Capital Group International Core Equity ETF

CGIC

Market cap $2.09B

These exchange-traded funds are good long-term bets. Morningstar's Guide to Active ETFs.

Capital Group International Core Equity ETF is rated 'Buy' for its strong outperformance versus peers and broad indices since inception. CGIC benefits from a valuation discount to US indices, active management flexibility, and a favorable geographic allocation, notably overweight Europe and underweight China. Key risks include potential US dollar strength and tariff policy clarity, both of which could reverse recent international equity outperformance.

The Capital Group International Core Equity ETF offers diversified exposure to ex-U.S. large caps, focusing on dividend-paying companies with strong earnings and growth potential. CGIC has outperformed the benchmark IXUS and a number of competitors since inception, while keeping low volatility. The portfolio is well-diversified by country and sector, with a notable focus on financials and limited exposure to China, reducing geopolitical risk.

CGIC offers true international diversification, prioritizing non-US companies and sectors like Financials, Industrials, and IT for global exposure. The ETF has delivered a strong 29.2% price return in its first year, but comes with a higher-than-average 0.54% expense ratio. CGIC focuses on high-quality, dividend-paying companies with healthy financials, aiming to reduce volatility and enhance long-term growth.

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.