CGUS - ETF AI Analysis

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Capital Group Core Equity ETF (CGUS)

Rating:71Outperform

Price Target:―

The Capital Group Core Equity ETF (CGUS) demonstrates solid overall quality, driven by strong contributions from top holdings like Microsoft and Nvidia. Microsoft's robust growth in cloud and AI segments, along with strategic investments, supports a positive long-term outlook, while Nvidia's focus on AI and data center expansion positions it well for sustained growth despite some valuation concerns. However, weaker performers like JPMorgan Chase, which faces challenges in cash flow management and credit costs, slightly weigh on the fund's overall rating. Investors should also note the ETF's concentration in high-valuation tech stocks, which could pose risks in volatile market conditions.

Positive Factors

Strong Top Holdings

Several top positions, including Nvidia, Broadcom, and Microsoft, have delivered strong year-to-date gains, driving the fund’s overall performance.

Sector Diversification

The ETF is spread across multiple sectors, with significant exposure to Technology, Industrials, and Consumer Cyclical, reducing reliance on any single industry.

Reasonable Expense Ratio

The fund’s expense ratio is relatively low, making it cost-effective compared to many actively managed ETFs.

Negative Factors

High Geographic Concentration

The ETF is heavily focused on U.S. companies, with over 95% exposure, limiting diversification across global markets.

Underperforming Holdings

Some holdings, such as Amazon and Apple, have shown weaker year-to-date performance, which may drag on overall returns.

Technology Overweight

With over 34% of the portfolio in Technology, the fund is highly exposed to potential volatility in this sector.

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

AUM8.36B

RegionNorth America

Expense Ratio0.33%

Beta0.96

IssuerCapital Group

Inception DateFeb 22, 2022

Dividend Yield0.94%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume959,094

30 Day Avg. Volume1,031,203

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

48.28

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering69

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

CGUS Summary

The Capital Group Core Equity ETF (CGUS) is a fund designed to give investors exposure to a wide range of companies across different sectors and sizes, primarily in the U.S. It includes a mix of growth and value stocks, aiming for long-term growth. Some of its top holdings are well-known companies like Microsoft and Nvidia, which are leaders in the technology sector. This ETF is a good option for investors looking for diversification and a balanced approach to investing in the stock market. However, since it heavily invests in technology companies, its performance may be affected by fluctuations in the tech industry.

How much will it cost me?The Capital Group Core Equity ETF (CGUS) has an expense ratio of 0.33%, which means you’ll pay $3.30 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed, meaning professional managers select stocks to try to outperform the market. Active management often comes with higher costs compared to passively managed funds that simply track an index.

What would affect this ETF?The Capital Group Core Equity ETF (CGUS) could benefit from continued growth in the technology sector, which makes up a significant portion of its holdings, as well as strong performance from top companies like Microsoft and Nvidia. However, potential risks include economic slowdowns or rising interest rates, which could negatively impact growth stocks and sectors like consumer cyclical and financials. Additionally, regulatory changes targeting major tech firms could pose challenges for the ETF's largest holdings.

CGUS Top 10 Holdings

The Capital Group Core Equity ETF (CGUS) leans heavily into technology, with names like Microsoft and Nvidia driving the fund’s performance thanks to their focus on AI and cloud innovation, though Nvidia’s recent momentum has been mixed. Broadcom’s steady gains in AI semiconductors add stability, while Amazon’s growth in AWS and advertising provides a boost despite short-term weakness. On the healthcare front, Eli Lilly shines with strong gains, bolstered by positive earnings sentiment. With a clear tilt toward U.S. tech and healthcare giants, CGUS is riding the wave of innovation but remains exposed to valuation risks in these high-growth sectors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	7.19%	$603.06M	$4.57T	36.90%	76 Outperform
MSFT	Microsoft	7.06%	$591.57M	$3.62T	15.56%	79 Outperform
AVGO	Broadcom	5.46%	$457.34M	$1.66T	50.70%	76 Outperform
AMZN	Amazon	4.65%	$390.08M	$2.48T	5.78%	71 Outperform
LLY	Eli Lilly & Co	4.11%	$344.75M	$1.02T	39.73%	72 Outperform
AAPL	Apple	3.93%	$329.39M	$4.05T	9.32%	79 Outperform
RTX	RTX	3.36%	$281.86M	$247.27B	60.06%	74 Outperform
META	Meta Platforms	3.36%	$281.29M	$1.66T	12.50%	76 Outperform
GOOGL	Alphabet Class A	2.40%	$201.45M	$3.79T	65.64%	85 Outperform
JPM	JPMorgan Chase	2.34%	$195.88M	$881.33B	35.06%	72 Outperform

CGUS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

39.93

Positive

100DMA

39.40

Positive

200DMA

37.10

Positive

Market Momentum

MACD

0.18

Negative

RSI

58.49

Neutral

STOCH

86.30

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For CGUS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 40.15, equal to the 50-day MA of 39.93, and equal to the 200-day MA of 37.10, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 86.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGUS.

CGUS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
CGUS	―	―	$8.36B	0.33%	―
QLTY	―	―	$3.06B	0.50%	―
DCOR	―	―	$2.42B	0.14%	―
APUE	―	―	$2.18B	0.31%	―
TSPA	―	―	$2.14B	0.34%	―
DFSU	―	―	$1.89B	0.17%	―

Performance Comparison

CGUS

Capital Group Core Equity ETF

40.51

5.96

17.25%

QLTY

GMO U.S. Quality ETF

―

DCOR

Dimensional US Core Equity 1 ETF

―

APUE

ActivePassive U.S. Equity ETF

―

TSPA

T. Rowe Price U.S. Equity Research ETF

―

DFSU

Dimensional US Sustainability Core 1 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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