CGCP: An Active Bond Fund That's Working

(6min)

Summary

  • Investors are shifting from covered call equity strategies to traditional fixed-income assets, making the Capital Group Core Plus Income ETF a compelling option.
  • The fund diversifies across government debt, agency bonds, corporate bonds, mortgage-backed securities, and emerging market debt, with a significant U.S. focus.
  • Compared to AGG and BND, CGCP offers higher yields and flexibility through opportunistic investments in high-yield bonds and non-U.S. dollar markets.
  • Despite potential credit risks and a high portfolio turnover rate, CGCP's balanced approach and 5.39% SEC yield make it a strong, low-risk choice.
  • Looking for a helping hand in the market? Members of The Lead-Lag Report get exclusive ideas and guidance to navigate any climate. Learn More »

Yield Road Sign Post Over a Blue Sky

ryasick

They wanted yield when there was none, now they don't want traditional yield when there is some. I use the word traditional here because the ETF world has seen some incredible inflows into covered call equity strategies that juice yield and


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This article was written by

Michael A. Gayed, CFA profile picture
30.48K Followers
Michael A. Gayed is portfolio manager, and author of five award-winning research papers on market anomalies and investing. He has a BS with a double major in Finance & Management from NYU Stern School of Business, and is a CFA Charterholder. Michael runs the investing group The Lead-Lag Report, focused on helping investors outperform in all market conditions. It offers a tactical, data-driven approach to investing, to achieve long-term success even in the face of uncertainty. With increasing market volatility, it's essential to understand risk-on/risk-off signals, seize high-yield opportunities, and leverage award-winning research to maximize returns. Learn More.

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