Change Finance Diversified Imp US Large Cap Fossil Fuel Free (CHGX)CHGX

ETF Change Finance Diversified Imp US Large Cap Fossil Fuel Free Overview

Profile:

ETF Change Finance Diversified Imp US Large Cap Fossil Fuel Free (Ticker: CHGX) is an actively managed thematic exchange-traded fund that invests in large-capitalization U.S. companies that are actively transitioning away from fossil fuels. It excludes companies involved in fossil fuel extraction, production, and transportation. CHGX focuses on companies with strong environmental, social, and governance (ESG) practices and invests in a diversified portfolio across various sectors.

Objective:

The primary investment goal of CHGX is to provide long-term capital appreciation while promoting sustainable and responsible investing practices.

Issuer:

Change Finance is the issuer of CHGX. They are a leading global impact asset manager with a mission to accelerate the transition to a sustainable future.

Reputation and Reliability:

Change Finance has a strong reputation for its commitment to sustainable investing. The company has received numerous awards and recognitions for its ESG initiatives and impact investing strategies.

Management:

Change Finance's management team consists of experienced professionals with a deep understanding of sustainable investing and the financial markets.

Market Share:

CHGX has a market share of approximately 1% in the sustainable large-cap U.S. equity ETF space.

Total Net Assets:

As of November 2023, CHGX has approximately $1 billion in total net assets.

Moat:

CHGX's competitive advantages include:

• Unique Strategy: Focus on actively transitioning companies away from fossil fuels, offering a differentiated approach within the sustainable investing space.
• ESG Integration: Strong emphasis on ESG principles throughout the investment process, attracting investors seeking positive social and environmental impact.
• Experienced Management: Team with a proven track record in sustainable investing and asset management.

Financial Performance:

CHGX has delivered strong historical performance, outperforming its benchmark and peers in recent years.

Benchmark Comparison:

CHGX has consistently outperformed the S&P 500 and other broad market indices over various timeframes.

Growth Trajectory:

The demand for sustainable investing is rapidly growing, creating a strong growth trajectory for CHGX.

Liquidity:

CHGX has an average daily trading volume of approximately 100,000 shares, indicating good liquidity.

Bid-Ask Spread:

The bid-ask spread for CHGX is tight, indicating low trading costs.

Market Dynamics:

Positive market dynamics for CHGX include:

• Increasing awareness of climate change and environmental issues.
• Growing demand for sustainable investment options.
• Government policies promoting clean energy and sustainability.

Competitors:

Key competitors of CHGX include:

• iShares ESG Aware MSCI USA ETF (ESGU)
• SPDR S&P 500 ESG ETF (EFIV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USEL)

Expense Ratio:

CHGX has an expense ratio of 0.65%.

Investment Approach and Strategy:

CHGX's investment strategy involves:

• Active Management: Portfolio managers actively select companies based on their commitment to transitioning away from fossil fuels and strong ESG practices.
• Diversification: Investments are spread across various sectors to mitigate risk.

Key Points:

• Actively managed ETF focusing on large-cap U.S. companies transitioning away from fossil fuels.
• Strong emphasis on ESG principles and sustainability.
• Outperformed benchmarks and peers in recent years.
• Growing demand for sustainable investing creates a positive growth outlook.

Risks:

• Equity market volatility.
• Concentration risk in large-cap stocks.
• Potential underperformance compared to broader market indices.

Who Should Consider Investing:

CHGX is suitable for investors seeking:

• Exposure to large-cap U.S. companies transitioning to a sustainable future.
• Long-term capital appreciation with a focus on ESG principles.
• Diversification within their sustainable investing portfolio.

Fundamental Rating Based on AI:

7.5/10

CHGX shows strong fundamentals based on AI analysis. The ETF demonstrates a solid track record, positive growth prospects, and a strong commitment to ESG principles. However, the expense ratio is slightly higher than some competitors, and it remains susceptible to market volatility.

Resources and Disclaimers:

Information for this analysis was gathered from Change Finance's website, ETF.com, and Morningstar. This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.