The Macquarie Focused Large Growth ETF (LRGG) seeks to provide capital appreciation by investing in large-cap U.S. companies exhibiting strong growth characteristics. This focused growth strategy targets companies with accelerating earnings, revenue growth, and expanding profit margins within the large-capitalization segment of the equity market.
How It Works
LRGG employs an actively managed approach using Macquarie's proprietary growth screening methodology to identify companies with superior earnings momentum, revenue acceleration, and margin expansion potential. The fund maintains a concentrated portfolio of typically 30-50 large-cap holdings, allowing for meaningful position sizes in the highest-conviction growth opportunities. Portfolio managers conduct fundamental analysis and rebalance based on changing growth dynamics rather than fixed schedules, with positions weighted by conviction level rather than market capitalization.
Key Features
- Concentrated approach with 30-50 holdings enables meaningful exposure to highest-conviction large-cap growth opportunities versus diversified alternatives
- Active management by Macquarie's growth specialists allows dynamic positioning based on changing earnings momentum and growth trajectories
- Recently launched in May 2024, offering investors access to institutional-quality growth research in ETF format with daily liquidity
Risks
- This ETF can lose value significantly during growth stock selloffs, potentially declining 40-50% when investors rotate from growth to value stocks
- Concentrated portfolio of 30-50 holdings creates single-stock risk where poor performance by top positions can materially impact overall returns
- Growth stocks typically underperform during rising interest rate environments as higher rates reduce present value of future earnings growth
Who Should Own This
Best suited as a satellite holding (10-25% of equity allocation) for aggressive growth investors with 3+ year time horizons and high risk tolerance. Appropriate for investors seeking active management and concentrated exposure to large-cap growth opportunities beyond passive index alternatives. Complements core broad-market holdings in growth-oriented portfolios.