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CGMM - ETF AI Analysis

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CGMM

Capital Group U.S. Small and Mid Cap ETF (CGMM)

Rating:66Neutral
Price Target:
CGMM, the Capital Group U.S. Small and Mid Cap ETF, earns a solid overall rating because several of its key holdings show strong financial performance and growth potential. Standouts like Comfort Systems USA, Renaissancere Holdings, Brown & Brown, and DoorDash support the fund with robust earnings, revenue growth, and strategic initiatives, while names like Bloom Energy and Nike add growth but come with valuation and competitive risks. The main risk factor is that many holdings face high valuations, leverage, or overbought technical signals, which could increase volatility for investors.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in the most recent month, indicating positive momentum in its portfolio.
Broad Sector Diversification
Holdings are spread across many sectors such as industrials, financials, technology, consumer, and health care, which helps reduce the impact of weakness in any single industry.
Several Strong-Performing Top Holdings
Some of the largest positions, including companies like US Foods Holding, Comfort Systems, Ingram Micro, and Bloom Energy, have delivered strong year-to-date performance that supports the fund’s returns.
Negative Factors
Higher-Than-Average Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.
Heavy U.S. Concentration
With almost all assets invested in U.S. companies, the ETF offers very limited international diversification and is highly tied to the U.S. market.
Mixed Performance Among Top Holdings
A few key holdings, such as Brown & Brown and Vail Resorts, have shown weak or slightly negative performance this year, which can drag on overall results.

CGMM vs. SPDR S&P 500 ETF (SPY)

CGMM Summary

Capital Group U.S. Small and Mid Cap ETF (CGMM) is an actively managed fund that focuses on smaller and mid-sized U.S. companies, rather than tracking a specific index. It spreads your money across many sectors, including industrials, financials, and technology, with holdings such as US Foods Holding and Exelon. Someone might invest in this ETF to seek long-term growth and diversification beyond the biggest, most familiar large-cap stocks. However, because it focuses on smaller and mid-sized companies, the share price can be more volatile and may go up and down more sharply than the overall market.
How much will it cost me?The Capital Group U.S. Small and Mid Cap ETF (CGMM) has an expense ratio of 0.51%, which means you’ll pay $5.10 per year for every $1,000 invested. This is higher than average because the fund is actively managed, meaning professional managers select investments rather than following a preset index. Active management often involves higher costs due to research and decision-making efforts.
What would affect this ETF?CGMM's focus on U.S. small and mid-sized companies positions it to benefit from economic growth and innovation, particularly in sectors like financials, industrials, and consumer cyclical, which make up a significant portion of its holdings. However, this ETF could face challenges from rising interest rates, which may impact borrowing costs for smaller companies, and economic slowdowns that could reduce consumer spending and business investment. Regulatory changes or sector-specific disruptions could also influence the performance of its top holdings, such as Capital One Financial and Yum! Brands.

CGMM Top 10 Holdings

CGMM’s story is being written by a handful of fast-climbing names in U.S. small and mid caps. Comfort Systems, Ingram Micro, and Bloom Energy are sprinting ahead, giving the fund a strong push from industrial and tech-oriented plays. Renaissancere and US Foods are also steadily adding fuel, while Brown & Brown and Vail Resorts have been more of a drag, with choppier, lagging trends. Overall, the ETF is tilted toward U.S. industrials, financials, and technology, with all its bets firmly planted in the domestic market.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy2.64%$63.49M$82.10B1668.63%
62
Neutral
Renaissancere Holdings2.03%$48.93M$12.89B22.46%
78
Outperform
Exelon1.99%$47.90M$47.68B1.33%
67
Neutral
Comfort Systems1.94%$46.78M$66.60B334.64%
80
Outperform
US Foods Holding1.88%$45.34M$20.06B33.05%
74
Outperform
LKQ1.70%$40.94M$7.07B-29.68%
68
Neutral
WEX1.68%$40.53M$5.35B24.73%
72
Outperform
Nike1.66%$40.02M$63.81B-24.86%
61
Neutral
Brown & Brown1.66%$39.96M$19.54B-47.79%
76
Outperform
DoorDash1.66%$39.93M$74.97B-15.98%
76
Outperform

CGMM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
30.50
Positive
100DMA
30.31
Positive
200DMA
29.16
Positive
Market Momentum
MACD
0.32
Positive
RSI
55.50
Neutral
STOCH
39.28
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For CGMM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 31.25, equal to the 50-day MA of 30.50, and equal to the 200-day MA of 29.16, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGMM.

CGMM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.41B0.51%
66
Neutral
$9.21B0.68%
74
Outperform
$7.09B0.18%
74
Outperform
$2.65B0.24%
68
Neutral
$1.95B0.55%
69
Neutral
$1.35B0.60%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGMM
Capital Group U.S. Small and Mid Cap ETF
31.33
7.13
29.46%
SPYI
NEOS S&P 500 High Income ETF
FELC
Fidelity Enhanced Large Cap Core ETF
JMEE
JPMorgan Market Expansion Enhanced Equity ETF
TMSL
T. Rowe Price Small-Mid Cap ETF
SMIG
AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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