CGDG - ETF AI Analysis

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Capital Group Dividend Growers ETF (CGDG)

Rating:69Neutral

Price Target:―

The Capital Group Dividend Growers ETF (CGDG) has a solid overall rating, driven by strong contributions from holdings like TSMC and Broadcom. TSMC benefits from its leadership in advanced technologies and AI, while Broadcom's growth in AI semiconductors and infrastructure software adds further strength. However, weaker performers like Mondelez International, facing margin pressures and bearish technical trends, slightly weigh on the fund's rating. A key risk factor is the ETF's exposure to high P/E ratio stocks, which could pose valuation concerns if growth expectations are not met.

Positive Factors

Strong Top Holdings

Several of the ETF's largest positions, such as Broadcom and TSMC, have delivered strong year-to-date performance, supporting the fund's overall returns.

Global Diversification

The ETF has exposure to multiple countries, including the USA, UK, France, and Japan, which helps reduce reliance on a single geographic market.

Healthy Sector Balance

The fund is diversified across key sectors like Technology, Financials, and Industrials, reducing the impact of sector-specific downturns.

Negative Factors

Moderate Expense Ratio

The ETF's expense ratio of 0.47% is higher than some low-cost alternatives, which may slightly reduce net returns over time.

Underperforming Holdings

Certain holdings, like Mondelez International, have shown weaker year-to-date performance, potentially dragging on the fund's momentum.

U.S.-Heavy Allocation

With over 57% of its assets in U.S. companies, the ETF is heavily reliant on the U.S. market, which may limit its ability to benefit from stronger growth in other regions.

CGDG vs. SPDR S&P 500 ETF (SPY)

AUM4.16B

RegionGlobal

Expense Ratio0.47%

Beta0.65

IssuerCapital Group

Inception DateSep 26, 2023

Dividend Yield1.92%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume662,226

30 Day Avg. Volume639,700

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

40.22

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering95

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

CGDG Summary

The Capital Group Dividend Growers ETF (CGDG) is an investment fund that focuses on companies with a strong history of increasing their dividend payments, offering both income and potential long-term growth. It includes a mix of large, mid, and small-cap companies across various sectors like technology and financials. Some well-known companies it holds are Broadcom and TSMC. This ETF is ideal for investors seeking diversification and steady income. However, new investors should be aware that its performance can fluctuate with the overall market, and dividend-paying companies may face challenges during economic downturns.

How much will it cost me?The Capital Group Dividend Growers ETF (CGDG) has an expense ratio of 0.47%, which means you’ll pay $4.70 per year for every $1,000 invested. This expense ratio is slightly higher than average because the fund is actively managed, meaning experts are selecting stocks rather than tracking an index. Active management often involves more research and decision-making, which can increase costs.

What would affect this ETF?The Capital Group Dividend Growers ETF (CGDG) could benefit from global economic growth and increased demand for dividend-paying stocks, especially in sectors like technology and financials, which make up a significant portion of its holdings. However, rising interest rates or economic downturns could negatively impact dividend-paying companies and sectors like consumer cyclical and real estate, potentially affecting the ETF's performance.

CGDG Top 10 Holdings

The Capital Group Dividend Growers ETF (CGDG) leans heavily on global dividend champions, with a notable tilt toward financials and technology. TSMC and Broadcom are rising stars, benefiting from strong demand in AI and advanced technologies, which are bolstering the fund’s performance. On the flip side, Mondelez International has been lagging, weighed down by margin pressures and bearish technical trends. Meanwhile, Philip Morris and Airbus show mixed signals, with strategic growth initiatives offset by valuation concerns. Overall, the fund’s global diversification and sector balance aim to deliver both income and growth, though some holdings are facing headwinds.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
TSM	TSMC	4.34%	$179.41M	$1.37T	53.54%	81 Outperform
AVGO	Broadcom	3.69%	$152.62M	$1.63T	44.99%	76 Outperform
PM	Philip Morris	2.52%	$103.95M	$241.51B	30.32%	61 Neutral
WELL	Welltower	2.26%	$93.50M	$127.42B	47.30%	77 Outperform
	―	1.95%	$80.67M	―	―	―
EADSF	Airbus Group SE	1.95%	$80.63M	$197.10B	54.41%	68 Neutral
D05	DBS Group Holdings	1.89%	$78.09M	S$165.61B	40.53%	78 Outperform
IBE	Iberdrola	1.87%	$77.18M	€125.42B	37.84%	67 Neutral
AZN	AstraZeneca	1.87%	$77.13M	£220.54B	29.01%	80 Outperform
TFC	Truist Financial	1.84%	$76.06M	$64.70B	15.93%	70 Outperform

CGDG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

35.26

Positive

100DMA

34.76

Positive

200DMA

33.36

Positive

Market Momentum

MACD

0.27

Negative

RSI

62.06

Neutral

STOCH

77.92

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For CGDG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 35.73, equal to the 50-day MA of 35.26, and equal to the 200-day MA of 33.36, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 77.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGDG.

CGDG Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
CGDG	―	―	$4.16B	0.47%	―
JGLO	―	―	$6.89B	0.47%	―
BDYN	―	―	$2.37B	0.40%	―
CGGE	―	―	$1.73B	0.47%	―
BDVL	―	―	$1.43B	0.40%	―
INFL	―	―	$1.35B	0.85%	―

Performance Comparison

CGDG

Capital Group Dividend Growers ETF

36.20

7.56

26.40%

JGLO

JPMorgan Global Select Equity ETF

―

BDYN

iShares Dynamic Equity Active ETF

―

CGGE

Capital Group Global Equity ETF

―

BDVL

iShares Disciplined Volatility Equity Active ETF Trust Unit

―

INFL

Horizon Kinetics Inflation Beneficiaries ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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