5 things to know about Capital Group New Geography Equity ETF

CGNG

June 23, 2026

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1

A global approach to developing markets
 

  • CGNG invests globally, evaluating companies not only by domicile but also by where they generate a significant portion of their revenue.
  • This approach aims to provide more consistent emerging markets (EM) exposure through a combination of active security selection and thoughtful allocation.
  • Within this global mandate, the strategy is required to invest at least 30% of assets in securities of issuers based in qualified emerging markets.

Share of equity investments (%)

Two donut charts compare regional exposure by domicile and by revenue for Capital Group New Geography Equity ETF. The left chart shows the ETF’s investments by company domicile with the largest allocation of 48.1% to emerging markets ex China, followed by the U.S. at 17.2%, China at 13.6% and the eurozone at 7.5%. Smaller exposures include the U.K. at 4%, Japan at 3.2%, other Europe at 2.3%, Canada at 2.1% and Pacific ex-Japan at 2%. The right chart illustrates where companies generate the majority of their revenue. Emerging markets ex China again account for the largest share at 37.6%, followed by the U.S. at 22.8% and China at 20%. Smaller allocations include the eurozone at 6%, Japan at 3%, Pacific ex-Japan at 2.9%, the U.K. at 2%, other Europe at 1.3% and Canada at 0.8%. The category of Other, which consists of holdings that are not common stock, is at 3.5%.

Source: Capital Group. As of 3/31/26. Other represents holdings that are not common stock.

2

Dynamic positioning
 

  • CGNG’s sector positioning reflects bottom‑up security selection rather than top‑down sector views or benchmark-driven weights.
  • As conviction in individual holdings changes, sector exposures naturally expand or contract based on where research identifies growth opportunities.
  • The result is dynamic sector positioning over time, rather than static alignment with index sector weights.

Sector exposures (%)

Bar chart for Capital Group New Geography Equity ETF shows the sector exposures as percentage ranges across all sectors, including information technology, financials, consumer discretionary, healthcare, industrials, communication services, consumer staples, materials, energy, real estate and utilities. The vertical axis ranges from roughly 0 to 30%. For each sector, a shaded vertical bar indicates the highest and lowest values, a dashed line marks the average, and a dot shows the current value. Information technology shows the highest overall range and current value, followed by financials. Industrials, communication services and consumer discretionary cluster in the mid-range, while healthcare shows a wider spread with a lower current value. Consumer staples and materials have lower ranges and current values. Energy, real estate and utilities display the smallest ranges and lowest overall values.

Sources: Capital Group based on data from FactSet. Data from fund inception date of 6/25/24 to 3/31/26.

3

EM exposure with lower volatility
 

  • The fund seeks to capture EM growth by investing in companies based in developing countries and multinationals with significant exposure to those markets.
  • While investing in emerging markets, CGNG aims to moderate the volatility that is often associated with these less-developed economies.
  • This approach has contributed to a favorable upside and downside capture profile and markedly lower standard deviation than the index.

CGNG volatility metrics since inception

Table compares the risk metrics for CGNG – Capital Group New Geography Equity ETF versus the MSCI Emerging Markets Index. CGNG shows an upside capture ratio of 75.6, a downside capture ratio of 69.0, and a standard deviation of 12.7. The MSCI Emerging Markets Index shows an upside capture ratio of 100, a downside capture ratio of 100, and a standard deviation of 16.6.

Source: Morningstar. Data from fund inception date of 6/25/24 to 3/31/26. Standard deviation is based on monthly returns.

4

Thoughtful EM exposure
 

  • The fund’s EM exposure is flexible and dynamic, with its share of total holdings shifting based on managers’ discretion and interest in equities across different domiciles.
  • By taking an active approach to EM investing, CGNG investors gain a more deliberate allocation rather than passive index exposure.
  • CGNG has struck a balance between the maximum EM exposure of the MSCI Emerging Markets Index and the lower exposure of the MSCI All Country World (ACWI) Index.

Emerging markets exposure (%)

Line chart demonstrates CGNG – Capital Group New Geography Equity ETF’s emerging markets exposure trending upward from 2024 through 2026, compared with two indexes. CGNG’s exposure starts at approximately 45% in early 2024 and gradually rises to roughly 60% by 2026. An annotation highlights this upward trend as a “dynamic increase in CGNG’s emerging markets exposure.” For comparison, the MSCI Emerging Markets Index remains at a 100 percent emerging markets exposure, while the MSCI All Country World Index excluding USA fluctuates modestly around 30%.

Source: Capital Group. Data from fund inception date of 6/25/24 to 3/31/26.

5

A differentiated approach
 

  • Using a bottom‑up approach, CGNG’s sector exposures differ from the benchmark MSCI EM Index.
  • The fund is overweight industrials, communication services and materials, while underweight information technology, financials and consumer discretionary.
  • This approach is designed to provide diversification away from extreme market concentration while maintaining global exposure.
Table shows sector allocation comparisons for CGNG – Capital Group New Geography Equity ETF versus the MSCI Emerging Markets Index, along with representative top CGNG holdings by sector. Information technology represents 32.1 percent of the MSCI Emerging Markets Index and 25.5 percent of CGNG, with Taiwan Semiconductor Manufacturing Company (semiconductors) listed as a top holding. Financials account for 21.5 percent in the index and 17.5 percent in CGNG, with Banco Bilbao Vizcaya Argentaria (banks) as a top holding. Industrials is 7.0 percent in the index and 12.5 percent in CGNG, with Airbus (aerospace and defense) listed as a top holding. Consumer discretionary represents 10.2 percent in the index and 9.8 percent in CGNG, with MercadoLibre (e-commerce) noted as a top holding. Communication services is 7.6 percent in the index and 9.4 percent in CGNG, with Tencent (digital entertainment) listed as a top holding. Materials accounts for 7.1 percent in the index and 8.3 percent in CGNG, with Grupo México (copper mining) as a top holding. Consumer staples represents 3.5 percent in the index and 4.4 percent in CGNG, with Nestlé (packaged food) listed as a top holding. Health care is 3.0 percent in the index and 4.1 percent in CGNG, with Max Healthcare Institute (hospitals) included as a top holding. Energy represents 4.3 percent in the index and 3.1 percent in CGNG, with Petrobras (oil) listed as a top holding. Utilities is 2.4 percent in the index and 1.6 percent in CGNG, with SABESP (sanitation) noted as a top holding. Real estate accounts for 1.2 percent in the index and 1.3 percent in CGNG, with Lodha Developers (real estate development) listed as a top holding.

Source: Capital Group. As of 3/31/26. Numbers are rounded.

CGNG fund details

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Capture ratio: Up (down) capture ratio is the ratio of a portfolio's return during periods when the index was up (down), divided by the return of the index during those periods. For example, an up-capture ratio greater than 100 indicates the portfolio produced a higher return than the index during periods when the index was up. Conversely, during periods when the index was down, a down-capture ratio greater than 100 indicates the portfolio produced a lower return than the index.

 

Standard deviation measures how much an investment's returns fluctuate from its average, serving as the a benchmark for historical volatility and total risk.

 

MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results in the global emerging markets, consisting of more than 20 emerging market country indexes.

 

MSCI All Country World Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed- and emerging-market country indexes.

 

New Geography/New World Historical Benchmarks Index returns reflect the results of the MSCI All Country World Index (ACWI) through December 31, 2025, and the MSCI Emerging Markets Index, the primary benchmark, thereafter.

 

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