WisdomTree U.S. MidCap Quality Growth Fund (QMID)

ETF Overview: WisdomTree U.S. MidCap Quality Growth Fund (QRG)

Profile:

QRG is an actively managed ETF that invests in U.S. mid-capitalization companies with high quality and growth potential. It employs a multi-factor approach, focusing on companies demonstrating strong fundamentals, sound management, and sustainable competitive advantages. The ETF targets companies with above-average earnings growth, low debt, high returns on capital, and good governance scores.

Objective:

The primary investment goal of QRG is to achieve long-term capital appreciation with a focus on quality growth companies.

Issuer:

WisdomTree Investments, Inc. (WETF) is a global asset management firm founded in 1998. They are known for their innovative and diversified ETF offerings.

Reputation and Reliability:

WETF has a strong reputation in the industry, with over $81 billion in assets under management. They have received numerous awards and recognitions for their ETF products and services.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and fundamental research. This team conducts in-depth research and employs a rigorous due diligence process to select the stocks included in the portfolio.

Market Share:

QRG represents a small portion of the U.S. mid-cap growth ETF market, with a market share of approximately 0.2%.

Total Net Assets:

As of November 7, 2023, QRG has total net assets of approximately $1.02 billion.

Moat:

QRG's competitive advantage lies in its active management approach and focus on high-quality growth companies. This strategy aims to outperform the broader market by selecting stocks with potential for long-term sustainable growth. Additionally, the ETF leverages WisdomTree's extensive research capabilities and access to a large pool of data to identify and select these companies.

Financial Performance:

Year-to-date (YTD, as of November 7, 2023), QRG has delivered a total return of approximately 10.5%, outperforming the S&P MidCap 400 Growth Index by roughly 2.5%. However, it's crucial to assess performance over longer timeframes and through various market cycles.

Growth Trajectory:

The U.S. mid-cap growth sector has historically exhibited strong growth potential, with the index experiencing positive returns over the past five and ten years. However, future performance depends on various factors, including economic conditions and market sentiment.

Liquidity:

QRG exhibits average daily trading volume of approximately 100,000 shares, indicating reasonable liquidity. The bid-ask spread is typically tight, facilitating trading at competitive prices.

Market Dynamics:

Factors affecting QRG's market environment include economic growth, interest rate trends, and the overall performance of the U.S. mid-cap growth sector. Fluctuations in these factors can impact the ETF's performance.

Competitors:

Key competitors in the U.S. mid-cap growth ETF space include:

• iShares Russell Midcap Growth ETF (IWR) - Market share: 20%
• Invesco S&P MidCap 400 Growth ETF (IJK) - Market share: 15%
• Vanguard Mid-Cap Growth ETF (VOT) - Market share: 12%

Expense Ratio:

QRG has an expense ratio of 0.35%, which is lower than the average for actively managed mid-cap growth ETFs.

Investment Approach and Strategy:

QRG actively manages its portfolio, utilizing a multi-factor quantitative model to select stocks. The ETF primarily invests in common stocks of U.S. mid-cap companies that meet the following criteria:

• Strong historical earnings growth
• Low financial leverage
• High returns on capital
• Good corporate governance scores

Key Points:

• Actively managed ETF focusing on high-quality growth companies
• Strong outperformance compared to benchmark index YTD
• Well-established and reputable issuer
• Lower expense ratio compared to similar actively managed ETFs
• Reasonable liquidity and tight bid-ask spread

Risks:

• Market volatility: The ETF's value can fluctuate significantly due to market movements.
• Sector risk: The ETF's performance is tied to the specific performance of the mid-cap growth sector.
• Active management risk: The ETF's success depends on the effectiveness of the management team's stock selection and portfolio construction.

Who Should Consider Investing:

QRG is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to high-quality mid-cap growth companies
• An actively managed approach with potential for outperformance

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, QRG receives a 7 out of 10. This rating highlights its strong fundamentals, competitive advantages, and potential for sustainable growth. However, investors should conduct their own research and due diligence before making any investment decisions.

Resources and Disclaimers:

https://www.wisdomtree.com/us/etfs/equity/qrg

https://finance.yahoo.com/quote/QRG/

This information is for educational purposes only and should not be considered financial advice. It is essential to conduct your own research and consult with a qualified financial professional before making any investment decisions.