We’re bringing our 90 years of active management to exchange-traded funds (ETFs) with six active transparent ETFs. Designed to help strengthen the core of investors’ portfolios, our ETFs aim to deliver solutions for some of the most common portfolio allocations. While they’re different from the American Funds, many of our ETFs are based on seasoned strategies, and all leverage The Capital System℠, our distinct investment approach.
Here are the funds in our debut suite of ETFs:
How it fits: Core U.S. equity allocation
- U.S. equity-focused: A portfolio that can serve as a complement to an S&P 500 index fund. Like all Capital Group funds, it utilizes The Capital System, which is designed to help our portfolios participate in strong market environments and dampen volatility in challenging ones.
- Focus on fundamentals: Careful company selection, informed by fundamental research, helps identify companies with attractive long-term prospects for growth and/or dividends.
- Balance: Blends many blue chip dividend-paying companies with non-dividend-payers that show attractive growth potential.
How it fits: U.S. growth allocation
- Growth: A broad strategy that seeks growth of capital as its objective rather than its investment style, meaning that while the fund will predominantly invest in larger, faster growing U.S. companies, managers have flexibility across different geographies and investment approaches in search of capital appreciation.
- Flexible: The fund takes a company-by-company approach, investing in traditional growth companies as well as cyclicals and turnaround situations in its quest for capital appreciation.
- Consistent: The fund takes a long-term perspective, which allows for a patient approach to growth investing.
How it fits: Core U.S. value allocation
- Value: Dividends can offer a steady stream of returns to investors and this fund values companies that are capable of paying dividends across a variety of market and economic environments.
- Income: Seeks to produce consistent income that exceeds the average yield of the S&P 500 by focusing on companies that pay dividends or have the potential to pay dividends.
- Quality: The fund primarily invests in well-established U.S. companies with a history of financial strength and regular dividend payments.
How it fits: Core international allocation
- Opportunistic: Explore opportunities outside the U.S. — including emerging markets — with a company-by-company-focused strategy that seeks long-term growth of capital.
- Companies, not countries: The fund aims to pursue returns primarily through company selection, not regional or sector selection.
- Consistency: A core, non-U.S. fund that seeks to invest in promising international companies for long-term growth of capital, leveraging Capital Group’s distinct approach to investing.
How it fits: Growth allocation
- Broad: Takes a flexible geographic approach in its search for fundamentally strong, high-potential companies anywhere in the world.
- Company focused: Takes a bottom-up approach, analyzing all aspects of companies with significant growth potential, including where they do business, their position in their industry, their products and the health of their supply chains.
- Supported by extensive global resources: Leveraging a deep global research network, the fund invests with the view that as global markets and economies become more connected, an informed perspective is increasingly important.
How it fits: Single solution core-plus-income bond allocation
- Core: Seeking downside protection alongside a resilient income stream.
- Diversification: A broadly diversified portfolio with multiple sources of active return.
- Income: Pursues a resilient income stream over a full market cycle through sector diversification including high-yield corporates, emerging markets and securitized debt.
Designed to help investors pursue their long-term goals
At Capital Group, we use a long-term, objective-based approach to investing. We believe the core of investors’ portfolios should align to their goals and promote resilience during volatility. Our new ETFs are objective-oriented funds that seek better investment outcomes and aim to provide the flexibility to pursue attractive investments in a variety of markets.
Contact your Capital Group representative to learn more about our ETFs.