CGCV: Likely To Underperform IVV Owing Low Beta Names That Restrain Upside Capture

Capital Group Conservative Equity ETF is actively managed, with its goals being "current income, growth of capital and conservation of principal." The CGCV portfolio has a tilt towards low-beta defensive names and the value factor, while growth and GARP characteristics are quite weak. Quality is adequate but not exemplary. Historical performance data (i.e., the upside capture ratio) and CGCV's current factor mix support a hypothesis that it will lag IVV this year.