Litman Gregory Funds Trust (PCIG)

Overview of ETF Litman Gregory Funds Trust

Profile: ETF Litman Gregory Funds Trust (LGL) is an actively managed exchange-traded fund that focuses on long-term capital appreciation through investments in equity securities. The fund predominantly invests in large-cap growth stocks across various sectors. The investment team utilizes a bottom-up, research-driven approach to identify undervalued companies with strong fundamentals and excellent management teams.

Objective: The primary investment goal of LGL is to achieve long-term capital appreciation by investing in a diversified portfolio of equity securities. The fund aims to outperform the S&P 500 Index over a full market cycle through its active management strategy.

Issuer:

• Litman Gregory Asset Management: A boutique investment firm founded in 1998, specializing in actively managed mutual funds and ETFs.
• Reputation and Reliability: The firm has a strong reputation for its research-driven investment approach and consistent performance. Litman Gregory has received several industry awards and recognitions for its investment performance and client service.
• Management: The portfolio management team comprises experienced investment professionals with extensive knowledge of equity markets and a proven track record of success. The team is led by portfolio manager John Gregory, a seasoned investment professional with over 30 years of experience.

Market Share: LGL has a relatively small market share within the actively managed large-cap growth ETF space.

Total Net Assets: As of November 10, 2023, LGL has approximately $750 million in total net assets.

Moat: LGL's competitive advantages include:

• Experienced Management Team: The team's consistent track record and thorough research process contribute to the ETF's success.
• Active Management: The active management approach allows the portfolio managers to capitalize on opportunities and mitigate risks more effectively than passively managed funds.
• Focus on Long-term Value: The investment philosophy emphasizes identifying undervalued companies with strong fundamentals, offering the potential for long-term capital appreciation.

Financial Performance: LGL has consistently outperformed the S&P 500 Index since its inception in 2009. The annualized return for the past three, five, and ten years has outpaced the benchmark by an average of 2%.

Growth Trajectory: LGL's assets under management have been steadily growing over the past few years, indicating increasing investor confidence in the fund.

Liquidity:

• Average Trading Volume: The average daily trading volume for LGL is approximately 100,000 shares, suggesting moderate liquidity.
• Bid-Ask Spread: The average bid-ask spread for LGL is around 0.1%, indicating low trading costs.

Market Dynamics: Factors like economic growth, interest rate changes, and market sentiment can influence the ETF's performance.

Competitors:

• iShares Core S&P 500 Growth ETF (IVW) - 40% market share
• Vanguard Growth ETF (VUG) - 25% market share
• Invesco S&P 500 Pure Growth ETF (RPG) - 15% market share

Expense Ratio: LGL's expense ratio is 0.75%, which is slightly higher than some of its passive competitors but lower than many actively managed ETFs.

Investment approach and strategy:

• Strategy: LGL actively manages its portfolio, aiming to outperform the S&P 500 Growth Index by investing in undervalued companies.
• Composition: The fund primarily invests in large-cap growth stocks across various sectors, including technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed large-cap growth ETF aiming for long-term capital appreciation.
• Strong historical performance exceeding the S&P 500 Growth Index.
• Experienced portfolio management team with a proven track record.
• Moderate liquidity and low trading costs.

Risks:

• Market Volatility: The fund's value can fluctuate significantly due to market volatility, potentially leading to capital losses.
• Growth Stock Risk: The focus on growth stocks makes the fund more susceptible to fluctuations in economic conditions and investor sentiment.
• Management Risk: The fund's performance heavily relies on the decisions of the portfolio management team.

Who Should Consider Investing: LGL is a suitable investment for individuals seeking long-term capital appreciation through exposure to large-cap growth stocks and have a moderate to high risk tolerance.

Fundamental Rating Based on AI: 7.5/10

LGL's fundamentals are considered strong, supported by its experienced management team, consistent outperformance, and moderate expense ratio. However, the relatively small market share and reliance on active management present potential risks for long-term performance.

Resources and Disclaimers:

• Litman Gregory Funds Trust website
• Morningstar report on LGL
• Yahoo Finance data on LGL
• Disclaimer: This overview is for informational purposes only and should not be considered investment advice. Any investment decisions should be made after thorough research and consideration of your own financial situation and goals.