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CGMM - ETF AI Analysis

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CGMM

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 driven by strong contributors like Comfort Systems USA, Renaissancere Holdings, and Brown & Brown, which show robust financial performance, growth initiatives, and generally supportive technical or valuation backdrops. These strengths are partly offset by weaker names such as Yum! Brands, where high leverage, financial risks, and a bearish technical trend weigh on the fund, and by some holdings with mixed technicals or slowing growth, making stock selection and sector balance the main ongoing risk factors.
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)

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 Holding2.79%$60.00M$20.16B45.88%
74
Outperform
Exelon2.16%$46.35M$49.68B5.59%
67
Neutral
Vail Resorts2.14%$45.95M$4.56B-10.32%
72
Outperform
LKQ2.13%$45.80M$7.75B-27.68%
68
Neutral
Renaissancere Holdings2.12%$45.54M$13.18B27.32%
78
Outperform
Comfort Systems2.00%$42.93M$56.03B356.70%
80
Outperform
Brown & Brown1.97%$42.45M$22.10B-45.25%
76
Outperform
Ingram Micro Holding Corporation1.80%$38.78M$6.39B75.97%
70
Outperform
Ciena1.80%$38.69M$70.14B743.86%
70
Outperform
Keysight Technologies1.64%$35.20M$55.60B142.67%
77
Outperform

CGMM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
30.28
Positive
100DMA
29.75
Positive
200DMA
28.81
Positive
Market Momentum
MACD
0.04
Negative
RSI
57.14
Neutral
STOCH
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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.19B0.51%
68
Neutral
$9.98B0.68%
75
Outperform
$9.60B0.33%
72
Outperform
$2.55B0.24%
69
Neutral
$1.70B0.55%
69
Neutral
$1.29B0.60%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGMM
Capital Group U.S. Small and Mid Cap ETF
30.52
8.03
35.70%
QQQI
NEOS Nasdaq 100 High Income 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.
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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