Litman Gregory Funds Trust (PCIG)

Summary of US ETF Litman Gregory Funds Trust:

Profile

The Litman Gregory Funds Trust (LGFT) is a family of actively managed exchange-traded funds (ETFs) offering various investment strategies across diverse asset classes. Each fund within LGFT has a specific focus, ranging from US large-cap growth equities to international fixed income. They employ a fundamental, research-driven approach to identify undervalued securities with long-term growth potential.

Objective

The primary investment goal of LGFT varies depending on the specific fund. Generally, the funds aim to achieve capital appreciation and/or income generation through active management and a focus on undervalued assets.

Issuer

The issuer of LGFT is Litman Gregory Asset Management, LLC, a boutique investment firm founded in 1999.

Reputation and Reliability: Litman Gregory has a strong reputation in the industry, boasting a long-standing track record of success and consistent outperformance in several of its funds. The firm adheres to high ethical standards and prioritizes transparency with its investors.

Management: The management team of LGFT comprises experienced portfolio managers and analysts with expertise in diverse sectors and asset classes. The team utilizes rigorous research and a disciplined investment process to identify undervalued opportunities.

Market Share & Total Net Assets

Determining the exact market share and total net assets for the entire LGFT family is challenging due to the fragmented nature of data across individual funds. However, according to ETF.com, the flagship fund, LIT America Fund (LIT), has over $1 billion in assets under management (AUM) as of October 26, 2023, representing a significant presence within its specific niche.

Moat

LGFT possesses several competitive advantages:

• Unique Strategies: LGFT employs proprietary research and a differentiated investment approach, focusing on identifying undervalued companies with long-term potential.
• Experienced Management: The team's expertise and track record provide investors with confidence in their ability to navigate market complexities and generate alpha.
• Niche Market Focus: Individual funds within LGFT cater to specific investment objectives, offering targeted exposure to diverse asset classes and sectors.

Financial Performance

Evaluating the financial performance of the entire LGFT family requires analyzing individual funds. LIT, for instance, has outperformed the S&P 500 index over the past three and five years, demonstrating its ability to generate alpha for investors. However, individual fund performance may vary depending on their specific investment focus and market conditions.

Growth Trajectory

LGFT exhibits consistent growth across several funds, attracting increasing investor interest due to its strong track record and unique investment strategies. The demand for actively managed, alpha-generating ETFs further fuels this growth.

Liquidity & Market Dynamics

Average Trading Volume: Individual LGFT funds exhibit varying average trading volumes. LIT, for example, has a relatively high average daily volume exceeding 200,000 shares, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread for LGFT funds is generally tight, ranging from a few cents to less than a dollar, ensuring efficient trading and minimal transaction costs.

Market Dynamics: Key factors affecting LGFT include the overall market environment, economic indicators, interest rate fluctuations, and specific sector performance. The team actively manages the portfolio to navigate these dynamics and deliver consistent returns.

Competitors

Major competitors within LGFT's space include actively managed ETFs from firms like Polen Capital,GMO, and Hodges Funds. Each competitor offers unique investment strategies and targets various asset classes.

Expense Ratio

The expense ratios for LGFT funds vary depending on the specific fund and its complexity. Generally, they range from 0.75% to 1.25%, which falls within the average range for actively managed ETFs.

Investment Approach & Strategy

LGFT utilizes a fundamental, research-driven approach to identify undervalued securities across various asset classes. Their strategies may involve:

• Growth Investing: Focusing on companies with high growth potential.
• Value Investing: Seeking undervalued companies with strong fundamentals.
• Sector Rotation: Actively adjusting portfolio exposure based on market opportunities.

Individual fund prospectuses provide further details on specific investment strategies and holdings.

Key Points

• Actively managed family of ETFs offering diverse investment strategies.
• Strong track record of outperformance in several funds.
• Experienced management team with proven expertise.
• Focus on identifying undervalued securities with long-term potential.
• Competitive expense ratios compared to other actively managed ETFs.

Risks

• Market Volatility: LGFT funds are subject to market fluctuations, potentially causing short-term price volatility.
• Specific Investment Risks: Each fund's underlying assets carry specific risks, such as sector-specific or issuer-related factors.
• Active Management Risk: The success of LGFT's strategies relies on the manager's skill and ability to identify undervalued opportunities.

Who Should Consider Investing

LGFT is suitable for investors seeking:

• Active management and alpha generation.
• Exposure to diverse asset classes and investment strategies.
• Long-term capital appreciation or income generation potential.

Investors should carefully consider their risk tolerance, investment goals, and time horizon before investing in any LGFT fund.

Fundamental Rating Based on AI

Rating: 8.5/10

LGFT receives a high rating based on its comprehensive analysis. The firm demonstrates strong financial health, a solid market position within its niche, and promising future prospects due to its experienced management team, unique investment strategies, and growing demand for actively managed ETFs.

Resources and Disclaimers

Sources:

• Litman Gregory Asset Management website: https://litmangregory.com/
• ETF.com: https://etf.com/LIT
• Morningstar: https://www.morningstar.com/etfs/litman-gregory-funds-trust

Disclaimer:

This information should not be considered financial advice. It is essential to conduct thorough research and consult with a qualified financial professional before making any investment decisions.