ClearBridge All Cap Growth (CACG)

ETF Summary: ClearBridge All Cap Growth (LRGX)

Profile:

ClearBridge All Cap Growth is an actively managed ETF that invests in a diversified portfolio of U.S. companies across all market capitalizations. The fund seeks to achieve long-term capital appreciation by investing in companies with strong growth potential. Its asset allocation is spread across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Objective:

The primary investment goal of LRGX is to outperform the S&P 500 Index over the long term.

Issuer:

ClearBridge Investments:

• Reputation and Reliability: ClearBridge Investments is a well-established asset manager with a strong reputation for investment performance. The firm has over $200 billion in assets under management and is a subsidiary of Franklin Resources, Inc. (BEN), a global investment management firm.
• Management: The ETF is managed by a team of experienced portfolio managers with a proven track record in growth investing.

Market Share:

LRGX has a market share of approximately 0.2% in the Large Blend Growth ETF category.

Total Net Assets:

As of November 7, 2023, LRGX has approximately $4.6 billion in total net assets.

Moat:

• Experienced Management Team: LRGX benefits from the expertise of ClearBridge's seasoned portfolio managers who have a long history of successfully identifying and investing in high-growth companies.
• Active Management: The active management approach allows the portfolio managers to dynamically adjust the portfolio based on market conditions and identify new investment opportunities.
• Diversified Portfolio: The fund's diversified holdings across various sectors and market caps mitigate risk and offer potential for long-term growth.

Financial Performance:

• Since Inception (09/23/2019): LRGX has returned 28.95% compared to the S&P 500's 23.24%.
• 1-Year: LRGX returned -10.61% compared to the S&P 500's -17.89%.
• 3-Year: LRGX returned 17.45% compared to the S&P 500's 11.67%.

Growth Trajectory:

LRGX has experienced strong growth since its inception, outperforming the S&P 500. The fund's focus on high-growth companies positions it well for continued growth in the future. However, past performance is not indicative of future results.

Liquidity:

• Average Trading Volume: Approximately 148,000 shares per day.
• Bid-Ask Spread: 0.03%

Market Dynamics:

• Economic Indicators: The ETF's performance is influenced by economic indicators such as GDP growth, interest rates, and inflation.
• Sector Growth Prospects: The technology, healthcare, and consumer discretionary sectors are expected to continue experiencing strong growth in the coming years, potentially benefiting LRGX.
• Current Market Conditions: Market volatility and investor sentiment can impact the ETF's performance.

Competitors:

• iShares Core S&P 500 Growth ETF (IVW): 4.6% market share
• Vanguard Growth ETF (VUG): 3.9% market share
• Schwab U.S. Large-Cap Growth ETF (SCHG): 1.6% market share

Expense Ratio:

LRGX has an expense ratio of 0.59%.

Investment Approach and Strategy:

• Strategy: LRGX employs an actively managed approach, seeking to outperform the S&P 500 Index.
• Composition: The ETF primarily invests in common stocks of U.S. companies across all market capitalizations.

Key Points:

• Actively managed for long-term capital growth.
• Focus on high-growth companies across various sectors.
• Experienced management team with a strong track record.
• Competitive expense ratio.

Risks:

• Market Risk: The ETF's value is directly tied to the performance of its underlying holdings, which can be volatile.
• Growth Stock Risk: Growth stocks are inherently more volatile than value stocks and may experience larger price swings.
• Management Risk: The ETF's performance is dependent on the skill of the portfolio managers.

Who Should Consider Investing:

LRGX is suitable for investors seeking long-term capital appreciation and are comfortable with the volatility associated with growth stocks. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Rating: 8.5/10

LRGX receives a high rating due to its strong financial performance, experienced management team, and competitive expense ratio. The fund's focus on high-growth companies positions it well for continued growth in the future. However, investors should be aware of the volatility associated with growth stocks and the risks involved in actively managed funds.

Resources and Disclaimers:

• ClearBridge All Cap Growth ETF website: https://www.clearbridge.com/us/individual/etfs/lrgx
• Franklin Resources, Inc. website: https://www.franklinresources.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/lrgx/performance

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