Capital Group Short Duration Municipal Income ETF

Frequently Asked Questions About CGSM

What does CGSM invest in?

The Capital Group Short Duration Municipal Income ETF (CGSM) aims to generate current income that is exempt from regular federal income tax. It achieves this while maintaining a short-duration investment profile and prioritizing the preservation of capital. The fund distinguishes itself by allocating at least 80% of its assets to bonds and other debt instruments, encompassing various municipal bonds. These municipal obligations are notable for providing interest income that is generally exempt from federal income tax, with their payments funded by a wide array of sources, from government revenues to private enterprises. The fund's average portfolio duration is carefully managed to stay within one year of the average duration of the Bloomberg Municipal Short 1-5 Years Index. In line with its primary goal, the fund typically invests at least 80% of its holdings in, or generates at least 80% of its income from, securities that are exempt from regular federal income tax. However, it may allocate up to 20% of its assets to 'private activity bonds,' which fund private, for-profit organizations and whose interest income may be subject to the federal alternative minimum tax (AMT).

What is the expense ratio of CGSM?

Capital Group Short Duration Municipal Income ETF (CGSM) charges an expense ratio of 0.25%. This is the annual fee deducted from fund assets to cover management and operations.

What is CGSM's dividend yield?

CGSM's trailing-twelve-month yield is 2.97%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of CGSM?

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

What is the credit quality of CGSM?

CGSM'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 CGSM?

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