CGSD
Capital Group Short Duration Income ETF
📎 Investment Objective
The Capital Group Short Duration Income ETF (CGSD) seeks to provide current income while preserving capital by investing primarily in short-term, investment-grade fixed income securities.
Overview
ETF tracking Capital Group Short Duration Income ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Capital Group Short Duration Income ETF (CGSD) seeks to provide current income while preserving capital by investing primarily in short-term, investment-grade fixed income securities.
🎯 Investment Strategy
The fund invests in a diversified portfolio of short-term bonds, including U.S. government, corporate, and securitized debt. The portfolio managers aim to maintain a weighted average duration of 1-3 years to limit interest rate risk and volatility.
✨ Key Features
- Focuses on short-term, high-quality fixed income securities to generate current income
- Maintains a low-to-moderate duration profile to reduce sensitivity to rising interest rates
- Diversified portfolio across government, corporate, and securitized debt
- Actively managed by experienced fixed income portfolio managers
⚠️ Primary Risks
- Interest rate risk: The fund's value may decline if interest rates rise
- Credit risk: The fund is exposed to the risk of default by the issuers of the bonds it holds
- Liquidity risk: It may be difficult to sell certain securities, especially in volatile markets
- Reinvestment risk: When interest rates fall, the fund may have to reinvest coupon payments or proceeds from sales of securities at lower rates
👤 Best For
This ETF may be suitable for investors seeking current income and capital preservation, with a low-to-moderate risk tolerance. It can be used as a core fixed income holding or to provide stability in a diversified portfolio.