Capital Group Canada Unveils First Four Active ETFs on TSX

A suite of four new active ETFs designed as core building blocks for investment portfolios

In an exciting development for Canadian investors, Capital International Asset Management (Canada), Inc. ("Capital Group Canada") has launched its inaugural suite of four new active exchange-traded funds (ETFs) on the Toronto Stock Exchange (TSX). This new offering, which comprises two equity ETFs and two fixed income ETFs, is an important milestone for the firm, reflecting its commitment to providing diverse investment options. The four ETFs successfully completed their initial unit offerings on October 22, 2024.

Assets in actively managed ETFs worldwide hit a record $1 trillion at the end of August, according to data provider ETFGI. The four new ETFs from Capital Group draw on the same underlying investment strategies and management teams as four of the firm’s Canadian mutual funds but are managed for the specific needs of the ETF vehicle.

Investors can expect the suite of four ETFs to embody the principles that Capital Group is known for: low fees, a robust fundamental research process, a long-term investment approach, and its established multimanager investment system. These strategies are tailored to reflect high-conviction, long-term investment horizons, aiming for below-average volatility and consistent performance.

As Rick Headrick, president of Capital Group Canada, emphasizes, “Our new suite of ETFs provides one more way for investors to access our active management capabilities in the vehicle they want – whether through mutual funds or ETFs. Our ETFs are designed to focus on the major asset allocation categories used by financial professionals when constructing client portfolios and offer exposure to Capital Group’s distinctive investment approach and 90-years of investment experience.”

The newly launched strategies include:

• CAPG - Capital Group Global Equity Select ETF^TM (Canada): Long-term growth of capital through investments primarily in common stocks, including growth-oriented stocks, on a global basis. Future income is a secondary objective.
• CAPI - Capital Group International Equity Select ETF^TM (Canada): Long-term growth of capital through investments in a portfolio comprised primarily of securities of large-capitalization issuers located outside North America.
• CAPM - Capital Group Multi-Sector Income Select ETF^TM (Canada): Seeks to provide a high level of current income through investments primarily in a broad range of bonds and other debt securities. The fund’s secondary objective is capital appreciation.
• CAPW - Capital Group World Bond Select ETF^TM (Canada): Seeks to provide, over the long-term, a high level of total return consistent with prudent investment management through investments primarily in bonds and other debts securities of global issuers. Total return comprises the income generated by the fund and the changes in the market value of the fund's investments.

“Globally, our ETFs are built with input from financial advisors to support their efforts to help their clients achieve their financial goals, whether it’s to achieve financial stability, support their families, or retire comfortably." said Holly Framsted, head of global product strategy and development at Capital Group. "The first four ETFs for Canadian investors were carefully chosen to be important building blocks for the core of a client’s portfolio,”

For investors seeking a blend of expertise and flexibility, Capital Group Canada's new active ETFs represent a promising opportunity. To learn more about these offerings, visit capitalgroup.com/active-etf.

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About Capital Group

Capital International Asset Management (Canada), Inc. is part of Capital Group, a global investment management firm originating in Los Angeles, California. Since 1931, the Capital Group organization has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. As of June 30, 2024, Capital Group manages more than US$2.7 trillion in equity and fixed income assets for millions of individual and institutional investors around the world. This includes 21 ETFs in the U.S. with assets under management of more than US$42 billion, which have captured 5% U.S. market share within active ETFs in a little over two years¹.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital Group organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

¹Source: Morningstar as of September 30, 2024.

For more information, visit: www.capitalgroup.com/ca/en