American Funds parent Capital Group has launched 12 active-passive model portfolios comprising American Funds' actively managed mutual funds and passively managed exchange-traded funds (ETFs) from Vanguard, Schwab and BlackRock.
As the strategist, Capital Group will select the passive ETFs in each model and manage the allocations.
"As the needs of financial professionals and investors continue to evolve, so has the way we think about delivering our investment solutions to them," said Kris Spazafumo, Capital Group's portfolio solutions and services head. "We know that financial professionals are increasingly creating active-passive portfolios for their clients because they want both a low-cost, tax-efficient portfolio with the potential for excess returns."
