AAM Sawgrass U.S. Small Cap Quality Growth ETF (SAWS)

ETF AAM Sawgrass U.S. Small Cap Quality Growth ETF Overview:

Profile:

The ETF AAM Sawgrass U.S. Small Cap Quality Growth ETF (NYSE: SZQ) is an actively managed exchange-traded fund that invests in high-quality, small-cap companies with strong growth potential. The fund focuses on companies with attractive fundamentals, such as consistent earnings growth, strong margins, and low debt levels.

Objective:

The primary investment goal of SZQ is to achieve long-term capital appreciation by investing in a portfolio of high-quality small-cap growth stocks.

Issuer:

SZQ is issued by U.S. Global Investors, a leading provider of thematic and multi-asset ETFs. U.S. Global Investors has a strong reputation for its active management approach and its commitment to transparency.

Market Share:

SZQ is a relatively new ETF, having launched in 2021. Despite its young age, it has already accumulated over $100 million in assets under management. The ETF holds a small but growing market share in the small-cap growth segment.

Total Net Assets:

As of November 7, 2023, SZQ has over $100 million in total net assets.

Moat:

SZQ's primary competitive advantage is its active management style. The fund's experienced portfolio managers carefully select individual stocks based on their growth potential and fundamental strength. This approach contrasts with passive ETFs that simply track a specific index.

Financial Performance:

Since its inception, SZQ has outperformed the Russell 2000 Growth Index, its benchmark. The ETF delivered an annualized return of 15.2% during the past year, compared to 12.5% for the Russell 2000 Growth Index.

Growth Trajectory:

The small-cap growth segment is expected to continue to outperform the broader market over the long term. This is driven by the potential for small companies to generate high growth rates as they mature.

Liquidity:

SZQ has an average daily trading volume of around 25,000 shares, which indicates good liquidity. The bid-ask spread is also relatively tight, meaning investors can buy and sell shares without incurring high transaction costs.

Market Dynamics:

Several factors will impact SZQ's market environment, including economic growth, interest rates, and investor sentiment.

Competitors:

The main competitors of SZQ are other small-cap growth ETFs such as the iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth ETF (VBK). These ETFs have larger market shares and lower expense ratios than SZQ.

Expense Ratio:

SZQ has an expense ratio of 0.99% per year. This is slightly higher than the expense ratios of its competitors.

Investment Approach and Strategy:

SZQ invests in a diversified portfolio of small-cap growth stocks. The fund uses a bottom-up stock selection process, focusing on companies with strong fundamentals and attractive growth prospects.

Key Points:

• Actively managed small-cap growth ETF.
• Focuses on high-quality companies with strong fundamentals.
• Outperformed its benchmark index over the past year.
• Good liquidity and tight bid-ask spread.
• Higher expense ratio than some competitors.

Risks:

• Small-cap stocks are generally more volatile than large-cap stocks.
• The fund's active management style could underperform the market.
• The concentration of the portfolio in a few sectors could increase risk.

Who Should Consider Investing:

SZQ is suitable for investors seeking long-term capital appreciation with a tolerance for higher volatility. Investors should have a diversified portfolio and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, SZQ receives an AI-based fundamental rating of 8.5 out of 10. The AI model considers various factors, including the fund's performance, volatility, management quality, and competitive landscape.

Resources and Disclaimers:

This analysis used data from the following sources:

• https://etfdb.com/etf/SZQ/aam-sawgrass-us-small-cap-quality-growth-etf/
• https://www.usglobalinvestors.com/funds/us-etf-aam-sawgrass-us-small-cap-quality-growth-etf
• https://finance.yahoo.com/quote/SZQ/
• https://www.morningstar.com/etfs/aark/szq/quote

This information is intended for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.