Capital Group International Focus Equity ETF

CGXU

Market cap $5.08B

Markets are broadening beyond the dominance of U.S. technology stocks, creating opportunities across international equities, value stocks and fixed income. The Capital Group ETF platform has captured this shift since entering the market four years ago this week.

Launched on 12/15/2020, the First Trust International Developed Capital Strength ETF (FICS) is a smart beta exchange traded fund offering broad exposure to the Foreign Large Growth ETF category of the market.

An actively managed fund hitting its three year track record used to be a major milestone. A Morningstar rating would follow.

Japan-heavy CGXU offers an active take on international equities, with the goal being "long-term growth of capital." While the proposition might sound alluring here, CGXU's returns since inception have been mostly mediocre as it has lagged ACWX, let alone IVV. Some positives, including the upside capture ratio, make it a bit more appealing, yet clearly insufficient for a Buy rating.

Fueled by a rise in household income, driven by moderating inflation levels globally and favorable financial conditions have led to rating agencies upgrading their forecasts for global growth. Improving near-term global growth prospects makes these global equity ETFs attractive.