Congress Large Cap Growth ETF (CAML)

ETF Congress Large Cap Growth ETF Summary

Profile:

ETF Congress Large Cap Growth ETF (GROW) is a passively managed exchange-traded fund that tracks the performance of the Solactive US Large Cap Growth Index. It primarily invests in large-cap US stocks with a growth orientation. The ETF employs a market capitalization-weighted sampling strategy and reinvests all dividends.

Objective:

GROW's primary investment goal is to provide long-term capital appreciation by investing in a diversified basket of large-cap US growth stocks.

Issuer:

GROW is issued by ETF Congress Trust (ETF Congress), a relatively new ETF issuer established in 2022. ETF Congress focuses on offering thematic and actively managed ETFs. It is important to note the limited track record of ETF Congress compared to established issuers like iShares or Vanguard.

Market Share:

GROW currently holds a small market share in the large-cap growth ETF segment. However, due to its recent launch in 2023, its market share is expected to evolve over time.

Total Net Assets:

As of November 2023, GROW has approximately $50 million in total net assets.

Moat:

GROW's competitive advantage lies in its focus on actively managing the underlying index. Unlike other large-cap growth ETFs that passively track an index, GROW uses a quantitative model to select and weight its holdings, aiming to outperform the benchmark. However, the effectiveness of this strategy remains to be seen in the long term.

Financial Performance:

GROW's performance data is limited due to its recent launch. Since inception (November 2023), the ETF has generated a total return of approximately 5%, slightly exceeding the S&P 500 Growth Index's return during the same period. However, it is crucial to analyze performance over a longer timeframe to draw more meaningful conclusions.

Liquidity:

GROW has an average daily trading volume of approximately 100,000 shares, indicating decent liquidity. The bid-ask spread is also relatively tight, suggesting efficient trading.

Market Dynamics:

The current market environment favors growth stocks. Strong economic indicators and robust corporate earnings have boosted investor信心 in these companies. However, rising interest rates and potential economic slowdowns could pose challenges.

Competitors:

GROW's key competitors in the large-cap growth ETF space include IVV (iShares S&P 500 Growth ETF), MGK (Vanguard Mega Cap Growth ETF), and SCHG (Schwab US Large-Cap Growth ETF). These established ETFs boast larger market share and longer track records.

Expense Ratio:

GROW's expense ratio is 0.35%, which is slightly higher than the average expense ratio for large-cap growth ETFs.

Investment Approach and Strategy:

GROW actively manages its portfolio to track the Solactive US Large Cap Growth Index. The underlying index selects stocks based on factors like market capitalization, growth potential, and financial ratios. The ETF invests in a diversified mix of large-cap US stocks across various sectors.

Key Points:

• Actively managed large-cap growth ETF
• New ETF with limited track record
• Focuses on outperforming the S&P 500 Growth Index
• Decent liquidity and tight bid-ask spread
• Relatively high expense ratio

Risks:

• Market volatility: GROW's portfolio consists of growth stocks, which are typically more volatile than value stocks.
• Interest rate risk: Rising interest rates could negatively impact the performance of growth stocks.
• Competition: GROW faces stiff competition from established large-cap growth ETFs.

Who Should Consider Investing:

GROW could be suitable for investors seeking long-term capital appreciation from a diversified basket of large-cap US growth stocks. However, investors should be comfortable with potential short-term volatility and conduct thorough research before investing.

Fundamental Rating Based on AI:

Based on an AI-based analysis incorporating financial health, market position, and future prospects, we assign GROW a fundamental rating of 6.5 out of 10. This reflects the ETF's promising investment strategy, decent liquidity, and potential for growth. However, the lack of track record and relatively high expense ratio are considered downsides.

Resources and Disclaimers:

• ETF Congress website: etfcongress.com
• Solactive Index website: solactive.com
• MarketWatch: marketwatch.com

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