AFSC - abrdn Focused U.S. Small Cap Active ETF Q4 2024 Commentary

2025-03-28 12:00:00 ET

Summary

• The abrdn Focused U.S. Small Cap Active ETF  outperformed the Russell 2000 Index, driven by strong performance in consumer discretionary, information technology, and healthcare sectors, despite underperformance in industrials and communication services.
• Notable stock performers included Brinker International, Q2 Holdings, and Workiva, while Live Oak Bancshares, Amicus Therapeutics, and Materion lagged.
• The US Federal Reserve cut rates by 25 bps twice, but future cuts are expected to slow due to economic resilience and potential inflationary pressures.
• Small-cap stocks are poised for growth due to significant discounts, strong corporate balance sheets, and structural advantages in a high-interest-rate environment.

Fund performance

The Fund gained (gross of fees) and outperformed the Russell 2000 Index. Sector wise, consumer discretionary, information technology and healthcare were the largest outperforming sectors for the Fund. Conversely, industrials and communication services were the main underperforming sectors....

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