FSCS ETF — Holdings & Analysis

With an expense ratio of 0.60%, FSCS focuses on fundamentally sound small and micro-cap companies, differentiating itself through its capital strength selection criteria. The fund's top holdings include Coca-Cola Consolidated Inc and Pathward Financial Inc.

First Trust SMID Capital Strength ETF (FSCS) ETF — Price, Holdings & Analysis

The First Trust SMID Capital Strength ETF (FSCS) is a small/micro-cap equity ETF with $0.06 billion in assets under management. It seeks to replicate the SMID Capital Strength Index, investing in companies with strong capital positions. With an expense ratio of 0.60%, FSCS focuses on fundamentally sound small and micro-cap companies, differentiating itself through its capital strength selection criteria. The fund's top holdings include Coca-Cola Consolidated Inc and Pathward Financial Inc.

ETF Overview

The First Trust SMID Capital Strength ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called The SMID Capital Strength Index (the "Index"). The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in the securities that comprise the Index.

FSCS aims to mirror the performance of the SMID Capital Strength Index by investing at least 80% of its assets in its constituent securities. This ETF targets small and micro-cap companies deemed to have robust capital strength, potentially offering a different risk/return profile compared to broader small-cap indices. The fund's sector allocation is heavily weighted towards Financial Services (29.7%) and Industrials (22.1%), with significant allocations to Consumer Cyclical and Technology (both 11.3%). Top holdings include Coca-Cola Consolidated Inc (1.32%), Pathward Financial Inc (1.24%), and Magnolia Oil & Gas Corp Class A (1.19%). This focus on capital strength may appeal to investors seeking potentially more stable small-cap exposure. FSCS provides exposure to a specific segment of the small and micro-cap market, making it suitable for investors looking to diversify their portfolios or target specific investment factors within this asset class.

Risk Metrics

FSCS carries risks inherent to small and micro-cap investing, including potentially higher volatility and lower liquidity compared to large-cap stocks. The fund's sector concentration, with nearly 30% in Financial Services and over 22% in Industrials, exposes it to sector-specific risks. Its beta of 0.99 indicates that it generally moves in line with the broader market. The expense ratio of 0.60% creates a drag on performance, which investors may want to research. While the fund holds 101 different stocks, the top 10 holdings account for a significant portion of the portfolio, creating some concentration risk. Investors should carefully consider their risk tolerance and investment objectives before investing in FSCS, taking into account the specific risks associated with small-cap investing and sector concentration.

Expense Ratio

0.60%

What does FSCS hold?

Holding	Weight
Coca-Cola Consolidated Inc (COKE)	1.32%
Pathward Financial Inc (CASH)	1.24%
Magnolia Oil & Gas Corp Class A (MGY)	1.19%
Hamilton Insurance Group Ltd Ordinary Shares Class B (HG)	1.19%
Innoviva Inc (INVA)	1.18%
Ensign Group Inc (ENSG)	1.16%
The Hershey Co (HSY)	1.15%
Interparfums Inc (IPAR)	1.15%
Clorox Co (CLX)	1.15%
Church & Dwight Co Inc (CHD)	1.13%

How Is the Fund Allocated?

Sector	Weight
Financial Services	29.7%
Industrials	22.1%
Consumer Cyclical	11.3%
Technology	11.3%
Consumer Defensive	10.8%
Basic Materials	6.3%
Healthcare	4.3%
Communication Services	2.1%
Energy	1.2%
Real Estate	0.9%

Country	Weight
Other	0.3%
United States	95.4%
Ireland	0.9%
Bermuda	3.4%

Dividend Yield

0.00%

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) (International Equity) — 0.99% expense ratio
FT Energy Income Partners Enhanced Income ETF (EIPI) (Sector Equity) — 1.11% expense ratio
First Trust Europe AlphaDEX Fund (FEP) (International Equity) — 0.80% expense ratio
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) (International Equity) — 0.80% expense ratio
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) (Sector Equity) — 0.56% expense ratio
FT Vest Laddered Buffer ETF (BUFR) (Multi-Asset) — 0.95% expense ratio

Risk Metrics

Beta: 0.99

Questions & Answers

What is FSCS and what does it track?

The First Trust SMID Capital Strength ETF (FSCS) is an exchange-traded fund that aims to replicate the performance of the SMID Capital Strength Index. This index focuses on small and mid-cap companies that exhibit strong capital positions.

What is the expense ratio for FSCS?

The expense ratio for FSCS is 0.60%. This means that for every $10,000 invested in the fund, $60 is used to cover the fund's operating expenses annually.

While this expense ratio provides access to a portfolio of small and micro-cap companies selected for their capital strength, it is important to consider this cost when evaluating the fund's potential returns.

What are the top holdings in FSCS?

As of 2026-03-15, the top holdings in the First Trust SMID Capital Strength ETF (FSCS) are Coca-Cola Consolidated Inc (COKE) at 1.32%, Pathward Financial Inc (CASH) at 1.24%, and Magnolia Oil & Gas Corp Class A (MGY) at 1.19%.

Hamilton Insurance Group Ltd Ordinary Shares Class B (HG) also holds 1.19% of the fund, and Innoviva Inc (INVA) comprises 1.18%.

Is FSCS a good long-term investment?

Evaluating FSCS as a long-term investment requires considering its investment strategy, risk profile, and historical performance.

The fund's focus on small and micro-cap companies with strong capital positions may offer potential for long-term growth, but also exposes investors to the volatility associated with smaller companies. With a beta of 0.99, FSCS generally moves in line with the market.

How does FSCS compare to similar ETFs?

FSCS differentiates itself from other small-cap ETFs through its focus on companies with strong capital strength. While many small-cap ETFs track broad market indices, FSCS uses a specific selection criteria based on financial health.

Its expense ratio of 0.60% may be higher than some passively managed small-cap ETFs.

Does FSCS pay dividends?

As of 2026-03-15, the First Trust SMID Capital Strength ETF (FSCS) has a dividend yield of 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders.

Investors seeking dividend income may want to consider other ETFs that focus on dividend-paying stocks. While FSCS does not offer dividend income, its focus on capital appreciation may still be attractive to investors with different investment objectives.