Q: Hi,
This is a follow up to a question by Danielle, While XGRO sounds like a growth oriented ETF, can you please review it to see if it actually is. By my quick review it holds almost 20% in bonds and treasuries and its actual stock holdings (via ETFs) are run of the mill, not really leaning towards growth. Or am I missing something? Thanks.
This is a follow up to a question by Danielle, While XGRO sounds like a growth oriented ETF, can you please review it to see if it actually is. By my quick review it holds almost 20% in bonds and treasuries and its actual stock holdings (via ETFs) are run of the mill, not really leaning towards growth. Or am I missing something? Thanks.
5i Research Answer:
It is a mult-asset fund, so it does own some bonds. As does VBAL. Its US holdings are the 'total' US market, which includes various market cap companies. Its median market cap is quite low, which implies smaller, faster growing companies. Average P/E is 24X, and it does have some emerging market exposure. We will admit it may not be 'pure' growth, but is more 'growthy' than the comparable ETF in the prior question. But it could do with a name change from 'core growth' certainly.