Is the First Trust Dow Jones Select MicroCap ETF (FDM) Worth Considering for Your Investment Portfolio?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
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Source: NASDAQ.COM
Overview of First Trust Dow Jones Select MicroCap ETF (FDM)
- Launch and Management: The First Trust Dow Jones Select MicroCap ETF (FDM) was launched on September 27, 2005, and is managed by First Trust Advisors.
- Assets Under Management: The ETF has accumulated over $200.34 million in assets, positioning it as an average-sized fund within the Small Cap Blend segment of the US equity market.
Investment Characteristics
- Market Capitalization Focus: FDM targets small cap companies with market capitalizations below $2 billion, which are generally considered high-potential but come with increased risk compared to larger companies.
- Blend Strategy: The ETF holds a mix of growth and value stocks, reflecting characteristics of both investment styles.
Cost and Performance Metrics
- Expense Ratio: The annual operating expenses for FDM are 0.6%, aligning it with most of its peers in the ETF space.
- Dividend Yield: It offers a 12-month trailing dividend yield of 1.32%.
- Performance: As of August 29, 2025, FDM has gained approximately 11.63% year-to-date and 20.19% over the past year, with a trading range between $55.48 and $75.59 in the last 52 weeks.
Portfolio Composition
- Sector Allocation: The ETF has a significant allocation to the Financials sector at 28.3%, followed by Industrials and Energy.
- Top Holdings: Centrus Energy Corp. (LEU) constitutes about 5.72% of total assets, with Turning Point Brands, Inc. (TPB) and Willdan Group, Inc. (WLDN) also among the top holdings. The top 10 holdings represent approximately 23.57% of total assets.
Risk and Ranking
- Risk Profile: FDM has a beta of 1.03 and a standard deviation of 21.81% over the trailing three-year period, categorizing it as a medium-risk investment.
- Zacks ETF Rank: The ETF holds a Zacks ETF Rank of 3 (Hold), indicating a moderate outlook based on expected returns, expense ratios, and momentum.
Comparison with Other ETFs
- Similar ETFs: The iShares Russell 2000 ETF (IWM) and iShares Core S&P Small-Cap ETF (IJR) are comparable options, with IWM managing $67.45 billion and IJR $85.42 billion. IWM has an expense ratio of 0.19%, while IJR charges 0.06%.
Conclusion
- Investment Appeal: FDM is a viable option for investors seeking exposure to the Small Cap Blend market, offering low costs, transparency, and diversification. It is particularly appealing for long-term investors and is popular among both institutional and retail investors.
Analyst Views on FDM
Wall Street analysts forecast FDM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FDM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.








