With under four years as a U.S. ETF provider, Capital Group is about to cross a major milestone. The firm’s active ETF lineup had $98 billion in assets as of November 5. When the firm launched six ETFs in February 2022, some people thought they were late to the party. I was not one of those people. I believed they had scale advantages and could leverage in-house expertise. However, even I’m surprised by how quickly they have grown in a short period of time.
Leveraging Expertise for Advisor Adoption
“We’ve grown, without conversions, to become a top three active ETF manager across our suite of 25 U.S. ETFs,” explained Scott Davis, head of ETFs at Capital Group. “This comes from the 47,000 advisors using our ETFs, many of whom are new to Capital and have historically been passive ETF users, like RIAs.”
VettaFi believes part of the asset growth in 2025 has been aided by the launch of Capital Group ETF model portfolios. Advisors are increasingly turning to a diversified, one-stop approach to investing. Those favoring active ETFs are able to leverage Capital Group’s broad lineup and expertise.
Indeed, 17 Capital Group ETFs have more than $1 billion in assets. The Capital Group Dividend Value ETF (CGDV) was part of the firm’s first wave of products and is the largest. The ETF manages $24 billion in assets invested primarily in U.S. dividend-paying stocks like Eli Lilly and Microsoft. It also has some international exposure through British American Tobacco. The fund has a five-star rating from Morningstar.
The Shift to Active Fixed Income ETFs
The Capital Group Core Plus Income ETF (CGCP) is another strong-performing and popular active ETF. The fixed income fund earns a four-star rating from Morningstar and manages $6 billion in assets. CGCP offers a 5.2% yield through a mix of primarily mortgage-backed obligations (44% of assets) and corporate bonds (31%). Another popular active fixed income ETF has been the Capital Group Municipal Income ETF (CGMU). The $4.4 billion CGMU was recently featured as the VettaFi ETF of the Week.
“Our bond ETFs have over $20 billion in assets across 10 strategies, and this speaks to the outsized preference for actively managed fixed income in mutual funds that we now see translating to the ETF vehicle,” noted Davis. “We’re delivering outperformance combined with the benefits of the ETF wrapper in strategies like CGMU, for example. About 20% of fixed income ETF assets are now actively managed, and that’s only going to continue to climb, and I expect we’ll be a part of that market share gain.”
New Products Gaining Traction
Some of Capital Group’s most popular ETFs are three years old. However, we are encouraged to see that newer products are gaining traction too. The Capital Group U.S. Small and Mid Cap ETF (CGMM) is one example that launched in January 2025. Even as some widely-held, index-based small-cap ETFs have incurred redemptions, CGMM’s assets are approaching $900 million.
Actively managed ETFs gathered $409 billion in the first 10 months of 2025 and $48 billion in October alone. Active ETFs comprised more than one-third of the net inflows this year and seem poised to continue to gain share in 2026. Capital Group is a key driver and beneficiary of this demand.
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