CGSD
(Capital Group Short-Duration Income ETF) is an exchange-traded fund
(ETF) managed by Capital Research and Management Company. The ETF
seeks to provide investors with exposure to a diversified portfolio of
short-term fixed income securities.
As a short-duration fixed
income ETF, CGSD invests primarily in a diversified portfolio of
investment-grade fixed income securities with maturities of three
years or less. The ETF aims to provide investors with a stable source
of income and the potential for capital preservation by investing in
short-term fixed income securities with relatively low credit and
interest rate risk.
As of September 2021, the CGSD ETF had
total net assets of around $20 million and was invested in a
diversified portfolio of short-term investment-grade fixed income
securities. The fund's holdings are managed by the investment
professionals at Capital Research and Management Company, who have
extensive experience in managing fixed income portfolios.
In
terms of performance, CGSD has delivered relatively stable returns
over the short term, with a focus on generating income through the
coupon payments from short-term fixed income securities. The ETF's
focus on short-term fixed income securities with relatively low credit
and interest rate risk means that it can provide investors with a
relatively low-risk investment option with some potential for income.
Investors should keep in mind that like all investments, CGSD
carries risks, including the risk that interest rates may rise, which
can result in a decline in the value of the ETF's holdings.
Additionally, the ETF charges a relatively low expense ratio of 0.29%,
which is in line with the average expense ratio for short-duration
fixed income ETFs. Investors should carefully consider their
investment objectives and risk tolerance before investing in CGSD or
any other short-duration fixed
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