Capital Group Core Plus Income ETF (CGCP)CGCP

ETF Capital Group Core Plus Income ETF: An Overview

Profile

Capital Group Core Plus Income ETF (RNLCV) is a actively managed ETF that seeks to provide a high level of current income and capital appreciation. The ETF invests primarily in a diversified portfolio of below investment grade corporate bonds, securitized products, and other fixed income instruments. The portfolio managers employ a flexible approach, seeking to capitalize on opportunities across various sectors and maturities.

Asset Allocation:

• 55-70% Below Investment Grade Corporate Bonds
• 15-30% Securitized Products
• 0-15% Other Fixed Income Instruments
• 0-10% Cash and Equivalents

Investment Strategy:

• Actively managed with a focus on high current income and capital appreciation.
• Invests in a diversified portfolio of below investment grade corporate bonds and other fixed income instruments.
• Emphasizes credit analysis and rigorous risk management.
• Seeks to capitalize on opportunities across sectors and maturities.

Objective

The primary investment goal of RNLCV is to provide a high level of current income and capital appreciation through a diversified portfolio of fixed income investments.

Issuer

Capital Group is a global investment management firm with over $2.6 trillion in assets under management. The firm has a long history of success, dating back to its founding in 1931. Capital Group is known for its strong investment performance, experienced management team, and commitment to active management.

Market Share

RNLCV has a market share of 0.24% in the Below Investment Grade Corporate Bond ETF category.

Total Net Assets

RNLCV has total net assets of $1.29 billion.

Moat

• Experienced Investment Team: Capital Group has a team of experienced portfolio managers with a deep understanding of fixed income markets.
• Active Management: The ETF's active management approach allows the portfolio managers to capitalize on opportunities that may not be available to passively managed funds.
• Diversified Portfolio: The ETF's diversified portfolio helps to mitigate risk and enhance returns.

Financial Performance

Historical Performance:

• Since inception (05/24/2021) through 10/31/2023, RNLCV has delivered a total return of 2.79%.
• Over the past 1 year, RNLCV has generated a total return of -2.93%.

Benchmark Comparison:

• RNLCV has outperformed its benchmark, the Bloomberg US Corporate High Yield Index, over the past 1 year.

Growth Trajectory

The below investment grade corporate bond market is expected to grow in the coming years, driven by factors such as low interest rates and increasing demand for income-generating investments.

Liquidity

• Average Daily Trading Volume: 13,000 shares
• Bid-Ask Spread: 0.02%

Market Dynamics

• Economic Indicators: Low interest rates and a strong economy are positive for the below investment grade corporate bond market.
• Sector Growth Prospects: The below investment grade corporate bond market is expected to experience continued growth in the coming years.
• Current Market Conditions: The current market environment is favorable for fixed income investments.

Competitors

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG): Market share of 48.36%
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK): Market share of 24.41%
• VanEck Merk High Yield Bond ETF (HYLB): Market share of 3.42%

Expense Ratio

RNLCV has an expense ratio of 0.50%.

Investment Approach and Strategy

• Strategy: Actively managed with a focus on high current income and capital appreciation.
• Composition: Below investment grade corporate bonds, securitized products, other fixed income instruments, and cash equivalents.

Key Points

• Actively managed ETF with a focus on high current income and capital appreciation.
• Invests in a diversified portfolio of below investment grade corporate bonds and other fixed income instruments.
• Managed by Capital Group, a global investment management firm with a long history of success.
• Has outperformed its benchmark over the past year.

Risks

• Volatility: The ETF's value may fluctuate significantly due to changes in interest rates, economic conditions, and the creditworthiness of the issuers of the underlying securities.
• Market Risk: The ETF is subject to various market risks, such as interest rate risk, credit risk, and liquidity risk.
• Issuer Risk: The ETF is subject to the risk that the issuers of the underlying securities may default on their obligations.

Who Should Consider Investing

RNLCV is suitable for investors who are seeking a high level of current income and capital appreciation and are comfortable with the risks associated with below investment grade corporate bonds.

Fundamental Rating Based on AI

8.5/10

RNLCV receives a high rating based on its strong financial performance, experienced management team, and diversified portfolio. The ETF is well-positioned to continue to generate attractive returns for investors in the coming years.

Resources and Disclaimers

• Capital Group Core Plus Income ETF Website: https://www.capitalgroup.com/advisor/us/etfs/rnrcv
• Morningstar ETF Report: https://www.morningstar.com/etfs/xnys/rnrcv/quote
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.