CGMU Profile
CGMU
(Capital Group Municipal Income 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
tax-exempt municipal bonds issued by U.S. state and local governments.
As a municipal bond ETF, CGMU invests primarily in a diversified
portfolio of investment-grade tax-exempt municipal bonds issued by
U.S. state and local governments. The ETF aims to provide investors
with a stable source of tax-free income and the potential for capital
appreciation.
As of September 2021, the CGMU ETF had total net
assets of around $30 million and was invested in a diversified
portfolio of tax-exempt municipal bonds issued by U.S. state and local
governments. 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, CGMU has delivered relatively stable returns
over the long term, with a focus on generating income through the
coupon payments from municipal bonds. The ETF's focus on tax-exempt
municipal bonds issued by U.S. state and local governments means that
it can provide investors with a relatively high level of tax-free
income.
Investors should keep in mind that like all
investments, CGMU 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
municipal bond ETFs. Investors should carefully consider their
investment objectives and risk tolerance before investing in CGMU or
any other municipal bond-f
|
