In the investment landscape, it is hard to undermine the performance of growth stocks and their impact on the stock market over the past decade. Growth stocks, defined as companies that have the potential to outperform the market due to future potential, have performed very strongly since the end of the 2008 financial crisis. These companies are often leading innovators who are offering new or improved products or services and have the potential for strong earnings growth. These differ greatly from value companies, which are typically companies that are undervalued but have stable earnings that do not have as much room for growth. While past performance is not indicative of future results, exposure to growth stocks can offer diversification benefits and growth opportunities within a portfolio.
Capital Group, a well-respected financial services company that has existed since 1931, has recently introduced their own lineup of ETFs, including the Capital Group Global Growth Equity ETF. This ETF invests in companies with growth potential and also analyzes each company by analyzing their respective business positioning, the strength of their supply chain, and where their business takes place. The portfolio managers of the ETF partake in a bottom-up approach in which they start their research at the individual level and then broaden their research scope to consider the entire investment environment as a whole. As a result, the investment team invests in many companies that are well known today, including Microsoft, Apple, NVIDIA, and 87 others. With a solid foundation and an experienced investment team, the Capital Group Global Growth Equity Fund looks like a solid investment option for investors looking for exposure in the growth category.
Within the MVT Common Fund, we invest in the Capital Group Global Growth Equity ETF. We believe that this ETF helps benefit our clients and stands upon our beliefs at MVT in the safety of principal, diversification, and liquidity. The following table lists the top ten holdings that are held within CGGO:
Past performance does not guarantee future results. For illustrative purposes only. Data Sources: Capital Group, 8/23.
Interested in the Common Fund? If so, please contact us at (312)-922-1717 for more information.