Summary
FDM Chart
Should First Trust Dow Jones Select MicroCap ETF (FDM) Be on Your Investing Radar?
The First Trust Dow Jones Select MicroCap ETF (FDM) was launched on September 27, 2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.
Should First Trust Dow Jones Select MicroCap ETF (FDM) Be on Your Investing Radar?
If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the First Trust Dow Jones Select MicroCap ETF (FDM), a passively managed exchange traded fund launched on September 27, 2005.
FDM: Micro-Cap ETF With Sound Fundamentals, But High Sector Risk
The First Trust Dow Jones Select MicroCap Index Fund ETF offers diversified micro-cap exposure with 150 stocks, low company risk, and a 0.60% expense ratio. FDM features strong value characteristics versus the small-cap benchmark IWM but carries significant sector risk in financials. FDM's historical returns closely match IWM and outperform key competitor IWC long-term, yet have lagged IWC over the past year.
First Trust Dow Jones Select MicroCap Index Fund Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| CE Curtis Ellergodt Rothschild Investment LLC | 550 | $33,737 | $50,393.75 | $16,656.75 | 49.37% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 769 | $46,700.51 | $70,275.06 | $23,574.55 | 50.48% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 2,571 | $172,255.95 | $234,860.85 | $62,604.9 | 36.34% |
| WTM W. Travis McKinney HB Wealth Management LLC | 45,000 | $3.41M | $4.14M | $728,550 | 21.37% |
| AAL Avraham A. Levitan Glass Jacobson Investment Advisors LLC | 59 | $4,247.17 | $5,458.68 | $1,211.51 | 28.53% |
First Trust Dow Jones Select MicroCap Index Fund (FDM) FAQ
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First Trust Dow Jones Select MicroCap Index Fund Profile
| ARCA Exchange | US Country |
Overview
The fund is an investment vehicle that primarily focuses on investing in micro-cap stocks within the United States. The defining characteristic of this fund is its commitment to allocate at least 90% of its net assets, including any funds borrowed for investment purposes, into securities that are included within a specifically defined index. This index is strategically curated to track the performance of micro-cap stocks that are not only liquid but also demonstrate robust fundamentals when compared to other entities within the micro-cap market segment. This approach highlights the fund's aim to capitalize on the potential growth and dynamism of smaller companies that possess strong market positions and financial health relative to their size.
Products and Services
- Micro-Cap Stock Investments
- Index-Based Investment Strategy
This fund provides investors with the opportunity to gain exposure to the micro-cap sector of the U.S. equity market. By focusing on companies that possess liquidity and solid fundamentals, the fund aims to identify and invest in stocks that have the potential for significant growth, offering a unique blend of risk and reward for investors looking to diversify their portfolios with micro-cap investments.
The backbone of the fund's investment approach is its reliance on a well-defined index that measures the performance of select U.S. micro-cap stocks. This index serves as a benchmark for the fund's portfolio composition, ensuring that the investments are aligned with the liquidity and fundamental strength criteria that distinguish potentially successful micro-cap companies. Through this strategy, the fund seeks to achieve a balance between the pursuit of growth and the management of investment risk.
