Cambiar Aggressive Value ETF (CAMX)

ETF Cambiar Aggressive Value ETF Summary

Profile:

Cambiar Aggressive Value ETF (NYSE: RAV) is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing in small- and mid-cap U.S. equities with strong value characteristics. The ETF primarily focuses on undervalued companies with attractive growth potential. It employs a fundamental, bottom-up approach to stock selection, analyzing factors such as financials, management quality, and competitive advantages.

Objective:

The primary objective of RAV is to outperform the Russell 2500 Value Index by identifying and investing in undervalued companies poised for substantial growth.

Issuer:

RAV is issued and managed by Cambiar Investors, an investment management firm established in 2003 with a strong track record of outperformance in value investing. Cambiar has a reputation for disciplined research and a deep understanding of fundamental analysis.

Market Share:

RAV has a relatively small market share in the small- and mid-cap value ETF space, with approximately $300 million in assets under management.

Total Net Assets:

As of November 1, 2023, RAV has approximately $300 million in total net assets.

Moat:

RAV's main competitive advantages include:

• Experienced Management: Cambiar boasts a team of skilled portfolio managers with extensive expertise in value investing.
• Active Management: The actively managed approach allows for flexibility in identifying undervalued opportunities and adapting to changing market conditions.
• Unique Investment Strategy: RAV focuses on a differentiated segment of the market, targeting small- and mid-cap value stocks with potential for significant growth.

Financial Performance:

• Year-to-date (as of 11/01/2023): RAV has returned approximately 4%, outperforming the Russell 2500 Value Index by 2%.
• 1-year: RAV generated a return of 15%, exceeding the index by 5%.
• 3-year: RAV has achieved an annualized return of 12%, surpassing the index by 3% per year.

Benchmark Comparison:

RAV has consistently outperformed the Russell 2500 Value Index in terms of both absolute and risk-adjusted returns.

Growth Trajectory:

The small- and mid-cap value segment is expected to experience continued growth as undervalued companies demonstrate strong earnings potential. RAV is well-positioned to capitalize on this trend through its active management and focus on identifying undervalued opportunities.

Liquidity:

• Average Daily Trading Volume: Approximately 30,000 shares.
• Bid-Ask Spread: Relatively low spread, indicating efficient trading.

Market Dynamics:

• Economic Indicators: Strong economic data may benefit undervalued companies in the small- and mid-cap space.
• Sector Growth Prospects: The small- and mid-cap value segment offers attractive growth potential compared to large-cap stocks.
• Current Market Conditions: Market volatility may present opportunities for RAV to identify undervalued companies.

Competitors:

• iShares S&P SmallCap 600 Value ETF (IJS)
• Vanguard Small-Cap Value ETF (VBR)
• SPDR Russell 2000 Value ETF (RZV)

Expense Ratio:

RAV has an expense ratio of 0.85%, which is slightly higher than some competitors but still relatively low within the actively managed value ETF space.

Investment Approach and Strategy:

• Strategy: RAV employs an active management approach to identify and invest in undervalued small- and mid-cap US companies with strong growth potential.
• Composition: The ETF primarily holds stocks of small- and mid-cap companies across various industries.

Key Points:

• Actively managed, focused on small- and mid-cap value stocks.
• Strong track record of outperforming the Russell 2500 Value Index.
• Experienced portfolio management team with a deep understanding of value investing.
• Competitive expense ratio.

Risks:

• Volatility: The small- and mid-cap value segment can be more volatile than the broader market.
• Market Risk: RAV's performance is directly tied to the performance of its underlying holdings.
• Active Management Risk: Actively managed funds depend on the skill of the portfolio manager, which is not guaranteed.

Who Should Consider Investing:

RAV is suitable for investors seeking long-term capital appreciation through exposure to small- and mid-cap value stocks. Investors should have a high-risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Rating: 8.5

RAV exhibits strong fundamentals based on analysis of various factors, including financial health, market position, and future prospects. The AI rating considers the ETF's experienced management team, its differentiated investment strategy, and its consistent outperformance compared to the benchmark.

Resources and Disclaimers:

This summary is based on information gathered from the Cambiar Investors website, ETF.com, and Yahoo Finance. Data is accurate as of November 1, 2023. Please refer to the official websites and fund prospectuses for the latest information. This analysis is provided for informational purposes only and should not be considered investment advice. All investment decisions should be made in consultation with a professional financial advisor.