Capital Group Conservative Equity ETF

CGCV

Market cap $929M

CGCV offers retirees a conservative equity ETF with lower volatility, strong price stability, and tax-efficient dividend income, making it ideal for capital preservation. The fund's active management focuses on high-quality, dividend-paying companies, balancing growth and income while limiting exposure to riskier sectors. CGCV has outperformed major index ETFs like SPY and QQQ during recent market volatility, justifying its higher expense ratio through resilience and competitive returns.

CGCV is a newer ETF focusing on companies with superior resilience during market declines, offering less volatility and better capital preservation. The fund's strategy includes a significant exposure to dividend-paying technology, healthcare, and industrials, avoiding high volatility stocks with inflated P/E ratios. CGCV has outperformed SPY and QQQ since inception, proving effective during market declines, though it may underperform in long-term total returns.

The ETF scene has boomed in recent years, with intriguing new “flavors” of ETFs drawing in the investment dollars of passive investors looking for a more personalized touch.

Capital Group first launched ETFs less than two and a half years ago, but is not slowing down. The firm's asset base is just under $35 billion, aided by nearly $10 billion thus far in 2024.

On Thursday, Capital Group unveiled seven new ETFs to bolster its growing lineup of funds. Each of the seven funds is actively managed.

New services include four equity and three fixed income ETFs, bringing Capital Group's ETF platform to 21 LOS ANGELES, June 27, 2024 /PRNewswire/ -- Capital Group has introduced seven new active, transparent exchange-traded funds (ETFs) to complement its existing suite of core building block solutions for investor portfolios. The new strategies, including four equity and three fixed income ETFs, start trading on the New York Stock Exchange (NYSE) today.