Capital Group preps another wave of active ETFs
Capital Group is expanding its footprint in the active ETFs business, and on Wednesday filed for its fourth wave of products.
The firm, which launched its first exchange-traded funds just under two years ago, currently has $21 billion across its line of 14 ETFs, which it notes makes it one of the fastest-growing firms in the category.
In filings this week with the Securities and Exchange Commission, Capital Group indicated plans for four additional ETFs: the Capital Group New Geography Equity, International Core Equity, Global Equity, and Conservative Equity ETFs.
“We continue to expand our suite of ETFs which are designed to sit at the core of a portfolio,” a company spokesperson said in an email. “The four new equity ETFs meet a need we’ve heard directly from advisors and the investors they serve. We filed for four new equity ETFs that will complement our existing suite and provide enhanced optionality for clients and expect to launch the new strategies this spring.”
Of the 14 ETFs Capital Group currently offers, seven are equity strategies, six are fixed income and one is multiasset.
For advisors who seek to build portfolios with the firm’s ETFs, the emerging markets category has been missing, said Todd Rosenbluth, head of research at VettaFi. The New Geography Equity ETF covers that but does not appear to be a typical emerging markets fund, he noted.
“They have a couple of internationally focused one, which have the majority of assets invested in developed markets companies,” he said. “Many advisors want an emerging markets sleeve of their portfolio for diversification purposes.”
The forthcoming New Geography Equity ETF appears to differ from strictly emerging markets strategies in that it will allow some assets to
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