CGMM - ETF AI Analysis

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

Rating:68Neutral

Price Target:

$31.00

The Capital Group U.S. Small and Mid Cap ETF (CGMM) has a solid overall rating, supported by strong contributions from holdings like Renaissancere Holdings (RNR) and Victory Capital Holdings (VCTR). RNR stands out with its robust financial performance and strategic focus on margin preservation, while VCTR benefits from strong revenue growth and profitability. However, the ETF's rating is slightly held back by weaker holdings like Yum! Brands (YUM), which faces challenges with high leverage and valuation concerns, and Hilton Worldwide Holdings (HLT), which struggles with high debt and bearish momentum. A key risk factor for this ETF is its exposure to holdings with valuation and leverage concerns, which could impact future performance.

Positive Factors

Strong Top Holdings

Several top positions, such as United Rentals and Karman Holdings, have delivered strong year-to-date performance, boosting the fund’s returns.

Sector Diversification

The ETF is spread across multiple sectors, including Financials, Industrials, and Consumer Cyclical, reducing reliance on any single industry.

Healthy Year-to-Date Performance

The fund has shown solid year-to-date growth, indicating resilience in its portfolio.

Negative Factors

High Geographic Concentration

With over 96% exposure to U.S. companies, the ETF lacks diversification across global markets.

Lagging Holdings

Some top holdings, like Brown & Brown and Fifth Third Bancorp, have underperformed year-to-date, potentially dragging on overall returns.

Moderate Expense Ratio

The ETF’s expense ratio is higher than some low-cost alternatives, which could slightly reduce net returns over time.

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

AUM915.91M

RegionNorth America

Expense Ratio0.51%

Beta0.96

IssuerCapital Group

Inception DateJan 14, 2025

Dividend Yield0.12%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,094,846

30 Day Avg. Volume852,400

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

32.39

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering92

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

CGMM Summary

The Capital Group U.S. Small and Mid Cap ETF (CGMM) focuses on small and mid-sized companies in the U.S., offering investors a chance to tap into the growth potential of emerging businesses. It includes well-known companies like Capital One Financial and Yum! Brands, and covers sectors such as financials, industrials, and technology. This ETF is ideal for those looking to diversify their portfolio and invest in companies that may have significant room to grow. However, new investors should be aware that small and mid-cap stocks can be more volatile and sensitive to market changes compared to larger, established companies.

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

The Capital Group U.S. Small and Mid Cap ETF (CGMM) leans heavily into financials and industrials, with names like Capital One Financial and Brown & Brown shaping its trajectory. While Capital One shows mixed performance, Brown & Brown has been lagging, weighing on the fund’s overall momentum. On the brighter side, United Rentals is rising steadily, providing a lift with its strong earnings and bullish outlook. Meanwhile, Karman Holdings is a standout, surging ahead with robust growth. The fund’s U.S.-centric focus and sector tilt toward financials and consumer cyclical stocks make it a dynamic but somewhat concentrated play on America’s extended market.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
COF	Capital One Financial	3.12%	$28.40M	$128.67B	10.72%	69 Neutral
BRO	Brown & Brown	2.74%	$25.00M	$26.91B	-28.11%	71 Outperform
USFD	US Foods Holding	2.55%	$23.21M	$15.80B	3.14%	65 Neutral
YUM	Yum! Brands	2.25%	$20.53M	$41.18B	11.17%	60 Neutral
FITB	Fifth Third Bancorp	2.17%	$19.73M	$27.42B	-12.39%	72 Outperform
RNR	Renaissancere Holdings	2.15%	$19.57M	$12.09B	-1.19%	78 Outperform
VCTR	Victory Capital Holdings	2.10%	$19.11M	$4.09B	-9.88%	77 Outperform
HLT	Hilton Worldwide Holdings	2.09%	$19.04M	$62.06B	4.96%	63 Neutral
	―	2.07%	$18.82M	―	―	―
XPO	XPO	1.87%	$17.06M	$14.87B	-16.07%	73 Outperform

CGMM Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

28.20

Negative

100DMA

27.97

Negative

200DMA

26.36

Positive

Market Momentum

MACD

-0.30

Positive

RSI

31.53

Neutral

STOCH

11.25

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For CGMM, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 27.97, equal to the 50-day MA of 28.20, and equal to the 200-day MA of 26.36, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 31.53 is Neutral, neither overbought nor oversold. The STOCH value of 11.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGMM.

CGMM Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
CGMM	―	―	$915.91M	0.51%	68 Neutral
RSMC	―	―	$696.98M	0.75%	69 Neutral
SDVD	―	―	$655.96M	0.85%	73 Outperform
MSSM	―	―	$652.65M	0.57%	64 Neutral
NBSM	―	―	$184.57M	0.65%	68 Neutral
SMIZ	―	―	$151.69M	0.56%	67 Neutral

Performance Comparison

CGMM

Capital Group U.S. Small and Mid Cap ETF

26.81

0.82

3.16%

RSMC

Rockefeller U.S. Small-Mid Cap ETF

―

SDVD

FT Cboe Vest SMID Rising Dividend Achievers Target Income ETF

―

MSSM

Morgan Stanley Pathway Small-Mid Cap Equity ETF

―

NBSM

Neuberger Berman Small-Mid Cap ETF

―

SMIZ

Zacks Small/Mid Cap 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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