CGSM

Capital Group Short Duration Municipal Income ETF

$26.34

+0.00%

Market closed. Last update: 10:57 PM ET

📎 Investment Objective

The Capital Group Short Duration Municipal Income ETF (CGSM) seeks to provide current income that is exempt from federal income tax by investing primarily in short-term municipal bonds.

Overview

ETF tracking Capital Group Short Duration Municipal Income ETF

Category Municipal Bonds

Issuer Other

Inception Date 2023-09-28

Market Cap $835.1M

Average Volume N/A

Dividend Yield 2.53%

52-Week Range $25.74 - $26.52

VWAP $26.35

Performance

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Investment Summary

📎 Investment Objective

The Capital Group Short Duration Municipal Income ETF (CGSM) seeks to provide current income that is exempt from federal income tax by investing primarily in short-term municipal bonds.

🎯 Investment Strategy

The fund invests in a diversified portfolio of municipal bonds with an average duration of 3 years or less. The portfolio managers aim to generate tax-exempt income while limiting interest rate risk through a focus on shorter-maturity bonds.

✨ Key Features

Invests in short-term municipal bonds to generate tax-exempt income
Targets an average portfolio duration of 3 years or less to reduce interest rate sensitivity
Actively managed by experienced municipal bond portfolio managers
No expense ratio as of the latest reporting period

⚠️ Primary Risks

Interest rate risk: The fund's share price and yield will be affected by changes in interest rates
Credit risk: The possibility that bond issuers will be unable to make interest or principal payments
Liquidity risk: The potential difficulty in selling municipal bonds, especially in times of market stress
Tax risk: Changes in tax laws could affect the tax-exempt status of the fund's municipal bond holdings

👤 Best For

This ETF may be suitable for investors seeking tax-exempt income and lower interest rate risk, such as those in or near retirement or with a conservative risk tolerance. However, the lack of performance history makes it difficult to assess the fund's long-term viability.