CGCP - CGCP: Rate Cuts Could Make This ETF Appreciate But Be Careful
2024-02-17 06:59:41 ET
Summary
- Capital Group Core Plus Income ETF is a bond-oriented thematic fund aiming to maximize returns and preserve capital.
- The fund has a good yield of 5.07%, but the risk may not be proportionate to the return compared to other bond investments.
- CGCP could appreciate significantly in 2024 due to expected rate cuts, but it also carries risks related to commercial real estate crisis.
The Capital Group Core Plus Income ETF (CGCP) is a bond oriented thematic fund, with diversified risks and durations with the aim of, according to Capital Group , maximizing returns and preserving capital. Although the fund currently has a good yield of 5.07%, the risk is not proportionate to the return, as I believe that there are more profitable and less risky forms of bond investment at the moment. On the other hand, a huge point in favor of CGCP is its upward positioning: in 2024, due to the expected rate cuts, the fund could appreciate significantly....
CGCP: Rate Cuts Could Make This ETF Appreciate, But Be Careful