This is an actively managed ETF that uses fundamental analysis to select high-quality US small- and mid-cap companies with steadily growing revenue and earnings. It builds a relatively concentrated portfolio to gain exposure to small- and mid-cap growth stocks.

Rather than simply tracking an index, it invests in US small- and mid-cap growth stocks through active selection, which suits growth-oriented investors willing to tolerate volatility.

It is an ETF managed by Congress using an active management approach.

Based on fundamental analysis, the fund selects high-quality US small- and mid-cap companies with steadily growing revenue and earnings and builds a relatively concentrated portfolio. The management team evaluates growth sustainability and financial soundness when choosing stocks, and instead of passively tracking an index, it pursues excess returns from small- and mid-cap growth stocks through active selection.

• Fundamentals-based selection of small- and mid-cap growth stocks
• Concentrated structure with a small number of selected stocks

Assets under management (AUM) stand at $493.3M, and the expense ratio is 0.68% per year.

Compared with simple index-based small- and mid-cap ETFs or growth ETFs, the main points of comparison are its active selection approach and the concentration of its holdings.

US small- and mid-cap growth stocks react sensitively to the economic cycle, interest rates and market risk appetite, and a concentrated active strategy can diverge widely from the market average depending on how the selected stocks perform. Because the focus is on growth, volatility can be high when interest rates are rising.

Fund flows into small- and mid-cap growth stocks vary widely with risk appetite and the economic outlook, and money sometimes moves into related products when an economic recovery or growth expectations strengthen. Given the nature of active strategies, it is also worth noting that fund flows can depend on the manager's performance.

Its strength is fundamentals-based active selection, while concentration, small- and mid-cap volatility and interest rate sensitivity are the main considerations.

For simpler small- and mid-cap exposure, direct substitutes include IJH and MDY, and for a focus on mid-cap growth, products such as IWP are also worth comparing. Products like VOT, which holds the same mid-cap growth segment in a different way, can also be considered. The three products shown in the table, NUGO, COWG and SMIG, differ in investment focus, covering growth opportunities, cash flow growth and small- and mid-cap income growth strategies respectively, so they serve mainly as reference points. What sets this ETF apart is that it actively selects small- and mid-cap growth stocks on a fundamentals basis.

Here are the points to review before investing in CSMD. Active selection is appealing, but concentration risk, small- and mid-cap volatility and interest rate sensitivity should be checked in advance. It is also a good idea to compare it with simple index-based small- and mid-cap products.

Weakness in the few selected stocks, small- and mid-cap volatility and rising interest rates are the main short-term variables, and because of the concentrated structure, performance can diverge widely from the market average. With its growth focus, drawdowns can be large during market crashes.

It is a suitable candidate for growth-oriented investors who want to invest in US small- and mid-cap growth stocks through active selection. If cost and simple index tracking are the priority, consider products like IJH and MDY, and if you trust fundamentals-based selection, it is advisable to compare this fund alongside them before choosing.