First Trust Active Factor Small Cap ETF Price & Performance (AFSM)

With the Federal Reserve signaling potential rate cuts, small-cap ETFs have gained popularity. These funds, which invest in smaller companies, offer diversification and are seen as higher-growth opportunities. The Sprott Junior Gold Miners ETF leads the pack with a 45.13% annual return, reflecting strong interest in this segment.1

First Trust has launched the Small Cap BuyWrite Income ETF (FTKI), combining small-cap equity exposure with an options strategy. This actively managed fund aims to provide monthly income through option premiums and dividends, appealing to income-focused investors seeking diversified small-cap exposure.2

Recent data highlights significant fluctuations in small business performance, emphasizing the challenges they face in a volatile economic climate. With rising inflation and unpredictable market conditions, small businesses are grappling with maintaining stability and growth, further complicating their financial outlook.3