/wf_etf-models_hero_242667781_1440x480.png)
Equity Fixed income
More ways to pursue your clients' goals
Active ETF Models
Combining the tax advantages of the ETF vehicle with tax-aware investing that modern investors expect. Capital Group ETFs also bring relatively low costs¹ and added transparency through daily holdings disclosure.
Questions from the field
Check out these frequently asked questions from financial advisors about ETF models.
Eight in ten advisors² report that using models has enhanced portfolio management efficiency. On average, those who outsourced 50% of their book saved nine hours per week³ — time they can reinvest in high-value activities such as better serving high-net-worth clients, prospecting and succession planning.
Capital Group’s active ETFs are powered by over 90 years of investment experience and proprietary research. Guided by The Capital System™, each portfolio is managed by a team of managers who contribute their highest conviction ideas — bringing a diversity of perspectives to every portfolio. Our team handles the day-to-day oversight, so you can focus on serving clients and growing your practice.
Your firm handles rebalancing directly, reviewing cash and investment allocations daily. Rebalancing typically occurs when client deposits push cash above 0.50% of the model target or when investment allocations drift more than 25% from their targets.
Capital Group monitors broader strategic asset allocation ranges and may recommend fund changes if a portfolio remains outside those ranges for an extended period. Each year, the Capital Solutions Group and Portfolio Solutions Committee also review allocations to ensure alignment with long-term objectives, which may result in the reconfirmation of existing target underlying fund allocations or enhancements to the portfolios.
Capital Group's ETF education center
Access additional resources for navigating the crowded, ever-evolving ETF market
Explore model resources
Capital Group active ETF models lineup brochure
How to select a portfolio strategist
For registered investment advisory use only. Not for use with the public.
Advisory services offered through Capital Research and Management Company (CRMC) and its RIA affiliates.
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, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. A nondiversified fund has the ability to invest a larger percentage of assets in the securities of a smaller number of issuers than a diversified fund. As a result, poor results by a single issuer could adversely affect fund results more than if the fund were invested in a larger number of issuers. See the applicable prospectus for details.
Model portfolios are provided to financial intermediaries who may or may not recommend them to clients. These portfolios consist of an allocation of funds for investors to consider and are not intended to be investment recommendations. The portfolios are asset allocations designed for individuals with different time horizons investment objectives and risk profiles. Allocations may change and may not achieve investment objectives. If a cash allocation is not reflected in a model, the intermediary may choose to add one. 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. In making investment decisions, investors should consider their other assets, income, and investments. Visit capitalgroup.com for current allocations.
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.
All Capital Group trademarks are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.
Use of this website is intended for U.S. residents only.
¹ CGBL, CGCP, CGCV, CGDG, CGDV, CGGE, CGGG, CGGO, CGGR, CGHM, CGHY, CGIE, CGMS, CGSD, CGUI, CGUS, CGVV, CGXU were all in the lowest quartile of active ETF gross expense ratios in their respective Morningstar categories. CGCB, CGIC, CGMU, CGNG, CGSM, CGMM were in the second quartile. CGIB was in the fourth quartile of active ETF gross expense ratios. Expense ratios are as of the fund’s prospectus available at the time of publication. Expense ratios are estimated for CGCV, CGGE, CGGG, CGHY, CGIB, CGIC, CGMM, CGNG, CGHM, CGUI and CGVV.
² Source: Cogent Syndicate | Advisor Use of Model Portfolios and SMA™, December 2024, p. 28. Web survey conducted from September 24 to October 7, 2024, among 396 registered f inancial advisors who have an active book of business of at least $5M in in assets under management (AUM) across five channels, with an average AUM of $289M and median AUM of $99M. Survey question: Earlier, you indicated using model portfolios provided by asset managers or other third-party providers. As a result of working with these external providers, how much do you agree or disagree with the following statements? Third-party model portfolios help me improve portfolio management efficiency.
³ Source: AssetMark | The Impact of Outsourcing, July 2024. On average, advisors who outsource from 50% to 69% of their assets save more than nine hours per week, p.3. Client relationship benefits table, p.8. Tangible business improvements, p. 10. For the AssetMark survey, 697 financial advisors completed an online survey between January and March 2024. Participants included 547 advisors who outsource investment management and 150 who do not. All participating advisors are owners/principals/partners at firms in the independent broker-dealer, insurance, and independent RIA channels. All participants have seven-plus years tenure as a financial advisor, up to $500 million in total AUM, at least 30% of total AUM is fee-based, and at least 50% of total AUM is from individual retail investors.