A New Active Alternative For Equity Exposure


Legg Mason Inc (NYSE:LM) added to its stable of exchange-traded funds earlier this week with the debut of the ClearBridge All Cap Growth ETF (NASDAQ:CACG).

Maryland-based Legg Mason partnered with New York-based ClearBridge Investments on the new actively managed ETF. CACG holds large-, mid- and small-cap stocks.

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The ClearBridge team will utilize a bottom-up investment process to find inefficiently priced companies with strong fundamentals, incentive-driven management teams, dominant positions in niche markets and goods and services that are in high customer demand. The management team will also scrutinize companies with a range of growth opportunities while evaluating the companys business model, financial structure and management acumen, according to ETF Trends.

CACG's Holdings And Allocations

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CACG's holdings must have a minimum market value of $300 million.

A core group of large cap growth companies is then complemented by prevailing tactical themes. For small- and medium-sized growth stocks, the team targets rapid earnings growth potential, unrecognized values, industry leadership and significant management ownership stake, according to Legg Mason.

The new ETF's largest holdings include familiar names such as Amazon.com, Inc. (NASDAQ:AMZN), Google parent Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Biogen Inc. (NASDAQ:BIIB) and Microsoft Corporation (NASDAQ:MSFT).

CACG Joins A Pedigree Stable

Other Legg Mason ETFs include the Legg Mason Low Volatility High Dividend ETF (NASDAQ:LVHD).

LVHD is focused on income, risk mitigation and capital appreciation. It's based upon the idea a stock's ability to sustain a strong dividend payout is often associated with lower volatility, making these two characteristics complementary. Using a disciplined, rules-based methodology, the fund will screen for stocks with the potential for sustainable high dividends, while simultaneously screening out historically volatile stocks in the market, according to Legg Mason.

In June 2016, the firm launched the Legg Mason International Low Volatility High Dividend ETF (BATS: LVHI).

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