Capital Group Core Bond ETF

Frequently Asked Questions About CGCB

What does CGCB invest in?

The Capital Group Core Bond ETF (CGCB) endeavors to deliver a high level of current income, consistent with the diligent preservation of investors' principal capital. Its portfolio primarily consists of debt instruments from corporations and various government bodies (both domestic and international), mortgage-backed securities, and cash. The fund also retains the flexibility to invest in fixed-income securities issued by companies and governments situated outside the United States. Crucially, at least 80% of its total assets will be invested in bonds and other debt instruments, a definition that encompasses cash equivalents and specific preferred securities. The fund may also utilize derivative instruments, such as futures contracts and swap agreements, to represent underlying investments. Finally, up to 5% of the fund's assets may be allocated to common stocks, warrants, or rights, but only if these equity holdings are obtained from the sale of associated debt securities or via debt-for-equity exchanges.

What is the expense ratio of CGCB?

Capital Group Core Bond ETF (CGCB) charges an expense ratio of 0.27%. This is the annual fee deducted from fund assets to cover management and operations.

What is CGCB's dividend yield?

CGCB's trailing-twelve-month yield is 4.26%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of CGCB?

Effective duration measures CGCB's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. CGCB's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of CGCB?

CGCB's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of CGCB?

Yield to maturity (YTM) is the total return you'd earn from CGCB if every bond in the portfolio is held to maturity at the current price. CGCB's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.