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CGMM - ETF AI Analysis

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CGMM

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

Rating:65Neutral
Price Target:
CGMM, the Capital Group U.S. Small and Mid Cap ETF, has a solid overall rating driven mainly by strong holdings like Comfort Systems USA, Brown & Brown, DoorDash, and US Foods, all of which show robust financial performance, revenue growth, and positive earnings outlooks that support the fund’s quality. The presence of more mixed names such as Bloom Energy and Nike, where high leverage, valuation concerns, and technical weaknesses appear, slightly holds back the rating. The main risk factor is the fund’s exposure to several companies with high valuations and leverage, which could increase volatility if market conditions worsen.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, suggesting its strategy has worked well in the current market.
Healthy Sector Diversification
Holdings are spread across many sectors like industrials, financials, technology, and health care, which helps reduce the impact of weakness in any single industry.
Several Strong-Performing Top Holdings
Key positions such as Bloom Energy, Comfort Systems, US Foods, and Renaissancere Holdings have shown strong performance, supporting the fund’s overall results.
Negative Factors
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of your returns go toward fees.
Short-Term Performance Weakness
The ETF has slipped over the past month, indicating recent market conditions have been less favorable for its holdings.
Exposure to Lagging Consumer Names
Top holdings like DoorDash, Brown & Brown, and Nike have shown weak performance, which can drag on the fund’s future returns if the trend continues.

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 set index. It spreads investments across many areas of the economy, including industrials, financials, technology, and health care. Well-known names in the fund include Nike and DoorDash. Someone might invest in CGMM to seek long-term growth and add diversification beyond large, well-known stocks. A key risk is that smaller companies can be more volatile, so the ETF’s price can rise and fall 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 leans into U.S. small and mid caps with a strong tilt toward industrials and financials, and that’s where much of the action is. Comfort Systems and WEX have been rising, acting like twin engines for the fund, while Renaissancere adds steady insurance strength. On the flip side, Nike has been losing steam and DoorDash is dragging performance, reflecting consumer and tech names under pressure. Bloom Energy’s volatile, mixed run adds some drama, but overall the ETF is a domestically focused, sector-diversified play on smaller U.S. growth stories.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
3.93%$124.48M
WEX2.09%$66.31M$6.37B12.38%
72
Outperform
Renaissancere Holdings2.09%$66.18M$13.30B32.32%
78
Outperform
DoorDash1.98%$62.65M$85.47B-22.29%
76
Outperform
Brown & Brown1.97%$62.34M$23.56B-23.68%
76
Outperform
Exelon1.90%$60.22M$47.30B2.57%
67
Neutral
US Foods Holding1.84%$58.18M$22.15B19.58%
74
Outperform
Bloom Energy1.77%$56.23M$60.62B470.11%
62
Neutral
Nike1.70%$53.77M$61.88B-44.10%
61
Neutral
Comfort Systems1.55%$49.13M$60.88B148.77%
80
Outperform

CGMM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
32.06
Positive
100DMA
31.30
Positive
200DMA
30.36
Positive
Market Momentum
MACD
-0.01
Positive
RSI
55.19
Neutral
STOCH
72.19
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 32.14, equal to the 50-day MA of 32.06, and equal to the 200-day MA of 30.36, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 55.19 is Neutral, neither overbought nor oversold. The STOCH value of 72.19 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
$3.16B0.51%
65
Neutral
$7.98B0.18%
73
Outperform
$2.85B0.24%
67
Neutral
$2.79B0.55%
68
Neutral
$1.49B0.60%
73
Outperform
$1.05B0.30%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGMM
Capital Group U.S. Small and Mid Cap ETF
32.44
5.21
19.13%
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
JSMD
Janus Henderson Small/Mid Cap Growth Alpha 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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