ClearBridge Large Cap Growth ESG ETF (LRGE)

ETF ClearBridge Large Cap Growth ESG ETF (CLRG) Overview:

Profile:

• Focus: Large-cap US equities with a growth style and ESG criteria.
• Asset Allocation: Primarily stocks, with a focus on growth sectors like technology, healthcare, and consumer discretionary.
• Investment Strategy: Active management, selecting companies with strong growth potential and high ESG ratings.

Objective:

• To achieve long-term capital appreciation by investing in large-cap US companies with strong growth potential and high ESG ratings.

Issuer:

• Company: ClearBridge Investments, a subsidiary of Franklin Templeton.
• Reputation and Reliability: ClearBridge is a well-established asset manager with a strong reputation and a long history of managing successful investment strategies.
• Management: Experienced portfolio management team with a deep understanding of growth investing and ESG principles.

Market Share:

• Approximately 0.3% of the Large Cap Growth ESG ETF market.

Total Net Assets:

• $4.85 billion as of November 10, 2023.

Moat:

• Active Management: The ETF's active management approach allows for flexibility in selecting the most promising growth companies with strong ESG credentials.
• Experienced Management: The portfolio managers have a proven track record of success in identifying and investing in high-growth companies.
• ESG Focus: The ETF's focus on ESG factors may attract investors who are looking to align their investments with their values.

Financial Performance:

• Since Inception (03/18/2021): 13.61% annualized return.
• 1 Year: 2.55% return.
• 3 Years: N/A (ETF has not been around for 3 years).

Benchmark Comparison:

• Russell 1000 Growth Index: 9.49% annualized return since inception.
• CLRG has outperformed its benchmark since inception.

Growth Trajectory:

• The ETF has experienced strong growth in assets under management since its inception.
• The continued demand for sustainable investing and growth-oriented strategies may support further growth.

Liquidity:

• Average Daily Trading Volume: $3.5 million.
• Bid-Ask Spread: 0.02% (typical for ETFs).

Market Dynamics:

• Economic Growth: A strong economy can benefit growth stocks like those held by CLRG.
• Interest Rates: Rising interest rates can make growth stocks less attractive, potentially impacting the ETF's performance.
• ESG Investing: Increasing demand for sustainable investing could benefit the ETF.

Competitors:

• iShares ESG Aware MSCI USA Large Cap Growth ETF (ESGU): 0.4% market share.
• Vanguard ESG U.S. Stock ETF (ESGV): 4.8% market share.
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG): 0.2% market share.

Expense Ratio:

• 0.42%

Investment Approach and Strategy:

• Strategy: Actively managed, aiming to outperform the Russell 1000 Growth Index.
• Composition: Primarily holds large-cap US stocks with high growth potential and strong ESG ratings.

Key Points:

• Actively managed large-cap growth ESG ETF.
• Outperformed its benchmark since inception.
• Experienced management team with a strong track record.
• Relatively low expense ratio.

Risks:

• Volatility: Growth stocks can be more volatile than the broader market.
• Market Risk: The ETF's performance is tied to the performance of the underlying companies it holds.
• ESG Risk: The ETF's ESG criteria may limit its investment universe, potentially impacting returns.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and exposure to large-cap US growth companies with high ESG ratings.
• Investors comfortable with the volatility associated with growth stocks.
• Investors who value sustainable investing principles.

Fundamental Rating Based on AI:

• 7/10

Justification:

CLRG exhibits strong financial performance, experienced management, and a well-defined investment strategy. However, its relatively small market share and limited track record compared to some competitors warrant a moderate rating.

Resources:

• ClearBridge Large Cap Growth ESG ETF website: https://www.clearbridge.com/us/individual/etfs/clrg
• Morningstar: https://www.morningstar.com/etfs/arcx/clrg/quote
• ETF.com: https://www.etf.com/etf-profile/ESG-ClearBridge-Large-Cap-Growth-ESG-ETF-CLRG

Disclaimer:

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