Capital Group Launches 8 New Active ETF Model Portfolios
New offerings respond to advisors seeking model solutions as the company builds on its growing suite of exchange-traded funds.
Capital Group has announced the launch of eight new active ETF model portfolios, expanding its exchange-traded fund business that has captured 5.8% of the active ETF market share in just three years.
The launch comes as financial professionals increasingly incorporate model portfolios into their practices, with nearly two-thirds of high-growth advisors now using models, according to Capital Group research. This trend allows advisors to spend more time with clients while leveraging professionally managed investment solutions.
"We know nearly two-thirds of the highest growth financial professionals incorporate models into their practices," said Holly Framsted, head of product group at Capital Group, according to the company announcement. "We have adopted a listen-and-launch approach to bring products to market that address client needs."
Model Portfolios Meet Diverse Client Needs
The new model portfolios range from conservative income strategies to aggressive growth approaches, offering various combinations of Capital Group's 22 ETFs that now manage over $53 billion in assets. Each model serves different investment objectives.
The Capital Group ETF Conservative Income Model focuses on current income and capital preservation, with 76% allocated to income funds, including 25% to the Capital Group Core Bond ETF (CGCB) and 25% to the Capital Group Short Duration Income ETF (CGSD), according to the fund page. This model maintains 64.4% in U.S. bonds and only 16.6% in U.S. equities.
Meanwhile, the Capital Group ETF Global Growth Model takes a more aggressive approach with 80% in growth funds, targeting exposure to companies worldwide with strong growth potential, including 25% in the Capital Group Global Growth Equity ETF (CGGO).
Between these endpoints, Capital Group offers moderate growth and various income-focused models, allowing advisors to align portfolios with specific client risk tolerances and objectives.
Capital Group's ETF business has grown since launching its first six active ETFs in 2022. The company's ETF suite is now distributed by over 35,000 financial advisors, according to the announcement.
The expansion builds on Capital Group's model portfolio business, which has grown to approximately $61 billion since launching its first model portfolios in 2016.
