It is an active ETF that does not track a specific benchmark index. Instead, a professional management team directly selects global companies that combine dividend yield with dividend growth potential.

It suits medium- to long-term investors who want exposure to dividend growth through active stock selection rather than index tracking.

The ETF is managed by Capital Group using an active management approach.

Multiple portfolio managers select stocks on a semi-independent basis, building the portfolio by evaluating dividend yield and dividend growth potential together. It holds not only large-cap U.S. stocks but also high-quality overseas companies, giving broad access to the global dividend growth theme.

• Active stock selection rather than passive index tracking
• A global portfolio of holdings that is not limited to the U.S.

Assets under management (AUM) stand at $5.9B, and the total expense ratio is 0.47% per year.

EQTY, SDIV, FDD, EYLD, KAT, and others shown alongside it in the table are similar-category products focused on high dividend yield or on dividend stocks in specific regions. This ETF takes a different approach, as a global active strategy that looks at dividend yield and dividend growth together.

Since its launch, its asset base has grown steadily, reflecting investor interest in the dividend growth theme. However, because of its active management, its returns relative to a benchmark may diverge depending on market conditions.

Demand for the dividend growth theme and for active management has coincided to sustain fund inflows, while changes in the interest rate environment also affect capital flows across dividend stocks as a whole.

Its strength is an active approach to global dividend growth stocks, while its weaknesses are a higher fee level than passive funds and the uncertainty of active management.

The comparison products shown together in the table take different approaches even within the high dividend and dividend growth categories. Some aim for high dividend yield and some focus on European dividend stocks, so their regional and strategic focus differs from this ETF. Meanwhile, representative comparisons within the same dividend growth theme include the low-cost, passive index-tracking VIG and DGRO, and SCHD, which applies stricter dividend growth requirements, is also worth considering. All of these are passive products that simply follow an index, which marks a fundamental difference from this actively managed ETF.

Here are points to review before investing in CGDG. The fee level typical of active management, the deviation in performance versus a benchmark, and the structure of its global holdings should be checked in advance.

Performance deviation versus a benchmark, which is typical of active management, and concentration risk from a non-diversified structure are the main drivers of short-term volatility. Dividend stocks as a whole can also react sensitively to changes in the interest rate environment.

It is a suitable choice for investors who want active selection of dividend growth stocks rather than index tracking. If you are cost-sensitive, passive alternatives such as VIG and DGRO are also worth considering.