Capital Group Launches New Equity and Bond ETFs
Capital Group, a renowned name in the investment management landscape, has announced the launch of three new active exchange-traded funds (ETFs), now trading on the New York Stock Exchange (NYSE). These new additions mark a significant step in enhancing investment options for model portfolio builders, particularly for registered investment advisors (RIAs). With the new ETFs, Capital Group aims to meet the evolving needs of financial professionals, offering robust strategies in equity and fixed income sectors.
The newly introduced ETFs are:
- - Capital Group US Large Value ETF (CGVV): Focuses on large-cap value stocks, providing a portfolio that captures value growth potential.
- - Capital Group US Large Growth ETF (CGGG): Designed to capitalize on large-cap growth investment opportunities with active management.
- - Capital Group High Yield Bond ETF (CGHY): Offers a solution for investors interested in high yield bond investments, drawing on Capital Group's extensive experience in managing high yield assets, which currently exceed $49 billion.
Scott Davis, Head of ETFs at Capital Group, emphasized the importance of these launches, stating, "With today's launch, we've introduced two new U.S. equity ETFs that provide highly focused growth and value exposures for model portfolio builders, powered by Capital's active, distinct investment approach including our deep research capabilities and multiple manager system." This reflects Capital Group's commitment to innovation in response to the demands of financial professionals.
Furthermore, this development comes at a time when Capital Group has successfully surpassed $66 billion in assets under management. A notable trend in their business is the increasing contributions from registered investment advisors, which now comprise about 20% of their overall ETF business. Eric Grey, Senior Vice President at Capital Group, remarked on the growing preference among RIAs for actively managed strategies, saying, "We know RIAs are one of the biggest users of ETFs in the industry and are increasingly interested in active strategies."
To support these financial professionals, Capital Group also launched an online platform known as RIA Insider, which provides access to a wealth of resources including curated market insights, community connections, and tools for presenting customized portfolio analyses to their clients. This initiative underscores Capital Group's dedication to enhancing the experience of RIAs and enabling them to better serve their clients' investment needs.
As of now, Capital Group's lineup consists of 25 ETFs, positioning them as one of the fastest-growing suites of active ETFs in the market, holding over 6% market share. This expansion represents a commitment to provide comprehensive and tailored investment solutions, helping financial professionals and their clients meet long-term financial goals.
About Capital Group: Founded in 1931, Capital Group is a leading global investment management firm, home to American Funds. The firm has always focused on delivering superior results for long-term investors through high-conviction portfolios and rigorous research. Its portfolio managers make independent investment decisions while leveraging organizational insights, ensuring a well-rounded approach to asset management.
For more information about Capital Group and its new ETF offerings, visit
capitalgroup.com.
Investments are not FDIC-insured and may lose value. Potential investors should carefully consider the risks associated with these investments, and review the fund prospectuses available through financial professionals.