CGMM - ETF AI Analysis

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

Rating:68Neutral

Price Target:―

The Capital Group U.S. Small and Mid Cap ETF (CGMM) has a solid overall rating, driven by strong contributions from holdings like Victory Capital Holdings (VCTR) and Renaissancere Holdings (RNR). These companies stand out due to their robust financial performance, strategic growth initiatives, and attractive valuations, which bolster the fund's quality. However, weaker holdings such as Yum! Brands (YUM), with its high leverage and bearish technical trends, slightly weigh down the ETF's overall score. A key risk factor is the fund's exposure to companies with valuation 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)

AUM1.32B

RegionNorth America

Expense Ratio0.51%

Beta0.97

IssuerCapital Group

Inception DateJan 14, 2025

Dividend Yield0.38%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,021,207

30 Day Avg. Volume819,257

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

33.96

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering117

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 Fifth Third Bancorp driving steady performance thanks to strong financial results and strategic initiatives. Hilton Worldwide adds a touch of consumer cyclical strength, benefiting from robust cash flow and expansion plans, though challenges in key markets remain. On the flip side, Brown & Brown and Victory Capital Holdings are lagging, weighed down by bearish trends and valuation concerns. With its U.S.-focused portfolio, CGMM captures the entrepreneurial energy of small and mid-cap stocks but faces mixed results across sectors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
USFD	US Foods Holding	2.63%	$38.87M	$19.11B	20.68%	74 Outperform
COF	Capital One Financial	2.46%	$36.28M	$152.03B	18.38%	71 Outperform
FITB	Fifth Third Bancorp	1.96%	$28.90M	$32.50B	11.72%	71 Outperform
BRO	Brown & Brown	1.88%	$27.70M	$27.32B	-25.15%	76 Outperform
LKQ	LKQ	1.86%	$27.42M	$8.58B	-16.60%	68 Neutral
HLT	Hilton Worldwide Holdings	1.77%	$26.19M	$69.93B	16.93%	67 Neutral
MTN	Vail Resorts	1.77%	$26.16M	$5.06B	-21.16%	72 Outperform
EXC	Exelon	1.73%	$25.57M	$45.19B	14.61%	67 Neutral
KRMN	Karman Holdings Inc.	1.68%	$24.84M	$14.36B	―	62 Neutral
XPO	XPO	1.66%	$24.48M	$17.66B	6.71%	70 Outperform

CGMM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

28.98

Positive

100DMA

28.62

Positive

200DMA

27.21

Positive

Market Momentum

MACD

0.50

Negative

RSI

65.20

Neutral

STOCH

73.19

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 29.96, equal to the 50-day MA of 28.98, and equal to the 200-day MA of 27.21, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.19 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
CGMM	―	―	$1.32B	0.51%	―
AKRE	―	―	$9.26B	0.98%	―
CGUS	―	―	$8.71B	0.33%	―
JMEE	―	―	$2.25B	0.24%	―
TMSL	―	―	$1.37B	0.55%	―
SMIG	―	―	$1.18B	0.60%	―

Performance Comparison

CGMM

Capital Group U.S. Small and Mid Cap ETF

30.81

4.46

16.93%

AKRE

Akre Focus ETF

―

CGUS

Capital Group Core Equity 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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