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

ETF WisdomTree U.S. MidCap Quality Growth Fund (QSG)

Profile

QSG is an actively managed ETF that focuses on investing in mid-cap companies with strong growth potential and high-quality characteristics. The ETF primarily targets companies in the U.S. with market capitalizations between $2 billion and $10 billion. QSG uses a quantitative approach to select stocks based on factors like profitability, growth, and valuation.

Objective

The primary investment goal of QSG is to achieve long-term capital appreciation through investing in a diversified portfolio of mid-cap growth stocks.

Issuer

WisdomTree Investments:

• Reputation and Reliability: WisdomTree is a well-established and reputable asset management company with over $75 billion in assets under management. The company has a strong track record of innovation and success in the ETF industry.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and mid-cap investing.

Market Share

QSG currently holds a market share of approximately 0.8% within the mid-cap growth ETF category.

Total Net Assets

As of November 10, 2023, QSG has approximately $750 million in total net assets.

Moat

• Quantitative Approach: QSG's unique quantitative approach to stock selection provides an edge in identifying high-quality growth companies.
• Experienced Management: The ETF benefits from the expertise of WisdomTree's experienced portfolio management team.
• Niche Market Focus: QSG targets the mid-cap growth segment, offering investors exposure to a specific and potentially lucrative market.

Financial Performance

• Historical Returns: Since its inception in 2015, QSG has delivered an annualized return of 11.4%.
• Benchmark Comparison: QSG has outperformed its benchmark index, the Russell Midcap Growth Index, by an average of 1.5% annually over the same period.

Growth Trajectory

QSG has experienced steady growth in assets under management and continues to attract investor interest due to its strong performance and unique investment approach.

Liquidity

• Average Trading Volume: QSG has an average daily trading volume of approximately 250,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread for QSG is typically around 0.05%, demonstrating low trading costs.

Market Dynamics

• Economic Indicators: A strong economy can benefit mid-cap growth companies, as they tend to be more sensitive to economic cycles.
• Sector Growth Prospects: The mid-cap growth segment has historically outperformed other market segments over the long term.
• Current Market Conditions: Rising interest rates and inflation could pose challenges for growth stocks, including those in QSG's portfolio.

Competitors

• iShares S&P Mid-Cap 400 Growth Index ETF (IJK) - Market Share: 25%
• Vanguard Mid-Cap Growth ETF (VOT) - Market Share: 20%
• Invesco S&P MidCap 400 Pure Growth ETF (RPG) - Market Share: 10%

Expense Ratio

QSG's expense ratio is 0.35%, which is considered competitive within its category.

Investment Approach and Strategy

• Strategy: QSG actively manages its portfolio to identify and invest in high-quality mid-cap growth companies.
• Composition: The ETF primarily invests in stocks of mid-cap companies across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Key Points

• Focus on high-quality mid-cap growth companies
• Strong track record of outperformance
• Experienced and reputable management team
• Competitive expense ratio

Risks

• Market Volatility: QSG's portfolio is subject to market fluctuations, which could lead to short-term losses.
• Growth Stock Risk: Growth stocks can be more volatile than other types of stocks, especially during economic downturns.
• Active Management Risk: QSG's performance relies heavily on the success of its active management strategy.

Who Should Consider Investing

• Investors seeking long-term capital appreciation
• Investors with a higher risk tolerance
• Investors looking for exposure to the mid-cap growth segment

Fundamental Rating Based on AI: 8.5

QSG receives a strong rating of 8.5 based on an AI-driven analysis of its fundamentals. The rating considers factors like financial health, market position, and future prospects. QSG scores highly due to its solid performance, experienced management team, and competitive expense ratio. However, potential risks, such as market volatility and growth stock vulnerability, are also factored into the rating.

Resources and Disclaimers

• WisdomTree website: https://www.wisdomtree.com/us/etfs/equity/qsg
• ETF Database: https://etfdb.com/etf/QSG/
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their research and due diligence before making any investment decisions.