Capital Group this week announced eight new active model portfolios built on its all-active exchange-traded funds.
The investment manager said it launched the model portfolios in response to growing demand from financial professionals for active ETF models.
Capital introduced its first six active ETFs three years ago to serve as the core building blocks for client portfolios. The company offers 22 ETFs in the United States with over $53 billion in assets under management sold by over 35,000 financial advisors. The company said it accounts for 5.8% of active ETF market share.
"We know nearly two-thirds of the highest-growth financial professionals incorporate models into their practices, which can afford them more time with their clients," said Holly Framsted, Capital Group's product group head.
Scott Davis, ETFs head at Capital Group, said that the new active model portfolios span from growth to more conservative portfolios. They are:
- 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
Capital Group's model portfolio suite represents about $61 billion in assets under management, and Davis told ThinkAdvisor this week that the company sees models as a major growth driver, with most advisors viewing them as improving portfolio efficiency.
Capital, home to American Funds, manages more than $2.8 trillion in equity and fixed income assets.
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