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CGCP: Plodding Along Doing Its Job, 5% Yield

Capital Group Core Plus Income ETF (CGCP) retains a ‘Buy’ rating, delivering a 5% yield and out‑performing major passive bond funds AGG and BND by 62 basis points over the past two years. The fund’s portfolio is weighted toward investment‑grade assets—36% mortgage‑backed securities, 33% corporates, and 21% Treasuries—resulting in lower drawdowns and stable alpha. With the Federal Reserve expected to cut rates aggressively in 2026, CGCP is positioned for additional capital gains. Since its 2024 launch, total return exceeds 10%.