Capital Group Core Plus Income ETF (CGCP)
ARCA ARCA Primary 
CGCP: Low-Risk Bond ETF Beating The Benchmark
Capital Group Core Plus Income ETF delivers a 5% yield from a diversified, actively managed bond portfolio with a low-risk profile. CGCP has outperformed the total bond market since its inception in February 2022. Compared to competitors, CGCP has one of the cheapest expense ratios but lags JCPB and TOTL in return and risk metrics.
Capital Group Built a Nearly $100 Billion Active ETF Powerhouse in Under 4 Years
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.
CGCP: Turn-Around Potential When Interest Rates Are Cut
Capital Group Core Plus Income ETF offers a high 5% yield and monthly distributions, making it attractive for income-focused investors seeking portfolio diversification and lower equity correlation. The fund's price has been suppressed by high interest rates, but future rate cuts could serve as a catalyst for price appreciation and total return. CGCP's portfolio is mostly investment-grade debt, with limited default risk and no leverage, supporting its resilience in uncertain markets.
CGCP: Active Bond ETF With Fair Fees And Average Track Record
Capital Group Core Plus Income ETF offers a 5% yield from a diversified, low-risk debt securities portfolio with a 0.34% expense ratio. The CGCP ETF has outperformed the total bond market since inception but experienced an 11.9% price decline, losing 23% in inflation-adjusted value. Compared to competitors, CGCP has one of the lowest expense ratios and average performance and risk metrics, with JCPB and TOTL marginally better.
CGCP: An Active Bond Fund That's Working
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.
Growing Supply of Active Municipal Bond ETFs
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.
Newer Active ETFs From Capital Group Offer More Conservative Approach
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.
