Congress Asset Management Company has launched two active equity growth ETFs on the New York Stock Exchange. The ETFs seek long-term capital appreciation by targeting stocks with the potential for above-average long-term earnings and/or cash flow growth.
The Congress SMid Growth ETF (NYSE Arca: CSMD) invests in a diversified portfolio of primarily small- and mid-cap stocks. Meanwhile, the Congress Large Cap Growth ETF (NYSE Arca: CAML) targets large-cap companies.
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The funds invest in companies its managers believe are experiencing or will experience earnings growth. They employ a “bottom-up” approach to research and stock selection. This approach emphasizes a company’s fundamentals and prospects instead of timing significant economic or market cycles.
The ETFs focus on companies with established profitability, a history of earnings growth, and positive free cash flow. They also target companies that are prudent in their use of debt and leverage.
“There is a lot of uncertainty in our current macro environment,” said VettaFi’s associate director of research Roxanna Islam. “CSMD and CAML can help investors target companies with higher growth prospects without attempting to make broad macroeconomic calls.”
CSMD carries an expense ratio of 0.69%. CAML’s expense ratio is 0.66%.
Congress Asset Management is a Boston-based boutique asset manager with $19.2 billion in assets under advisement as of June 30.
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