CGUS - CGUS Is An Outperformer With A Harmonious Factor Balance Worth Considering
2024-02-09 22:25:00 ET
Summary
- CGUS is an actively managed investment vehicle offering exposure to an IT-heavy basket of U.S. equities as well as a relatively small footprint in overseas equities.
- There are two essential reasons why I believe investors should consider CGUS: its outstanding performance and harmonious factor mix with a growth tilt.
- Compared to its major plain-vanilla passively managed counterparts, CGUS' main downside is a 33-bps expense ratio.
- In the event of a profound market decline that might be triggered by inflation and/or monetary policy surprises, CGUS will likely suffer, but less than IVV.
Over the past few years, the markets have been through the wringer amid geopolitics, gyrating commodity prices, the capital shortage era, the bear market induced by it, and a few false rebounds triggered by inflation data deviating from expectations. Nevertheless, as the dovish narrative prevailed, a massive recovery resulted in the S&P 500 teetering around the 5,000 landmark. There is no denying that beating the U.S. flagship index was an exceptionally tough task over that period. But the Capital Group Core Equity ETF ( CGUS ) managed to do that. And I have a Buy rating on it....
CGUS Is An Outperformer With A Harmonious Factor Balance, Worth Considering