FDM
First Trust Dow Jones Select MicroCap Index Fund
📎 Investment Objective
The First Trust Dow Jones Select MicroCap Index Fund (FDM) seeks to track the performance of the Dow Jones Select MicroCap Index, which provides exposure to U.S. microcap stocks.
Overview
ETF tracking First Trust Dow Jones Select MicroCap Index Fund
Performance
Price Chart
Investment Summary
📎 Investment Objective
The First Trust Dow Jones Select MicroCap Index Fund (FDM) seeks to track the performance of the Dow Jones Select MicroCap Index, which provides exposure to U.S. microcap stocks.
🎯 Investment Strategy
The fund employs a passively managed, full-replication strategy, seeking to replicate the performance of the underlying index by holding all of the securities in the index in the same weightings.
✨ Key Features
- Provides exposure to the U.S. microcap equity market
- Tracks the Dow Jones Select MicroCap Index, which includes the smallest publicly traded companies
- Utilizes a full-replication strategy to closely match the index performance
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Microcap stocks may be subject to higher volatility and lower liquidity than larger companies
- Concentration in a specific market capitalization range can increase risk
- Passively managed, so the fund will not attempt to outperform the index
- Lack of performance history, as the fund was recently launched
👤 Best For
This ETF may be suitable for investors seeking broad exposure to the U.S. microcap equity market as part of a diversified portfolio. Investors should have a higher risk tolerance and a long-term investment horizon to account for the potentially higher volatility of microcap stocks.