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HGRO - ETF AI Analysis

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HGRO

Hedgeye Quality Growth ETF (HGRO)

Rating:70Neutral
Price Target:
HGRO’s rating reflects a solid, quality-focused growth portfolio led by major tech names like Alphabet, Apple, Microsoft, and Nvidia, whose strong financial performance, positive earnings commentary, and leadership in AI, cloud, and consumer technology provide a strong foundation for the fund. However, some holdings such as Nvidia, Amazon, Eli Lilly, and UnitedHealth face risks from high valuations, leverage, cash flow challenges, or short-term technical weakness, and the fund’s heavy tilt toward large technology and growth companies means investors are exposed to sector concentration and valuation risk.
Positive Factors
Strong Recent Top Holdings Performance
Several of the largest positions, including major technology and industrial names, have shown strong gains this year, helping support the ETF’s overall results.
Growth-Oriented Sector Mix
Heavy exposure to technology and other growth-focused sectors gives the fund meaningful upside potential when growth stocks are in favor.
Broad Industry Diversification
Holdings spread across many sectors, from technology and financials to health care and energy, help reduce the impact if any single industry struggles.
Negative Factors
High Expense Ratio
The fund’s relatively high fee means more of the investment return goes to costs instead of staying in investors’ pockets.
Concentration in a Few Large Tech Names
A meaningful share of assets is tied up in a small group of big technology stocks, increasing the risk if those companies face setbacks.
Limited Geographic Diversification
With almost all assets invested in U.S. companies, the ETF offers little protection if the U.S. market underperforms other regions.

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

HGRO Summary

HGRO is an actively managed ETF that focuses on U.S. growth companies, mainly in technology and other fast-growing sectors, rather than tracking a fixed index. It aims to pick high-quality large and mid-sized businesses that can grow earnings over time. Well-known holdings include Nvidia and Apple, along with other major tech and financial names. Someone might invest in HGRO if they want long-term growth and broad exposure to leading U.S. growth stocks in one fund. However, it is heavily tilted toward growth and tech-related companies, so its price can rise and fall more sharply than the overall market.
How much will it cost me?The Hedgeye Quality Growth ETF (HGRO) has an expense ratio of 0.7%, meaning you’ll pay $7 per year for every $1,000 invested. This is higher than average because the fund is actively managed, using detailed analysis and macroeconomic insights to select stocks rather than following a passive index.
What would affect this ETF?HGRO's focus on U.S. growth stocks, particularly in technology and communication services, positions it to benefit from innovation and strong earnings growth in these sectors. However, its heavy reliance on tech giants like Nvidia, Apple, and Microsoft makes it vulnerable to regulatory changes, economic slowdowns, or rising interest rates that could negatively impact growth stocks. Additionally, broader market conditions in the U.S., such as inflation trends or shifts in consumer spending, could influence the ETF's performance.

HGRO Top 10 Holdings

HGRO is leaning hard into U.S. tech and growth, with Nvidia, Apple, Alphabet, and Amazon steering the ship. These Big Tech names have been strong engines over the past few months, but lately they’ve been catching their breath, which has taken a bit of wind out of the fund’s sails. On the brighter side, Eli Lilly, UnitedHealth, and Goldman Sachs are rising and helping balance the ride, showing that health care and financials are quiet but important co-pilots in this otherwise tech-heavy, U.S.-focused portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple8.81%$11.24M$4.53T47.93%
79
Outperform
Alphabet Class A6.87%$8.76M$4.34T110.50%
85
Outperform
Nvidia6.67%$8.51M$4.71T22.22%
76
Outperform
4.43%$5.65M
Amazon4.02%$5.13M$2.61T12.14%
71
Outperform
Eli Lilly & Co3.40%$4.34M$1.14T58.88%
72
Outperform
JPMorgan Chase2.44%$3.11M$896.22B19.96%
72
Outperform
UnitedHealth2.27%$2.89M$386.29B35.84%
72
Outperform
GE Aerospace2.25%$2.87M$393.88B48.54%
72
Outperform
Johnson & Johnson2.15%$2.75M$633.19B71.54%
78
Outperform

HGRO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
30.84
Negative
100DMA
29.75
Positive
200DMA
29.02
Positive
Market Momentum
MACD
0.04
Positive
RSI
48.49
Neutral
STOCH
47.69
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For HGRO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 30.89, equal to the 50-day MA of 30.84, and equal to the 200-day MA of 29.02, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 47.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HGRO.

HGRO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$127.60M0.70%
70
Neutral
$853.90M0.59%
75
Outperform
$565.94M0.49%
71
Outperform
$496.83M0.61%
71
Outperform
$408.41M0.45%
71
Outperform
$173.28M0.45%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HGRO
Hedgeye Quality Growth ETF
30.81
4.79
18.41%
LSGR
Natixis Loomis Sayles Focused Growth ETF
GQGU
GQG US Equity ETF
BASG
Brown Advisory Sustainable Growth ETF
FDG
American Century Focused Dynamic Growth ETF
GSGO
Goldman Sachs Growth Opportunities 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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