Capital Group Dividend Value ETF

CGDV

Market cap $30.7B

CGDV is a top-performing and actively-managed large-cap ETF with $31 billion in assets under management and a 0.33% expense ratio. Historical annual portfolio turnover rates for CGDV have been in the 25-30% range, but activity has picked up this year, and turnover is already at about 26% YTD. This article highlights the top overweighted and underweighted positions compared to the start of the year, and presents a comprehensive set of fundamentals alongside other ETFs like SPY and SCHD.

The market rotation into value and non-tech has opened the doors for bigger returns from dividend stocks. These three dividend ETFs all have higher tech exposure, which is what's driving analyst estimates at the moment.

Vanguard Total Stock Market ETF (NYSEARCA:VTI) holds roughly $2.1 trillion in assets and has earned its place in millions of retirement portfolios.

I am bullish on SCHG and CGDV ETFs for a blend of growth and income, despite near-term volatility from Middle East tensions. SCHG offers concentrated tech exposure, a low expense ratio (0.04%), and a strong long-term track record, benefiting from AI adoption. CGDV combines value investing with dividend income, uses a multi-manager active approach, and has outperformed VOO and SCHG since inception.

Dividend ETFs are back in focus, as investors look for stability and income amid persistent market volatility.

With the Federal Reserve having cut rates from 4.5% to 3.75% over the past six months, the calculus for income investors is shifting.

In a span of just four years, The Capital Group Companies went from ETF rookie to perennial All-Star. The Los Angeles-based firm has already amassed over $120 billion in assets dispersed across its suite of 25 active ETFs.

With no end in sight to the macroeconomic uncertainty on both the domestic and global fronts, is now the time to pivot to the flexibility of active ETFs? Many advisors and investors seem to think so.

The Capital Group Dividend Value ETF (CGDV) is a core portfolio candidate with a quality large-cap growth tilt, not a pure dividend or value play. CGDV's outperformance versus SPY is driven by selective tech, industrials, healthcare, and energy exposure, while avoiding speculative growth and financials. I rate CGDV a Buy for 2026, expecting continued relative outperformance over SPY, though with more subdued absolute returns (mid-single digits).

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Capital Group Dividend Value ETF (CGDV) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.