Expanding its ETF suite to 14 since its 2022 debut, the new offerings can serve as core building blocks for investment portfolios
LOS ANGELES, Sept. 28, 2023 /PRNewswire/ -- Capital Group launched five active exchange-traded funds (ETFs) today on the New York Stock Exchange. This compelling lineup includes its first-ever multi-asset ETF, along with two fixed income and two equity ETFs, significantly augmenting Capital Group's existing selection of active ETFs to a total of 14.
Scott Davis, head of ETFs for Capital Group, remarked, "With a robust roster of over 10,000 financial professionals using Capital Group's active ETFs, we've seen success by bringing to market ETFs that are deliberately built to solve a proven client need. We're also bringing our long-standing experience in asset allocation, helping financial professionals craft durable portfolios for their clients. Our new multi-asset ETF, Capital Group Core Balanced ETF, is a good example of both these factors."
Davis continues, "Looking ahead, we see increasing demand for fixed income ETFs in particular, as the Federal Reserve appears to be nearing the conclusion of its interest rate cycle, and we anticipate an influx of historic cash flows into active fixed income services. As a firm, I believe Capital Group is well-positioned, as financial professionals increasingly recognize the value of transparent, active fixed income ETFs in fortifying their clients' core portfolios."
Capital Group has led in year-to-date flows, amassing $12.4B†, which includes an array of vehicles such as mutual funds, ETFs, and actively managed portfolios.
The five new strategies and objectives include:
Capital Group Core Balanced ETF (CGBL): Provide a balanced approach to total return (including income and capital gains) that is consistent with preservation of capital over the long term
Capital Group Core Bond ETF (CGCB): Provide as high a level of current income as is consistent with the preservation of capital
Capital Group Short Duration Municipal Income ETF (CGSM): Provide current income exempt from regular federal income tax, consistent with a short duration profile as described in the prospectus and with the preservation of capital
Capital Group Dividend Growers ETF (CGDG): Provide long-term total returns
Capital Group International Equity ETF (CGIE): Provide prudent growth of capital and conservation of principal
Added Davis, "We're leveraging our existing ETF and investment infrastructure and building on the momentum with these five new ETFs that will bring Capital Group's existing investment capabilities to new audiences by delivering them in the ETF vehicle, providing a broader range of investment objectives and asset allocation exposures."
Capital Group's existing collection of nine ETFs, launched in late February and October of the previous year, has surpassed $12 billion* in assets under management.
To learn more about Capital Group's suite of active ETFs, visit capitalgroup.com/etfs.
*As of August 31, 2023
†According to Morningstar as of August 31, 2023
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research, and individual accountability since 1931.
As of June 30, 2023, Capital Group manages more than $2.3 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.
Theresa Donis (North America)
Christine Woods (Europe)
+44 (20) 78645078
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Capital Group exchange-traded funds (ETFs) are actively managed and do not seek to replicate a specific index. ETFs 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.
As nondiversified funds, Capital Group ETFs have the ability to invest a larger percentage of assets in securities of individual issuers than a diversified fund. As a result, a single issuer could adversely affect a fund's results more than if the fund invested a smaller percentage of assets in securities of that issuer. See the applicable prospectus for details.
For CGIE, CGDG, CGCB and CGBL, investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
For CGCB, CGSM and CGBL, the return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
For CGCB and CGBL, the use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds.
For CGSM and CGBL, lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.
For CGSM, income from municipal bonds may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable.
For CGCB, CGBL and CGMS, investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement, or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company, or fund. All other company and product names mentioned are the property of their respective companies.
American Funds Distributors, Inc.
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