Capital Group Launches 5 Active ETFs

Capital Group is launching five active exchange-traded funds Thursday on the New York Stock Exchange, expanding the investment firm’s active ETF selection to 14. The lineup includes Capital Group’s first multi-asset ETF as well as two fixed income and two equity funds.

Why it matters: Capital Group’s existing nine active ETFs had surpassed $12 billion in assets under management as of Aug. 31. The firm, which offers the American Funds, managed more than $2.3 trillion in equity and fixed income assets as of June 30. The asset manager says it has led in year-to-date flows, amassing $12.4 billion into vehicles including mutual funds, ETFs and actively managed portfolios.

What to know: Scott Davis, Capital Group ETF head, said in a statement that the company sees increasing demand for fixed income ETFs in particular, “as the Federal Reserve appears to be nearing the conclusion of its interest rate cycle, and we anticipate an influx of historic cash flows into active fixed income services.”