Should First Trust Dow Jones Select MicroCap ETF (FDM) Be on Your Investing Radar?

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the First Trust Dow Jones Select MicroCap ETF (FDM) is a passively managed exchange traded fund launched on September 27, 2005.

Zacks Investment Research • Oct 29, 2025

FDM: Be Cautious About This High-Risk, Low-Reward Micro-Cap Play

FDM might lure investors with its 5.8% earnings yield, something that is quite complicated to find in today's high-priced market fluctuating around record highs. However, the reality of micro-cap investing is that large value exposure, sadly, translates into high-risk and low reward. This is the main consequence of the universe having inadequate quality. While FDM does address the quality issue in a diligent manner, which secured outperformance over its peer IWC since its inception, it has significantly underperformed IVV and IJR.

Seeking Alpha • Jul 25, 2025

Dow Jones Technical Outlook: Value Stocks Do Not Provide A Safe Haven Refuge

The recent sell-off in major US stock indices has been largely driven by broader macroeconomic factors. Value stocks may not be able to provide a hedge against undiversifiable risks.

Seeking Alpha • Apr 22, 2025

Why Is The IPO Market Struggling? Here's What Active Managers Have To Say

Strong returns in U.S. stocks, particularly over the past two plus years, have led investors to question the relative lack of companies going public via the IPO process — as well as the potential implications for the IPO market in the long term. According to active equity managers, a combination of increased public market regulation, a reduced pipeline of potential offerings following the prior boom, the rising role of large private asset managers in capital raising, and near-term uncertainty surrounding government policy are all contributing factors. At Russell Investments, we think investors benefit from taking a long-term view.

Seeking Alpha • Mar 11, 2025

5 Small-Cap ETFs That Outperformed Russell 2000 in the Last 3 Months

Small-cap ETFs have been outperforming on optimism over Donald Trump's policies, which will likely result in faster economic growth.

Zacks Investment Research • Dec 6, 2024

FDM: Quality Screens A Success For This Long-Running Micro-Cap ETF

FDM tracks the Dow Jones Select Microcap Index, selecting about 150 micro-cap stocks after applying profitability and value screens. Expenses are 0.60% and the ETF has $181 million in assets. These screens have proved valuable over the long run. Since 2005, it has outperformed the more popular and better diversified IWC with less risk. I expect this trend to continue. My analysis reveals FDM is superior on risk management, value, and quality, with a slight weakness on growth. Ultimately, it looks better prepared for multiple market conditions.

Seeking Alpha • Aug 19, 2024

Quality Microcaps Can Weather The Current Storm

Big institutional investors have tended to ignore the market's smallest companies—those that have less than a $1 billion market capitalization. The Russell Microcap Index has often bounced back strongly after periods of sharp declines like the one the group is currently facing.

Seeking Alpha • Aug 11, 2022

Buy These 7 Amazing ETFs Trading at Low P/E Ratios

Given the bullish fundamentals, the dips might charge up investors to snap up ETFs on the cheap for outsized gains in the coming weeks.

Zacks Investment Research • Aug 18, 2021

Examining The Environment For Microcap Stocks

Microcap stocks tend to perform well in an expansionary environment due to their high sensitivity to the domestic economy. US microcap stocks, as measured by the Russell Microcap Index, have provided strong absolute returns since 2000, outperforming their large-cap peers in the Russell 1000 Index.

Seeking Alpha • May 13, 2021

Stocks Off to a Solid Start in March: 6 Bargain ETF Picks

Given the jump in investors' sentiment, ETFs that still trade at bargain price seem excellent pick.

Zacks Investment Research • Mar 2, 2021