ETF Research Center

The Legg Mason Small-Cap Quality Value ETF tracks an index of multi-factor selected, fundamentally weighted US small-cap stocks.

FUND BASICS
Category	US Equities
Fund Sponsor	Legg Mason
Website	www.leggmason.com
Inception date	Jul 12, 2017
Assets (mns)	$12
Currency	USD
Expense ratio	62 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Fundamental
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	225
Wgt avg mkt cap (mns)	$1,281
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	22.4%
Small cap (<$2bn)	77.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	7.7 %
MOELIS & CO - CLASS A	0.9 %
HC2 HOLDINGS, INC.	0.9 %
WARRIOR MET COAL, INC.	0.8 %
ARTISAN PARTNERS ASSET MA -A	0.8 %
VECTOR GROUP LTD	0.7 %
EVERCORE PARTNERS INC-CL A	0.7 %
HOULIHAN LOKEY, INC. CLASS A	0.7 %
SYNAPTICS INC	0.7 %
BUILDERS FIRSTSOURCE INC	0.7 %
HOME BANCSHARES INC	0.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-5.7%	-0.4%	--	--	3.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.19	72%
MSCI EAFE	1.21	58%
MSCI Emg. Mkts.	0.75	39%

Technical Indicators
Recent close	$27.22
30d moving avg.	$27.36
Annualized volatility	18.5%
Short interest (ETF)	0.9%
Relative strength (RSI)	44

Liquidity measures
Avg. volume (thou.)	3
Turnover	0.7%
Bid/Ask (% of price)	0.12%
ADV underlying (mns)	$1,943

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Legg Mason Small-Cap Quality Value ETF based on the alternatives' overlap in portfolio holdings with SQLV. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

SQLV

Expense:

62 bp

ALTAR Score™:

4.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SQLV
Ticker	Fund Name	Overlap¹ vs SQLV (%)	Expense ratio (bp)	Savings vs SQLV (bp)	ALTAR Score™ (%)	ALTAR vs SQLV (%)
CALF	Pacer US Small Cap Cash Cows 100	28.1	59	3	10.3	+6.0
BUY	USCF SummerHaven SHPEI Index	24.8	80	-18	11.0	+6.8
AFSM	First Trust Active Factor Small Cap	24.7	75	-13	6.8	+2.5
EES	WisdomTree SmallCap Earnings	22.4	38	24	8.9	+4.6
CSF	Compass EMP US Discovery 500 Enhanced Vol.	22.4	35	27	7.3	+3.1
CSA	Victory CEMP US Small Cap Volatility Wtd	22.3	35	27	7.3	+3.1
TPSC	Timothy Plan US Small Cap Core	21.9	52	10	6.9	+2.7
AVUV	Avantis U.S. Small Cap Value	20.4	25	37	7.8	+3.6
FYT	First Trust Small Cap Value AlphaDEX	20.4	72	-10	7.3	+3.1
ROGS	Lattice Global Small Cap Strategy	19.3	34	28	7.5	+3.2
CSML	IQ Chaikin U.S. Small Cap	18.2	35	27	8.1	+3.8
PQSG	PGIM QMA Strategic Alpha Small-Cap Growth	18.2	29	33	0.0	-4.2
PSC	Principal U.S. Small Cap Index	17.0	38	24	6.6	+2.3
DGRS	WisdomTree US Small Cap Dividend Growth	16.9	38	24	8.7	+4.4
EWSC	Invesco S&P Small Cap 600 Equal Weight	16.7	40	22	5.4	+1.1
CSB	Victory CEMP US Small Cap High Div Volatility Wtd	16.5	35	27	7.8	+3.6
FYX	First Trust Small Cap Core Alphadex	16.1	63	-1	5.1	+0.9
SMLF	iShares FactorSelect MSCI USA Small-Cap	15.7	30	32	7.0	+2.7
DES	WisdomTree Smallcap Dividend	15.5	38	24	7.3	+3.0
FLQS	Franklin LibertyQ U.S. Small Cap Equity	15.4	35	27	6.1	+1.8

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2015	2016	2017	2018	2019	2020E	2021E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Legg Mason Small-Cap Quality Value
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	7.7	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	62	bp
Equals: ALTAR Score	4.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.56

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.