First Trust Feature | Nasdaq Dorsey Wright

First Trust Feature

Published: December 24, 2025

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Alongside RUT breaking out to all-time highs, the First Trust Active Factor Small Cap ETF (AFSM) returned to a buy signal and achieved an all-time high.

In the fourth quarter, as well as in the back-half of 2025, U.S. equity indices have been led by the Russell 2000 Index (RUT), which has gained over 4% in Q4 (thru 12/23) and 16% since June 30^th, 2025. Price action on December 11^th brought about a new all-time high for the small cap index, joining the Dow Jones Industrial Average (.DJIA) to improve upon October’s chart highs.

Alongside RUT breaking out to all-time highs, the First Trust Active Factor Small Cap ETF (AFSM) returned to a buy signal and achieved an all-time high. On the default trend chart, AFSM has maintained a positive trend since July and positive near-term market relative strength since September. This brings the small cap ETF’s fund score to above 4, which is higher than the average score for a fund within the small cap (3.89) group on the Asset Class Group Scores page.

Okay to consider AFSM here on the breakout or on a pullback to $32.50 on the point and figure trend chart. The current bullish price objective is $40.50 following the recent breakout, and the reward to risk ratio is just above the acceptable 2 to 1 threshold. Initial support can be found at $31, while the bullish support line resides at $27.50.

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DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. First Trust has arranged with Dorsey, Wright to provide this specialized ETF page on the First Trust ETFs. The Point & Figure analysis, models and resulting rankings, including any information, data or commentary included therein, are created and provided solely by Dorsey, Wright & Associates. Such analysis, models and rankings should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including First Trust ETF shares. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. Neither First Trust nor Dorsey Wright through this ETF page provide investment advice or recommendations regarding any security, fund or market. As the investment professional making the final decision with respect to allocations, including any related suitability, fiduciary or other legal obligation, please remember to adhere to all applicable laws, regulations and rules, including NASD Rules 2090 and 2111 (Know Your Customer). The percentage of the portfolio devoted to any ETF is at the sole discretion of the financial advisor or the customer, and not Dorsey, Wright & Associates or First Trust. If you are not familiar with Point & Figure methodology, we suggest you read “Point & Figure Charting, 4th Edition” by Thomas J. Dorsey and visit the PnF University, www.dorseywright.com. If you are not familiar with the First Trust ETF product, or Exchange Traded Funds (ETFs), we suggest you visit www.ftportfolios.com.