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

Overview

The AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG) seeks to provide current income and long-term capital appreciation by investing primarily in dividend-paying small- and mid-cap U.S. equities. The ETF focuses on companies with a history of consistent dividend growth and strong financial fundamentals.

Reputation and Reliability

ETF Series Solutions is an established provider of ETFs, offering various investment strategies. While they are not as large as some of the major ETF providers, they have a solid reputation for providing access to niche investment strategies.

Management Expertise

Bahl & Gaynor Investment Counsel, a registered investment advisor, manages the fund. They have expertise in dividend growth investing, which adds to the ETF's credibility.

Goal

The fund seeks to provide current income and long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. It employs an active management strategy focused on dividend growth stocks.

Composition The ETF primarily holds dividend-paying small- and mid-cap U.S. equities.

Market Share: Data not readily available to provide an accurate market share for SMIG.

Total Net Assets (AUM): 52470550

Key Competitors

• VIG
• SCHD
• DVY
• VYM

Competitive Landscape

The ETF industry is highly competitive, dominated by large players offering various dividend-focused strategies. SMIG distinguishes itself by focusing specifically on small- and mid-cap dividend growth stocks, which can offer greater growth potential than large-cap dividend ETFs. However, smaller AUM and higher expense ratio place it at a disadvantage compared to the larger, more liquid competitors.

Historical Performance: Historical performance data for SMIG needs to be reviewed across different time periods to assess its performance track record.

Benchmark Comparison: A benchmark comparison against relevant small/mid-cap dividend growth indexes is crucial for evaluating SMIG's effectiveness.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume of SMIG is relatively low, which may impact the ease of buying or selling shares at desired prices.

Bid-Ask Spread

The bid-ask spread can be moderately wide, which may result in higher trading costs for investors.

Market Environment Factors

Economic growth, interest rate changes, and sector-specific trends in the small- and mid-cap space can all affect the ETF's performance.

Growth Trajectory

SMIG's growth trajectory depends on the fund's ability to select dividend-paying stocks that can also achieve capital appreciation. Changes to the fund's holdings and strategy might be implemented to boost performance over time.

Competitive Edge

SMIG's focus on small- and mid-cap dividend growth provides a niche strategy. This focus gives exposure to growth potential often missed by large-cap dividend ETFs. However, its higher expense ratio could offset some of these benefits. The active management approach aims to identify companies with sustainable dividend growth. The dividend-focused and small- to mid-cap market capitalization may appeal to investors seeking a balance of income and capital appreciation.

Volatility

SMIG's volatility may be higher than large-cap dividend ETFs due to its focus on small- and mid-cap stocks.

Market Risk

The underlying assets are subject to market risk, economic downturns, and sector-specific risks affecting the small- and mid-cap equity market.

Ideal Investor Profile

The ideal investor is one seeking income and capital appreciation, comfortable with small and mid-cap stock volatility.

Market Risk

SMIG is suitable for long-term investors seeking both dividend income and the potential for capital growth, but they need to accept a higher level of volatility.

AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF seeks income and growth by investing in dividend-paying small and mid-cap stocks. It offers a unique approach within the dividend ETF landscape. The focus on smaller companies may give enhanced growth, but also comes with elevated volatility. Investors should weigh the higher expense ratio and lower liquidity against the potential benefits of this strategy.

Data Sources:

• AAM Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered as financial advice. Past performance is not indicative of future results. Market share data may vary based on reporting agencies and calculation methodologies.