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First Trust Dow Jones Select MicroCap Index Fund (FDM)



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Upturn Advisory Summary
07/29/2025: FDM (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit -9.04% | Avg. Invested days 36 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | ETF Returns Performance ![]() |
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Key Highlights
Volume (30-day avg) - | Beta 1.13 | 52 Weeks Range 54.04 - 72.81 | Updated Date 06/29/2025 |
52 Weeks Range 54.04 - 72.81 | Updated Date 06/29/2025 |
Upturn AI SWOT
First Trust Dow Jones Select MicroCap Index Fund
ETF Overview
Overview
The First Trust Dow Jones Select MicroCap Index Fund (FDM) seeks investment results that correspond generally to the price and yield of the Dow Jones Select MicroCap Index. The fund focuses on the microcap segment of the US equity market, aiming for a diversified portfolio of smaller companies.
Reputation and Reliability
First Trust is a well-established ETF provider known for its innovative and thematic ETFs. They have a solid track record in managing various investment strategies.
Management Expertise
First Trust's management team has extensive experience in portfolio management and ETF operations, with a dedicated team focused on index-based strategies.
Investment Objective
Goal
To provide investment results that correspond generally to the price and yield of the Dow Jones Select MicroCap Index.
Investment Approach and Strategy
Strategy: The fund employs a passive management strategy, attempting to replicate the composition and weighting of the Dow Jones Select MicroCap Index.
Composition The fund primarily holds stocks of microcap companies in the United States. It aims for diversification across different sectors within the microcap space.
Market Position
Market Share: FDM has a moderate market share within the microcap ETF segment.
Total Net Assets (AUM): 234152658
Competitors
Key Competitors
- IWC
- XSMO
- ONCS
- PBSM
Competitive Landscape
The microcap ETF market is fragmented with several players. IWC dominates in terms of AUM. FDM differentiates itself by using the Dow Jones Select MicroCap Index, which has a specific selection methodology. Advantages include the index's selection criteria, but disadvantages might include higher expense ratios compared to larger, more liquid competitors.
Financial Performance
Historical Performance: Historical performance varies depending on the time period analyzed and the prevailing market conditions. Refer to financial data sources for specific returns.
Benchmark Comparison: The fund's performance should be compared to the Dow Jones Select MicroCap Index to evaluate its tracking efficiency. Deviations may occur due to expenses and imperfect replication.
Expense Ratio: 0.6
Liquidity
Average Trading Volume
FDM's average trading volume is moderate, indicating reasonable liquidity for most investors.
Bid-Ask Spread
The bid-ask spread is generally competitive, reflecting the ETF's liquidity and trading activity.
Market Dynamics
Market Environment Factors
Economic growth, interest rates, and investor sentiment toward small-cap stocks can significantly influence FDM's performance. Sector-specific trends within the microcap universe also play a role.
Growth Trajectory
The fund's growth trajectory depends on the overall performance of the microcap market and its ability to attract investor capital. Changes to the index methodology or the fund's strategy could impact its future performance.
Moat and Competitive Advantages
Competitive Edge
FDM's competitive edge lies in its tracking of the Dow Jones Select MicroCap Index, offering exposure to a specific segment of the microcap market. The Dow Jones index methodology may appeal to investors seeking a rules-based approach to microcap investing. However, it must compete with larger, more liquid, and potentially lower-cost alternatives. First Trust's reputation as an ETF provider also contributes to its competitive standing.
Risk Analysis
Volatility
FDM is subject to the volatility associated with microcap stocks, which tend to be more volatile than large-cap stocks.
Market Risk
The fund is exposed to market risk, including economic downturns, interest rate fluctuations, and changes in investor sentiment. Microcap stocks can be particularly sensitive to these factors.
Investor Profile
Ideal Investor Profile
The ideal investor is someone seeking exposure to the microcap segment of the US equity market as part of a diversified portfolio. Investors should have a higher risk tolerance due to the volatility associated with microcap stocks.
Market Risk
FDM may be suitable for long-term investors seeking capital appreciation, but it is generally not recommended for risk-averse investors or those seeking stable income.
Summary
First Trust Dow Jones Select MicroCap Index Fund (FDM) offers exposure to the microcap segment of the US equity market by tracking the Dow Jones Select MicroCap Index. While it provides a targeted approach to microcap investing through a rules-based index, the fund's performance is subject to the inherent volatility of microcap stocks. Investors should consider their risk tolerance and investment objectives before investing. Competitors offer similar microcap exposure, some with greater liquidity and lower expense ratios.
Peer Comparison
Sources and Disclaimers
Data Sources:
- First Trust Website
- ETF.com
- Morningstar
- Bloomberg
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Trust Dow Jones Select MicroCap Index Fund
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the index. The index is designed to measure the performance of micro-cap stocks issued by U.S. companies that are comparatively liquid and have strong fundamentals relative to the micro-cap segment as a whole.

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