ClearBridge Large Cap Growth ESG ETF (LRGE)

ETF ClearBridge Large Cap Growth ESG ETF (CLGX) Summary

Profile: CLGX is a actively managed ETF that invests in large-cap US companies with strong growth potential and high ESG (environmental, social, and governance) ratings. It focuses on stocks across various sectors, with a tilt towards technology, healthcare, and consumer discretionary.

Objective: The ETF seeks to achieve long-term capital appreciation by investing in a portfolio of large-cap growth stocks that meet specific ESG criteria.

Issuer: ClearBridge Investments, a subsidiary of Franklin Templeton, with a strong reputation and over 70 years of experience in managing assets. The management team has extensive expertise in ESG investing and growth stock selection.

Market Share: CLGX has a relatively small market share in the large-cap growth ESG ETF space, but it has experienced significant growth in recent years.

Total Net Assets: As of October 27, 2023, CLGX has approximately $5.3 billion in total net assets.

Moat:

• Active Management: CLGX's active management approach allows the portfolio managers to select stocks with high growth potential and strong ESG profiles, potentially outperforming the market.
• ESG Focus: The ETF's focus on ESG investing attracts investors seeking sustainable and responsible investment options.
• Experienced Management: ClearBridge Investments' strong track record and expertise in ESG investing provide a competitive edge.

Financial Performance:

• 3-Year Annualized Return: 14.4% (as of October 27, 2023)
• 5-Year Annualized Return: 17.8% (as of October 27, 2023)
• Outperformed the S&P 500 Index over the past 3 and 5 years.

Growth Trajectory: CLGX has experienced strong growth in recent years, with increasing investor demand for ESG-focused investments.

Liquidity:

• Average Daily Trading Volume: Approximately 150,000 shares (as of October 27, 2023)
• Tight Bid-Ask Spread: Indicates high liquidity and ease of trading.

Market Dynamics:

• Strong Growth in ESG Investing: Increasing demand for sustainable investments creates a favorable environment for CLGX.
• Economic Indicators: A strong economy can positively impact large-cap growth stocks.
• Sector Growth Prospects: The technology, healthcare, and consumer discretionary sectors are expected to continue experiencing growth.

Competitors:

• iShares ESG Aware MSCI USA Large Cap Growth ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)

Expense Ratio: 0.40%

Investment Approach and Strategy:

• Actively Managed: Portfolio managers select individual stocks based on their growth potential and ESG criteria.
• Composition: Primarily invests in large-cap US stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed large-cap growth ESG ETF.
• Strong track record of outperforming the market.
• Experienced management team with expertise in ESG investing.
• High liquidity and tight bid-ask spread.
• Growing market for ESG investments.

Risks:

• Market Volatility: Stock market fluctuations can impact the ETF's value.
• Growth Stock Risk: Growth stocks can be more volatile than other types of stocks.
• ESG Investing Risk: ESG factors may not always align with financial performance.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation.
• Investors who value ESG investing and want exposure to large-cap growth stocks.
• Investors with a higher risk tolerance.

Fundamental Rating Based on AI: 8.5/10

CLGX receives a high rating due to its strong financial performance, experienced management team, active management approach, and focus on a growing market segment. However, investors should be aware of the risks associated with market volatility and growth stocks.

Resources and Disclaimers:

• ClearBridge Investments website: https://www.clearbridge.com/us/individual/etfs/clgx
• Morningstar: https://www.morningstar.com/etfs/arcx/clgx/quote
• ETF.com: https://www.etf.com/etf-profile/ESG/clearbridge-large-cap-growth-esg-etf-clgx

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