CGMM: Capital Group's Small/Mid-Cap ETF Delivering Strong Results One Year In

The Sunday Investor7.16K FollowersFollow5ShareSavePlay(10min)CommentsSummaryCapital Group U.S. Small and Mid Cap ETF continues to impress, delivering a 20% return since February 2025, outperforming key peers by 3-7%.CGMM's experienced management team leverages the Capital System, emphasizing diverse viewpoints and long-term, low-turnover investing with a forward outlook.Despite a high 0.51% expense ratio, CGMM's risk-adjusted returns (Sharpe and Sortino) lead its peer group, though the sample period is short. I expect CGMM might lag in bear markets.Still, I maintain my solid "hold" rating on CGMM, noting its reasonable sector diversification, a Consumer Discretionary overweight, and high differential between its components' historical and expected earnings growth rates. kody king/iStock via Getty Images Investment Thesis This article continues my coverage of the Capital Group U.S. Small and Mid Cap ETF (CGMM), which I last reviewed on December 17, 2025. In that article, I described CGMM as an excitingThis article was written byThe Sunday Investor7.16K 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.

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