When Capital Group joins the ranks of mutual fund companies that have entered the ETF market early next year, it will be launching a suite of active ETFs that are very competitively priced.
Management fees for the six ETFs — five equity and one bond ETF — will range from 0.33% for its Dividend Value (CGDV) and Core Equity (CGUS) ETFs to 0.54% for its International Focus Equity ETF 0.54% (CGXU), according to the firm's recent filings with the Securities and Exchange Commission.
Fees for the other three ETFs are 0.39% for the Capital Group Growth ETF (CGGR), 0.47% for the firm's Global Growth ETF (CSGO) and 0.34% for its Core Plus Income ETF (CGCP).
All the ETFs are fully transparent, disclosing their holdings on a daily basis, and none are clones of existing funds. The equity ETFs are designed as complements to the firm's existing mutual funds and the Core Plus Income ETF is a new core strategy for the asset manager that is expected to anchor a suite of future bond ETFs, according to Holly Framsted, head of ETFs at Capital Group.
