Capital Group's $3B ETF Run Spawns 3 New Bond Funds

Capital Group is launching a fresh trio of exchange-traded debt funds, looking to cash in on the active-management mania that sent its ETF assets ballooning to $3.5 billion this year.

The new batch of bond funds will start trading Thursday on the New York Stock Exchange, just eight months after the Los-Angeles based firm became the last major money-management firm to wade into the U.S.’s $6 trillion ETF market.

With focuses spanning from municipal bonds to short-duration debt, the ETFs are meant to offer access to high yields while managing risk linked to the Federal Reserve’s aggressive monetary policy, said Ryan Murphy, director of fixed income business development at Capital Group.

“We’re in an environment where you’re actually getting a very sizable amount of income out of fixed income,” he said.

Inflows into fixed-income ETFs nearly doubled in the past week to more than $9 billion, marking the fourth straight week of inflows, led by credit, according to data compiled by Bloomberg.