Capital Group Launches Its First Active ETFs on New York Stock Exchange
Initial suite of six active, transparent ETFs designed as core building blocks in investment portfolios
LOS ANGELES, February 24, 2022 – Capital Group launched its first suite of active, transparent exchange traded funds (ETFs) on the New York Stock Exchange (NYSE) today, including one fixed income core plus income strategy, three equity strategies that invest primarily in the US, and two equity strategies that cover international and global.
“The active ETF market is still in its early days,” said Tim Armour, chairman and CEO of Capital Group. “At Capital, we introduce new offerings when we believe we can help investors achieve superior results over the long-term. I believe active ETFs will be transformative for the industry and that we will be a leader in this market. These six active ETFs will provide another way for investors to access our investment capabilities in the form or vehicle they want – whether that is our mutual funds, SMAs, CITs, or target-date funds – and now, our ETFs.”
Capital Group’s initial suite of ETF strategies will benefit from the firm’s history of low fees, fundamental research process, long-term investment approach, and multimanager investment system. The six new strategies include:
Capital Group Growth ETF (CGGR)
Capital Group Core Equity ETF (CGUS)
Capital Group Dividend Value ETF (CGDV)
Capital Group International Focus Equity ETF (CGXU)
Capital Group Global Growth Equity ETF (CGGO)
Capital Group Core Plus Income ETF (CGCP)
“Our suite of six ETFs represents the hallmark of our investing, including three growth strategies offering varying degrees of domestic and international exposure, a core US equity fund, and a US equity fund that emphasizes income. ” shared Holly Framsted, director of ETFs for Capital Group. “Finally, our fixed income offering is a core plus strategy that pursues income with a level of capital appreciation, leveraging our strong team and capabilities in fixed income.”
Capital Group’s ETFs are designed to meet classic client needs and strengthen the core of an individual’s investing portfolio through active management. The ETF suite will focus on major asset allocation categories used by financial professionals when constructing client portfolios and offer exposure to the firm’s 90-years of investment experience and distinctive investment approach. The strategies are designed to reflect high-conviction, long-term investment horizons that contribute to below-average volatility and consistency for investors.
“When it comes to money, for most people, their main objectives are for financial stability, to support themselves and their family, and to retire with confidence,” stated Framsted. “We built these ETFs with everything Capital Group is known for behind them -- our active management approach, supported by our multi-manager system and deep fundamental research -- to help people reach their long-term investment goals.”
For financial professionals who are helping clients reach their financial goals, Framsted notes, “We knew it was imperative to design our active ETFs to easily fit into the core of client portfolios and reduce complexity.”
Capital Group, home of the 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 December 31, 2021, Capital Group manages more than $2.7 trillion in equity and fixed income assets for millions of individual 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.