Capital Group Files California Muni ETF Targeting Federal and State Tax-Exempt Income

Capital Group has filed for the Capital Group California Municipal Bond ETF (CGCA), an actively managed fund aimed primarily at taxable California residents seeking tax-exempt income. The ETF will normally invest at least 80% of its assets in securities exempt from both regular federal and California state income taxes, with a focus on municipal bonds issued by California, its agencies and local governments. It may also hold municipal debt from other jurisdictions and securities financing private projects. The portfolio will primarily invest in investment-grade debt, but up to 20% of assets may be allocated to below-investment-grade bonds. Up to 30% may be invested in securities subject to the federal alternative minimum tax. The fund will be managed by a team of Capital Group portfolio managers using the firm's fundamental, valuation-driven investment approach.