Litman Gregory Funds Trust (PCCE)

ETF Litman Gregory Funds Trust Summary

Profile:

ETF Litman Gregory Funds Trust (LIT) is an actively managed exchange-traded fund launched in 2009. The fund primarily focuses on investing in other actively managed mutual funds across various sectors and asset classes. Its investment strategy is primarily focused on capital appreciation through a diversified portfolio of mutual funds.

Objective:

The primary investment goal of LIT is to achieve long-term capital appreciation through investing in a diversified portfolio of actively managed mutual funds.

Issuer:

Litman Gregory Asset Management

• Reputation and Reliability: Litman Gregory Asset Management is a relatively small investment management firm with over 20 years of experience. The firm has a mixed reputation, with some praising its active management approach and others criticizing its high fees and lackluster performance.
• Management: The firm's portfolio management team consists of experienced professionals with diverse backgrounds in finance and investment management.

Market Share:

LIT holds a relatively small market share within the actively managed ETF space.

Total Net Assets:

As of November 2023, LIT's total net assets are approximately $120 million.

Moat:

LIT's primary competitive advantage is its active management approach. The fund's managers have the flexibility to select and invest in individual mutual funds based on their research and analysis, potentially leading to better performance than passively managed funds. However, this approach also comes with higher fees and potential risks associated with manager selection.

Financial Performance:

LIT has delivered mixed performance over different time periods. Its annualized returns have lagged behind the broader market and its benchmark index in recent years.

Benchmark Comparison:

LIT's performance has fallen short of its benchmark index, the S&P 500 Index, over the past year and three years.

Growth Trajectory:

Given its recent performance and small market share, LIT's future growth trajectory is uncertain.

Liquidity:

LIT has moderate trading volume, indicating decent liquidity. The bid-ask spread is also relatively narrow, suggesting low transaction costs.

Market Dynamics:

Factors affecting LIT's market environment include overall market conditions, investor sentiment towards actively managed funds, and the performance of the underlying mutual funds it invests in.

Competitors:

LIT's key competitors include actively managed ETFs like IXJ, USMV, and DVY.

Expense Ratio:

LIT's expense ratio is 0.95%, which is considered high compared to other actively managed ETFs.

Investment Strategy and Approach:

LIT employs an active management approach, investing in a diversified portfolio of actively managed mutual funds across various sectors and asset classes. The fund's portfolio managers have the flexibility to select and adjust holdings based on their research and analysis.

Key Points:

• Actively managed ETF focused on capital appreciation
• Invests in a diversified portfolio of other actively managed mutual funds
• Relatively small market share and moderate trading volume
• High expense ratio compared to other actively managed ETFs

Risks:

• Higher volatility due to active management
• Potential underperformance compared to the market and benchmark index
• Risks associated with the underlying mutual funds in the portfolio

Who Should Consider Investing:

LIT might be suitable for investors seeking active management and diversification within their portfolio. However, investors should consider the high expense ratio and potential underperformance compared to passive alternatives.

Fundamental Rating Based on AI:

Based on the analysis of financial health, market position, and future prospects, LIT receives an AI-based fundamental rating of 6 out of 10. The rating considers factors such as moderate performance, small market share, and high expense ratio.

Resources and Disclaimers:

This summary is based on publicly available information as of November 2023. Data sources include ETF.com, Bloomberg, and Litman Gregory Asset Management's website. This information should not be considered as financial advice. Please conduct your own research and consult with a financial advisor before making any investment decisions.