Capital Group Municipal High-Income ETF

Frequently Asked Questions About CGHM

What does CGHM invest in?

This exchange-traded fund (ETF) aims to generate substantial ongoing income that is exempt from ordinary federal income taxes. Its core investment strategy involves primarily acquiring bonds and notes issued by state, municipal, and public authorities. Typically, a minimum of 80% of its portfolio will be dedicated to these tax-exempt securities, though it retains the flexibility to invest entirely (up to 100%) in bonds whose interest might be subject to the Alternative Minimum Tax (AMT). A key feature of this fund is its emphasis on higher-yielding municipal debt: generally, at least 60% of its assets will be allocated to debt securities rated BBB+ or Baa1 or lower by recognized statistical rating organizations at the time of purchase, or to unrated bonds that the fund's investment adviser deems to be of equivalent quality. The fund's holdings are typically comprised of securities with intermediate to long-term maturities.

What is the expense ratio of CGHM?

Capital Group Municipal High-Income ETF (CGHM) charges an expense ratio of 0.34%. This is the annual fee deducted from fund assets to cover management and operations.

What is CGHM's dividend yield?

CGHM's trailing-twelve-month yield is 4.40%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of CGHM?

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

What is the credit quality of CGHM?

CGHM'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 CGHM?

Yield to maturity (YTM) is the total return you'd earn from CGHM if every bond in the portfolio is held to maturity at the current price. CGHM'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.