(HSMV) First Trust Horizon Managed - Ratings and Ratios

The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is an actively managed exchange-traded fund that focuses on small- and mid-cap stocks listed on U.S. exchanges, with a specific emphasis on selecting stocks that are expected to exhibit low future volatility. This strategy is designed to potentially mitigate risk during market downturns.

By concentrating on stocks with lower expected volatility, HSMVs management aims to provide a more stable investment experience, which can be particularly appealing during periods of market turbulence. The funds non-diversified nature means it may be more susceptible to significant price movements due to its focus on a relatively smaller number of holdings.

Analyzing the funds recent price action, we observe that it is currently trading near its 50-day Simple Moving Average (SMA) of $35.25, slightly below its 20-day SMA of $35.59. The 200-day SMA stands at $35.91, indicating a potential resistance level. The Average True Range (ATR) of 0.38, or 1.08%, suggests relatively contained daily price movements. Given these technical indicators, a breakout above the 20-day SMA could signal a short-term bullish trend, while failure to do so may indicate continued consolidation.

From a fundamental perspective, the funds Assets Under Management (AUM) stand at $21.60 million. While this is a relatively modest size, it does not inherently impact the funds ability to achieve its investment objective. The key factor will be the effectiveness of its volatility management strategy.

Forecasting the funds future performance involves considering both technical and fundamental factors. If the fund can maintain its focus on low-volatility stocks and navigate the current market conditions effectively, it may attract investors seeking more stable small- and mid-cap exposure. A potential breakout above the 52-week high of $38.47 could indicate a strong upward trend. Conversely, a drop below the 52-week low of $32.37 would signal significant bearish pressure. As such, monitoring the funds price action relative to these levels, along with its volatility management strategy, will be crucial in assessing its future prospects.