CGMS Profile
CGMS
(Capital Group U.S. Multi-Sector ETF) is an exchange-traded fund (ETF)
managed by Capital Research and Management Company. The ETF seeks to
provide investors with exposure to a diversified portfolio of fixed
income securities in the U.S.
As a multi-sector fixed income
ETF, CGMS invests primarily in a diversified portfolio of
investment-grade fixed income securities issued by U.S. government
entities, corporations, and other entities. The ETF aims to provide
investors with a stable source of income and the potential for capital
appreciation by investing across different sectors of the fixed income
market.
As of September 2021, the CGMS ETF had total net assets
of around $75 million and was invested in a diversified portfolio of
investment-grade fixed income securities in the U.S. The fund's
holdings are managed by the investment professionals at Capital
Research and Management Company, who have extensive experience in
managing fixed income portfolios.
In terms of performance, CGMS
has delivered relatively stable returns over the long term, with a
focus on generating income through the coupon payments from fixed
income securities. The ETF's multi-sector approach means that it is
diversified across different sectors of the fixed income market, which
can help reduce the overall risk of the portfolio.
Investors
should keep in mind that like all investments, CGMS carries risks,
including the risk that interest rates may rise, which can result in a
decline in the value of the ETF's holdings. Additionally, the ETF
charges a relatively low expense ratio of 0.36%, which is in line with
the average expense ratio for fixed income ETFs. Investors should
carefully consider their investment objectives and risk tolerance
before investing in CGMS or any other multi-sector fixed
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