CGMM - ETF AI Analysis
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Capital Group U.S. Small and Mid Cap ETF (CGMM)
Rating:68Neutral
Price Target:―
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)
AUM2.19B
RegionNorth America
Expense Ratio0.51%
Beta0.96
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. Volume1,024,705
30 Day Avg. Volume1,203,080
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
35.81Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering106
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 leans into U.S. small and mid caps with an industrial and services tilt, and a fully domestic footprint. Comfort Systems and Ciena are the real engines right now, with their rising share prices giving the fund extra lift. US Foods and Exelon are steadier contributors, helping smooth out the ride. On the flip side, Vail Resorts and LKQ have been lagging, acting like a bit of a headwind. Overall, the ETF is diversified but not shy about backing a handful of high-conviction names to drive performance.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| US Foods Holding | 2.79% | $60.00M | $20.16B | 45.88% | 74 Outperform | |
| Exelon | 2.16% | $46.35M | $49.68B | 5.59% | 67 Neutral | |
| Vail Resorts | 2.14% | $45.95M | $4.56B | -10.32% | 72 Outperform | |
| LKQ | 2.13% | $45.80M | $7.75B | -27.68% | 68 Neutral | |
| Renaissancere Holdings | 2.12% | $45.54M | $13.18B | 27.32% | 78 Outperform | |
| Comfort Systems | 2.00% | $42.93M | $56.03B | 356.70% | 80 Outperform | |
| Brown & Brown | 1.97% | $42.45M | $22.10B | -45.25% | 76 Outperform | |
| Ingram Micro Holding Corporation | 1.80% | $38.78M | $6.39B | 75.97% | 70 Outperform | |
| Ciena | 1.80% | $38.69M | $70.14B | 743.86% | 70 Outperform | |
| Keysight Technologies | 1.64% | $35.20M | $55.60B | 142.67% | 77 Outperform |
CGMM Technical Analysis
Positive
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Price Trends
30.28
Positive
29.75
Positive
28.81
Positive
Market Momentum
0.04
Negative
57.14
Neutral
88.51
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 29.58, equal to the 50-day MA of 30.28, and equal to the 200-day MA of 28.81, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 88.51 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
Performance Comparison
CGMM
Capital Group U.S. Small and Mid Cap ETF
30.52
8.03
35.70%
QQQI
NEOS Nasdaq 100 High Income ETF
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CGUS
Capital Group Core Equity ETF
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JMEE
JPMorgan Market Expansion Enhanced Equity ETF
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TMSL
T. Rowe Price Small-Mid Cap ETF
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SMIG
AAM Bahl & Gaynor Small/Mid Cap Income Growth 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.
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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