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CGMM - ETF AI Analysis

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CGMM

Capital Group U.S. Small and Mid Cap ETF (CGMM)

Rating:66Neutral
Price Target:
CGMM, the Capital Group U.S. Small and Mid Cap ETF, has a solid overall rating driven mainly by strong holdings like RNR, DASH, and USFD, which show healthy financial performance, positive earnings calls, and strategic growth initiatives. However, some positions such as BE and XYZ introduce risks through high leverage, valuation concerns, and bearish technical signals, and the fund’s focus on smaller U.S. companies means investors should be aware of higher volatility and sector-specific pressures. Overall, the mix of quality growth names and a few more challenged holdings results in a balanced but not top-tier profile.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, suggesting its strategy has worked well in the current market.
Healthy Sector Diversification
Holdings are spread across many sectors like industrials, financials, technology, and health care, which helps reduce the impact of weakness in any single industry.
Several Strong-Performing Top Holdings
Key positions such as Bloom Energy, Comfort Systems, US Foods, and Renaissancere Holdings have shown strong performance, supporting the fund’s overall results.
Negative Factors
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of your returns go toward fees.
Short-Term Performance Weakness
The ETF has slipped over the past month, indicating recent market conditions have been less favorable for its holdings.
Exposure to Lagging Consumer Names
Top holdings like DoorDash, Brown & Brown, and Nike have shown weak performance, which can drag on the fund’s future returns if the trend continues.

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

CGMM Summary

Capital Group U.S. Small and Mid Cap ETF (CGMM) is an actively managed fund that focuses on smaller and mid-sized U.S. companies, rather than tracking a set index. It spreads investments across many areas of the economy, including industrials, financials, technology, and health care. Well-known names in the fund include Nike and DoorDash. Someone might invest in CGMM to seek long-term growth and add diversification beyond large, well-known stocks. A key risk is that smaller companies can be more volatile, so the ETF’s 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-cap growth stories, with names like DoorDash and US Foods providing much of the recent lift as their shares keep rising on solid earnings and expansion plans. Financials such as Renaissancere and WEX are steady engines, quietly supporting performance without much drama. Bloom Energy has been more of a wild card, with mixed momentum that can either juice returns or add volatility. Nike, meanwhile, is losing steam, modestly dragging on results. Overall, the fund is U.S.-focused and tilted toward financials, industrials, and tech-driven innovators.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
2.65%$90.14M
Bloom Energy2.42%$82.33M$78.24B216.32%
62
Neutral
Renaissancere Holdings2.26%$76.91M$13.59B34.56%
78
Outperform
Exelon2.05%$69.83M$43.43B-3.27%
67
Neutral
DoorDash1.96%$66.74M$83.61B-26.23%
76
Outperform
US Foods Holding1.92%$65.50M$20.21B22.20%
74
Outperform
Block1.87%$63.58M$45.83B0.64%
72
Outperform
Cerebras Systems, Inc. Class A1.69%$57.40M$44.40B
Corteva1.61%$54.88M$53.73B13.65%
75
Outperform
Tradeweb Markets1.60%$54.53M$24.33B-6.72%
71
Outperform

CGMM Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
32.46
Negative
100DMA
32.14
Negative
200DMA
31.17
Positive
Market Momentum
MACD
-0.32
Positive
RSI
41.64
Neutral
STOCH
40.88
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For CGMM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 32.22, equal to the 50-day MA of 32.46, and equal to the 200-day MA of 31.17, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 40.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CGMM.

CGMM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$3.44B0.51%
66
Neutral
$8.78B0.31%
69
Neutral
$2.99B0.55%
68
Neutral
$2.87B0.24%
67
Neutral
$1.43B0.60%
73
Outperform
$1.03B0.30%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGMM
Capital Group U.S. Small and Mid Cap ETF
31.75
3.64
12.95%
TCAF
T. Rowe Price Capital Appreciation Equity ETF
TMSL
T. Rowe Price Small-Mid Cap ETF
JMEE
JPMorgan Market Expansion Enhanced Equity ETF
SMIG
AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF
JSMD
Janus Henderson Small/Mid Cap Growth Alpha 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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