What Is the FDM ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The First Trust Dow Jones Select MicroCap ETF (FDM), a micro-cap ETF, diversifies across US micro-cap stocks screened for liquidity and fundamentals. The key selection criteria are its management fee, quarterly dividend, and how its exposure differs from broad small-cap ETFs such as IWM, VB, and SCHA.
SubscribeWhat Is the First Trust Dow Jones Select MicroCap ETF?
This ETF tracks the Dow Jones Select MicroCap Index and diversifies across US micro-cap stocks broadly. Its portfolio consists of micro-cap stocks that pass liquidity and financial soundness criteria.
It suits investors who want to add US micro-cap exposure as a satellite holding to a portfolio centered on large-cap stocks.
It is a passively managed (index-tracking) ETF run by First Trust.
How Does the First Trust Dow Jones Select MicroCap ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Dow Jones Select MicroCap Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Periodic (based on index rules) |
| Dividend Frequency | Quarterly |
| Issuer | First Trust |
| Total Expense Ratio | 0.60% |
The fund holds the constituents of the Dow Jones Select MicroCap Index to track the performance of US micro-cap stocks as a whole. Unlike broad micro-cap ETFs, it does not simply rank stocks by market capitalization. Its holdings are a group of stocks that has first been filtered by liquidity and fundamental indicators.
- A micro-cap portfolio that has passed liquidity and fundamental screening
- Diversified micro-cap exposure that differs from large-cap stocks
First Trust Dow Jones Select MicroCap ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) are $268.1M, and the total expense ratio is 0.60% per year.
Because it concentrates on a smaller market capitalization range than the broad small-cap ETFs IWM and VB, its volatility and cost burden are relatively higher.
First Trust Dow Jones Select MicroCap ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeMicro-cap stocks are sensitive to the economic cycle and the interest rate environment, and they tend to be more volatile than large-cap stocks. They can be relatively resilient when risk appetite is strong, while weakness can stand out when investors turn risk-averse.
Fund flows into and out of micro-caps tend to swing widely with overall market risk appetite. Demand for satellite holdings grows when expectations for a small-cap rally come to the fore, and money can leave quickly during periods of market volatility.
First Trust Dow Jones Select MicroCap ETF Pros and Cons
Its strength is diversified exposure to selected US micro-cap stocks, while its weaknesses are high volatility and a relatively heavy expense ratio.
💪 Key Strengths
⚠️ Points to Watch
First Trust Dow Jones Select MicroCap ETF Alternative ETFs and Related Products
The IWM, VB, and SCHA shown in the table are low-cost ETFs that broadly cover the larger small-cap segment, with market capitalization ranges higher than that of FDM. As a direct substitute in the same micro-cap segment, iShares' IWC lets you compare fees and index construction methods. To focus more on small-cap value stocks, you can also consider a style variant such as IJS.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IJR | iShares Core S&P Small-Cap ETF | $138.93 | +0.5% | $103.5B | 0.06% | 1.23% | +14.7% |
 VB | Vanguard Morningstar Small-Cap ETF | $288.57 | +0.5% | $77.7B | 0.03% | 1.26% | +11.5% |
 IWM | iShares Russell 2000 Index Fund | $276.99 | +0.5% | $74.3B | 0.19% | 0.99% | +11.1% |
 SCHA | Schwab U.S. Small-Cap ETF | $32.72 | +0.6% | $21.7B | 0.03% | 1.12% | +14.8% |
 VTWO | Vanguard Russell 2000 Index ETF | $111.86 | +0.4% | $16.6B | 0.06% | 1.21% | +10.9% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 STOK | Stoke Therapeutics Inc | 0.05% | $25.46 | +1.7% | $1.6B | - | - |
 DCH | Dauch Corp | 0.04% | $4.61 | -0.4% | $1.1B | - | - |
 TTI | Tetra Technologies Inc | 0.04% | $5.38 | +0.9% | $796.6M | 131.5 | - |
 NWPX | NWPX Infrastructure Inc | 0.02% | $96.86 | -0.5% | $933.7M | 19.5 | - |
 DLX | Deluxe Corp | 0.02% | $23.19 | -0.6% | $1.1B | 10.6 | 5.17% |
 GCT | GigaCloud Technology Inc | 0.02% | $59.40 | +2.0% | $2.1B | 14.1 | - |
 PLOW | Douglas Dynamics Inc | 0.02% | $39.23 | -1.4% | $905.4M | 17.8 | 3.01% |
First Trust Dow Jones Select MicroCap ETF Investor Checkpoints
These are the points to review before investing in FDM. It is effective as a micro-cap satellite holding, but volatility, liquidity, and costs need to be checked in advance, and it is important to set an appropriate weighting within your overall portfolio.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative cost impact over a long holding period | Somewhat high |
| 📉 Volatility | Whether you can tolerate micro-cap price swings | High |
| 💧 Liquidity | Trading liquidity of the holdings and the ETF itself | Needs checking |
| 📊 Portfolio weighting | Set an appropriate weighting as a satellite holding | Diversification recommended |
The high volatility and low liquidity inherent to micro-cap stocks are the key risks. During risk-averse market phases, declines can be larger than for large-cap stocks, so weighting management is important.
It is a suitable choice for investors who want to add US micro-cap exposure as a satellite holding. If you prioritize cost and broad small-cap exposure, IWM and VB may be worth considering, and if you want a concentrated, selected micro-cap portfolio, FDM may be a candidate.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 18, 2026.
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