Capital Group Launches 5 Active ETFs

With the new ETFs, the asset manager seeks to meet a wider range of investor objectives, he told ThinkAdvisor. The multi-asset funds represent stocks and bonds, not alternative assets, Davis said. “An actively managed strategy from Capital offers an opportunity to earn above-market returns.”

The new ETFs, their objectives and expense ratios are:

• Capital Group Core Balanced ETF (CGBL): Provide a balanced approach to total return, including income and capital gains, that is consistent with long-term capital preservation; 0.33%
• Capital Group Core Bond ETF (CGCB): Provide as high a level of current income as is consistent with capital preservation; 0.27%
• Capital Group Short Duration Municipal Income ETF (CGSM): Provide current income exempt from regular federal income tax, consistent with a short duration profile and with capital preservation; 0.25%
• Capital Group Dividend Growers ETF (CGDG): Provide long-term total returns; 0.47%
• Capital Group International Equity ETF (CGIE): Provide prudent capital growth and conservation of principal; 0.54%

Looking ahead: Active ETFs are a rapidly changing and growing space and could add $2 trillion in assets to the industry by 2030, Davis told ThinkAdvisor. While active ETFs currently represent less than 6% of industry assets, “we see that growing substantially.”