Core Insights - Capital Group's active ETF lineup has reached $98 billion in assets as of November 5, demonstrating rapid growth since the launch of six ETFs in February 2022 [1] - The firm has become a top three active ETF manager in the U.S. with 25 ETFs, driven by the adoption of their products by 47,000 advisors, many of whom are new to Capital Group [2] Asset Performance - Seventeen Capital Group ETFs have surpassed $1 billion in assets, with the Capital Group Dividend Value ETF (CGDV) managing $24 billion, primarily invested in U.S. dividend-paying stocks [3] - The Capital Group Core Plus Income ETF (CGCP) manages $6 billion and offers a 5.2% yield, while the Capital Group Municipal Income ETF (CGMU) has $4.4 billion in assets [4][5] Market Trends - Active fixed income ETFs have seen significant growth, with over $20 billion in assets across 10 strategies, reflecting a shift from mutual funds to ETF vehicles [5] - Actively managed ETFs gathered $409 billion in the first 10 months of 2025, with $48 billion in October alone, indicating strong demand and market share growth for Capital Group [7] New Product Development - Newer products like the Capital Group U.S. Small and Mid Cap ETF (CGMM), launched in January 2025, are gaining traction, with assets approaching $900 million despite redemptions in other small-cap ETFs [6]

Group 1 - The article initiates coverage of the Capital Group U.S. Small and Mid Cap ETF (CGMM) with a Hold rating, indicating a cautious approach to investment in this ETF [1] - The author emphasizes the importance of analyzing Free Cash Flow and Return on Capital in addition to profit and sales to gain deeper insights into investment opportunities [1] - The focus is on identifying underappreciated equities with strong upside potential, while also recognizing that some growth stocks may justifiably have premium valuations [1] Group 2 - The author has a background in various sectors, particularly the energy sector, including oil & gas supermajors and mid-cap exploration companies, indicating a broad industry expertise [1] - The article reflects a belief that meticulous analysis is essential for investors to avoid simplistic conclusions about market valuations [1]