Podcast: Being intentional in equity markets

Podcast published on January 8, 2025

The lack of breadth in large-cap equity markets should concern investors. Brad Klapmeyer, Senior Portfolio Manager, explains why a quality-first investment philosophy seeking intentional concentration can help investors manage market risks, especially in times of volatility.

Turning insights into action

Learn more about how Brad and our US Large Cap Growth Equity Team put their views into practice in Macquarie Focused Large Growth ETF (LRGG). This ETF is a quality-first, high-conviction strategy seeking to invest in 15-25 durable, competitively advantaged companies.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

The views expressed in this podcast represent those of the speaker and are subject to change. Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy, and does not constitute advice, an advertisement, an invitation, a confirmation, an offer or a solicitation to engage in any investment activity, or an offer of any banking or financial service.

All examples herein are for illustrative purposes only and there can be no assurance that any particular investment objective will be realized or any investment strategy seeking to achieve such objective will be successful.

Before acting on any information, you should consider the appropriateness of it having regard to your particular objectives, financial situation and needs and seek advice.

No representation or warranty, express or implied, is made as to the accuracy or completeness of the information, opinions and conclusions presented. In preparing these recordings, reliance has been placed, without independent verification, on the accuracy and completeness of all information available from external sources.

Carefully consider the Fund's investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund's prospectus or the summary prospectus, which may be obtained by visiting macquarie.com/mam/etf-literature or calling 844 469-9911. Read the prospectus carefully before investing.

The Macquarie ETF Trust Funds are distributed by Foreside Financial Services, LLC. Foreside Financial Services, LLC is not affiliated with any Macquarie entity, including Macquarie Asset Management and Delaware Distributors, L.P.

Macquarie ETF Trust exchange-traded funds (ETFs) are actively managed and do not seek to replicate a specific index. ETF shares are bought and sold through an exchange at the then current market price, not net asset value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV when traded on an exchange. Brokerage commissions will reduce returns. There can be no guarantee that an active market for ETFs will develop or be maintained, or that the ETF's listing will continue or remain unchanged.

Diversification may not protect against market risk and cannot assure a profit.

The Fund’s principal risks include but are not limited to the following:

Market risk is the risk that all or a majority of the securities in a certain market — like the stock market or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.

Growth stocks reflect projections of future earnings and revenue. These prices may rise or fall dramatically depending on whether those projections are met. These companies’ stock prices may be more volatile, particularly over the short term.

Governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance.

Large-capitalization companies tend to be less volatile than companies with smaller market capitalizations. This potentially lower risk means that the Fund's share price may not rise as much as the share prices of funds that focus on smaller capitalization companies.

The Fund is a newly organized, management investment company with no operating history. In addition, there can be no assurance that the Fund will grow to, or maintain, an economically viable size, in which case the Board of Trustees of the Trust (the “Board") may determine to liquidate the Fund.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Any applicable brokerage commissions will reduce returns.

Alpha is a measure of risk-adjusted performance.

Beta measures the security’s volatility in relation to its benchmark index.

Blind concentration refers to the idea that investors believe that passively investing in an index will provide broad diversification, but they may be unaware of the underlying concentration in that passive index.

Extrapolation hypothesis is a concept in behavioral finance that suggests investors tend to expect recent performance trends to continue, which may cause overreactions to recent news and events.

FOMO refers to the fear of missing out.

Magnificent Seven stocks include Apple Inc., Microsoft Corp., NVIDIA Corp., Alphabet, Amazon.com Inc., Meta Platforms Inc., and Tesla Inc.

Passive index exposure refers to an investment strategy where an investor seeks to replicate the performance of a specific market index, such as the Russell 1000 Growth Index, by holding a portfolio of assets that mirror the index's composition.

Prospect theory is a fundamental concept in behavioral finance that challenges the traditional economic assumption that individuals are always rational actors who maximize utility.

Quantitative easing (QE) is a government monetary policy used to increase the money supply by buying government securities or other securities from the market. QE increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.

The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The S&P 500 Index measures the performance of 500 mostly large-cap stocks weighted by market value and is often used to represent performance of the US stock market.

Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company.

All third-party marks cited are the property of their respective owners.

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