Capital Group fills out gaps in its line-up with new ETFs

By Suzanne McGee

June 27 (Reuters) - Capital Group rolled retired 7 caller progressive exchange-traded funds connected Thursday, boosting its ETF line-up to 21 products.

Scott Davis, caput of ETFs astatine Los Angeles-based Capital Group said the caller ETFs filled retired the line-up of halfway strategies "so that fiscal advisors tin physique implicit portfolios".

"We looked astatine the gaps betwixt what we connection today, and what advisors are asking america for astir urgently arsenic involvement successful progressive ETFs accelerates," Davis said.

Research radical ETFGI says U.S. ETF assets deed a grounds $9 trillion astatine the extremity of May. But Citigroup strategists said this period that portion ETF assets nether absorption person soared 23% since the extremity of 2021, assets successful retail communal funds fell 10.1%.

Scott Chronert, strategist astatine Citigroup, said that implicit the adjacent 5 to 10 years, said they "project that an further $6 trillion to $10 trillion successful communal funds is astatine imaginable hazard of ETF replacement/cannibalization".

Capital Group said its 14 existing ETFs, each of which are actively managed products launched successful the past 2 years, person assets of $29 billion, giving it a 4% stock of the progressive ETF market, which is the fastest-growing portion of the ETF universe.

The caller funds see 4 equity funds, including a planetary banal ETF and an planetary halfway equity fund.

Capital Group New Geography Equity ETF emphasizes companies that deduce a ample information of their revenues from emerging markets, alternatively than those domiciled successful emerging markets, which Davis believes volition present little volatile returns.

Meanwhile, Capital Group Conservative Equity ETF volition people blue-chip companies with sustainable dividends.

The firm's 3 caller fixed income funds volition connection investors vulnerability to ultra-short income, dollar-hedged planetary bonds and a portfolio of high-income municipal bonds. (Reporting by Suzanne McGee; Editing by Alexander Smith)

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