First Trust Dow Jones Select MicroCap Index Fund (FDM)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
First Trust Dow Jones Select MicroCap Index Fund (FDM) trades at $92.75 with AI Score 47/100 (Grade C). First Trust Dow Jones Select MicroCap Index Fund (FDM) is an exchange-traded fund that aims to replicate the performance of the Dow Jones Select Microcap IndexSM. Market cap: $249.80M, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for FDM: FDM does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FDM against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FDM: the 1 perspectives are evenly split.
How is this calculated? →First Trust Dow Jones Select MicroCap Index Fund (FDM) Financial Services Profile
First Trust Dow Jones Select MicroCap Index Fund (FDM) offers investors targeted exposure to the micro-cap segment of the U.S. equity market, tracking the Dow Jones Select Microcap IndexSM. With a focus on replication, FDM provides a cost-effective way to access a diversified portfolio of smaller companies, appealing to investors seeking growth potential within this market capitalization range.
What Is the Investment Thesis for FDM?
The First Trust Dow Jones Select MicroCap Index Fund (FDM) presents an investment opportunity for those seeking exposure to the micro-cap segment of the U.S. equity market. With a beta of 1.13, FDM exhibits slightly higher volatility compared to the broader market. The fund's primary value driver is its ability to replicate the performance of the Dow Jones Select Microcap IndexSM, providing investors with a diversified portfolio of smaller companies. A key growth catalyst is the potential for micro-cap stocks to outperform larger companies during periods of economic expansion. However, investors should be aware of the potential risks associated with micro-cap investing, including lower liquidity and higher volatility. The fund's expense ratio will impact returns, and investors may want to evaluate this when evaluating FDM as an investment option.
Based on FMP financials and quantitative analysis
FDM Key Highlights
- FDM's market capitalization is $0.23 billion, reflecting its focus on micro-cap companies.
- The fund aims to replicate the Dow Jones Select Microcap IndexSM, providing exposure to a diversified portfolio of micro-cap stocks.
- FDM has a beta of 1.13, indicating slightly higher volatility compared to the overall market.
- As an exchange-traded fund (ETF), FDM offers liquidity and can be traded throughout the day on major stock exchanges.
- FDM does not offer a dividend yield, focusing instead on capital appreciation.
Who Are FDM's Competitors?
FDM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AVXC Avantis Emerging Markets ex-China Equity ETF | $84.08 | +3.19% | $393.45M | 47 |
| DBAW Xtrackers MSCI All World ex US Hedged Equity ETF | $48.55 | +1.59% | $269.08M | 47 |
| DBP Invesco DB Precious Metals Fund | $96.00 | +1.00% | $249.59M | 47 |
| EWZS iShares MSCI Brazil Small-Cap ETF | $13.10 | +0.89% | $144.06M | 47 |
| FJP First Trust Japan AlphaDEX Fund | $78.13 | +2.47% | $265.44M | 47 |
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FDM's Key Strengths?
- Exposure to the high-growth potential of micro-cap stocks.
- Diversification across a broad range of smaller companies.
- Liquidity and tradability as an exchange-traded fund (ETF).
- Replication of a well-known index (Dow Jones Select Microcap IndexSM).
What Are FDM's Weaknesses?
- Higher volatility compared to larger-cap stocks.
- Lower liquidity in some micro-cap stocks.
- Expense ratio impacting overall returns.
- Dependence on the performance of the Dow Jones Select Microcap IndexSM.
What Could Drive FDM Stock Higher?
- Potential outperformance of micro-cap stocks during periods of economic expansion.
- Continued growth in the ETF market, attracting new investors to FDM.
- Potential changes in the composition of the Dow Jones Select Microcap IndexSM, leading to portfolio adjustments.
- Strategic partnerships with financial advisors and brokerage firms to expand distribution.
What Are the Key Risks for FDM?
- Economic downturn negatively impacting micro-cap companies and FDM's performance.
- Higher volatility associated with micro-cap stocks, leading to potential losses.
- Increased competition from other ETFs and mutual funds targeting small-cap and micro-cap stocks.
- Changes in the composition or methodology of the Dow Jones Select Microcap IndexSM affecting FDM's investment strategy.
- Regulatory changes impacting the asset management industry.
What Are the Growth Opportunities for FDM?
