Core Viewpoint - The First Trust Active Factor Mid Cap ETF (AFMC) is considered a Hold despite a strong start to 2026, indicating a cautious outlook on its future performance [1]. Group 1: Investment Strategy - The investor employs various techniques to identify underpriced equities with strong upside potential and overappreciated companies with inflated valuations [2]. - A focus on the energy sector, including oil & gas supermajors and mid-cap exploration & production companies, is emphasized, alongside other industries such as mining and chemicals [2]. - The investor highlights the importance of assessing Free Cash Flow and Return on Capital for deeper insights into investment opportunities [2]. Group 2: Market Analysis - The investor acknowledges that while some growth stocks deserve premium valuations, it is crucial to analyze whether the market's current opinions are accurate [2].

Today, I would like to explain why I believe that the First Trust Active Factor Mid Cap ETF ( AFMC ) is only a Hold despite its quite an ebullient start to 2026.Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap explor ...