ETF Series Solutions - AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG)

Overview

The AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF (NYSE Arca: BSMO) seeks to provide current income and long-term growth by investing in a diversified portfolio of small- and mid-capitalization U.S. companies. The ETF focuses on companies that exhibit a history of dividend growth and strong financial fundamentals.

Reputation and Reliability

ETF Series Solutions is a platform that allows multiple advisors to launch and manage ETFs. They are known for providing operational and distribution support.

Management Expertise

The investment strategy is managed by Bahl & Gaynor Investment Counsel, a registered investment advisor with expertise in dividend growth investing.

Goal

To provide current income and long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but follows a dividend growth investment strategy focused on small- and mid-cap stocks.

Composition The ETF holds a portfolio of dividend-paying small- and mid-cap stocks selected based on financial strength and dividend growth potential.

Market Share: Data not available to precisely calculate BSMO's exact market share, but it operates within the competitive small/mid-cap dividend growth ETF sector.

Total Net Assets (AUM): 72000000

Key Competitors

• Schwab U.S. Dividend Equity ETF (SCHD)
• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core Dividend Growth ETF (DGRO)

Competitive Landscape

The small/mid-cap dividend ETF market is competitive, with established players having larger AUM and brand recognition. BSMO differentiates itself through its focused small/mid-cap approach and Bahl & Gaynor's specific investment methodology. A disadvantage is lower AUM and therefore potentially lower liquidity compared to larger competitors. BSMO's small/mid cap focus offers the advantage of potentially higher growth compared to large cap dividend ETFs.

Historical Performance: Historical performance data varies; consult financial resources for accurate data over different periods.

Benchmark Comparison: Compare BSMO's performance against a relevant small/mid-cap benchmark such as the Russell 2500 Value Index.

Expense Ratio: 0.6

Average Trading Volume

The ETF's liquidity is moderate, indicated by its average daily trading volume.

Bid-Ask Spread

The bid-ask spread fluctuates based on market conditions and trading volume.

Market Environment Factors

Economic growth, interest rates, and small-cap market sentiment can influence BSMO's performance. Sector-specific trends within the small/mid-cap universe also play a role.

Growth Trajectory

BSMO's growth trajectory depends on its ability to attract assets and deliver competitive returns within its investment mandate. Changes to holdings and strategy are disclosed in fund documents.

Competitive Edge

BSMO's competitive advantage lies in its focus on small- and mid-cap dividend growth stocks, offering a different risk/return profile than larger, more established dividend ETFs. The active management by Bahl & Gaynor aims to add value through stock selection. This targeted approach can potentially result in higher growth and income compared to broader dividend ETFs. Bahl & Gaynor's expertise and research capabilities contribute to its competitive edge. However, active management also introduces the risk of underperformance compared to passive strategies.

Volatility

BSMO's volatility is influenced by the inherent volatility of small- and mid-cap stocks, potentially leading to larger price swings than broader market ETFs.

Market Risk

Market risk encompasses the general risk of investment losses due to economic downturns, market corrections, and geopolitical events, all of which can affect BSMO's underlying assets.

Ideal Investor Profile

BSMO is suitable for investors seeking income and long-term capital appreciation through dividend growth, with a preference for small- and mid-cap exposure.

Market Risk

BSMO may be suitable for long-term investors and those who can tolerate the volatility associated with small- and mid-cap stocks.

BSMO aims to provide current income and capital appreciation by investing in small- and mid-cap dividend growth stocks. Managed by Bahl & Gaynor, it offers a differentiated approach compared to broad market dividend ETFs. It is suitable for investors who can tolerate the volatility of smaller companies and seek dividend growth potential. However, it faces competition from larger, more established ETFs in the dividend space, and actively managed funds are subject to management risk.

Data Sources:

• ETF issuer website
• Financial news sources
• FactSet
• Morningstar

Disclaimers:

Investment involves risk. Past performance is not indicative of future results. Consult a financial advisor before making investment decisions. Market share data is based on available AUM and may not be fully comprehensive.