Litman Gregory Funds Trust (PCCE)PCCE

Overview of ETF Litman Gregory Funds Trust

Profile:

ETF Litman Gregory Funds Trust is a actively managed exchange-traded fund (ETF) that aims to provide long-term capital appreciation. It primarily invests in a diversified portfolio of U.S. equity securities across various sectors, with a focus on growth potential. The ETF employs a quantitative and fundamental research-driven approach to stock selection.

Objective:

The primary investment goal of ETF Litman Gregory Funds Trust is to achieve capital appreciation over the long term through a combination of stock price growth and dividend income.

Issuer:

Litman Gregory Asset Management

• Reputation and Reliability: Litman Gregory Asset Management is a relatively new firm founded in 2014 with a small team of experienced portfolio managers. They have a limited track record, making it difficult to assess their long-term reputation and reliability.
• Management: The firm's portfolio managers have experience in various investment disciplines, including quantitative analysis, fundamental research, and portfolio construction. However, their experience specifically managing actively managed ETFs is limited.

Market Share:

ETF Litman Gregory Funds Trust has a relatively small market share in the actively managed U.S. equity ETF space.

Total Net Assets:

As of November 2023, the ETF has total net assets of approximately $50 million.

Moat:

The ETF's competitive advantage lies in its unique combination of quantitative and fundamental research-driven approach to stock selection. This approach aims to identify undervalued companies with strong growth potential. However, the limited track record of the firm and the ETF makes it difficult to assess the effectiveness of this strategy.

Financial Performance:

The ETF has a short history, making it difficult to analyze its long-term performance. Since its inception, the ETF has underperformed the S&P 500 index. However, it is important to note that actively managed ETFs may not always track their benchmark index closely.

Growth Trajectory:

Given the ETF's short history and small asset base, it is difficult to predict its future growth trajectory. The success of the ETF will depend on its ability to generate strong returns and attract new investors.

Liquidity:

• Average Trading Volume: The ETF has a relatively low average trading volume, which may impact its liquidity.
• Bid-Ask Spread: The bid-ask spread for the ETF is also relatively wide, indicating higher transaction costs.

Market Dynamics:

The ETF's performance is influenced by various factors, including:

• Economic indicators: Economic growth, interest rates, and inflation can impact the performance of U.S. equities.
• Sector growth prospects: The ETF's performance will be influenced by the growth prospects of the sectors it invests in.
• Current market conditions: Market volatility and investor sentiment can also impact the ETF's performance.

Competitors:

The ETF's main competitors in the actively managed U.S. equity ETF space include:

• ARK Innovation ETF (ARKK)
• Invesco QQQ Trust (QQQ)
• iShares Core S&P 500 ETF (IVV)

Expense Ratio:

The ETF's expense ratio is 0.75% per year, which is slightly higher than the average expense ratio for actively managed U.S. equity ETFs.

Investment Approach and Strategy:

• Strategy: The ETF employs an active management approach, aiming to outperform the S&P 500 index through a combination of quantitative and fundamental research.
• Composition: The ETF invests primarily in U.S. equity securities across various sectors, with a focus on growth potential.

Key Points:

• Actively managed ETF with a focus on long-term capital appreciation.
• Invests in a diversified portfolio of U.S. equities across various sectors.
• Employs a quantitative and fundamental research-driven approach to stock selection.
• Has a short history and a small market share.
• Higher expense ratio compared to some competitors.

Risks:

• Market risk: The ETF's value is subject to market fluctuations and could decline significantly.
• Volatility risk: The ETF may experience higher volatility than passively managed ETFs.
• Management risk: The ETF's performance depends heavily on the skill and experience of the portfolio managers.

Who Should Consider Investing:

This ETF may be suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility.
• Believe in the firm's active management approach.
• Are willing to pay a higher expense ratio.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the ETF's fundamentals, including financial health, market position, and future prospects, we assign a preliminary rating of 6.5 out of 10. This rating is based on the following factors:

• Financial health: The ETF has a relatively small asset base and a short history, making it difficult to assess its financial health.
• Market position: The ETF has a small market share in a competitive landscape.
• Future prospects: The success of the ETF will depend on its ability to generate strong returns and attract new investors.

It is important to note that this is a preliminary rating based on limited data and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• ETF Litman Gregory Funds Trust website
• Morningstar
• Bloomberg
• SEC filings

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.