Capital Group Dividend Value ETF

CGDV

Market cap $25.4B

"Bloomberg ETF IQ" focuses on the opportunities, risks and current trends tied to the trillions of dollars in the global exchange traded funds industry. Today's guests: Capital Group Head of Global Product Strategy and Development Holly Framsted, State Street Investment Management CEO Yie-Hsin Hung and HDGE ETF Co-Portfolio Manager Brad Lamensdorf.

Capital Group Dividend Value ETF delivers strong total returns and lower volatility, making it an attractive choice for buy-and-hold investors. CGDV's focused, actively managed portfolio blends value and growth, with significant technology exposure and resilience during market uncertainty. Compared to peers like VTV and SPDV, CGDV outperforms on total return and demonstrates capital preservation during market declines, despite a lower starting yield.

Market volatility sparks income hunt -- dividend ETFs like SCHD, CGDV, SPYD, IDV, FDL & DIVO under $50 offer steady yields and value.

Capital Group Dividend Value ETF stands out among dividend and value ETFs, outperforming the S&P 500, dividend funds, and the value index. The value category has lagged growth for years, yet CGDV bucks this trend with attractive returns. This is in part because CGDV is not a traditional value fund, and its blend of growth into its value strategy has led it to significant outperformance.

With under four years as a U.S. ETF provider, Capital Group is about to cross a major milestone. The firm's active ETF lineup had $98 billion in assets as of November 5.

The S&P 500 is starting to pick up speed going into late-October after experiencing a bit of volatility on the back of the government shutdown, new Trump tariff threats, and a few early quarterly earnings fumbles.

There's plenty of incentive to play the long game when it comes to dividend ETFs.

CGDV has ranked among the best performers within the dividend ETF category since its inception three years ago. It's accomplished that, thanks in part to an outsized tech and growth stock exposure. The fact that the fund includes non-dividend payers doesn't make it a pure play compared to others within this group.

The Capital Group Dividend Value ETF may not provide investors with any meaningful income, but its impressive fundamentals and track record can't be ignored. Double-digit three-year historical and one-year estimated sales and earnings growth are key to CGDV's success. Those growth rates rank #1 among 100+ large-cap value ETFs. It's priced relatively high based on its 22.67x forward P/E ratio, but from a GARP perspective, that's a bargain. This article contrasts CGDV's fundamentals with VIG, DGRW, SEIV, and SCHD.

Building a resilient retirement portfolio requires a mix of disruption-proof income from REITs, midstream energy, and high-yielding assets, plus growth stocks and ETFs. Current market challenges—AI disruption, weak job market, inflation risks—make long-term planning difficult, but also highlight the need for self-reliance and diversification. Core portfolio holdings should include large, proven REITs, natural gas midstream companies, select high-yield stocks, BDCs, preferred equity ETFs, and actively managed income funds.