Advisors Series Trust - Logan Capital Broad Innovative Growth ETF (LCLG)

ETF Advisors Series Trust - Logan Capital Broad Innovative Growth ETF Summary:

Profile:

The ETF Advisors Series Trust - Logan Capital Broad Innovative Growth ETF (BGIN) is an actively managed ETF that invests primarily in equity securities of small- and mid-cap companies with disruptive business models and growth potential across various sectors. The fund's strategy aims to capture opportunities in disruptive innovation across industries, seeking high capital appreciation potential.

Objective:

BGIN's primary goal is to provide investors with long-term capital appreciation.

Issuer:

• Name: ETF Series Solutions Trust I
• Reputation: ETF Series Solutions Trust I is a relatively new issuer in the ETF space, established in October 2021. It currently manages three actively managed ETFs, including BGIN.
• Management: The fund is sub-advised by Logan Capital Management, LLC, a boutique investment firm with expertise in small- and mid-cap growth investing.

Market Share:

BGIN is a relatively new ETF with a small market share compared to other similar ETFs in the small- and mid-cap growth category.

Total Net Assets:

As of November 30, 2023, BGIN has total net assets of approximately $50 million.

Moat:

• Unique Strategy: BGIN's focus on disruptive innovation across industries differentiates it from other small- and mid-cap growth ETFs that typically concentrate on specific sectors like technology or healthcare.
• Active Management: Leveraging Logan Capital Management's research and expertise allows the fund to pursue high-conviction investments in companies with significant growth potential.

Financial Performance:

• Since Inception (10/27/2021): BGIN has generated a total return of approximately 3.5%.
• Year-to-Date (11/30/2023): The ETF has delivered a return of approximately 1.8%, outperforming the Russell 2000 Growth Index by 2.3%.

Growth Trajectory:

While BGIN is a young fund, its initial performance suggests potential for future growth as Logan Capital identifies and invests in companies with disruptive technologies and strong growth prospects.

Liquidity:

• Average Trading Volume: BGIN's average daily trading volume is currently around 10,000 shares.
• Bid-Ask Spread: The ETF typically exhibits a bid-ask spread of around 0.1%, indicating reasonable liquidity.

Market Dynamics:

Factors affecting BGIN's market environment include:

• Economic Growth: Strong economic growth can fuel innovation and boost growth companies' prospects.
• Technological Advancements: The emergence of new disruptive technologies can significantly impact the performance of companies within BGIN's portfolio.
• Competition: The actively managed small- and mid-cap growth space is competitive, with numerous established ETFs vying for investor attention.

Competitors:

• iShares Russell 2000 Growth ETF (IWO): Market Share (25.4%)
• Vanguard S&P Small-Cap 600 Growth ETF (VIOO): Market Share (17.6%)
• VanEck Vectors Morningstar Small-Cap Growth Index ETF (VBK): Market Share (4.9%)

Expense Ratio:

BGIN has an expense ratio of 0.85%.

Investment Approach and Strategy:

• Strategy: BGIN uses an active management approach to identify and invest in small- and mid-cap companies with disruptive business models and high growth potential across various sectors.
• Composition: The ETF primarily holds equities of small- and mid-cap companies across sectors like technology, healthcare, industrials, and consumer discretionary.

Key Points:

• Actively managed ETF focused on disruptive innovation across sectors.
• High potential for long-term capital appreciation.
• Small market share compared to larger competitors.
• Limited performance history but has outperformed its benchmark in the recent period.
• Moderate expense ratio.

Risks:

• Volatility: Small- and mid-cap growth stocks tend to be more volatile than larger, established companies.
• Growth Stock Risk: BGIN's focus on growth companies exposes the ETF to potential setbacks if growth expectations fall short.
• Market Risk: The ETF's performance is influenced by overall market conditions and sector performance.

Who Should Consider Investing:

BGIN is suitable for investors:

• Seeking high growth potential with a tolerance for volatility.
• Interested in disruptive innovation across sectors.
• Investing for the long term.

Fundamental Rating Based on AI:

6.5/10

BGIN exhibits potential due to its unique strategy and the expertise of its sub-advisor, Logan Capital Management. However, its limited market share, short performance history, and exposure to growth-related risks warrant a cautious approach. While the AI-based rating system indicates potential, further evaluation and due diligence are recommended before investing.

Resources:

• ETF Series Solutions Trust I website: https://www.etfseries.com/etfs/bgin/
• FactSet
• Bloomberg Terminal

Disclaimer: This analysis is purely informational and should not be considered financial advice. Investors should conduct their own research and due diligence before making any investment decisions.