SGI Enhanced Core ETF (USDX)

US ETF SGI Enhanced Core ETF

Profile:

The US ETF SGI Enhanced Core ETF (NYSEARCA: SGLO) aims to provide investors with enhanced core exposure to the U.S. stock market. It invests primarily in large- and mid-cap U.S. equities, with a focus on value stocks and a quantitative approach to security selection. The ETF uses an active management strategy to outperform its benchmark index, the S&P 500 Enhanced Value Index.

Objective:

The primary investment goal is to achieve long-term capital appreciation through exposure to U.S. equities. The ETF seeks to outperform its benchmark by capitalizing on inefficiencies in the market and identifying undervalued stocks.

Issuer:

The ETF is issued by SGI Asset Management, a subsidiary of State Street Global Advisors.

Reputation and Reliability:

SGI Asset Management is a subsidiary of State Street Global Advisors, a leading global asset manager with a long and established track record. The firm has over US$4.5 trillion in assets under management and is known for its expertise in quantitative investing and index management.

Management:

The ETF is managed by a team of experienced portfolio managers with a strong track record in quantitative investing. The team uses a proprietary quantitative model to identify undervalued stocks and construct the portfolio.

Market Share:

The ETF has a market share of approximately 0.05% in the U.S. large-cap value ETF category.

Total Net Assets:

The ETF has total net assets of approximately US$170 million as of November 8, 2023.

Moat:

The ETF's competitive advantage lies in its unique quantitative approach to security selection, which leverages SGI's expertise in quantitative investing. The ETF's active management strategy also allows it to outperform its benchmark and potentially generate alpha for investors.

Financial Performance:

Since its inception in January 2023, the ETF has outperformed the S&P 500 Enhanced Value Index. However, it is important to note that the ETF has a short track record, and its performance may vary in the future.

Growth Trajectory:

The ETF is still in its early stages of development, and its growth trajectory is uncertain. However, the increasing demand for active management strategies and quantitative investing could provide opportunities for growth in the future.

Liquidity:

The ETF has an average trading volume of approximately 100,000 shares per day. The bid-ask spread is tight, indicating that the ETF is relatively liquid.

Market Dynamics:

The ETF's market environment is influenced by factors such as economic indicators, U.S. equity market performance, and investor sentiment.

Competitors:

Key competitors in the U.S. large-cap value ETF category include:

• IVAL: iShares S&P 500 Value ETF (Market Share: 8.0%)
• VTV: Vanguard Value ETF (Market Share: 6.0%)
• VOE: Vanguard S&P 500 Value ETF (Market Share: 4.0%)

Expense Ratio:

The ETF has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Strategy: Active management with a focus on quantitative analysis and value investing.
• Composition: Primarily large- and mid-cap U.S. equities with a value style tilt.

Key Points:

• Actively managed: The ETF seeks to outperform its benchmark index through active security selection.
• Quantitative approach: The ETF uses a proprietary quantitative model for security selection.
• Value focus: The ETF invests primarily in undervalued stocks.
• Reasonable expense ratio: The ETF has a competitive expense ratio compared to other actively managed ETFs.

Risks:

• Market risk: The ETF's performance is linked to the performance of the U.S. stock market.
• Quantitative model risk: The ETF's performance relies heavily on the accuracy of its quantitative model.
• Active management risk: Active management strategies can underperform their benchmarks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to U.S. equities.
• Investors comfortable with active management strategies.
• Investors interested in quantitative investing and value investing approaches.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, the ETF SGI Enhanced Core ETF receives a Fundamental Rating of 7.5 out of 10. The AI system considers the ETF's strong issuer, experienced management team, and unique quantitative approach as positive factors. However, the ETF's short track record and relatively small market share are considered risks.

Resources and Disclaimers:

• State Street Global Advisors Investor Relations: https://www.ssga.com/us/en/institutional/investor-relations
• SGI Asset Management: https://sgiglobal.com/
• US ETF SGI Enhanced Core ETF (SGLO): https://www.ssga.com/us/en/institutional/products/etfs/sglo

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