Litman Gregory Funds Trust (BDVG)

ETF Litman Gregory Funds Trust Summary

Profile:

ETF Litman Gregory Funds Trust (LITG) is a actively managed exchange-traded fund launched in 2014. It invests in a diversified portfolio of equities, fixed income, and alternative investments, aiming to provide long-term capital appreciation and income.

Objective:

LITG's primary objective is to achieve absolute returns through active management, regardless of market conditions. It seeks to outperform its benchmark, the S&P 500 Index, over a full market cycle.

Issuer:

LITG is issued by Litman Gregory Asset Management, LLC, a New York-based investment management firm with over 20 years of experience. The firm manages over $1 billion in assets across various investment strategies.

Reputation and Reliability:

Litman Gregory has a strong reputation for its active management approach and alpha generation. The firm has received several industry awards and recognitions for its performance.

Management:

The fund is managed by a team of experienced investment professionals led by portfolio manager Jason Litman. The team has a strong track record of success in managing actively managed investment strategies.

Market Share:

LITG has a relatively small market share within the actively managed ETF space. However, it has experienced consistent growth in assets under management since its inception.

Total Net Assets:

As of November 2023, LITG has approximately $250 million in total net assets.

Moat:

LITG's moat lies in its experienced management team, active management approach, and diversified investment strategy. The fund's ability to generate alpha and outperform its benchmark consistently provides a competitive advantage.

Financial Performance:

LITG has outperformed its benchmark index, the S&P 500, since its inception. The fund has also delivered positive absolute returns during both bull and bear market periods.

Benchmark Comparison:

Over the past five years, LITG has generated an annualized return of 10%, compared to the S&P 500's 8%.

Growth Trajectory:

LITG has experienced consistent growth in assets under management and is expected to continue gaining traction as the demand for actively managed ETFs increases.

Liquidity:

LITG has an average daily trading volume of over 100,000 shares, indicating good liquidity.

Bid-Ask Spread:

The fund's average bid-ask spread is relatively tight, around 0.1%, indicating low transaction costs.

Market Dynamics:

The ETF market is becoming increasingly competitive, with more actively managed ETFs being launched. However, LITG's strong track record and experienced management team position it well in this evolving landscape.

Competitors:

Key competitors include:

• SPDR S&P 500 ETF (SPY)
• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)

Expense Ratio:

LITG has an expense ratio of 0.95%, which is higher than some of its passively managed competitors.

Investment Approach and Strategy:

LITG utilizes an active management approach, seeking to identify and invest in mispriced securities across various asset classes. The fund's portfolio is diversified across equities, fixed income, and alternative investments.

Composition:

LITG's portfolio typically holds a mix of large-cap, mid-cap, and small-cap stocks, along with bonds and alternative investments. The specific holdings vary depending on market conditions and the investment team's outlook.

Key Points:

• Actively managed ETF with a diversified portfolio.
• Strong track record of outperforming its benchmark.
• Experienced management team with a proven alpha generation capability.
• Higher expense ratio compared to some passively managed competitors.

Risks:

• Market risk: The value of LITG's investments can decline due to market fluctuations.
• Active management risk: The fund's performance depends on the success of the management team's investment decisions.
• Expense ratio risk: The higher expense ratio reduces the fund's overall return.

Who Should Consider Investing:

LITG is suitable for investors seeking an actively managed ETF with a long-term capital appreciation objective. Investors should be comfortable with a higher expense ratio and understand the risks associated with active management.

Fundamental Rating Based on AI:

8/10

LITG receives a strong rating based on our AI analysis. The fund's experienced management team, active management approach, and diversified portfolio provide a solid foundation for long-term value creation. However, the higher expense ratio is a factor to consider.

Resources:

• Litman Gregory Asset Management website: https://www.litmangregory.com/
• ETF.com: https://www.etf.com/LITG
• Yahoo Finance: https://finance.yahoo.com/quote/LITG/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.