SQLV - ETF AI Analysis
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Legg Mason Small-Cap Quality Value ETF (SQLV)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum in its small-cap value strategy.
Broad Sector Diversification
Holdings are spread across many sectors, including financials, health care, technology, consumer cyclical, and others, which helps reduce the impact of weakness in any single industry.
Multiple Strong Top Holdings
Several of the largest positions, such as Iridium Communications, Crescent Energy, SM Energy, and Avanos Medical, 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 returns are used to cover fees instead of going to investors.
Small Asset Base
With a relatively low amount of money invested in the fund, investors may face higher trading costs and a greater risk that the ETF could be closed in the future.
Heavy U.S. Concentration
Almost all of the ETF’s holdings are in U.S. companies, offering little geographic diversification if the U.S. market experiences a downturn.
SQLV vs. SPDR S&P 500 ETF (SPY)
AUM26.12M
RegionNorth America
Expense Ratio0.60%
Beta0.96
IssuerFranklin
Inception DateJul 12, 2017
Dividend Yield1.04%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume1,664
30 Day Avg. Volume1,377
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
56.46Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering307
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SQLV Summary
SQLV is the Legg Mason Small-Cap Quality Value ETF, focused on smaller U.S. companies that appear financially solid but undervalued. It doesn’t track a specific index, but instead selects a mix of stocks across many sectors, including financials, health care, and technology. Well-known names in the fund include Iridium Communications and Fresh Del Monte Produce. An investor might choose SQLV to seek long-term growth and diversification by adding smaller, overlooked companies to their portfolio. However, small-cap stocks can be more volatile, so the ETF’s price can move up and down more sharply than the overall market.
How much will it cost me?The Legg Mason Small-Cap Quality Value ETF (SQLV) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on selecting undervalued small-cap stocks with strong fundamentals.
What would affect this ETF?The Legg Mason Small-Cap Quality Value ETF (SQLV) could benefit from positive trends in the U.S. economy, such as increased consumer spending or technological advancements, which would support its exposure to sectors like Consumer Cyclical and Technology. However, rising interest rates or economic slowdowns could negatively impact small-cap companies, particularly those in Financials and Industrials, as they often face higher borrowing costs and reduced demand during such periods. Regulatory changes or sector-specific challenges in Health Care and Energy could also influence the ETF's performance.
SQLV Top 10 Holdings
SQLV is leaning into U.S. small caps with a tilt toward financials and health care, and a dash of energy for extra punch. Avanos Medical has been the surprise rocket, rising sharply despite underlying profitability questions, while satellite player Iridium Communications has also been climbing and helping to pull the fund higher. On the financial side, Victory Capital and Federated Hermes are steady workhorses, adding quiet support. Energy names like Crescent Energy and SM Energy have been more mixed, sometimes boosting returns, sometimes adding a bit of chop to the ride.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Victory Capital Holdings | 1.04% | $272.53K | $5.44B | 34.45% | 80 Outperform | |
| Oscar Health | 0.91% | $238.04K | $7.15B | 30.80% | 49 Neutral | |
| Iridium Communications | 0.89% | $231.17K | $4.40B | 62.35% | 71 Outperform | |
| Federated Hermes | 0.80% | $208.78K | $4.26B | 31.11% | 72 Outperform | |
| Crescent Energy Company Class A | 0.76% | $199.40K | $4.20B | 37.25% | 66 Neutral | |
| SM Energy | 0.75% | $196.16K | $7.52B | 22.32% | 72 Outperform | |
| Northwest Pipe Company | 0.73% | $190.67K | $1.10B | 179.34% | 78 Outperform | |
| International Bancshares | 0.71% | $184.84K | $4.50B | 10.94% | 67 Neutral | |
| Cabot | 0.69% | $180.98K | $4.36B | 10.67% | 66 Neutral | |
| Fresh Del Monte Produce | 0.69% | $179.21K | $1.69B | 8.27% | 69 Neutral |
SQLV Technical Analysis
Positive
―
Price Trends
45.89
Positive
45.45
Positive
43.75
Positive
Market Momentum
0.43
Positive
50.74
Neutral
17.25
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SQLV, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 47.92, equal to the 50-day MA of 45.89, and equal to the 200-day MA of 43.75, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 17.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SQLV.
SQLV Peer Comparison
Comparison Results
Performance Comparison
SQLV
Legg Mason Small-Cap Quality Value ETF
47.33
8.34
21.39%
AFSM
First Trust Active Factor Small Cap ETF
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―
―
SYZ
Lazard US Systematic Small Cap Equity ETF
―
―
―
TMFS
Motley Fool Small-Cap Growth ETF
―
―
―
JPSV
JPMorgan Active Small Cap Value ETF
―
―
―
ACSV
American Century Small Cap Value Insights 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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