First Trust Active Factor Small Cap ETF (NYSEARCA:AFSM - Get Free Report) saw a large growth in short interest in the month of February. As of February 27th, there was short interest totaling 13,612 shares, a growth of 85.2% from the February 12th total of 7,350 shares. Currently, 0.6% of the shares of the company
Halftime in 2025 threw a spotlight on active small- and midcap funds via the SPIVA U.S. Mid-Year 2025 report. The trend of active ETF launches is outpacing their passive peers this year.
Strong returns in U.S. stocks, particularly over the past two plus years, have led investors to question the relative lack of companies going public via the IPO process — as well as the potential implications for the IPO market in the long term. According to active equity managers, a combination of increased public market regulation, a reduced pipeline of potential offerings following the prior boom, the rising role of large private asset managers in capital raising, and near-term uncertainty surrounding government policy are all contributing factors. At Russell Investments, we think investors benefit from taking a long-term view.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JJB James J. Burns & Company LLC James J. Burns & Company LLC | 525,829 | $17.29M | $19.88M | $2.59M | 14.96% |
| DG Daniel Guy Ethos Financial Group LLC | 45,344 | $1.48M | $1.76M | $278,799.04 | 18.79% |
Christopher C. Powers Farther Finance Advisors, LLC | 2,000 | $59,758 | $75,600 | $15,842 | 26.51% |
| MA Marie-Andree Alain Federation des caisses Desjardins du Quebec | 77,213 | $2.33M | $2.92M | $593,474.54 | 25.52% |
| ARCA Exchange | US Country |
The company operates within the investment sector, focusing specifically on the niche of U.S.-listed equity securities issued by small capitalization companies. The defining strategy for this fund is its commitment to investing a significant portion of its assets, specifically at least 80% of its net assets (which include investment borrowings), in the stock of small capitalization companies. These companies are specifically defined by the fund's manager as those having a market capitalization at the time of investment that falls within a specific range: a minimum market capitalization of $250 million and a maximum that aligns with the top market capitalization of a widely recognized index of small capitalization companies, varying according to the index's composition at the time of investment.
Specialized in investing in U.S.-listed equity securities, the product focuses on securities issued by small capitalization companies. By adhering to a predefined investment strategy, these securities are selected based on their market capitalization falling within the targeted range, leveraging the growth potential of small cap markets in the U.S.
Targeting companies with a market capitalization of $250 million to the maximum cap of a recognized index, the fund prioritizes investments in entities that show significant growth potential within the small cap sector. This approach is built on an in-depth understanding of the small cap market dynamics and the opportunities it presents for higher returns, albeit with a higher risk profile.