For Merrill advisors

NOW AVAILABLE AT MERRILL Capital Group ETF Model Portfolios

Crafted with precision, designed for flexibility

BROWSE MODELS (PDF)

ETF models at a glance

How to access Capital Group ETF Model Portfolios at Merrill

1. Click Investment Finder (top left of page)

2. Click Managed Product (middle/top left of page)

3. Search Bar should appear (three ways to search)

4. Type in 28S Code or Model Name or Firm Name (Capital Group)

All the potential advantages of ETFs in a tailored portfolio

Active

Pursue more with a truly active investment

approach that uses proprietary fundamental

research to drive bottom-up stock and bond

selections.

Low cost

A majority of our ETFs are priced within the

lowest quartile of active ETFs.*

Transparent

Get daily info about ETF holdings so you know

exactly what you’re invested.

Tradability

Built in line with the vehicle’s standard structure

to be as tradable as possible and minimize

trading risk.†

Tax efficient

Combining the tax advantages of the ETF

vehicle with tax-aware investing that modern

investors expect.

Key building blocks

Strategies for the core and more — whether

you’re seeking to bolster the core of your

portfolio or are pursuing complementary

strategies to diversify existing allocations.

Frequently asked ETF model questions

Investing in an ETF model can benefit from the potential tax advantages the underlying ETFs may offer:




Externalization: ETFs trade in the secondary market, like a stock, which largely insulates the fund from individual investors’ trading

activity. If an ETF investor sells shares of an ETF, the transaction generally occurs in the secondary market, which does not involve

any interaction with the fund.

 

In-kind redemptions: When selling activity on an exchange does result in a redemption rom the fund, it is usually tax-free to

remaining investors. When possible, ETF investors try to satisfy these redemption requests in the primary market through an in-kind

delivery of securities to an intermediary (rather than cash), which generally do not create taxable events for remaining shareholders.

Capital Group’s active ETF models provide more ways to pursue your clients’ investment goals. Capital Group’s model portfolio differentiation has five pillars:

 

  • Objective-based process

    Individual investment strategies are built to pursue distinct investment objectives aligned to investor goals, in line with guidance from the Chief Investment Office for Merrill.
  • Two layers of active management

    Top-down model oversight by the Capital Solutions Group, with bottom-up, active management of underlying funds, guide by The Capital System™.
  • Flexibility of underlying funds

    Flexibility in both asset class and geography creates an organic, bottom-up and dynamic asset allocation in our models.
  • Recharacterization of equity
    Equity exposures in our models are chosen to address client needs and objectives, not to reflect a broad-based market index.
  • Focused roles of fixed income

    Aligning fixed income funds to important roles in portfolio construction can help clients with pursuing their goals.
Footnotes/Important information:

*As of 12/31/25, 68% of CG ETFs were all in the lowest quartile of active ETF gross expense ratios in their respective Morningstar categories. 28% were in the second quartile. One fund was in the fourth quartile of active ETF gross expense ratios.

†On average, Capital Group ETFs had lower bid-ask spreads ($) than 85% of all U.S.-listed ETFs in 2025.

For institutional investors and registered investment advisors only. Not for use with the public.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Model portfolios are subject to the risks associated with the underlying funds in the model portfolio. Investors should carefully consider investment objectives, risks, fees and expenses of the funds in the model portfolio, which are contained in the fund prospectuses. 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. Smaller company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. 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. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Investments in mortgage-related securities involve additional risks, such as prepayment risk. The use of derivatives involves a variety of risks. A nondiversified fund has the ability to invest a larger percentage of assets in the securities of a smaller number of issuers. See the applicable prospectus for details.
 
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
 
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.

Advisory services offered through Capital Research and Management Company (CRMC) and its RIA affiliates.

Model portfolios are provided to financial intermediaries who may or may not recommend them to clients. The portfolios consist of an allocation of funds for investors to consider and are not intended to be investment recommendations. Allocations may change and may not achieve investment objectives.

Capital Group does not have investment discretion or authority over investment allocations in client accounts. Rebalancing approaches may differ depending on where the account is held.

Investors should talk to their financial professional for information on other investment alternatives that may be available.

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.