi-factor investment approach.
🎯 Investment Strategy
AFSM uses a quantitative, multi-factor stock selection process to identify small-cap U.S. companies that exhibit favorable characteristics such as value, quality, momentum, and low volatility. The fund's portfolio is actively managed and rebalanced periodically to maintain exposure to these factors.
✨ Key Features
- Actively managed small-cap equity fund that aims to outperform the broader small-cap market
- Utilizes a multi-factor investment approach to identify potentially undervalued small-cap stocks
- Diversified portfolio of small-cap U.S. companies across various sectors and industries
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Increased volatility and risk compared to the broader market due to the small-cap focus
- Potential for underperformance relative to the small-cap benchmark if the fund's factor-based approach underperforms
- Liquidity risk associated with smaller, less-traded companies in the portfolio
- Concentration risk as the fund is focused on a specific market capitalization segment
👤 Best For
AFSM may be suitable for long-term investors seeking exposure to the small-cap segment of the U.S. equity market, with a focus on active management and a multi-factor investment approach. Investors should have a higher risk tolerance and a longer investment horizon to potentially benefit from the fund's strategy.