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SQLV - ETF AI Analysis

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SQLV

Legg Mason Small-Cap Quality Value ETF (SQLV)

Rating:68Neutral
Price Target:
SQLV, the Legg Mason Small-Cap Quality Value ETF, has a solid overall rating driven mainly by strong, well-run holdings like Victory Capital (VCTR) and LCI Industries (LCII), which show robust financial performance, attractive valuations, and positive strategic momentum. However, several holdings such as Crescent Energy (CRGY), Cabot (CBT), and others face bearish technical trends, operational challenges, or macro uncertainties, which temper the fund’s rating and highlight the risk that many positions can be sensitive to market swings and sector-specific headwinds.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.
Generally Strong Top Holdings
Most of the largest positions have shown positive performance this year, which has supported the ETF’s overall returns.
Recent Performance Momentum
The ETF has delivered steady gains over the past month and quarter, suggesting recent momentum in its small-cap value strategy.
Negative Factors
Higher Expense Ratio
The fund’s fees are on the higher side for an ETF, which can eat into long-term returns compared with lower-cost options.
Small Asset Base
With a relatively low amount of money invested in the fund, investors may face higher trading costs or a risk the fund could be closed in the future.
Heavy U.S. Exposure
Almost all of the ETF’s holdings are in U.S. companies, offering little geographic diversification if the U.S. market weakens.

SQLV vs. SPDR S&P 500 ETF (SPY)

SQLV Summary

SQLV is the Legg Mason Small-Cap Quality Value ETF, focused on smaller U.S. companies that appear financially solid but overlooked or undervalued. It doesn’t track a set index, but instead selects a mix of sectors like health care, financials, and technology. Well-known names in the fund include Bath & Body Works and Fresh Del Monte Produce. Investors might consider SQLV if they want growth potential from small companies while still focusing on quality and diversification across many industries. A key risk is that small-cap stocks can be more volatile and can go up and down more sharply than larger companies.
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’s story right now is being written by its U.S. small-cap value tilt, with a notable lean into financials and energy. On the bright side, energy names like Crescent Energy and SM Energy have been rising, giving the fund a helpful tailwind. Education player Stride has also been a quiet winner, adding steady support. On the flip side, consumer names such as Bath & Body Works and Buckle are losing steam, and LCI Industries has been lagging, which has kept returns more mixed than the strong pockets of performance might suggest.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Iridium Communications0.88%$232.23K$3.99B76.06%
71
Outperform
Victory Capital Holdings0.88%$231.21K$4.69B31.25%
80
Outperform
Fresh Del Monte Produce0.81%$212.19K$1.94B29.58%
69
Neutral
Federated Hermes0.80%$210.83K$4.41B50.89%
72
Outperform
Crescent Energy Company Class A0.70%$185.13K$4.00B40.93%
66
Neutral
International Bancshares0.70%$184.61K$4.43B22.41%
67
Neutral
LCI Industries0.69%$182.55K$2.92B59.49%
79
Outperform
Stride0.67%$175.72K$4.00B-27.54%
70
Outperform
Avanos Medical0.66%$175.17K$1.15B98.07%
52
Neutral
Buckle0.66%$173.75K$2.72B57.82%
72
Outperform

SQLV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
45.11
Positive
100DMA
44.52
Positive
200DMA
43.06
Positive
Market Momentum
MACD
0.71
Negative
RSI
73.72
Negative
STOCH
99.99
Negative
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 45.06, equal to the 50-day MA of 45.11, and equal to the 200-day MA of 43.06, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 73.72 is Negative, neither overbought nor oversold. The STOCH value of 99.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SQLV.

SQLV Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$25.80M0.60%
68
Neutral
$86.74M0.75%
70
Neutral
$62.29M0.85%
67
Neutral
$60.66M0.74%
65
Neutral
$24.74M0.74%
66
Neutral
$11.24M0.49%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SQLV
Legg Mason Small-Cap Quality Value ETF
47.92
14.12
41.78%
AFSM
First Trust Active Factor Small Cap ETF
TMFS
Motley Fool Small-Cap Growth ETF
SYZ
Lazard US Systematic Small Cap Equity ETF
JPSV
JPMorgan Active Small Cap Value ETF
ACSV
American Century Small Cap Value Insights 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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