CGCP ETF

Investors are shifting from covered call equity strategies to traditional fixed-income assets, making the Capital Group Core Plus Income ETF a compelling option. The fund diversifies across government debt, agency bonds, corporate bonds, mortgage-backed securities, and emerging market debt, with a significant U.S. focus. Compared to AGG and BND, CGCP offers higher yields and flexibility through opportunistic investments in high-yield bonds and non-U.S. dollar markets.

Actively managed ETFs continued to gain traction in July with $24 billion of net inflows. This represented 19% of the industry's net inflows, which remains impressive given the 7% share of the assets.

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.

The fluctuating interest rate environment led advisors and investors to reassess their bond investments this month. Asset managers shared their insights on market changes and potential risks and opportunities at the 2024 Fixed Income Symposium hosted by VettaFi.

It is widely known that actively managed fixed income products are currently experiencing a surge in demand due to the unique rate environment and uncertain Fed policies.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Capital Group Core Plus Income ETF (CGCP) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.

Capital Group Core Plus Income ETF is a bond-oriented thematic fund aiming to maximize returns and preserve capital. The fund has a good yield of 5.07%, but the risk may not be proportionate to the return compared to other bond investments. CGCP could appreciate significantly in 2024 due to expected rate cuts, but it also carries risks related to commercial real estate crisis.

VettaFi's Head of Research Todd Rosenbluth discussed the Capital Group Core Plus Income ETF (CGCP) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.