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Capital Group Introduces Eight Active ETF Model Portfolios

Capital Group, one of the globe's premier active investment management firms, recently announced the launch of eight new active model portfolios featuring their all-active exchange-traded funds (ETFs). This expansion reflects the growing trend among financial professionals who are actively seeking dynamic ETF solutions that can better serve client needs.

The new model portfolios were developed based on feedback from clients, focusing on strategies that align with the most commonly allocated categories in investment portfolios. Holly Framsted, the Head of Product Group at Capital Group, emphasized that nearly two-thirds of speedy growth financial advisors are now implementing model approaches in their practices, granting them more time to engage with their clients. This strategic approach of listening to client requests has propelled Capital Group to promptly roll out these new offerings, which have quickly become one of the most requested solutions.

Just three years prior, Capital Group introduced its inaugural six active ETFs designed to become fundamental blocks of client portfolios. Fast forward to today, the firm’s ETF lineup has expanded to 22, managing over $53 billion in assets and distributed by more than 35,000 financial advisors. Their growth trajectory reflects a remarkable 5.8% share of the active ETF market, making it the fastest organically developed suite available.

The New ETF Model Portfolios

The new suite consists of distinct portfolios tailored to various investor needs:

• - Capital Group ETF Global Growth Model
• - Capital Group ETF Growth Model
• - Capital Group ETF Moderate Growth Model
• - Capital Group ETF Growth and Income Model
• - Capital Group ETF Moderate Growth and Income Model
• - Capital Group ETF Conservative Growth and Income Model
• - Capital Group ETF Conservative Income and Growth Model
• - Capital Group ETF Conservative Income Model

Each model is designed to fit different investment strategies and risk tolerances, supporting clients in effectively navigating the market dynamics. Capital Group's commitment to innovation in active management is clearly evident through its continuous enhancement of ETF offerings. Since the inception of its first model portfolios in 2016, the company has grown its assets under management for these portfolios to around $61 billion, showcasing a firm grip on the shifting landscape of investment strategies.

An Established Legacy

Founded in 1931, Capital Group, the parent of American Funds, has consistently prioritized delivering exceptional results for long-term investors through diligent research, conviction-based portfolios, and personal accountability. As of the end of 2024, the firm manages over $2.8 trillion in equity and fixed income assets on behalf of millions of clients, including institutional investors globally.

With the launch of these eight active ETF model portfolios, Capital Group reinforces its position in the market as a responsive and client-focused investment manager, prioritizing products that are tuned to the needs and preferences of modern investors.

For more details on Capital Group’s suite of ETFs and model portfolio offerings, visit capitalgroup.com.