FSCS: FIRST TRUST SMID CAPITAL STRENGTH ETF
What this ETF is trying to do
The FIRST TRUST SMID CAPITAL STRENGTH ETF (ticker: FSCS) is an exchange-traded fund designed to invest in mid-sized and small companies. Based on its top holdings, the fund includes various companies such as Mueller Industries Inc, Expand Energy Corp, and First Bancorp. This ETF holds a total of 101 different companies, though the list provided below shows only the largest ones.
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes distributions).
• Year-to-Date (YTD): The YTD price return is approximately 0.23%. When including distributions, the YTD total return is approximately 1.22%.
• One-Year: The one-year price return was approximately -0.61%. However, the one-year total return was positive at approximately 0.66%.
• Three-Year: The three-year price return was approximately 31.30%, while the three-year total return was higher at approximately 35.96%.
• Five-Year: The five-year total return is approximately 31.94%.
An estimated price from roughly one year ago was $36.07. The current price is $35.85.
Income and distribution explanation
FSCS provides cash distributions to investors. The current distribution yield is approximately 1.28%. This means the fund paid out about $0.46 per share over the last 12 months. The distribution frequency is usually quarterly, with 4 payments made in the last year.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they are separate from the changes in the share price itself.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, we can look at the erosion-risk score. FSCS has an erosion score of 94, which is labeled as "Stable / sideways" with a "good" severity rating. There is no severe erosion-risk flag for this ETF.
Pros
• Positive Total Returns: Even when the share price was slightly down over one year, the total return remained positive.
• Stable Risk Profile: The erosion-risk score suggests a stable price trend rather than rapid deterioration.
• Long-term Growth: The three-year and five-year total returns show significant positive movement.
Cons
• Price Fluctuations: The one-year price return was negative, meaning the share price itself decreased during that period.
• Modest Yield: The distribution yield of 1.28% is relatively low compared to some high-income funds.
Beginner takeaway
For those researching FSCS, the main takeaway is the difference between its share price and its total return. While the share price has seen some small declines (like the -0.61% one-year price return), the total return has stayed positive because of the distributions paid out to shareholders. The fund currently shows a stable erosion-risk profile.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MUELLER INDUSTRIES INC | MLI | 1.07% |
| 2 | EXPAND ENERGY CORP ORDINARY SHARES NEW | EXE | 1.06% |
| 3 | FIRST BANCORP | FBP | 1.06% |
| 4 | OFG BANCORP | OFG | 1.05% |
| 5 | CURTISS-WRIGHT CORP | CW | 1.04% |
| 6 | ALLEGION PLC | ALLE | 1.03% |
| 7 | BUCKLE INC | BKE | 1.03% |
| 8 | CITY HOLDING CO | CHCO | 1.03% |
| 9 | RPM INTERNATIONAL INC | RPM | 1.03% |
| 10 | STIFEL FINANCIAL CORP | SF | 1.03% |