Newsroom Capital Group Launches Three Active, Fixed Income ETFs

ETF suite now includes four fixed income and five equity active, transparent ETFs designed to sit at the core of investment portfolios

 

LOS ANGELES, October 27, 2022 – Capital Group launched three active, fixed income exchange traded funds (ETFs) on the New York Stock Exchange today. Following the February launch of five equity ETFs and one fixed income ETF, this brings Capital Group’s available suite of ETFs to nine.
 

“Now is a good time for financial professionals and investors alike to consider active fixed income ETFs,” said Mike Gitlin, head of fixed income for Capital Group. “We’ve deliberately built our three new active ETFs in categories that have historically been underserved by active ETF managers including multisector bond, municipal national intermediate bond and short-term bond. We believe these will help investors manage short-term cash needs, generate tax-exempt income, and benefit from some of the best starting yields we’ve seen in credit in years.”
 

Capital Group’s full suite of active, transparent ETF strategies benefits from the firm’s history of low fees, fundamental research process, long-term investment approach, and multimanager investment system. The three new strategies include:
 

  • Capital Group Short Duration Income ETF (CGSD): Short duration income fund that pursues high-quality income with low interest rate sensitivity,
  • Capital Group Municipal Income ETF (CGMU): Core municipal fund that pursues tax-exempt income consistent with capital preservation while seeking total return,
  • Capital Group U.S. Multi-Sector Income ETF (CGMS): Diversified U.S. multi-sector income fund that pursues a high level of current income and the opportunity for capital appreciation.
     

Fixed income continues to be a strong growth area for Capital Group, with assets under management (AUM) more than doubling in the last five years to approximately $450 billion as of September 30, 2022.

 

“Our low-cost, actively-managed, ETFs are designed to sit at the core of an investor’s portfolio,” shared Holly Framsted, director of ETFs for Capital Group. “Since our launch last February, we’ve been among the fastest growing suite of active ETFs in the market, validating both our approach, informed by listening to the financial professionals and investors we serve, and timing.”

 

“It’s more vital than ever that investors have access to high-quality, low-cost, actively-managed fixed income ETFs,” adds Gitlin. “As inflation continues to persist and we enter bear market territory, having a strong allocation to bonds in a tax-efficient vehicle like our new fixed income ETF strategies can help investors with a smoother ride. Our long-standing experience and track record of long-term results will help us focus on delivering income and inflation protection to investors looking to protect and grow their investments.”
 

Capital Group’s first suite of six ETFs, launched in late February, has surpassed $3 billion in AUM as of September 30, 2022.
 

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 focuses 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.
 

To learn more about Capital Group’s suite of active ETFs, visit capitalgroup.com/etfs.
 

About Capital Group
 

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 June 30, 2022, Capital Group manages approximately $2.2 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.
 

For more information, visit capitalgroup.com

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.
 

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.
 

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.
 

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.  (Applicable to: CGMU, CGSD, CGMS)
 

Higher yielding, higher risk bonds can fluctuate in price more than investment-grade bonds, so investors should maintain a long-term perspective. (Applicable to: CGMU, CGMS)
 

Income from municipal bonds may be subject to state or local income taxes. Certain other income, as well as capital gain distributions, may be taxable. (Applicable to: CGMU)
 

The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds. (Applicable to: CGMS, CGSD)
 

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. (Applicable to: CGSD, CGMS)
 

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.
 

Use of this website is intended for U.S. residents only.
 

Capital Client Group, Inc.
 

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
 

Your privacy and security are important to us. See our privacy policy (Canada | Europe & Asia | United States).
 

© 2022 Capital Group. All rights reserved.
 

333 S. Hope Street, Los Angeles, CA 90071 USA