- Increased Investor Interest in Micro-Cap Stocks: As investors seek higher growth potential, the micro-cap segment may attract increased attention. FDM, as a dedicated micro-cap ETF, stands to benefit from this trend. The micro-cap market represents a significant portion of the overall equity market, offering ample opportunities for growth. Timeline: Ongoing.
- Expansion of ETF Market: The ETF market continues to grow, driven by its cost-effectiveness and ease of trading. FDM can capitalize on this trend by attracting investors who prefer the ETF structure. The global ETF market is projected to reach trillions of dollars in assets under management. Timeline: Ongoing.
- Strategic Partnerships: FDM could explore strategic partnerships with financial advisors and brokerage firms to expand its distribution network. By increasing its visibility and accessibility, FDM can attract a broader range of investors. Timeline: Within the next 1-2 years.
- Development of Thematic Micro-Cap ETFs: First Trust could expand its product line by creating thematic micro-cap ETFs focused on specific sectors or investment themes. This would allow investors to target their micro-cap exposure more precisely. Timeline: Within the next 2-3 years.
- International Expansion: While FDM currently focuses on the U.S. market, there may be opportunities to expand into international micro-cap markets. This would require careful consideration of regulatory and market conditions. Timeline: Within the next 3-5 years.
What Opportunities Does FDM Have?
- Increased investor interest in micro-cap stocks.
- Expansion of the ETF market.
- Development of thematic micro-cap ETFs.
- Strategic partnerships with financial advisors and brokerage firms.
What Threats Does FDM Face?
- Economic downturn impacting micro-cap companies.
- Increased competition from other ETFs and mutual funds.
- Changes in the composition or methodology of the Dow Jones Select Microcap IndexSM.
- Regulatory changes affecting the asset management industry.
What Are FDM's Competitive Advantages?
- Brand Recognition: First Trust has established a reputation as a reputable ETF provider.
- Index Replication Expertise: FDM's ability to accurately replicate the Dow Jones Select Microcap IndexSM provides a competitive advantage.
- Established Distribution Network: First Trust has an existing distribution network that facilitates the sale of FDM shares.
What Does FDM Do?
The First Trust Dow Jones Select MicroCap Index Fund (FDM) is an exchange-traded fund (ETF) designed to mirror the performance of the Dow Jones Select Microcap IndexSM. Launched with the objective of providing investors with a straightforward and cost-efficient way to access the micro-cap segment of the U.S. equity market, FDM offers exposure to a diversified portfolio of smaller companies. The fund operates by holding a basket of stocks that closely replicates the composition of its benchmark index. This approach allows investors to gain exposure to a broad range of micro-cap companies without the need to individually select and manage these holdings. The fund's investment strategy centers on replicating, before fees and expenses, the price and yield of the Dow Jones Select Microcap IndexSM. This index is designed to represent the performance of micro-cap stocks in the United States, selected based on specific criteria related to market capitalization and liquidity. By tracking this index, FDM provides investors with a tool to participate in the potential growth of smaller companies, which may offer higher growth rates compared to larger, more established firms. The fund's structure as an ETF allows it to be traded on major stock exchanges, providing liquidity and flexibility for investors to buy and sell shares throughout the trading day. The fund is based out of Lisle, Illinois, in the United States.
What Products and Services Does FDM Offer?
- Replicates the Dow Jones Select Microcap IndexSM.
- Provides investors with exposure to a diversified portfolio of micro-cap stocks.
- Offers a cost-effective way to access the micro-cap segment of the U.S. equity market.
- Operates as an exchange-traded fund (ETF), providing liquidity and tradability.
- Manages a portfolio of stocks that closely mirrors the composition of its benchmark index.
- Offers investors a tool to participate in the potential growth of smaller companies.
How Does FDM Make Money?
- FDM generates revenue through management fees charged to investors.
- The fund's expense ratio covers the costs of managing the portfolio and operating the fund.
- FDM's profitability depends on its ability to attract and retain assets under management.
What Industry Does FDM Operate In?
The asset management industry is characterized by a diverse range of investment vehicles, including ETFs like FDM. The micro-cap segment, in particular, offers potential for high growth but also carries higher risk. The competitive landscape includes other ETFs and mutual funds that target small-cap and micro-cap stocks. Market trends, such as increased investor interest in niche market segments and the growing popularity of ETFs, are influencing the demand for funds like FDM. The overall asset management industry is subject to regulatory oversight and market volatility, which can impact fund performance.
