Capital Group amasses $150B in active ETFs in four years

Capital Group gathered $150 billion in U.S. ETF assets in just over four years and by March 2026 had become the third-largest active ETF manager in the country. Active ETFs accounted for 42% of net ETF inflows in the first quarter of 2026, up from about 9% when the firm entered the market.

At the Investment Company Institute conference, Scott Davis described the firm’s approach to launching its ETF suite a little over four years ago. He said the goal was to put Capital Group’s investment process into an ETF structure while offering transparency, tradeability and tax efficiency. “When we launched our ETF suite a little over four years ago, we felt strongly that if we could bring Capital Group’s investment process into the ETF vehicle it would resonate with advisors,” Davis told attendees.

Capital Group emphasized fundamental active strategies rather than quantitative or options-based methods used by some peers. The company expanded its fixed-income line from short-duration funds to higher-income municipal products. Notable funds include the Capital Group Core Municipal Income ETF (CGMU), which manages about $6 billion, and the Capital Group Multi-Sector Income ETF (CGMS), which manages about $5 billion.

Adoption of the firm’s ETFs spans advisory channels. Roughly one-fifth of users are in the registered investment advisor channel. Industry data rank the firm among the top three model portfolio providers. Capital Group offers eight model suites and has introduced a model portfolio service that lets advisors combine Capital Group ETFs with other institutional strategies to design client portfolios.

On the equity side, advisors frequently use two flagship funds together as an alternative to concentrated large-cap index exposure. The Capital Group Dividend Value ETF (CGDV) manages about $36 billion and targets income-producing companies. The Capital Group Growth ETF (CGGR) manages about $25 billion and delivers active growth exposure.

Davis said future asset growth will depend more on how advisors implement core strategies than on launching many new products. As of March 2026, Capital Group’s U.S. ETF suite managed $150 billion while active ETFs represented 42% of ETF net inflows for the quarter.