(CGUS) Capital Core Equity - Ratings and Ratios

The Capital Group Core Equity ETF (CGUS) is a large-cap blend ETF that primarily invests in common stocks of companies with the potential for growth and/or dividend income. The fund typically allocates at least 80% of its assets to equity securities, with a focus on established companies that demonstrate strong fundamentals and sustainable cash flows.

While the fund is primarily U.S.-focused, it allows for up to 15% of its assets to be invested in non-U.S. securities at the time of purchase. This provides a modest level of international exposure, diversifying the portfolio beyond domestic markets. The fund is designed for investors seeking a combination of capital appreciation and income, making it suitable for those looking for a balanced investment approach.

It’s important to note that CGUS is a non-diversified fund, meaning it can concentrate its holdings in a smaller number of securities. This approach can lead to higher returns in favorable market conditions but also increases risk if certain investments underperform. The fund’s expense ratio and tracking error are critical metrics for investors evaluating its efficiency and alignment with its benchmark.

With an AUM of $4.865 billion, CGUS is a sizable ETF in the large-cap blend category. Its portfolio is managed by Capital Group, a well-established investment management firm with a long history of active management. The fund’s underlying holdings are selected based on the adviser’s research and conviction in companies with durable competitive advantages and growth potential.