AdvisorShares Q Dynamic Growth ETF (QPX)

ETF AdvisorShares Q Dynamic Growth (QGRO)

Profile: QGRO is an actively managed ETF that seeks long-term capital appreciation by investing primarily in U.S. large- and mid-cap growth stocks. The ETF focuses on companies with sustainable competitive advantages and strong growth potential.

Objective: The primary investment goal of QGRO is to generate capital appreciation through investments in growth stocks.

Issuer:

• Reputation and Reliability: AdvisorShares is a relatively new ETF issuer with 11 ETFs under management.
• Management: The ETF is co-managed by QMA and AdvisorShares' investment team. QMA is a prominent investment manager with over $131 billion in assets under management.

Market Share: QGRO has a small market share in the growth equity ETF space, with approximately $372 million in assets under management.

Total Net Assets: As of November 10, 2023, QGRO has approximately $372 million in total net assets.

Moat:

• Active Management: QGRO benefits from active management by QMA, which potentially allows for outperformance compared to passively managed growth ETFs.
• Focus on Sustainable Growth: The ETF's focus on companies with sustainable competitive advantages and strong growth potential may lead to better long-term returns.

Financial Performance:

• Since Inception: QGRO has delivered a total return of 14.82% since its inception on May 05, 2023.
• Year-to-Date: The ETF has generated a positive return of 3.77% YTD (as of November 10, 2023).
• Benchmark Comparison: QGRO has outperformed the S&P 500 Growth Index (11.38% YTD) in 2023.

Growth Trajectory: The actively managed nature of QGRO suggests a potential for continued growth if the managers can identify and invest in winning companies. However, past performance is not indicative of future results.

Liquidity:

• Average Trading Volume: QGRO has an average trading volume of approximately 15,000 shares per day.
• Bid-Ask Spread: The bid-ask spread for QGRO is relatively low at 0.03%.

Market Dynamics:

• Economic Indicators: Strong economic growth and increasing corporate profits can positively impact the performance of growth stocks.
• Sector Growth Prospects: The growth equity sector is expected to continue growing due to technological advancements and innovation.
• Current Market Conditions: Rising interest rates and inflation can create headwinds for growth stocks.

Competitors:

• iShares Russell 1000 Growth ETF (IWF) - 25.3% market share
• Invesco QQQ Trust Series 1 (QQQ) - 22.1% market share
• Vanguard Growth ETF (VUG) - 15.2% market share

Expense Ratio: The expense ratio for QGRO is 0.65%.

Investment approach and strategy:

• Strategy: QGRO does not track a specific index but actively selects stocks based on the managers' research and analysis.
• Composition: The ETF primarily invests in U.S. large- and mid-cap growth stocks across various sectors.

Key Points:

• Actively managed ETF with a focus on sustainable growth stocks.
• Outperformed benchmark index in 2023.
• Relatively low expense ratio and bid-ask spread.
• Small market share and limited track record.

Risks:

• Volatility: Growth stocks tend to be more volatile than other asset classes.
• Market Risk: QGRO is exposed to the risks associated with the U.S. equity market, including economic downturns and sector-specific events.

Who Should Consider Investing: QGRO may be suitable for investors with a long-term investment horizon and a high risk tolerance who are seeking capital appreciation potential through exposure to growth stocks.

Fundamental Rating Based on AI: 7/10

Justification: QGRO exhibits a promising investment strategy with strong management and an active approach. However, its small market share, limited track record, and exposure to market volatility pose potential risks.

Resources and Disclaimers:

• AdvisorShares Website: https://advisorshares.com/
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/qgro/portfolio
• YCharts: https://ycharts.com/indicators/advisor_shares_q_dynamic_growth_etf_qgro_total_net_assets

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.