Capital group exchange traded funds

EXCHANGE-TRADED FUNDS Find conviction the index can’t

Invested in an S&P 500 ETF? Consider active equity ETFs CGDV and CGGR to ask more of your investments

Go beyond the index

Has your core U.S. equity allocation become more default than deliberate?

Ask yourself whether your S&P 500 ETF is helping you look ahead or holding you back

 

S&P 500 index-tracking ETFs are among the most popular ETFs for U.S. equity exposure. Passively managed funds like these aim to track the risk/reward profile of the S&P 500, but investors may not realize that opting for an index-based ETF often means accepting the rules behind the index.

 

Those rules determine what gets included, how companies are classified and how much weight each stock receives — factors that can lead to unintended overlap, concentration and exposures that may not align with investors’ long-term goals, especially when market-cap weighting increases exposure to stocks that have already risen the most. So ask yourself: Is an index-based approach doing enough to help position you for what’s next?

Read footnotes and important disclosures 

Question the index. Bring conviction to the core.

Index ETFs may help invest in the market’s biggest winners, but they aren’t always tomorrow’s leaders

A 50/50 blend of active equity ETFs CGGR – Capital Group Growth ETF and CGDV – Capital Group Dividend Value ETF balances growth and value through fundamental research and high-conviction investing. The funds aim to invest in a more meaningfully diversified group of stocks relative to the S&P 500 and, as shown in the chart below, the blend has outpaced the S&P 500 over the period shown in the chart. 

 

Want a personalized look at how the blend might help you pursue more in your portfolios? Sign up for an in-depth portfolio analysis with our portfolio construction team.

When investors buy an index-based fund, it may feel like a neutral choice — but it isn’t. Every index is shaped by decisions: what counts as large cap, growth, or value and how each stock is weighted.

 

That can create real portfolio pitfalls. Index providers define the market differently, which can lead to overlap, concentration and exposures that may not align with your goals. And because market-cap-weighted indexes give more weight to stocks that have already risen, clients can end up with more of yesterday’s winners.

 

That’s where active management can make a difference. Instead of buying companies based on how large they’ve already become, active managers can focus on fundamental research to assess business quality, durability and long-term opportunity.

 

A 50/50 allocation to Capital Group’s CGGR and CGDV ETFs can help financial professionals build a more intentional core equity allocation — one that balances growth and value while avoiding the limitations of rigid index construction. We’ve seen this approach help clients pursue better long-term outcomes, including helping them invest in a differentiated group of stocks relative to the S&P 500.

 

So instead of accepting concentration and classification quirks, consider a portfolio built around opportunity, fundamental research and active conviction.

 

For clients focused on long-term investment success, the question isn’t just whether they own the market, but how their portfolios are constructed for the road ahead. 

How a blend of active equity ETFs CGGR and CGDV has outpaced the market

Hypothetical portfolio: 50% CGGR — Capital Group Growth ETF and 50% CGDV — Capital Group Dividend Value ETF vs. S&P 500

Explore the equity ETFs behind the blend

These funds bring conviction the index can't.

CGDV – Capital Group Dividend Value ETF

See how a disciplined framework has helped this untraditional value ETF have a history of more upside with less downside.

Five things to know about CGDV

CGGR – Capital Group Growth ETF

See how a flexible approach to growth and the pursuit of meaningful diversification (not concentration) sets this growth ETF apart.

Five things to know about CGGR

Tough questions deserve better answers

Active equity ETFs CGDV and CGGR have invested in a more meaningfully diversified group of stocks relative to the S&P 500 Index. CGDV’s focus on companies expected to pay steady or rising dividends has led the fund to invest in quality companies that have shown strong earnings growth. CGGR’s selective approach — informed by fundamental research — has pursued opportunities more broadly in new growth areas like consumer discretionary and communication services.

Source: Morningstar. As of 06/30/2026.

The S&P 500 is a market-cap weighted index, meaning each company’s weight is based on its total market value, so larger companies generally have more influence on index performance. 

 

An equal-weighted S&P 500 approach seeks to reduce the top-heaviness of the market by giving each company the same starting weight. That can help address one form of concentration risk, but it still relies on the index’s rules and does not necessarily result in a portfolio built around portfolio managers' forward-looking convictions. It can also mean dialing back exposure to the market’s strongest performers, which may require investors to give up meaningful upside in exchange for a more even distribution. For investors seeking a more intentional way to manage concentration, active management may offer a more flexible path — one that can look beyond simple reweighting to make thoughtful decisions about which companies deserve a larger role in the portfolio and which risks may be worth trying to avoid.

For investors who are more focused on managing risk than chasing returns, Capital Group’s active approach offers a more intentional way to build equity exposure. Rather than simply following an index, an actively managed portfolio can be built to balance opportunity with resilience, through thoughtful security selection and ongoing risk awareness. Whether the goal is to seek stronger upside potential or a smoother ride through market swings, Capital Group’s active equity ETFs are designed to pursue better long-term outcomes for investors.

ADDITIONAL RESOURCES

PRO

Markets are changing.
Are you ready?

Discover how Capital Group’s active approach can strengthen your U.S. equity allocation.

PRO

Actively different
active ETFs

We’ve developed our signature active approach over 90 years and have successfully applied it to a variety of investment vehicles, including our active ETFs.

PRO

What we could offer you and your clients

Sign up for a personal, in-depth portfolio analysis to see how adding CGGR and CGDV could work in your portfolios.

 

Footnote/Important information: 
Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View ETF expense ratios and returns. ETF market price (MP) returns are determined using the official closing price of the fund’s shares and do not represent the returns you would receive if you traded shares at other times.
 
S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. 
 
Passive funds are not striving to outpace their benchmarks; rather, they seek to replicate the benchmark’s return pattern.
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 ETF prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Capital Group exchange-traded funds (ETFs) are actively managed and do not seek to replicate a specific index. ETF shares are bought and sold through an exchange at the then current market price, not net asset value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV when traded on an exchange. Brokerage commissions will reduce returns. There can be no guarantee that an active market for ETFs will develop or be maintained, or that the ETF's listing will continue or remain unchanged.
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.
Nondiversified funds have 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 invested in a larger number of issuers. See the applicable prospectus for details.
There have been periods when the results lagged the index(es) and/or average(s). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
Each S&P Index ("Index") shown is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2026 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.
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. Use of our website and materials is also subject to approval by your home office.
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.