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Capital Group U.S. Small and Mid Cap ETF (CGMM)
Rating:67Neutral
Price Target:
$31.00
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)
AUM853.78M
RegionNorth America
Expense Ratio0.51%
Beta0.98
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. Volume979,639
30 Day Avg. Volume826,716
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
32.45Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering93
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 |
|---|---|---|---|---|---|---|
| Capital One Financial | 3.21% | $27.31M | $138.82B | 34.15% | 58 Neutral | |
| Brown & Brown | 2.57% | $21.82M | $27.47B | -23.12% | 71 Outperform | |
| ― | 2.54% | $21.57M | ― | ― | ― | |
| US Foods Holding | 2.42% | $20.55M | $16.49B | 18.82% | 68 Neutral | |
| Karman Holdings Inc. | 2.31% | $19.67M | $11.33B | ― | 64 Neutral | |
| Yum! Brands | 2.22% | $18.86M | $38.59B | 6.02% | 64 Neutral | |
| Fifth Third Bancorp | 2.07% | $17.64M | $27.77B | -3.96% | 72 Outperform | |
| Roblox | 1.96% | $16.71M | $78.34B | 118.48% | 63 Neutral | |
| Hilton Worldwide Holdings | 1.95% | $16.59M | $60.47B | 10.78% | 63 Neutral | |
| Renaissancere Holdings | 1.93% | $16.37M | $11.73B | -3.06% | 79 Outperform |
CGMM Technical Analysis
Negative
―
Price Trends
28.33
Negative
27.74
Positive
Market Momentum
0.02
Positive
43.83
Neutral
32.01
Neutral
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 28.30, equal to the 50-day MA of 28.33, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 32.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGMM.
CGMM Peer Comparison
Comparison Results
Performance Comparison
CGMM
Capital Group U.S. Small and Mid Cap ETF
27.98
1.99
7.66%
RSMC
Rockefeller U.S. Small-Mid Cap ETF
―
―
―
MSSM
Morgan Stanley Pathway Small-Mid Cap Equity ETF
―
―
―
SDVD
FT Cboe Vest SMID Rising Dividend Achievers Target Income ETF
―
―
―
NBSM
Neuberger Berman Small-Mid Cap ETF
―
―
―
SMIZ
Zacks Small/Mid Cap ETF
―
―
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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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