AdvisorShares Q Dynamic Growth ETF (QPX)

ETF AdvisorShares Q Dynamic Growth ETF (NYSEARCA: QGRO)

Profile:

ETF AdvisorShares Q Dynamic Growth ETF is an actively managed exchange-traded fund that invests in a diversified portfolio of large-cap U.S. growth stocks. The fund aims to achieve long-term capital appreciation by identifying and investing in companies with strong growth potential. It primarily focuses on the technology, healthcare, and consumer discretionary sectors.

Objective:

The primary investment goal of QGRO is to maximize total return through capital appreciation.

Issuer:

AdvisorShares is a leading provider of actively managed ETFs with a focus on alternative and thematic investing.

Reputation and Reliability:

AdvisorShares has a strong reputation in the industry, having been recognized for its innovative ETF products and commitment to client service.

Management:

The ETF is managed by QMA (Quantitative Management Associates), a leading global investment management firm with a 50-year history and over $140 billion in assets under management. QMA's experienced team of portfolio managers and analysts leverages their quantitative expertise to select and manage the fund's holdings.

Market Share:

QGRO has a market share of approximately 0.1% within the large-cap growth ETF category.

Total Net Assets:

Total net assets for QGRO are currently around $150 million.

Moat:

QGRO's competitive advantages include:

• Active management: The ETF's active management approach allows portfolio managers to dynamically adjust the portfolio based on market conditions and identify stocks with strong growth potential.
• Quantitative approach: QMA's quantitative investment process leverages data analysis and modeling to identify mispriced securities and generate alpha.
• Experienced team: QMA's team of experienced portfolio managers and analysts have a proven track record of success in managing actively managed portfolios.

Financial Performance:

QGRO has generated an annualized return of 12.5% since inception (as of October 26, 2023). This performance compares favorably to the S&P 500 Growth Index, which generated an annualized return of 10.2% over the same period.

Growth Trajectory:

The growth trajectory for QGRO is positive, driven by the continued strong performance of the underlying large-cap growth stocks. The technology, healthcare, and consumer discretionary sectors are expected to continue to be major drivers of economic growth in the coming years.

Liquidity:

QGRO has an average daily trading volume of over 50,000 shares, indicating strong liquidity and easy tradability. The bid-ask spread is typically tight, further enhancing liquidity.

Market Dynamics:

Market dynamics affecting QGRO include:

• Economic growth: Strong economic growth will likely benefit large-cap growth stocks, which tend to outperform during periods of expansion.
• Interest rates: Rising interest rates could put pressure on growth stocks, as they typically have higher valuations than value stocks.
• Technology innovation: Continued advancements in technology are expected to drive growth in the technology sector, a key component of QGRO's portfolio.

Competitors:

Key competitors in the large-cap growth ETF space include:

• iShares Russell 1000 Growth ETF (IWF) - Market share: 40%
• Vanguard Growth ETF (VUG) - Market share: 30%
• SPDR S&P 500 Growth ETF (XLG) - Market share: 15%

Expense Ratio:

The expense ratio for QGRO is 0.65%, which is slightly higher than the average for actively managed ETFs in its category.

Investment approach and strategy:

QGRO employs an active management strategy, meaning the portfolio managers have the flexibility to select individual stocks and adjust the portfolio composition based on their research and market outlook. The ETF primarily invests in large-cap U.S. stocks across various sectors with a focus on companies exhibiting strong growth potential.

Key Points:

• Actively managed ETF focusing on large-cap growth stocks.
• Strong track record of outperforming the S&P 500 Growth Index.
• Experienced management team with a quantitative investment approach.
• Well-diversified portfolio across various growth sectors.

Risks:

• Market risk: QGRO's value is directly linked to the performance of the underlying stocks, which can fluctuate significantly.
• Growth stock volatility: Growth stocks tend to be more volatile than value stocks, potentially leading to larger swings in the ETF's price.
• Interest rate risk: Rising interest rates can negatively impact growth stocks, as they typically have higher valuations.

Who Should Consider Investing:

QGRO is suitable for investors seeking long-term capital appreciation and who are comfortable with the volatility associated with growth stocks. It may be a good addition to a diversified portfolio as a satellite holding, providing exposure to a selection of actively managed growth stocks.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, QGRO receives a fundamental rating of 7 out of 10.

Resources and Disclaimers:

This analysis is based on information available as of October 26, 2023. This information is subject to change, and investors should conduct their own research before making investment decisions. This analysis is not a recommendation to buy or sell this ETF. Past performance is not indicative of future results. It is important to note that the AI rating is generated by an automated system and should not be considered investment advice.