Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the American Customer Satisfaction Core Alpha ETF (ACSI), a passively managed exchange traded fund launched on 11/01/2016.
The fund is sponsored by Acsi Funds. It has amassed assets over $2.22 B, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.66%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Consumer Discretionary sector--about 30.20% of the portfolio. Financials and Utilities round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 5.58% of total assets, followed by Apple Inc (AAPL) and United Parcel Service Inc (UPS).
The top 10 holdings account for about 32.31% of total assets under management.
Performance and Risk
ACSI seeks to match the performance of the American Customer Satisfaction Investable Index before fees and expenses. The American Customer Satisfaction Investable Index utilizes proprietary customer satisfaction scores to weight stocks within each sector by their relative customer satisfaction scores. The index utilizes customer satisfaction metrics for over 350 brands, representing over 150 large capitalization securities for inclusion in the index.
The ETF has added about 4.73% so far this year and was up about 13.99% in the last one year (as of 06/26/2018). In the past 52-week period, it has traded between $28.44 and $32.57.
With about 93 holdings, it effectively diversifies company-specific risk.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center .
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AM-CUST SAT CA (ACSI): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
