Macquarie Unveils Large-Cap Growth ETF | ETF Trends

On Wednesday, Macquarie Asset Management expanded its ETF library with the launch of the Macquarie Focused Large Growth ETF (LRGG).

LRGG has a net expense ratio of 0.44%. The actively managed fund primarily aims to provide investors with capital growth.

The wide majority of fund assets will be allocated to large-cap companies. Delaware Management Company, the fund’s subadvisor, selects growth-oriented securities that and have a competitive business model.

Along with growth evaluation, the fund managers scrutinize securities for a number of alternate quality factors. This includes capital returns, asset efficiency, cash flow, and stability.

“Our philosophy and investment approach are rooted in the belief that quality-first investing, through a focused portfolio, is the best path to durable compounding results,” added Macquarie Asset Management Senior Portfolio Manager Bradley Klapmeyer. “Our internal team of subject matter experts conduct rigorous fundamental research to identify companies we believe possess sustainable competitive advantages. [Those are] the essential characteristic that enables persistent and superior levels of long-term profitability and growth.”

Long-Term Value

Ideally, assets within the fund will be held for the long-term, providing capital growth over multiyear periods. LRGG seeks to invest in durable securities that have the flexibility and competitive advantage to endure periods of market downturn and capitalize on rising markets. As such, the fund’s portfolio will generally house between 15-25 stocks.

“Active strategies have stormed the scene over the past year and interest has only continued to ramp up in 2024. As we continue to see more mutual fund-to-ETF conversions, many investors are apt to rely on active stock selection nestled within the convenience and lower costs of an ETF wrapper,” VettaFi Senior Industry Analyst Kirsten Chang noted.

LRGG is the fourth ETF to launch within the Macquarie library. The largest fund within the firm is the Macquarie Energy Transition ETF (PWER), which holds roughly $6 million in assets under management.

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