Who Are FDM's Key Customers?
- Individual investors seeking exposure to micro-cap stocks.
- Financial advisors looking for diversified investment options for their clients.
- Institutional investors seeking to allocate capital to the micro-cap segment.
FDM Valuation & Market Position
Relative to its peer group, FDM's quantitative score of 47/100 is roughly in line with the peer average of 47/100.
FDM Financials
Bull Case vs Bear Case
Bull Case
- Exposure to the high-growth potential of micro-cap stocks.
- Diversification across a broad range of smaller companies.
- Liquidity and tradability as an exchange-traded fund (ETF).
- Replication of a well-known index (Dow Jones Select Microcap IndexSM).
Bear Case
- Higher volatility compared to larger-cap stocks.
- Lower liquidity in some micro-cap stocks.
- Expense ratio impacting overall returns.
- Dependence on the performance of the Dow Jones Select Microcap IndexSM.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
FDM Latest News
No recent news available for FDM.
FDM Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FDM.
Price Targets
Wall Street price target analysis for FDM.
FDM MoonshotScore
What does this score mean?
The MoonshotScore rates FDM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
What Investors Ask About First Trust Dow Jones Select MicroCap Index Fund (FDM) — Financial Services
What does First Trust Dow Jones Select MicroCap Index Fund do?
The First Trust Dow Jones Select MicroCap Index Fund (FDM) is an exchange-traded fund (ETF) that aims to replicate, before fees and expenses, the price and yield performance of the Dow Jones Select Microcap IndexSM. This index is designed to represent the micro-cap segment of the U.S. equity market. FDM provides investors with a diversified portfolio of micro-cap stocks, offering exposure to companies with smaller market capitalizations. The fund operates by holding a basket of stocks that closely mirrors the composition of the index, allowing investors to gain access to this market segment in a cost-effective and liquid manner.
What are the main risks for FDM?
The main risks for FDM are primarily related to the inherent volatility and liquidity challenges associated with micro-cap stocks. Micro-cap companies are generally more sensitive to economic downturns and may experience greater price fluctuations compared to larger, more established companies. Additionally, some micro-cap stocks may have lower trading volumes, which can impact the fund's ability to buy and sell shares efficiently. Investors should also consider the fund's expense ratio and the potential for tracking error relative to its benchmark index. Regulatory changes within the asset management industry also pose a risk.
How does First Trust Dow Jones Select MicroCap Index Fund make money in financial services?
First Trust Dow Jones Select MicroCap Index Fund generates revenue primarily through management fees. These fees are charged to investors as a percentage of the fund's assets under management (AUM). The fund's expense ratio, which includes the management fee and other operating expenses, represents the cost to investors for managing the portfolio and providing administrative services. The profitability of FDM is directly linked to its ability to attract and retain assets under management, as higher AUM translates into greater fee revenue. The fund does not generate interest income or have key revenue segments beyond management fees.
What regulatory challenges does First Trust Dow Jones Select MicroCap Index Fund face?
First Trust Dow Jones Select MicroCap Index Fund, as an exchange-traded fund (ETF), is subject to regulatory oversight by the Securities and Exchange Commission (SEC) in the United States. These regulations govern various aspects of the fund's operations, including its investment strategy, disclosure requirements, and compliance procedures. The fund must adhere to specific rules regarding diversification, liquidity, and valuation of its holdings. Additionally, regulatory changes in the asset management industry, such as those related to fund governance, trading practices, and investor protection, can impact FDM's operations and compliance costs. The fund must also comply with regulations related to the marketing and distribution of its shares.
What are the key factors to evaluate for FDM?
First Trust Dow Jones Select MicroCap Index Fund (FDM) holds an AI score of 47/100 (low). Not financial advice.
How frequently does FDM data refresh on this page?
FDM prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven FDM's recent stock price performance?
First Trust Dow Jones Select MicroCap Index Fund (FDM) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Exposure to the high-growth potential of micro-cap stocks. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FDM overvalued or undervalued right now?
Valuing First Trust Dow Jones Select MicroCap Index Fund (FDM) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for FDM. This dossier is based on limited information and should be used for informational purposes only.
- Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.