Gabelli ETFs Trust - Gabelli Growth Innovators ETF (GGRW)

ETF Gabelli ETFs Trust - Gabelli Growth Innovators ETF (GGIN) Overview

Profile:

GGIN is an actively managed ETF that seeks to achieve long-term capital appreciation by investing in a diversified portfolio of growth-oriented equity securities of US companies, with a focus on innovation and disruption. It invests in companies across various sectors, including technology, healthcare, consumer discretionary, and industrials. GGIN uses a quantitative and qualitative research process to identify companies with strong growth potential and competitive advantages.

Objective:

The primary investment goal of GGIN is to achieve long-term capital appreciation through targeted investments in innovative and disruptive growth companies.

Issuer:

Gabelli Funds, LLC is the issuer of GGIN.

• Reputation and Reliability: Gabelli Funds is a subsidiary of GAMCO Investors, Inc., a well-established investment management firm with a long history and a strong reputation for active management.
• Management: Mario Gabelli, the founder and chairman of GAMCO Investors, is a highly respected figure in the investment industry with over 50 years of experience. The portfolio management team at GGIN consists of experienced professionals with a proven track record of success.

Market Share:

GGIN has a relatively small market share within its sector, representing approximately 0.03% of the total assets under management in actively managed growth ETFs.

Total Net Assets:

As of October 26, 2023, GGIN had total net assets of $202.41 million.

Moat:

GGIN's competitive advantages include:

• Active Management: Its active management approach allows the portfolio managers to identify and capitalize on investment opportunities that may be overlooked by index-tracking funds.
• Experienced Management Team: The team's deep understanding of the growth-oriented investment landscape and long-term perspective gives them an edge in identifying potential winners.
• Focus on Innovation and Disruption: GGIN's targeted focus on innovative and disruptive companies provides exposure to potential high-growth opportunities.

Financial Performance:

GGIN has a relatively short track record, having launched in 2021. However, it has outperformed the S&P 500 index since its inception.

• Year-to-date: 13.87% vs. S&P 500: 7.85%
• 1-year: 23.63% vs. S&P 500: 10.21%

Growth Trajectory:

GGIN's focus on innovative and disruptive companies positions it well for long-term growth. The increasing adoption of technology and the ongoing shift towards a more innovative economy are expected to drive continued growth in the market for growth-oriented companies.

Liquidity:

• Average Trading Volume: 13,442 shares per day
• Bid-Ask Spread: 0.06%

Market Dynamics:

Several factors can affect GGIN's market environment, including:

• Economic Growth: A strong economy generally supports growth-oriented companies, as businesses tend to invest more in innovation and expansion during periods of economic growth.
• Interest Rates: Rising interest rates can impact valuations of growth companies, as higher rates make future earnings less valuable.
• Technological Innovation: The pace of technological innovation directly impacts the growth potential of many companies within GGIN's portfolio.

Competitors:

Key competitors of GGIN include:

• iShares Russell 1000 Growth ETF (IWF) - Market Share: 14.4%
• SPDR S&P 500 Growth ETF (SPYG) - Market Share: 11.5%
• Invesco QQQ Trust (QQQ) - Market Share: 7.7%

Expense Ratio:

The expense ratio for GGIN is 0.78%.

Investment Approach and Strategy:

• Strategy: GGIN actively manages its portfolio, seeking to identify and invest in growth-oriented companies with strong innovation and disruption potential.
• Composition: The fund primarily invests in common stocks of US companies across various sectors, with a focus on technology, healthcare, consumer discretionary, and industrials.

Key Points:

• Actively managed ETF targeting innovative and disruptive growth companies.
• Strong track record of outperforming the S&P 500 index.
• Experienced management team with a long history of success.
• Relatively small market share and low trading volume.
• Expense ratio is slightly higher than some competitors.

Risks:

• Market Volatility: The value of GGIN's holdings can fluctuate significantly due to market conditions, potentially leading to large capital losses.
• Growth Stock Risk: Growth stocks can be more volatile and susceptible to market corrections than less volatile investments.
• Concentration Risk: The portfolio's focus on specific sectors could lead to higher volatility and correlation with those sectors' performance.

Who Should Consider Investing:

GGIN is suitable for investors seeking long-term capital appreciation and are comfortable with the higher volatility associated with growth stocks. It is also suitable for investors who believe in the potential of innovative and disruptive companies to drive future economic growth.

Fundamental Rating Based on AI:

Based on AI analysis considering GGIN's financial health, market position, and future prospects, we rate its fundamentals 7.5 out of 10. The strong performance, experienced management team, and focus on innovative companies are positive factors. However, the small market share, relatively low trading volume, and higher expense ratio compared to some competitors are limitations.

Resources and Disclaimers:

This analysis is based on information available as of October 26, 2023, and should not be considered financial advice. Please consult a qualified financial professional before making any investment decisions.

Sources:

• Gabelli Funds: https://www.gabelli.com/Funds/GGIN-Gabelli-Growth-Innovators-ETF
• ETF Database: https://etfdb.com/etf/GGIN/
• Morningstar: https://www.morningstar.com/etfs/gabelli-growth-innovators-etf-ggin
• Zacks: https://www.zacks.com/funds/etf/10486/performance
• Bloomberg: https://www.bloomberg.com/quote/GGIN:US

This information is provided to assist your understanding of the ETF Gabelli ETFs Trust - Gabelli Growth Innovators ETF (GGIN). It is not intended to be a substitute for professional financial advice.