CGCB
Capital Group Core Bond ETF
📎 Investment Objective
The Capital Group Core Bond ETF seeks to provide current income and capital preservation by investing primarily in a diversified portfolio of investment-grade fixed income securities.
Overview
ETF tracking Capital Group Core Bond ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Capital Group Core Bond ETF seeks to provide current income and capital preservation by investing primarily in a diversified portfolio of investment-grade fixed income securities.
🎯 Investment Strategy
The fund invests in a broad range of investment-grade bonds, including U.S. Treasuries, corporate bonds, mortgage-backed securities, and other fixed income instruments. The portfolio is actively managed to maintain an average duration that is similar to the Bloomberg U.S. Aggregate Bond Index.
✨ Key Features
- Broad exposure to investment-grade fixed income securities
- Active management to maintain a duration profile similar to the benchmark index
- Low-cost, passively managed ETF structure
- Potential for current income and capital preservation
⚠️ Primary Risks
- Interest rate risk: The fund's value may decline when interest rates rise
- Credit risk: The fund is exposed to the risk of default by the issuers of the bonds it holds
- Liquidity risk: Some bonds held by the fund may be difficult to sell, especially during times of market stress
- Reinvestment risk: When interest rates decline, the fund may have to reinvest coupon payments or proceeds from maturing bonds at lower yields
👤 Best For
This ETF may be suitable for investors seeking a core fixed income allocation, stable income, and capital preservation. It is best suited for investors with a moderate risk tolerance and a medium-term investment horizon.
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