CGMM - ETF AI Analysis

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

Rating:68Neutral

Price Target:―

CGMM, the Capital Group U.S. Small and Mid Cap ETF, has a solid overall rating, reflecting a portfolio led by strong performers like Comfort Systems USA and Renaissancere Holdings, which benefit from robust revenue growth, effective capital management, and positive earnings call sentiment. Other holdings such as Brown & Brown, Capital One Financial, and Vail Resorts also support the fund’s quality through healthy financial performance and strategic growth initiatives. The main risks come from names like Yum! Brands and Exelon, where high leverage, financial risks, and some bearish or mixed technical signals can weigh on the fund and highlight the importance of monitoring sector and company-specific challenges.

Positive Factors

Solid Recent Performance

The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Broad Sector Diversification

Holdings are spread across many sectors, including industrials, financials, consumer cyclical, technology, and health care, which helps reduce reliance on any single industry.

Strong Contribution from Several Top Holdings

Many of the largest positions, such as US Foods, Fifth Third Bancorp, LKQ, Karman Holdings, and XPO, have delivered strong year-to-date performance that supports the fund’s overall returns.

Negative Factors

Higher Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the return is used to cover fees.

Heavy U.S. Concentration

With the vast majority of assets in U.S. companies and very limited exposure to other countries, the fund is highly tied to the U.S. market’s fortunes.

Mixed Results Among Top Financial Holdings

Some key financial stocks in the top holdings, such as Capital One Financial and Brown & Brown, have shown weaker year-to-date performance, which can drag on overall results.

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

AUM1.64B

RegionNorth America

Expense Ratio0.51%

Beta0.96

IssuerCapital Group

Inception DateJan 14, 2025

Dividend Yield0.37%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume910,909

30 Day Avg. Volume834,940

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

35.19

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering105

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

CGMM Summary

Capital Group U.S. Small and Mid Cap ETF (CGMM) invests mainly in smaller and mid-sized U.S. companies, without tracking a specific index, but with a theme of targeting the “extended” U.S. stock market beyond the biggest names. It spreads money across many sectors, including industrials, financials, and consumer companies. Well-known holdings include Capital One Financial and Hilton Worldwide. Someone might invest in CGMM for long-term growth and diversification away from only large, famous stocks. A key risk is that smaller companies can be more volatile, so the share 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 is leaning into U.S. small and mid-cap cyclicals, with industrial and financial names setting the tone. Karman Holdings has been the rocket ship in the portfolio lately, giving the fund a noticeable lift, while steady climbers like US Foods, LKQ, and XPO help keep momentum going. Regional banks such as Fifth Third are also rising, adding some financial muscle. On the flip side, Capital One and Brown & Brown have been more of a drag, with softer recent moves. Overall, it’s a U.S.-focused, economically sensitive mix rather than a Big Tech story.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
USFD	US Foods Holding	3.28%	$51.53M	$21.30B	37.96%	74 Outperform
	―	2.49%	$39.20M	―	―	―
MTN	Vail Resorts	2.23%	$34.99M	$5.08B	-9.87%	72 Outperform
LKQ	LKQ	2.08%	$32.70M	$8.50B	-15.78%	68 Neutral
EXC	Exelon	2.03%	$31.93M	$48.32B	10.14%	67 Neutral
FIX	Comfort Systems	1.99%	$31.29M	$46.54B	301.71%	80 Outperform
RNR	Renaissancere Holdings	1.91%	$29.98M	$13.22B	31.98%	78 Outperform
BRO	Brown & Brown	1.86%	$29.22M	$23.72B	-37.70%	76 Outperform
YUM	Yum! Brands	1.66%	$26.10M	$45.23B	9.80%	59 Neutral
COF	Capital One Financial	1.65%	$25.86M	$133.43B	4.10%	71 Outperform

CGMM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

30.13

Positive

100DMA

29.12

Positive

200DMA

28.05

Positive

Market Momentum

MACD

0.32

Negative

RSI

62.86

Neutral

STOCH

81.46

Negative

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 30.71, equal to the 50-day MA of 30.13, and equal to the 200-day MA of 28.05, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 81.46 is Negative, 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
CGMM	―	―	$1.64B	0.51%	―
CGUS	―	―	$8.99B	0.33%	―
QQQI	―	―	$8.87B	0.68%	―
JMEE	―	―	$2.37B	0.24%	―
TMSL	―	―	$1.59B	0.55%	―
SMIG	―	―	$1.27B	0.60%	―

Performance Comparison

CGMM

Capital Group U.S. Small and Mid Cap ETF

31.34

6.07

24.02%

CGUS

Capital Group Core Equity ETF

―

QQQI

NEOS Nasdaq 100 High Income 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.

Disclaimer

This 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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