Since the 2019 ETF Rule, asset managers have flooded the market with active ETFs, offering investors a rapidly growing space of actively managed choices. In fact, over the last twelve months, active ETFs have seen outsized flows relative to their AUM — despite holding less in assets compared to their passive counterparts. Amid this milestone moment for active ETFs, firms like Capital Group have pushed the envelope with competitive offerings.
Currently, it manages 25 active ETFs, with a variety of equity and bond options. Scott Davis, Capital Group’s head of ETFs, recently met with VettaFi staff writer Ben Hernandez to discuss the firm’s past, present, and future.
Large- & Mid-Cap Dividends
So far, Cap Group’s active ETF suite has performed well in 2026 — with three particular funds driving the lion’s share of gains. The Capital Group Dividend Value ETF (CGDV) is the firm’s largest active ETF with $33.2 billion in AUM, according to ETF Database. CGDV has also outpaced the rest of the suite in terms of YTD flows, capturing nearly $5 billion in net inflows over the period.
CGDV charges a 33 basis point fee to actively invest in large- and mid-cap firms paying dividends. It aims to produce greater than average yield on S&P 500 stocks, with a small allocation of assets in equities of ex-U.S. firms. Capital Group’s managers use a multi-manager, high-conviction approach that divides the portfolio into individual assignments. Combined, these elements helped the fund to deliver a 33.8% return over the last twelve months.
International Equities
Two other ETFs from the firm’s suite may also merit interest from investors based on their performances this past year. The Capital Group Global Growth Equity ETF (CGGO) and the Capital Group New Geography Equity ETF (CGNG) both provide a healthy allocation to international equities.
CGGO charges a 47 basis point fee and CGNG charges a 64 basis point fee to invest in their respective strategies. With its high-conviction, multi-manager mandate, CGGO focuses on identifying equities with strong growth prospects. According to ETF Database data, the active ETF has captured $1.3 billion in YTD inflows while delivering an impressive 32.7% twelve-month return.
See more: Active ETFs Blend Professional Management With Tax Efficiency
Meanwhile, CGNG actively invests in emerging markets equities and also selectively includes developed market equities. The fund’s adviser screens for fundamental factors such as per capita GDP, market capitalization as a percentage of GDP, and regulatory environments. Boasting a 34.7% twelve-month return, the fund has distinguished itself as a top performer within Capital Group’s active ETF lineup.
Both ETFs provide essential international exposure to help diversify portfolios away from U.S.market tumult. By delivering these and other high-conviction strategies, Capital Group has cemented its status as a leader in the active ETF space. A position that will likely remain high in demand as we continue through an uncertain 2026.
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