Advisors Series Trust - Logan Capital Broad Innovative Growth ETF (LCLG)

Overview

The Advisors Series Trust - Logan Capital Broad Innovative Growth ETF (IGEX) is an actively managed ETF focused on identifying and investing in companies that exhibit strong innovative growth potential. It targets a broad range of sectors, aiming to capture growth across the economy by selecting companies that are leading technological advancements, disrupting existing markets, or creating new ones. The investment strategy emphasizes fundamental analysis to identify high-quality businesses with sustainable competitive advantages.

Reputation and Reliability

ETF Advisors Series Trust is the issuer, a trust that serves as a vehicle for various ETFs. Logan Capital Management is the sub-advisor, bringing its expertise in equity research and portfolio management to the ETF. Logan Capital is known for its disciplined approach to growth investing, with a history of managing assets for institutional and individual investors.

Management Expertise

The ETF is managed by Logan Capital Management, which has a team of experienced investment professionals specializing in identifying innovative growth companies. Their expertise lies in in-depth fundamental research, understanding industry trends, and assessing the long-term viability of disruptive technologies and business models.

Goal

The primary investment goal is to achieve capital appreciation over the long term.

Investment Approach and Strategy

Strategy: This ETF is actively managed and does not aim to track a specific index. Instead, the portfolio managers at Logan Capital actively select individual securities based on their assessment of innovative growth potential.

Composition The ETF primarily holds a diversified portfolio of US-listed equities across various sectors. The focus is on companies exhibiting strong revenue growth, significant market opportunity, and innovative products or services. The exact composition of holdings can vary based on market conditions and the fund manager's research.

Market Share: Detailed market share data for individual actively managed ETFs within specific niches is often proprietary and not publicly disclosed in a granular format. However, as an actively managed ETF focusing on innovative growth, IGEX competes within a broad universe of growth-oriented equity ETFs.

Total Net Assets (AUM): 62314000

Key Competitors

• ARK Innovation ETF (ARKK)
• WisdomTree Cloud Computing Fund (WCLD)
• Invesco QQQ Trust (QQQ)

Competitive Landscape

The landscape for innovative growth ETFs is highly competitive and dynamic, with numerous actively managed and passively tracked funds vying for investor attention. Key competitors like ARKK have historically captured significant market share due to their thematic focus and strong performance during certain periods. QQQ, while broader, is a dominant force in tech and growth. IGEX's advantages lie in Logan Capital's proprietary research and disciplined active management approach, aiming for potentially more consistent, risk-adjusted returns compared to thematic ETFs susceptible to rapid shifts. However, its relatively smaller AUM compared to giants like QQQ might imply less liquidity and potentially higher bid-ask spreads.

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Benchmark Comparison: While IGEX does not strictly benchmark against a single index due to its active management, its performance is often assessed against broad growth indices like the Russell 1000 Growth Index. In recent periods, IGEX has shown strong performance, often outperforming its growth benchmarks, demonstrating the effectiveness of its active strategy. However, performance can be volatile due to the nature of growth investing.

Expense Ratio: 0.69

Average Trading Volume

The average trading volume for IGEX is typically in the range of 10,000 to 20,000 shares per day, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for IGEX generally ranges from 0.05% to 0.15%, reflecting a reasonable cost of trading for an actively managed ETF of its size.

Market Environment Factors

The ETF is influenced by broader economic indicators such as interest rate policies, inflation, and overall economic growth, which impact investor sentiment towards growth stocks. Sector-specific trends in technology, healthcare, and consumer discretionary, where innovative companies often reside, are also critical. The current market environment characterized by technological innovation and a focus on sustainable growth strategies provides a fertile ground for IGEX's investment thesis.

Growth Trajectory

IGEX aims for consistent growth by identifying companies with disruptive potential. Its strategy involves adapting to emerging technologies and market shifts, meaning its holdings can evolve. Changes in strategy would likely involve a recalibration of the types of innovation being targeted or a shift in sector focus based on macro trends and specific company opportunities identified by Logan Capital.

Competitive Edge

The ETF's competitive edge stems from Logan Capital's in-depth fundamental research and proprietary process for identifying companies with unique innovative capabilities and sustainable growth runways. Their focus on understanding disruptive technologies and assessing management quality provides a distinct approach. This disciplined, research-driven selection process aims to unearth high-potential growth companies that may be overlooked by passive strategies or less specialized active managers.

Volatility

Advisors Series Trust - Logan Capital Broad Innovative Growth ETF exhibits moderate to high historical volatility, which is characteristic of growth-oriented equity funds that invest in companies with significant potential but also higher inherent risk. Its standard deviation over a 3-year period is approximately 25%.

Market Risk

The ETF is subject to market risk, particularly the volatility inherent in equity markets. Specific risks include the potential for rapid obsolescence of innovative technologies, intense competition among growth companies, and sensitivity to changes in interest rates and economic cycles. Concentration in certain high-growth sectors can also increase risk.

Ideal Investor Profile

The ideal investor for IGEX is an individual or institution seeking long-term capital appreciation, comfortable with the risks associated with actively managed growth strategies, and who believes in the potential of innovative companies. Investors should have a tolerance for volatility and a conviction in the long-term adoption of new technologies and business models.

Market Risk

This ETF is best suited for long-term investors who are looking for active management to potentially outperform broader growth indices. It is less suitable for risk-averse investors or those seeking short-term speculative gains due to its inherent volatility and focus on long-term growth themes.

The Advisors Series Trust - Logan Capital Broad Innovative Growth ETF (IGEX) is an actively managed fund focused on capturing long-term capital appreciation through investments in innovative growth companies. Managed by Logan Capital Management, it leverages deep fundamental research to identify disruptive potential across various sectors. While facing a competitive landscape and exhibiting moderate to high volatility, IGEX offers a distinct approach for investors seeking exposure to the forefront of technological advancement and market innovation, aligning well with long-term growth objectives.

Data Sources:

• ETF Provider Website (ETF Advisors Series Trust)
• Sub-Advisor Website (Logan Capital Management)
• Financial Data Aggregators (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment in ETFs involves risk, including the possible loss of principal. Investors should consult with a qualified financial advisor before making any investment decisions.