CGDV: Activity Picking Up For This Top-Performing Large-Cap ETF (Rating Downgrade)

The Sunday Investor7.31K FollowersFollow5ShareSavePlay(16min)Comments(4)SummaryCGDV is a top-performing and actively-managed large-cap ETF with $31 billion in assets under management and a 0.33% expense ratio.Historical annual portfolio turnover rates for CGDV have been in the 25-30% range, but activity has picked up this year, and turnover is already at about 26% YTD.This article highlights the top overweighted and underweighted positions compared to the start of the year, and presents a comprehensive set of fundamentals alongside other ETFs like SPY and SCHD.This article also discusses how short-term performance results can be chaotic, so I caution not to draw conclusions based on CGDV's mediocre YTD returns.Still, decelerating earnings surprises might impact CGDV more than others, based on its elevated 24.78x trailing P/E. Therefore, it's a "hold" today, but it's also an ETF I feel comfortable holding over the long run. Dadan/iStock via Getty Images Investment Thesis The portfolio managers behind the Capital Group Dividend Value ETF (CGDV) typically take a high-conviction, long-term approach to stock selection. Per its annual financial statements, CGDV's turnover rates were only 25-30% for the last three years, and basedThis article was written byThe Sunday Investor7.31K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.

The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!Analyst’s Disclosure: I/we have a beneficial long position in the shares of CGDV, SPY, SCHD, VIG, FDVV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.